SubscribeThose of us who live in the more highly-developed countries frequently tend to believe that technology belongs to only a few countries, usually located in the northern hemisphere.
Although this is true to a large extent, it is also true that in many developing countries genuine technological revolutions are taking place, that are transforming the productive sector of said countries. Technology has never been so near and yet so far from these countries. “Far” because it is often developed in places that are geographically distant (Europe, the United States, Canada, Japan or Southeast Asia), yet at the same time “near” because globalization has provided developing countries with easy access to technology, they have learnt how to use it and have start innovating their productive structure. These changes are advancing at an ever increasing pace, and also spreading to a growing number of countries.
A clear example of this is the spread of biotechnology to some parts of the planet that, until just a short while ago, we used to associate with poverty and under development. Biotechnology is helping countries such as Brazil, India or China to shift from economies whose production is based on primary sources, to the development of high-added value products, which considerably increase the value of their exports, as well as developing the scientific potential of these regions of the planet.
Latin America is a clear example of where the development of biotechnology can lead to, in a continent that has historically been considered under developed, and whose economy is based on natural resources. Hiperion Biotech recently carried out a technology tracking study to discover the potential of biotechnology in Latin America. The study focused on three countries in South America that were chosen for their extraordinary potentiality for growth over the coming years. The three countries were Chile, Argentina and Brazil. Some of the most significant conclusions drawn about one of the countries in the study are analysed below.
ARGENTINA
1. Introduction
Only four years ago Argentina was the centre of media attention. The economic crisis brought about by mismanagement and an ill-conceived monetary policy plunged it into one of the gravest periods in the country’s history. However, circumstances have changed, and Argentina now feels it can face the future with optimism. Soaring exports, and significantly improved economic management have helped the economy, based on natural resources, to recover. Argentina’s economic development potential is one of the strongest in the world. Over five times larger than Spain, and with a population slightly lower than Spain’s, the country’s possibilities seem limitless.
In this context it is not surprising that biotechnology finds the culture medium it needs to develop. The majority of the country’s exports come from the agricultural sector. Biotechnology’s different applications in this field could provide a nasty but salutary shock to the country’s economy. And this is in fact the case. Argentina is currently the world’s second-largest producer of transgenic crops, surpassed only by the United States. 98% of the soya crop, 50% of corn and 9% of cotton are derived from GMO crops.
This clear commitment to green biotechnology springs from several factors: a tolerant legislation, public acceptance and the presence of multinationals that are willing to make large investments. The combination of all these factors has allowed biotechnology, during these difficult times that the country is undergoing, to come to the aid of the enfeebled economy. This has resulted in rising productivity, a reduced use of agrochemicals in the countryside with the consequent environmental benefits, an increase in exports and the arrival of foreign currencies, which are sorely needed by the country.
2. Politics and Financing
The Argentine Government has drawn up a Plan of Action 2005-2007, designed to foment the development of the biotechnological industry in the country over the next few years.
Moreover, the National Agency for the Promotion of Science and Technology (ANPCyT) has been set up to promote scientific, technological and innovation activities.
Within the framework of scientific innovation and development, the SECyT, which is attached to the Ministry for Education, Science and Technology, is in charge of agencies whose work includes – among other areas –biotechnological development. Some of the most important ones are the National Agency for the Promotion of Science and Technology (ANPCyT) and the National Council of Scientific and Technological Research (CONICET).
The Ministry for Economy and Production has agencies that promote biotechnology, the most important being theInstitute of Industrial Technology (INTI) and theInstitute of Agricultural Technology (INTA).
In addition, the National Plan for Science, Technology and Innovation 2004 has three instruments that function solely in the field of biotechnology, namely: the EU-MERCOSUR Proposal for Biotechnology, the Argentine-Brazilian Biotechnology Centre (CABBIO) and the International Centre for Genetic Engineering and Biotechnology (ICGEB).
3. The Biotechnological Industry
In this business sector there are over 60 companies related to biotechnology.
A recent study has shown that there are 58 business incubators, innovation centres, technological parks and enterprise zones. The most notable are the companies that have set up in the INTA Technological Parks, and the ones created by students who are studying for a biotechnology degree at the National University of Quilmes.
The majority of the companies and organisations active in the field of biotechnology are represented by the Argentine Forum of Biotechnology (FAB). The FAB is a non-profit charity organisation, which has over 30 active members.
If we look at the importance of Argentine biotechnology in the world, we can see that since the middle of the last decade the agricultural sector has been responsible for Argentina being ranked as the world’s second largest producer of GMO grain varieties, behind the United States. In this sense Argentina is wholly committed to biotechnology.
Enzymes are produced in the country for industrial use, some of them by using biotechnology. Biotechnology activity in the food industry is centred on the production of high fructose corn syrups and the intermediate product, glucose syrup.
Biotechnology’s industrial application has had most local impact on the pharmaceutical industry sector, which has a long tradition of working in biomedicine, combined with a domestically-owned industry that, despite the mergers and acquisitions that took place in the 90´s, still represents 50% of all businesses in the market. The most important company in this group is BioSidus, that manufactures various products using the recombinant DNA technique, and which in September, 2002, produced the first examples in the world of cattle that had been genetically modified to produce the human growth hormone (hGH). The company’s exports totalled US $23 million in 2000, which represented 60% of its total sales revenue.
In the field of human diagnostics, there are Argentine companies that are working with biotechnological tools, such as the use of synthetic proteins and recombinants, monoclonal antibodies etc, to detect infectious diseases. One specific case that is extremely important in Latin America is the application of these cutting-edge techniques to diagnose Chagas disease.
The Argentine veterinary pharmaceutical industry, a vaccine producer, has evolved from cultures in cellular lines to the development of antigen vaccines, produced by DNA recombinant technology. The veterinary sector has a long tradition of producing vaccines. During the last outbreak of foot and mouth disease in the middle of the year 2000, the companies in the sector reacted extremely swiftly, and were able to cover the needs of the entire country, as well as part of the region.
The pharmaceutical industry is represented by the Argentine Chamber of Medicinal Specialities (CAEME), which consists of multinational companies, while domestically-owned companies are grouped into the Industrial Centre of Argentine Pharmaceutical Laboratories (CILFA) and the Cooperative of Argentine Medicinal Specialities Laboratories (COOPERALA).
However, there are also some shortcomings that need to be corrected: overdependence on external technology, poor technology transfer, a failure to attract venture capital or obsolete equipment, to name just a few of the most important ones.
4. Legislation and Intellectual Property
From the point of view of Argentine law, thepatentability of processes to obtain plants and animals is generally accepted, as long as they are not essentially biological processes, that is to say microbiological processes; modified micro-organisms and elements produced by a technical process (e.g. genetic engineering or DNA recombinants), in particular if these elements differ from the same ones that already exist in nature. It can be concluded that in general biological inventions are patentable in the country.
However the patentability of plants and animals, isolated non-modified micro-organisms, and other isolated elements of the human body, or animals or vegetables, is still subject to debate.
The protection of vegetable varieties is governed by the Seed and Phytogenetic Creations Law 20.247 (1973), and Decree 2183/91 which regulates it. Likewise, Law 24.376 of 1994 approved the UPOV Convention (Union for the Protection of New Varieties of Plants), 1978 Session.
The regulation of activities related to the research, development, application and environmental release of genetically modified organisms falls to the National Advisory Commission on Agricultural Biotechnology (CONABIA), created by Directive Nº 124/91 of the Secretariat of Agriculture, Livestock and Fisheries (SAGyP).
The regulatory body for the field of health biotechnology is the National Commission for Biotechnology and Health (CONBYSA), created by Order Nº 413/93, by the Director of the National Administration of Drug, Food and Medical Technology (ANMAT).
5. Conclusion
If Argentina can develop suitable economic policies, within a stable political and institutional framework, it may become one of the most important world powers in the medium to long term.
Argentina’s economic situation has improved considerably since the “corralito” was imposed towards the end of 2001. GDP rose by 8.8% in 2003, after a drop of 19.1% over the previous four years. At the end of 2004 the average growth rate stood at 8.5%, as result of a dramatic rise in business investment. Inflation stood at 3.7% in 2004 (in 2002 it reached 41%).
The outlook for biotechnology in Argentina is promising. In a country which has vast natural resources, a wide variety of climates and ecosystems, ranging from a tropical region to an Antarctic region, it is not surprising that biotechnology has found the ideal culture medium. The Argentine Government, aware of its important role in the country’s economy, has supported the development of biotechnology by passing proactive legislation.
The agricultural sector has used biotechnology in the past. Consequently, the country is now the world’s second-largest producer of transgenic crops, behind the United States. In the livestock sector we can highlight the production of recombinant vaccines and the use of animals as biofactories (first examples in the world of cattle that have been genetically modified to produce the human growth hormone). Moreover, the Argentine pharmaceutical and diagnostics industry is one of the most advanced in Latin America, with a strong exporting track record.
To sum up, we can say that Argentina is fully committed to biotechnology, and is now reaping the benefits in the form of human wellbeing and economic growth. Although some problems still need to be solved (overdependence on external technology, low R&D&I investment, poor knowledge transfer or obsolete infrastructures, among others) the future is promising.