Prime Minister's Foreword

The biotechnology industry is a British success story. From the discovery of the double helix structure of DNA 50 years ago in Cambridge, Britain has been at the forefront of bioscience. Our academic and research scientists remain amongst the best in the world.

The UK bioscience industry faces an exciting future. The technology offers new medical opportunities that challenge traditional patterns of diagnosis, healthcare and disease prevention. The UK, with a reformed National Health Service, has an opportunity to be at the forefront of research and development in these exciting new areas. Both patients and R&D based companies would benefit, for example, if more clinical trials of new treatments were done in the NHS, but it will not happen unless Government, Industry and the Health Service work together to get the structures right.

The industry faces a number of scientific, regulatory and financial challenges. Our higher education system must continue its tradition of producing world-class scientists to develop new and innovative technologies in order to drive the growth of the bioscience industry. The increasing cost of new drug approvals and the length of time it takes to bring new ideas to market together create the need for innovative financial backing and a flexible regulatory environment.

Government has helped and will continue to do so. We have introduced ethical, but balanced regulation in areas such as stem cell research. The science budget is now set to grow at a rate of 10% year on year in real terms reaching £2.9bn by 2005-06. The science base is vital for our vision of building a knowledge-driven economy and is critical for the development of the bioscience and pharmaceutical industries. Improving education and skills and strengthening the finances of Britain’s universities and colleges are also vital for supplying the world-class talent that the sector needs.

Our measures to encourage the commercial start-ups and licensing of ideas from our universities and public sector research establishments have borne real fruit. We must ensure that the flow of new companies continues, but also work on improving the long-term viability and strength of these companies so they can grow into global, profitable businesses.

The R&D tax credit has helped the cash flow of many bioscience companies. It is designed specifically to assist those high value-added companies who engage in leading edge research and development in this country and I am delighted that its impact on our bioscience industry has been so positive. The government is now consulting on further reform with a view to making this measure even more effective.

I wholeheartedly welcome this report and the co-operation between Government departments, the bioscience industry and other experts, which made it possible. We will study the report and respond to the recommendations put forward to improve the wealth and health of the nation. I thank all those who gave time to make this project a success.

Rt Hon Tony Blair
Prime Minister