White Biotech TP is funded by FP6
Lithuania
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Introduction
Lithuania is one of the least populated countries in Europe with highly developed agricultural and forestry sectors. The annual production of grain is over 3 million tons of which around 1.0 million tons are surplus. Each year more than 4.5 million tons of residual biomass and waste products from stockbreeding are produced and more than 2.5 million m3 of forestry residues are formed during wood manufacturing. Lithuania benefits from a long tradition in training biotechnology specialists. Several research institutions, including the Institute of Biotechnology, perform industrial biotechnology research. With those favourable conditions, industrial biotechnology should become a rapidly growing sector of the Lithuanian economy in a few years time.
There are a number of research institutions which perform modern biotechnological investigations, related to industrial biotechnology: Institute of Biotechnology, Institute of Biochemistry, Institute of Chemistry, Lithuanian Institute of Horticulture, Lithuanian Institute of Agriculture, Kaunas Technical University, Lithuanian University of Agriculture, Vilnius University, Vilnius Gediminas Technical University and others. The strong research centers are developed in private biotech companies: “Fermentas”, Sicor Biotech”, “Biocentras”, “AMILINA”. There is a strong long-lasting education experience in training the specialists for the field of biotechnology.
In a few past years Industrial biotechnology became a rapidly growing sector of Lithuanian economy, especially production of biofuels.
I. Research and Innovation
Modern industrial biotechnology is a relatively new discipline, with major areas of knowledge still to be explored. Public support to research as well as the establishment of pilot and demonstration facilities to scale-up individual processes will therefore help in the development of a European bio-based economy.
A. Public research funding
In July 2002 the Government of Lithuanian republic adopted resolution on the priority directions of R&D in Lithuania. Biotechnology was declared as one of the priorities.
In order to encourage investment in the prospective technologies and R&D and support new technology-based business development, in October 2006 the Lithuanian Government has approved the National Industrial Biotechnology Development Programme for 2007-2010 (€ 8.7 million). During 2007 – 2009 this programme was managed by the Lithuanian State Science and Studies Fund. Since 2010 it is managed by Research Council of Lithuania. The objectives of the Programme are the following:
- to develop technologies for obtaining chemicals from biomass;
- to develop biotechnological products and biodiagnostic methods for industry, agriculture, and healthcare;
- to explore and to develop biocatalysts and biotechnological processes;
- to use local materials suitable for industrial biotechnology more effectively and to develop new biomass sources.
Since the beginning of the programme 23 projects have already received funding. € 1.2 million were allocated in 2007, € 1.7 million in 2008 and € 1.8 million in 2009. Funding is allocated for the projects submitted by research institutions together with business entities.
Support for biotechnology (agri-food, healthcare and industrial) is also available in the High technology development programme. € 1.5 million is allocated for biotechnology of the total amount of € 9.7 million of High Technology programme in the period 2007-2009.
B. Pilot and demonstration plants
A descriptive list of pilot and demonstration plants in Lithuania is available
here.
II. Policy
Public authorities can promote the quick take-up of industrial biotechnology innovations by implementing a number of “instruments” or policy initiatives. This can be the improvement of the regulatory framework; the integration of specification for bio-based products in public procurement; the establishment of standardisation, labelling and certification schemes to overcome perceived uncertainty about product properties and weak market transparency; the development of financial instruments and supports to increase investments into research, technology development and innovation as well as the elaboration of communication and information campaign to communicate the benefits of bio-based products to users.
A. Policies and regulations
In July 2002 the Government of Lithuania adopted a resolution on the priority directions of R&D in Lithuania. Biotechnology was declared as one of the priorities.
The formation of LNBP was initiated by the Lithuanian Biotechnology Association. The platform gathers together 13 academic partners and 15 industrial partners. These industrial partners are the fast growing sector of Lithuanian economy (the annual growth of sales in 2006 and 2007 equals 40 %. Total production was € 338 mln. in 2007. The platform distinguishes two main priority areas:
The National Biotechnology Platform is involved in the drafting of the long-term strategy for the development of Lithuania’s industrial biotechnology sector and pharmaceutical products. The problem of feedstock for the biotechnology industry is being examined by the LNBP in the form of a social consensus established on a three-pillar basis (business, science and the State). The strategy seeks to ensure the proper coordination of distribution of private and public resources conducive for the development of Lithuania’s economy. The LNBP serves as a tool to define the medium-term and long-term RTD objectives of the Lithuanian biotechnology sector and to identify the principal activities necessary for the attainment of such objectives.
National Industrial Biotechnology Development Programme for 2007-2010, approved by the resolution No 1050 of 24 October 2006 of the Government of Republic of Lithuania. Budget of this programme is 30 million litas (2,975 million litas for 2010). The Government is considering the possibility to continue the programme after 2010.
Joint Natural resources and agriculture Research Programme, approved by Order No ISAK-2377 of 24 Nowember 2009 of the Minister of Education and Science. The budget of this programme is 346,741 million litas till 2013 year. It includes such project as
- Development of R&D centres of agrobiotechnologies, forestry, biomass energy, water and biosystem engineering, higher education and studies and related infrastructure, and reorganisation of science and studies institutions in “Nemunas” valley in Kaunas;
- Creation of a maritime valley hub and renovation of the studies infrastructure in Maritime valley in Klaipėda;
- Establishment of a Joint Nature Research Centre in “Santara” valley in Vilnius.
B. Public procurement
The Green public procurement programme which
encourages institutions to buy eco-friendly goods was
approved by the Government of Lithuania in 2007. Green
procurement amounted to 8,3 percent of all public
purchases in 2008. Following the Strategy of the
Development and Improvement of Lithuanian Public
Procurement System for 2009-2013 approved by the
Government of Lithuania the share of green public
procurement should equal 25 percent of total public
purchases in 2013.
C. Standardisation, labelling and certification
Lithuania is a big producer of ecological food products and their labelling is established and used already for relatively long time. As an example, “Water lily” was designed in Lithuania to mark eco-friendly non-food products. Its use is rather limited because there are few such products on the market in Lithuania.
D. Access to finance
There are mainly three ways of supporting biotechnology innovation in Lithuania.
- Legal environment improvement, including; recent amendments aimed at encouraging companies to invest in R & D through financial incentives; the establishement of a legal basis for universities to create spin-offs and encourage them to commercialise the results of their research through patenting.
- Financial assistance via EU structural funds (Economical growth, R&D development) and national funds (such as the Industrial Biotech Development Programme)
- Tax incentives: Profit tax amendments for investments into R&D: tax relief for investments into technological renew (assessable profit for the enterprises could be reduced up to 50 % of expenditures incurred by investing into equipment, means of communication, computers, etc.), expenditures for R&D reduce taxable income 3 times and amortization process is reduced to 2 year period. Approved by the Government in 2008 year.
In 2008, the Lithuanian Government approved five “Integrated Science, Studies and Business Centres” (valleys). Valleys are complex infrastructures that shall realize and re-enforce the strengths of regionally concentrated, sustainable research and innovation networks with clear and long-term commitments by universities, state institutes and companies. Out of five planned Valleys - “Santara” and “Nemunas” – among other areas, will focus on biotechnologies:
- Santara – Biotechnology, Molecular Medicine & Biopharmacy; Research of Ecosystems and Sustainable Environment; Design, ICT;
- Nemunas – Agrobiotechnology, Bioenergy&Forestry; Safe & Healthy Food Technologie.
In September of 2009 the Lithuanian Government approved group of BIO and ICT project developers of “Santara” Valley Programme, giving it the status of the economic importance to the state. This status liberates businesses from various business establishment related and other procedures and provides private investors with a right to invest, build, and register their property in a special business area, such as the “Santara” Valley. Companies setting up in this territory will able to lease a land plot to build manufacturing facilities on very favourable terms. Business of BIO and ICT sector has already expressed interest to invest nearly 90 mln. Lt into the “green field” projects to be developed in the Santara Valley. Producers of medical techniques and solar batteries are ready for investments into Visoriai Information Technology Park (VITP), located in the science and technology valley “Santara”.
In October 2008 the Lithuanian Government approved the Plan of Reorganization of Scientific Institutions which will be included in the “valleys”.
E. Communication
Communication between business, science and the State is led by the Lithuanian Biotechnology Association which was established in 1995. In 2006, the establishment of the Lithuanian National Biotechnology Platform (LNBP) has enhanced these collaborations. Both entities have good working contacts with Ministry of Economy, Ministry of Education and Science, agency for international science and technology development in Lithuania.
Main Sources
| Roundtable on industrial biotechnology in Lithuania |
| Lithuanian Institute of Biotechnology |
| Lithuanian KBBE-net delegate |