Part - I

With a compounded annual growth rate of 17.51% in the last ten years, the biotechnology industry is one of the fastest growing in the world. The opportunity for further growth abounds as clarity is emerging on the biotechnology and the application of the same on various facets of life.

Biotechnology can be defined as a collection of technologies that capitalize on the attributes of cells, such as their manufacturing capabilities, and put biological molecules, such as DNA and proteins, to work for us. Following is the broad classification of biotechnology - Biopharmaceuticals, Bioagriculture, Bioindustrial, Bioinformation, Bioservices, and Biosuppliers. The strength of biotechnology lies in the effective diagnostic of diseases and their subsequent treatment efficaciously. Having said that, since the technology is at a very nascent stage the long-term repercussion of the applications is still unknown. With the gradual depletion of natural resources and the increasing demand of the growing as well as the aging population, the world at large is welcoming biotechnology. The very concept of a qualitative as well as a quantitative increase in production through biological means holds mass appeal to the changing demographic profile of the Globe.

The Biotech industry maybe new, but the methods adopted in biotechnology are not new to the world. The evolution of biotechnology extends over three phases - the traditional phase incorporates the blending of various crops by farmers to produce new varieties of products and the modern phase includes identification of cellular and DNA structures through genetic engineering and other technologies. Like pharmaceutical industry, protection of rights on discovery forms an important part of the business, as is an innovation driven one. IPR clauses on pharmaceutical products are very clear, but the patenting of living organisms still remains vague. This ambiguity is even greater in countries like India, where the average spending on R&D is very little and the whole industry operates in the reverse engineering model. But 1st Jan 2005, is the date for the adaptation of product patent in India. This is supposed to boost multinational activities in the country.

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* Contributed by -
Vivek Bajaj,
PGP 2,
IIM Indore.