| I am very pleased indeed to be here
for the CORDIA biotechnology convention and to be participating in World
Life Science week.
I am also very pleased that the CORDIA organisers
have chosen the UK as the location for this conference. The timing is
ideal; the UK holds the European Presidency at the moment and one of our
top priorities is to enhance the European economy’s potential for research
and innovation.
This event will provide a real boost for the
European biotechnology sector. I find it very encouraging that so many
eminent representatives of the sector have been able to travel to London
for this event and I congratulate the organisers for their hard work in
bringing it about.
I will start by talking about the Lisbon Agenda.
There is no doubt that Europe has a daunting
mountain to climb between now and 2010. Whether we view globalisation as a
threat or an opportunity, it is clear that the climate in which policy is
formed has changed dramatically since 2000, when European leaders met in
Lisbon and set themselves the ambitious target of making Europe the most
dynamic and competitive knowledge based economy in the world by 2010.
For most of the post-war period, Europe could
pursue its own economic and social policies, without really worrying about
its international position. Its achievements were remarkable: peace and
prosperity in a continent that had been nearly destroyed by war.
But today, Europe can no longer afford to look
inwards and to its past achievements. The volume of world trade has grown
twenty fold since 1950. The World’s stock of Foreign Direct Investment has
grown thirteen fold since 1980. And emerging and developing countries have
increased their share of world trade by a third since 1990.
Europe needs to adapt to the changing balance of
global economic activity, and the rise of fast-growing economies, notably
China and India.
At a time in our history when the volume of
scientific knowledge is doubling every five to seven years, India produces
more science graduates each year than the whole of the European Union.
In 2004 China and India produced 125,000 computer
science graduates; the figure for the UK was 5,000.
China has tripled its spending on Research and
Development over the last five years; India plans to increase the size of
its biotechnology sector five-fold over the next five years.
And let’s not forget that even if China does overtake the US and become
the world’s largest economy in 2039, as Goldman Sachs has predicted, the
US remains formidable - out-performing the European Union in nine out of
twelve innovation indicators, including patents, tertiary education,
business Research and Development expenditure and early stage venture
capital.
This is why it is of urgent and paramount
importance that Europe achieves the goals we set out in the Lisbon Agenda
for 2010.
Biotechnology is playing a significant role in the
Lisbon agenda, and the European Union has an important part to play in
championing the sector. We know that there is a great deal of common
ground within Europe on how to develop biotechnology. But we cannot be
complacent if we want Europe to match the US’s success.
Industry figures show that the US is still
responsible for 78% of global public company revenues in the biotech
sector.
That is why I am pleased that the third Progress
Report on the Life Sciences and Biotechnology Strategy demonstrates how
the sector is moving forward and is seeking to build on solid foundations.
The UK Government supports the work of the
Commission and its pro-active role in reviewing the effectiveness of the
sector. The Report rightly highlights areas that need improvement – for
example harmonisation of the way in which Community legislation is
implemented in each Member State. Industry needs to know that companies
can expect full legal protection of their biotech inventions throughout
the European Union. If this protection is not offered, it will lead to
barriers for innovation throughout Europe.
The proposed independent study and cost benefit
analysis of biotechnology and genetic engineering in terms of economic,
social and environmental aspects will be of great benefit in demonstrating
exactly how the sector will help in fulfilling the Lisbon Agenda.
There is also important work under way to improve
the European environment for pharmaceutical innovation – which will for
the benefit both patients and our economies.
Europe has some highly successful global
companies, but needs to reverse its declining share of global
pharmaceutical R&D. Commissioner Verheugen has set out a strategy on
innovation, prices and patients which the UK is keen to help move forward.
And the Innovative Medicines Initiative Strategic Research Agenda is
currently open for consultation. That initiative could offer significant
benefits which need to be considered very seriously.
The UK’s Department of Trade and Industry works
continuously to maintain the best possible business environment for
bioscience companies. This means influencing many complex and technical
Directives and regulations, and working with our European partners to
ensure that they are based on sound science and that the requirements are
measurable and enforceable. Our aim is always to ensure that the
regulations provide a predictable base so that industry can forward plan.
Regulation must be evidence-based and strike the
right balance between promoting innovation and addressing public safety,
health, environmental and societal needs. It is crucial that society and
Government work with the industry to clearly understand the issues and set
the framework within which the bioscience industry can innovate, be
competitive and develop effectively. In that way we will continue to
benefit from life-saving treatments and new industrial and agricultural
technologies. It will also enable us to achieve the full economic
potential of the biosciences.
The UK Government believes that by keeping
legislation and regulations in line with changing circumstances and
scientific developments we can provide a favourable environment for
research and development. One example is the on-going research into stem
cells. A considered, balanced, but proactive approach to regulations in
the use of embryonic stem cells has put the UK in a leading position
internationally, attracting top scientists in this area. We have set up a
National Stem Cell Bank, which further enhances the attractiveness of the
UK for stem cell research. This Bank provides a key facility for research
by providing a supply of stem cells and a framework for the controlled and
ethical use of stem cells.
But there are significant challenges before us
which, if neglected, may hinder the development of the bioscience sector.
As difficult as some of those challenges are, it is our duty to find
solutions to ensure that the bioscience sector continues to grow and play
a major role in the economic prosperity of the European Union and in the
global market.
It is because these challenges have to be met that
the UK is proud to be hosting later today a Bioscience Roundtable event to
bring together European and Member State policymakers, industry, academia
and investors. I’m looking forward to meeting them later at an event which
will take forward many of the issues I have mentioned.
The discussions will focus particularly on
regulation, finance and plant science. The conclusions will be publicized
widely and the Finnish Presidency will assist us and our partners in
making urgent progress on the actions necessary to improve the European
environment for the biotechnology sector.
I wish you all a most enjoyable and successful
convention.
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