Biotechnology Development

Biotechnology Development

Photo by UNDP Serbia, Momira Markovic

Biotechnology Development
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Biotechnology and Pharmaceuticals
Business Model Description

Build and operate production plants and laboratories in the relevant areas, such as bio-manufacturing, bioeconomy (biotechnology plus biomanufacturing), clinical trials, personalised medicines (diagnostics and prognostics), artificial intelligence in medical development and health care, and secondary data usage for research and development (R&D) and similar. Biotechnology products can be produced from the areas such as regenerative medicine, cell and gene therapy, advanced healthcare through genome sequencing, rapid and precise development and manufacturing of medicine and vaccines. The business model is based on strong Government cooperation with private sector to create a world-class regulatory environment for development of knowledge-based industries. Serbia changed dozens of laws on various topics, including e-commerce, immigration, intellectual property protection, corporate law and introducing a new law on digital assets. Serbia also introduced a wide range of very generous tax incentives, including so called IP Box, accelerated R&D deduction, lower tax and social contributions for employing repatriates and foreigners, for people employed in R&D and for employing young people, as well as tax credit for investing in a startup, which the private sector can take advantage of.

Expected Impact

Support development of life-saving drugs and therapies and medical research advancements, as well as create job opportunities and economic growth.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)
Sector Sources
  • 1) Statistical Office of the Republic of Serbia. Age pyramid of the population, 2021. https://www.stat.gov.rs/sr-Latn/vizuelizacija/interaktivni-grafikoni/mapa 2) E-klinika. More and more people suffering from lung cancer, Serbia is the first in Europe in terms of mortality, 2022. https://eklinika.telegraf.rs/vesti/70542-sve-vise-obolelih-od-raka-pluca-srbija-prva-u-evropi-po-smrtnosti 3) National Assembly, 2010-2017, Law on Medicines, 2022. https://www.paragraf.rs/propisi/zakon_o_lekovima_i_medicinskim_sredstvima.html 4) EY Serbia. Possible directions to increase health efficiency system in the Republic of Serbia, 2016. https://www.amcham.rs/upload/HC%20Studija_SPRSKI_FINALNA%20VERZIJA.pdf 5) Peterhof Consulting stakeholder consultations at Peterhof office on 21st of February, 2023. 6) Legal information system of the Republic of Serbia. The strategy of public health in the Republic of Serbia 2018–2026, 2018. http://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/strategija/2018/61/1/reg 7) EuroNews Serbia. Small farmers in big debt for health insurance, 2022. https://www.euronews.rs/biznis/agrobiznis/38481/da-zatreba-operacija-morali-bismo-da-prodamo-kucu-mali-poljoprivrednici-u-velikim-dugovima-za-zdravstveno-osiguranje/vest 8) Government. Strategy for the continous improvement of the quality of health care and patient safety, 2009. http://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/strategija/2009/15/2 9) PKS Partner, 2021. https://app.pkspartner.rs/sr/napredna-pretraga 10) Marina Antić Levnajić. Market overview and challenges for pharma industry in Serbia, 2021. https://api.pks.rs/storage/assets/Adriatic%20and%20Serbia%20Pharma%20market%20overview.pdf 11) The World Bank. 2019. Out of pocket expenditure. https://data.worldbank.org/indicator/SH.XPD.OOPC.CH.ZS?locations=RS 12) Ministry of Finance. 2021. Law on the Budget of the Republic of Serbia for 2021. https://www.paragraf.rs/propisi/zakon-o-budzetu-republike-srbije-za-2021-godinu.html 13) Statistical Office of the Republic of Serbia. 2021. GDP. https://publikacije.stat.gov.rs/G2022/HtmlL/G20221275.html 14) WHO. 2020. Health Budget. https://www.who.int/health-topics/health-budget#tab=tab_2 15) Danas. Trampoline: Last year, 55,305 people died from diseases of the heart and blood vessels in Serbia, 2021. https://www.danas.rs/vesti/drustvo/batut-od-bolesti-srca-i-krvnih-sudova-u-srbiji-prosle-godine-umrlo-55-305-osoba/ 16) Biz Portal. The capital of Serbia is becoming a hub for the development of artificial intelligence in health care, 2022. https://bizportal.rs/biz-info/srbija/jedinstveni-centar-za-biotehnologiju-u-srbiji-glavni-grad-srbije-postaje-cvoriste-za-razvoj-vestacke-inteligencije-u-zdravstvenoj-nezi/ 17) Ministry of Finance. 2023. Law on the Budget of the Republic of Serbia for 2023. https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fwww.mfin.gov.rs%2F%2Fupload%2Fmedia%2FZZLoxf_639a0da67be4e.docx&wdOrigin=BROWSELINK
IOA Sources
  • 21) Politika. Green economy and biomedicine are new sources of growth, 2021. https://www.politika.rs/sr/clanak/480090/Zelena-ekonomija-i-biomedicina-novi-izvori-privrednog-rasta)))))))))))))))))))))))))) 22) Government. Strategy for Social inclusion of Roma in Republic of Serbia 2022-2030. 2021. https://www.minljmpdd.gov.rs/doc/konsultacije/Revidirana-strategija-za-socijalo-ukljucvanje-Roma-i-Romkinja2022-2030.pdf 23) Official site, https://www.bio4.rs/BIO4_Campus.pdf 24) GVR. Market analysis report. 2020. https://www.grandviewresearch.com/industry-analysis/biotechnology-market 25) Oxford. Biotechnology and regulatory risk assessment, 2021. https://academic.oup.com/book/9773/chapter-abstract/156975707?redirectedFrom=fulltext 26) Biotechnology Innovation Organization. 2020. https://www.bio.org/blogs/biotech-investment-2020 27) International Journal for Empirical Education and Research. Global competition and Biotechnology Industry. 2018. https://www.researchgate.net/publication/335467887_Global_Competition_and_Biotechnology_Industry_A_Review 28) OECD.The Bioeconomy to 2030: Designing a Policy Agenda, 2007. https://search.oecd.org/futures/long-termtechnologicalsocietalchallenges/40181372.pdf 29) Duane Dickson. Protection of intellectual property in biotechnology, 2015. https://scindeks-clanci.ceon.rs/data/pdf/0350-0373/2011/0350-03731104209J.pdf 30) Btitte Bauchaut. 2022. Uncertainties and uncertain risks of emerging biotechnology applications. https://www.frontiersin.org/articles/10.3389/fbioe.2022.946526/full 31) Duane Dickson. Urbanization and the Bioeconomy. 2015.https://www.linkedin.com/pulse/urbanization-bioeconomy-duane-dickson/ 32) Official site; https://vinculabiotech.com/ 33) Official site; https://www.bio4.rs/ 34) RZS, 2022. https://data.stat.gov.rs/Home/Result/10030108?languageCode=sr-Cyrl 35) RZS, 2022. https://data.stat.gov.rs/Home/Result/100109?languageCode=sr-Cyrl 36) SDG Tracker, https://sdg-tracker.org/good-health 37) EY Serbia. Possible directions to increase health efficiency system in the Republic of Serbia, 2016. https://www.amcham.rs/upload/HC%20Studija_SPRSKI_FINALNA%20VERZIJA.pdf 38) Development strategy of the institute for molecular genetics and genetic engineering 2016-2026; https://imgge.bg.ac.rs/images/strategija/strategija-imggi-2016-2026.pdf 39) Ministry of Health. 2018. Rulebook on the guidelines of good practice in the distribution of medical devices. https://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/ministarstva/pravilnik/2018/94/8/reg 40) National Assembly. Program od the Government of th Republic of Serbia of the candidate for Prime mininster Ana Brnabic, 2020. https://www.media.srbija.gov.rs/medeng/documents/brnabic_keynote_address281020.pdf 41) Subhajit Pathak, Pratiksha Sarangi and Giridhara R. Jayandharan.Gene therapy for female infertility, 2022. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9133461/ 42) Iberdola, https://www.iberdrola.com/innovation/ehealth 43) National Academies of science, engineering and medicine. 2017. Understanding Risks Related to Future Biotechnology Products. https://www.ncbi.nlm.nih.gov/books/NBK442208/ 44) Statistical Office of the Republic of Serbia, Annual Buleltin, Survey of the work force in 2022, page 36. https://publikacije.stat.gov.rs/G2023/Pdf/G20235695.pdf 45) Gradjanske.ICGEB grant, 2023. https://vodic.gradjanske.org/konkurs/icgeb-istrazivacki-grantovi-2023/ 46) Fund for innovation activity, 2022. http://www.inovacionifond.rs/cir/o-fondu/o-fondu 47) Biznis.rs. Tax credits and subsidies available to IT professionals, 2022. https://biznis.rs/vesti/srbija/poreske-olaksice-i-subvencije-dostupne-it-strucnjacima/ 48) Zuniclaw. Tax benefits for employees in R&D, 2023. https://zuniclaw.com/poreske-olaksice-za-zaposlene-u-oblasti-istrazivanja-i-razvoja/ 49) Paul Monaco. 2015. IP Risk in the Biotech Industry. https://www.linkedin.com/pulse/ip-risk-biotech-industry-paul-monaco/ 50) Sandra Batie. Biotechnology and the Environment:Issues and Linkages. https://www.iatp.org/sites/default/files/Biotechnology_and_the_Environment_Issues_and_L.htm 51) Online Peterhof Consulting stakeholder consultations at on 21st of February, 2023. 52) Government. Program of economic reforms from 2022 to 2024; 2021. https://www.mfin.gov.rs/upload/media/1Maq2a_6246eba00ce4e.pdf 53) National Assembly. Law on Medicines. 2010-2017. https://www.paragraf.rs/propisi/zakon_o_lekovima_i_medicinskim_sredstvima.html 54) Government. Strategy of scientific and technological development of the Republic of Serbia for the period from 2021 to 2025; 2020. https://prosveta.gov.rs/wp-content/uploads/2020/12/Predlog-Strategije-naucnog-i-tehnoloskog-razvoja-java-rasprava.pdf 55) Government. Strategy for the continous improvement of the quality of health care and patient safety, 2009. http://www.pravno-informacioni-sistem.rs/SlGlasnikPortal/eli/rep/sgrs/vlada/strategija/2009/15/2 56) Government Strategy for the development of Artificial Intelligence in Serbia for the Period 2022-2025. https://www.srbija.gov.rs/dokument/45678/strategije-programi-planovi-.php