Analyzing the Outputs

While the Scientific American Worldview Scorecard measures innovation capacity through a diverse array of metrics, it intentionally avoids hard measurements of productivity. Measuring some outputs, such as revenues, would be too polarizing, yielding insufficient information on the prospects for future innovation. The U.S. biotechnology output, for example, is far higher than that of other countries—due to its size, economic strength and other factors—and comparing the outputs of the U.S. and other nations would diminish the important differences among them. Although measurements of output and company performance were not included in the innovation score, they are still key to developing a clear perspective on global biotechnology innovation.

As on the previous page, we gathered output data from company disclosures and data published by Huggett et al. (Huggett, B., Hodgson, J., Lähteenmäki, R. 2010. Public biotech 2009—the numbers. Nature Biotechnology 28:793–799). Based on this information, we present market capitalization, revenue and R&D spending for companies on stock exchanges around the world.
These public-company data measurements plotted here show, as expected from the public-company numbers, that the U.S. leads all categories. Just as Amgen and other large U.S. public biotechnology firms impact the numbers of companies and employees in the industry, they also have a profound impact on the measurements plotted here. For example, Amgen’s market capitalization and revenues exceed that of all of Europe’s biotechnology businesses combined. Likewise, Australia’s postings are largely due to a single company, CSL.

As you explore these metrics of financial output, keep in mind that the numerous facets of the biotech field allow for opportunities at many levels. A country need not aim for the top of a gross output category, such as revenue, to succeed. It is equally possible to focus on a specific area of expertise or a particular form of technology and still become a leader in the world. This perspective becomes especially relevant to the possibilities for individual companies, as opposed to entire nations. Indeed, a strong biotechnology business—one harnessing powerful innovation, strong management and considerable capital—can thrive in virtually any spot around the world.

To explore some of the most exciting biotechnology stories taking place worldwide, be sure to read the following one-page profiles. Covering the breadth of the biotech industry, these articles highlight the great strides made by individuals and  governments alike, and report on innovations occurring across the field, in areas ranging from computation of compounds to the building of a biofuels industry.

Ultimately, the success of the global biotechnology industry depends on forward-thinking nations, advanced companies and perceptive individuals. As these essential components strive to develop new ways to work together and enhance existing collaborations, their efforts stand to benefit not just the industry, but most importantly, the health and welfare of people around the world.