As in many other businesses, no risk in biotechnology means no reward
Building a biotechnology industry requires some form of risk capital, such as venture capital (VC). For reasons beyond the scope of this summary, venture capital is often far more aggressive than the other funding sources, and a country’s attractiveness to VC can also indicate the extent to which free-market conditions favor growth.The Venture Capital & Private Equity Country Attractiveness Index aggregates more than 300 metrics and goes beyond the factors measured in the Scientific American Worldview Scorecard to include factors such as economic activity, taxation and investor protection (the index is only given here in part, and the full list is available at: http://blog.iese.edu/vcpeindex). A surprising observation is that despite the index author’s statement that investors in VC and private equity funds often set their sights on emerging regions, the top-ranked countries are all established markets. This is something that we also note in our discussion of Policy & Stability: The greatest opportunities tend to be in the countries that have the potential to become more attractive markets, rather than those that currently are attractive markets.