Development of bioproducts using biotechnologies

The development of bioproducts has become an intrinsic part of the activities of innovative Canadian biotechnology firms, according to a new report using data from the 2001 Biotechnology Use and Development Survey.

Of the 375 innovative biotechnology firms in 2001, some 133, or 35% of the total, used biotechnologies to develop or make bioproducts. Together, these 133 firms had a portfolio of 805 bioproducts.

These 133 companies employed a total of 39,140 people, earned $15.3 billion in revenues and spent a total of $598 million on research and development. In addition, they earned $564 million in export revenues and they imported goods and services worth $64 million. However, it should be noted that these data were not all a result of producing bioproducts. These firms engaged in many other activities.

A bioproduct is defined as a commercial or industrial product, other than food, feed and drugs, made with biological or renewable domestic plant, animal, marine or forestry materials. They are a subset of all biotechnology products which also includes all products developed for pharmaceutical and food applications.

The development of bioproducts is taking place in such areas as fuels, lubricants, chemical feedstocks and cosmetics. Other areas are air cleaning and decontamination, and soil cleaning and decontamination products.

Some 49 of the 133 companies, the largest number, were involved in bioprocessing, which is the manufacturing of products developed or made using enzymes and bacteria culture. Some 45 others were involved in water cleaning and decontamination using biofiltration, bioremediation and phytoremediation.

Three provinces - Quebec, Ontario and British Columbia - were home to 81% of the 133 firms. Quebec itself had more than one-third (35%) of them.

Bioproduct development is principally in the hands of young private Canadian "home-grown" firms, a third of which were spun-off from various sources.

Of the total of 133 firms, the vast majority, 92, were small companies with 50 employees or fewer. There were 19 medium-sized firms with 51 to 150 employees, and 22 large companies with more than 150 workers.

Of the 805 bioproducts by these 133 firms either in production or on the market in 2001, small firms had developed 424, more than one-half of the total. Large firms were responsible for 289, and medium-sized firms, only 92.

Among the 133 firms, small firms were the most research intensive. For every $1 in revenues in 2001, these small firms spent $1.17 on research and development. In contrast, for every $1 of revenue, large firms spent only two cents on research and development.

Bioproducts are also developed by firms not engaged in biotechnology. But this report does not include any information on the activities of these firms.

Definitions, data sources and methods: survey number 4226.

The report Bioproducts Development by Canadian Biotechnology Firms: Findings from the 2001 Biotechnology Use and Development Survey (88F0006XIE2003013, free) is now available. From the Our products and services page, under Browse our Internet publications, choose Free, then Science and technology.

For additional information on the Biotechnology Use and Development Survey, consult the report Features of Canadian Biotech Innovative Firms: Results from the Biotechnology Use and Development Survey, 2001 (88F0006XIE2003005, free) released in The Daily on March 28, 2003.

To order data tables, or to enquire about the concepts, methods or data quality of this release, contact Namatié Traoré (613-951-4489; namatie.traore@statcan.gc.ca), Science, Innovation and Electronic Information Division.