Scotland sets the standard for biotech start-up rates

Scotland has the highest rate of biotech start-ups in the UK and could become the leading location for the British industry, according to an independent report published today.

The study hails the quality of the scientific research at Scotland's universities and the "significant effort made by Scottish Enterprise to support and promote the sector".

In absolute terms, Scotland finished behind only Cambridge in terms of the number of life science start ups and tops the table when it came to the rate of start ups per head of population.

The report - by Glenn Crocker, chief executive of incubator operator BioCity Nottingham and previously author of Ernst & Young's annual European and US life science reports - said Scots firms were the most successful in attracting investment.

Half of Scottish start-ups were successful in securing funding, compared to a UK average of only 36 per cent.

"Given the likely reduction in public funds, what remains should be concentrated in the four 'hot-spot' regions of Edinburgh/Glasgow, the M1 corridor of Leeds, Sheffield and Nottingham, Manchester/Liverpool and London/Oxford/Cambridge so more can be achieved from targeted government intervention," noted Crocker.

Lucy Marcus, chairwoman of the Mobius Life Science Fund, said the report could also point the way for future private-sector investment in biotech firms.

She added: "Knowing where investment can be the most effective and have the greatest impact is essential, especially in times of ever decreasing funding. This report will help bring some clarity to investment choices, both with public and private money."

Mike Capaldi, commercialisation director at Edinburgh BioQuarter, which is being developed alongside Edinburgh University's medical school, said: "This study highlights the great potential for innovation that exists here in Scotland.

"Perhaps the most telling statistic is that the report ranks Scotland as having the best quality research, bar none, of all of the UK regions."

"Our challenge is to create an even higher rate of spin-out companies from that research."

Barry Shafe, project director at the Edinburgh Science Triangle, the umbrella body for science parks in the Lothians, said the report highlight the importance of Scotland relative to its competitors in Cambridge and London.

"The report reaffirms the importance we should continually place on technology and knowledge transfer and on appropriate accommodation and facilities for growing technology businesses whether they are private sector start-ups or spin-outs of universities," Shafe added.

The number of life science firms operating north of the Border rose from 620 in 2008 to 630 last year, while the number of people employed increased by 1,500 to 32,500, according to figures from Scottish Enterprise.

l BigDNA, a Roslin-based vaccine development company, yesterday revealed that it had received a patent for its key hepatitis B vaccine technology in Japan.

Karen Jervis, commercial director of BigDNA, said the granting of the patent was an important step in its international expansion through its "aggressive partnering strategy".

She added: "Chronic hepatitis B infection is a significant global health problem and the need for effective preventative and treatment options is particularly urgent in Asia, where about 280 million people are living with this life-threatening disease."