Biotech-healthcare sector in Spain

These are some of the findings of the report on entrepreneurial activity in the biotech-healthcare sector in Spain presented today by IE Business School, Fundación Gaspar Casal, and Amgen. Participants in the presentation included Rafael Puyol, Vice President of Institutional Relations at IE Business School, Juan José Güemes, President of IE's International Center for Entrepreneurial Management, Jordi Martí, General Director of Amgen, and Jesús Millán, President of the Board of Governors of Fundación Gaspar Casal.

The authors of the report describe how companies operating in Spain's biotechnology-healthcare sector enjoy the support of a consolidated and modern health system, an advanced level of technological development and a proven capacity for innovation. Fields where there is room for improvement, on the other hand, include overdependence on the public sector both to set up the firm and to fund entrepreneurial projects, the lack of entrepreneurial culture among researchers and of qualified personnel, and a need to foster synergies among academia, the healthcare system and businesses.

Access to funding. Entrepreneurial projects in the sector are currently funded using 100% Spanish capital in more than 88% of firms, while start-up costs average €200,000. Access to funding was the most critical factor for entrepreneurial initiatives, and sources generally comprised own funds and public subsidies. Experts feel that the solution to this problem lies in modernizing the way companies approach entrepreneurial initiatives. The use of risk capital is increasing, but better quality support is needed for levels of entrepreneurialism to grow.

Commercial profit. Some 74.7% of participating companies had been launched to focus on efforts to reformulate or improve existing molecules, produce diagnosis kits and/or create new molecules. Almost all firms are for-profit organizations. The most typical model (40.8%) develops an initial product that can fund research, while other companies (29.6%) opt for risk from the outset, depending on expectations surrounding the research project.

Internationalization. Internationalization is another of the challenges facing the Biotech-healthcare sector. Export levels are low on average and experts perceive a lack of practice and ambition among companies in the sector when it comes to operating overseas.

IE Business School's experts, Fundación Gaspar Casal and Amgen joined forces to produce the report, which features data on entrepreneurship drawn up using the GEM (Global Entrepreneurship Monitor) method, coupled with a report on the outlook for the biotech-healthcare sector in Spain and an analysis of findings and recommendations by experts in the field.