| SIC Codes: | |
| NAICS Codes: | 541711 |
Companies in this industry engage in biotechnology research and development to produce processes or prototypes of new or genetically altered products. Major organizations engaged in biotechnology research include the Scripps Research Institute, Howard Hughes Medical Institute, and Jackson Laboratory; institutes affiliated with government research agencies and major universities, such as the Whitehead Institute (MIT); and the research departments of large biotechnology companies such as Amgen, Genentech, and Genzyme.
Demand for biotechnology research in the fields of agriculture (food and biofuel), medicine, and science is driven by the global need to produce more food for a rapidly expanding population, the need for alternatives to oil and gas, and scientists' desire to find solutions for complex scientific and medical issues. The profitability of individual companies depends on the discovery of potentially marketable new products. Large companies enjoy economies of scale in purchasing expensive equipment. But because the market for potential products is so large, small biotechnology companies can co-exist successfully with large ones if they have expertise in a particular line of research.
Biotechnology research is used to produce drugs, therapies, vaccines, and medical diagnostic tests. It's also used to produce genetically modified (GM) plants and crops; biofuels; DNA fingerprinting; environmental biotech products that aid in the clean-up of hazardous waste; and industrial biotech applications that help numerous sectors produce less waste and use less energy and water.