RESOLUTION
of the third International conference "Biotechnology and Business"

On 21-22 of April, 2003 in Moscow the third International conference "Biotechnology and Business" took place.

Aim of the conference was the demonstration of the current projects in the field of biotechnology, mechanisms of infrastructure, real possibilities for interaction of business and science.

Support in the organization of the conference render Scientific-Expert Council for the Chairman of Soviet of Federation, of Federal Sobraniye, RF; Ministry of for Industry, Science and Technologies, RF.

The form of the conference was presented by two plenary sessions and 8 sectoral sessions.

In the preparation of the conference the Organizing Committee made a decision to depart from branch division of sections and to elucidate separate modes of business making. It was used so called system of case studies: the presenters told about interesting solutions of the arisen problems in the field of project management, attraction of investments, choice of personnel, transfer of the technologies, etc. The following tendencies of biotechnological market development were revealed.

BIOTECHNOLOGY AS A MARKET

Volume of biotechnological produce consuming in Russia in 2002 was almost $1,4 billion, but the volume of domestic production hardly exceeded $400 mln.

Pharmaceutics

In 2002 the consuming of biotechnological pharmaceutical preparations in Russia increased in average for 15 % as compared to 2001. Market volume approached $850 mln. This figure significantly exceeds the value of the last year ($580millions) thanks to the inclusion of biologically active additives for humans to the summarized value (BAA).
Part of domestic manufacturers in the market was about 35%. Position of Russian pharmaceutics are especially strong in the regions, where the part of cheap antibiotics and vitamins of not the last generation is great.
The replacement of medicinal means generations in the West threatens even these unsteady positions of Russian manufacturers. By the prediction of specialists, in the nearest 5 years the market of biotechnological medical preparations should be changed for 80%.

Agriculture

The last year was marked by vigorous growth of the investments into agricultural production from the side of agro-holdings that got strong. And the introductions of quotes for the import of meat and poultry during a year have increased a demand for amino acids, vitamins, vaccines and antibiotics used in husbandry.
In the world and gradually in Russia a wide spreading in agriculture are getting modified plants, differing by higher yield, resistant to parasites and chemicals. Bio-technologies are used in industry for the production of enzymes, cosmetics, in waste processing and in power engineering on basis of biomass.

Food industry

By the evaluation of the specialists from "Abercade Consulting", the enterprises of food industry have purchased biotechnological products in 2002 for the sum of $ 115 mln. Annual growth was 15% and was caused by the increase of the demand for the enzymes, starters, vitamins and useful bacteria from the side of the developing diary, meat industries and brewing.

ACTIVITY OF STATE ON INNOVATION MARKET

A new sector of economics has been appearing for our country, where come forward as a good not knowledge and technologies, but the right for intellectual property.
Decree of the Government, RF, of 30 of November, 2001 N 1607 approved the Main directions for the realization of state policy for the attraction of scientific-technical activity results into economic turnover.
The basis for these directions is a principle of the attraction of investing non-budget means and to divert the unusual for the State function- commercialization of the results from scientific-technical activity and expenditures, connected with this function. Main role of the State - regulation of the process for lawful protection and the application of these results in civil turnover.

TRANSFER OF TECHNOLOGIES

Volume of world trade by licenses on the objects of intellectual property has been increasing annually for 12%, at the same time the rate of growth of world industrial production does not exceed 2,5-3% a year. Russia, having the advantages in scientific-technical potential and qualified personnel and with its large scientific base available (12% of the number of scientists from all the world), in the market of civil scientifically advanced produce has only 0,3% - 0,5%, while the part of US is 36%, of Japan - 30%, of China - 6%. The highest expenditures for innovations of Russian enterprises are the purchasing of cars and equipment (62,2%). At the same time, for the acquiring of new technologies only 18,3% of all budget for innovations are spent. Of them for the acquiring of the rights for intellectual property - 10,5%. In total volume of the expenditures of enterprises for innovations the overwhelming part is own budget - 82,3%, part of foreign investments - 5,3%, of federal budget - 2,8%, budget of subject federations, RF - 1,3%, non-budget funds - 2,7%.

PERSONNEL

A very weak section, practically absent in Russia, is technological management, i.e. trained specialists, who know the specificity of the product offered to the market, and have the skills to work in the market. By the preliminary assessment we need hundred thousands of such specialists.

INVESTMENTS

Against of the predictions of some analysts, who predict the reduction of venture investments into RF for the nearest future, venture industry will experience "the third tidal wave", starting from 2002. The following facts prove it:

1. Dynamics of venture investments, starting from 2001, demonstrates ascending tendency.
2. The last two years (2001-2002) became the starting period for "going out" of venture funds from the invested by them companies in the previous years. And the indices of the efficacy for the venture investments made in Russia are one of the highest in the world among the countries with developing economy.
3. If at the beginning of their manifestation in Russia was represented mainly by venture funds, arisen as a consequence of one or the other governmental, industrial or inter-state initiative, then with time private institutions were added to these investing institutions.
4. During the last years we observe the tendency for active attraction of Russian capital into venture business. There are available and function purely Russian, by the source of capital and by members of management teams, venture funds and companies. In the sphere of direct investments Russian financial-industrial structures behave themselves rather independently, and in some cases even "aggressive" in respect to their western venture competitors.
5. At present time Russian government considers venture industry as a serious and practically non-alternative source of non-budget financing, in the first place - of domestic innovations and undertakes reasonable and valid steps on a way of drawing the interests and cooperation with venture capitalists.

Resolutions of the conference:

1. To consider the following points in the development of biotechnological business in Russia as the most important: pharmaceutics, agriculture, food industry.
2. To support the efforts of Ministry for industry, science and technologies on the development of the infrastructure of innovation market as a whole and venture industry in particular.
3. To consider the support of the applied studies and the developments in the field of biotechnology, the training of high-qualified personnel (researchers and specialists) as the important goal of the state policy in scientific-technical sphere.
4. To appeal to Federal Sobraniye of the State Duma with a proposal about the parliament hearings on the problems of the development of the legislation for the regulation of the sales of products and technologies, created with the application of gene engineering.
5. To appeal to the Soviet of Federations with a proposal to hold a meeting with the participation of the representatives from the subjects of Federation on the problems for the development of regional innovation legislation.
6. To appeal to the Ministry for industry, science and technologies with a proposal to hold expert seminar on the problems of the infrastructure of biotechnological market in RF.