Select Committee on Trade and Industry Twelfth Report


3  BASIC RESEARCH

Resources

18.   It is through the emergence of scientific discoveries, primarily from academic institutions, that potential products and techniques for commercial biotechnology are identified. It is also at the level of basic research that government involvement and funding is at its most visible; despite the involvement of charitable foundations, government funding of basic research remains the bedrock of the industry.

19.  That the UK was able to make an early start in commercial biotechnology is in no small part due to its traditional strength in research in the biosciences. UK universities and research institutes have established themselves at the forefront of biotechnology research; the MRC Laboratory of Molecular Biology in Cambridge (and its forerunners) alone has had 13 Nobel Laureates as members of its faculty.

20.  Despite such a reputation there is a widespread feeling that this research excellence may be in jeopardy through long term underinvestment, both specifically in research funding, and more broadly, in the Higher Education (HE) infrastructure. There was a broad consensus in evidence that a healthy HE sector in general was a necessity for the continued success of the UK's biotechnology industry. However, the impression was also given that there is something of a funding crisis in the UK HE sector and that this is reaching a stage where it could be detrimental to the quality and quantity of teaching and research, and, by implication, to the UK's biotechnology industry.

21.  The BIA's submission claimed that "[u]nless quickly addressed, the chronic underfunding of research in UK universities will so degrade the infrastructure that it will precipitate another serious 'brain drain' to better funded facilities elsewhere, to the serious detriment of UK science and its support for biotechnology and related industries".[14] The Association of the British Pharmaceutical Industry (ABPI), the trade association of UK pharmaceuticals companies, bemoaned the condition of the HE infrastructure in their evidence: "The [UK] science base has suffered, in part, due to 20 years of underinvestment in basic infrastructure".[15] And the prognosis of one senior academic who has been active in biotechnological research at one of the country's better resourced and most prestigious universities reinforced the pessimistic picture painted by the trade bodies: "I am more gloomy about the university situation than I have been in 35 years, and that is not because things have not been done recently, but the underinvestment is dire".[16]

22.  Despite these complaints, in many respects the HE system does appear to be justifying its reputation for excellence. For instance, OECD figures on citations put UK academics near the top of the league table — in the 19 most industry-relevant scientific disciplines, published research from the UK is some of the most highly cited and is significantly more so than work from either the USA or Germany. It also represents some of the 'best value', receiving more citations per dollar of public research funding spent.[17]

23.  That said, however, the concerns about the condition of the UK's HE infrastructure appear well founded. While there has been an increase in funding in recent years, as a recent survey of UK competitiveness noted, it will take a prolonged period of investment "until the accumulated effect of years of under-investment in, for example, the university infrastructure will have been overcome".[18] The report cites OECD figures showing that between 1989 and 1999 public funding for R&D fell significantly further in the UK than in any other OECD economy.[19] The sum of the BBSRC's and the MRC's expenditure on biotechnology is £241 million.[20] The National Institutes of Health (NIH), the nearest US equivalent, does not separately identify expenditure on biotechnology but overall it has a budget of $23 billion of which 82% is spent on R&D and research training.[21] Even if only 10% of the R&D/research training budget is spent on biotechnology, it is a considerably greater sum than the relevant UK research bodies are able to provide.

24.  The UK's research expertise in biotechnology has made its relative prominence in commercial biotechnology possible. The strength of the commercial biotechnology sector cannot be guaranteed merely by putting ever greater sums of public money into higher education and academic research. However, given the integral links between education and research and commercial biotechnology, it is hard to see how strength can be achieved and sustained in the latter without the former being adequately resourced.

Focussing Research

25.  As well as the sums of money spent on research, there is the issue of how directive that funding should be: the best balance between directed research, which is explicitly tied to specific public policy ends, and 'blue skies' research, which allows scientists to develop their own research agenda, to a greater or lesser extent, without interference.

26.  In the USA the majority of public money that funds biotechnology research is tied to matters of public health. The NIH, which spends billions of dollars each year on research involving biotechnology,[22] awards funding under programmes targeting specific areas of public health such as cancer, heart disease or mental illness. Despite an increasing emphasis on 'users' in the grant application process, the UK research councils do not fund on this basis to the same extent.

27.  Whilst a heavy reliance on funding tied to specific public policy goals would intuitively seem to be the route most likely to secure the most immediate returns, this is not necessarily the case. Applied research has to be built upon the more 'blue skies' research; it is through progress in basic science that an understanding is reached from which more applied work can then develop. Applied and basic research are two sides of the same coin rather than distinct alternatives. Moreover, even where applied research is being conducted in an academic environment, any breakthroughs made are likely to require extensive further research until they can be used to develop new drugs or treatments. Even if research is directed it is highly unlikely to turn the universities and research institutes into a production line creating finished products. Money invested in academic research is not merely replicating or replacing research conducted in the commercial sector.

Regulation of Research

28.  One area where we heard that the UK has a clear advantage over countries such as Germany and the USA is the regulatory framework within which biotechnology research is conducted. A major constraint on the development of biotechnology in Germany in the past, for instance, was the restrictive regulatory regime that made certain areas of research very difficult. Although regulation has been liberalised recently, the ban on stem cell research highlights the difficulties that still remain there. The United States has also undergone a high profile debate about stem cell research which, we were told, has reached a satisfactory conclusion. However, powerful lobbies there would like to see such research banned and certain states have imposed restrictions that are making research in the field difficult.

29.  In contrast, the UK can be seen to have a comparatively liberal framework of regulation. Many of those we met on our visits to Germany and the USA were envious of the relative freedom enjoyed by British scientists. The prospect of tight restrictions being imposed on biotechnology research is seen by scientists as a real threat and it appears that they are prepared to move to avoid these restrictions. We were told of a prominent biotechnology research team that had abandoned Massachusetts for California for this reason. If tighter restrictions were imposed more generally in the USA, the UK would presumably prove a reasonably attractive alternative and a migration of research expertise could take place. However, the more liberal regime in the UK cannot be taken for granted and countries such as Singapore now form a genuine alternative. Regulation of aspects of biotechnology research has recently been discussed at European Union level and public opinion in a number of member states favours stricter regulation — or even outright bans — on some types of research. Whilst the UK has so far preserved its right to impose its own regulatory regime, pressure for the setting of standards at European level is likely to continue. Policies vary across the EU and it remains a contentious issue for some member states.

30.  While we agree that regulation should set clear, ethical limits beyond which researchers should not be allowed to go, public opinion in the UK seems broadly content with the difficult ethical balance struck in the regime here. We would therefore oppose any attempt to tighten regulation here. We are aware that the Government takes the same view, but we wish to underline the importance of continuing vigilance; the regulatory environment for biotechnology research in the UK is a real source of advantage and must not be undermined by developments at the European level.

Conclusion

31.  Excellence in research cannot in itself ensure commercial success in biotechnology but it does seem to us that its absence will preclude it. The UK has a fine tradition of research in biotechnology and has made good progress in translating some of this research into the commercial world. Levels of investment, however, remain a problem, with the UK spending less than its competitors on research and on the HE sector as a whole. Whilst the UK is still performing creditably, there must be some concern about the degree to which this can be sustained over the long term.


14   App 4 Back

15   App 14 Back

16   Q 154 (Prof Dunnill) Back

17   OECD, Benchmarking Industry-Science Relationships (Paris, 2002), Fig. 5c, p.36 Back

18   Michael E Porter & Christian H M Ketels, UK Competitiveness: Moving to the Next Stage, DTI Economics Paper No.3 (London, April 2003) Back

19   Ibid. Fig. 12, p.23 Back

20   HC Deb, 26 June 2003, col 922W Back

21   Office of the Budget/NIH Back



 
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