BioWorld International Correspondent

The German Ministry for Education and Research (BMBF) has pledged about €100 million in funds to support all facets of biotechnology in Germany. The publicly funded programs would range from research money for individual investigators or research groups to bridge financing for small and medium-sized companies to support for the infrastructure for regional clusters throughout the country.

Speaking at the BMBF's fifth "Biotechnology Days" conference in Leipzig, Minister Edelgard Bulmahn said the programs "will definitively improve the prospects for new jobs and growth in biotechnology in Germany." She awarded five BioFuture prizes worth a total of €5.5 million to help young researchers either start a company or pursue an academic or research career. Bulmahn emphasized that she expects the support to build networks in areas that will be particularly beneficial to Germany. The prizes also addressed a longstanding complaint in the sector - that talented researchers were leaving the country for lack of support. Ten of the prize's 43 winners over the life of the program have been granted to researchers who have returned to Germany from other countries.

Bulmahn also said that biotechnology has been a key priority of the Schroeder government since its first election in 1998. Over that period, she said, funding for projects in the sector has risen by 70 percent to €180 million this year. Including basic research, public support for biotechnology in 2003 will amount to €480 million.

The German government also will be active as a venture financier. Economic Minister Wolfgang Clement recently announced an "umbrella fund," with capital of up to €500 million, which will invest in high-technology fields, including biotech. Peter Ziegler, a spokesman for BMBF told BioWorld International: "The problem is that the banks have been relatively reluctant to finance new companies. The umbrella fund is meant to bridge this gap."

The fund will eventually include private investment and is projected to reach €1.7 billion.

The projects that the BMBF intends to support include the BioFuture competition, the annual event that brings money to younger researchers; BioChance, which concentrates on commercializing technologies; and BioRegio, which promotes the biotechnology industry in four selected regions. Since its founding in 1998, BioFuture has awarded €60 million. BioChance has given out €42 million since 1999. The initiative announced by Bulmahn also will include a new program, BioChance Plus, which will be aimed at small and medium-sized companies to help them with product development. It can support joint ventures and also is open for newly founded companies.

Over the course of the next three to four years, the BMBF hopes to channel €250 million through BioChance Plus. BioRegio has spent about €90 million. The new initiative will include assistance in reaching internationally competitive standards in the regions. Through 2006, the government expects to spend €50 million on the effort.

Asked about criticism that previous government involvement had actually hindered the competitiveness of German biotech companies, Ziegler said, "We see the sector as a key technology for the future and one that is very much worth supporting with serious commitments."