Last week, the International Forum for Industrial Biotechnology & Biobased Economy (IFIB) was held in the city of food, Bologna (Italy), gathering leaders and innovators from across the globe to tackle the question: how can industrial biotechnology reshape our economy for a more sustainable future?
Pushing Beyond Sustainability for Global Impact
Jens Nielsen from the BioInnovation Institute highlighted that the food sector should tackle both sustainable and nutritional food simultaneously to avoid a cycle of continuous transitions. He also emphasized that industrial biotech should focus not on marginal improvements but on significant innovations that disrupt markets. This message was reinforced by Christian Lenges (IFF), who stressed that it is key to provide a value proposition that is not only sustainable but also capable of winning the game. Josko Bobanovic (Sofinnova Partners) pointed out that although Europe has a strong base of agrifood biotech startups, many struggle to grow beyond the pilot phase. Startups need to think bigger and aim beyond local markets to remain competitive on the global stage.
Tackling the “Valley of Death” through a Pilot Community
Scaling up innovation isn’t just about ambition, it’s also about infrastructure. Stef Denayer (Bio Base Europe Pilot Plant) highlighted Europe’s network of pilot plants as key in tackling the “Valley of Death,” where promising projects fail to transition into commercial viability. The message conveyed was thatwhile Europe has sufficient pilot capacity – around 140 pilots in Europe–, various stakeholders need to connect, which can be facilitated through a pilot community.
Regulatory Hurdles Slowing Growth of “Biosolutions”
One of the forum’s most frequently discussed topics revolved around regulatory barriers. A panel highlighted Europe’s slow legislative process—three times slower than that of other regions—which is discouraging investors and driving them to the US and Asia. The current regulatory framework does not accommodate biotech innovations, creating uncertainty for companies that struggle with a return on investment of ten years. The panel also proposed the term “biosolutions” instead of “biotech” for a more positive connotation and a shift from a process-based to a product-based approach.
From a national perspective, Giovanni Savini, Minister of Enterprises and Made in Italy, pointed out that a recent strategic investment from Singapore, underscores the government’s commitment to making Italy an appealing investment destination. This was enabled through the National Bioeconomy Strategy which includes a more streamlined administrative system and a “one-stop shop” for investors.
Connect & Cluster: Balancing Local and Global
The panel emphasized the importance of connecting along the value chain and developing longer value chains better rooted in local regions. The goal is to find a balance between being local—reducing costs and logistics—while staying global for profitability. The recently published G20 principles highlight the critical role of regions in developing robust, coherent policy frameworks. At the same time, clusters need to connect with broader networks and incorporate external innovations.
On an European level, The Circular Biobased Europe Joint Undertaking (CBE JU) highlighted derisking bioeconomy investments by aligning European interests with industry needs. Through public-private funding, it accelerates innovation and market uptake, with flagship plants driving transformation across the continent.
Entrepreneurship Challenges: Addressing Real Market Needs
Benoit Buntinx from EIT Food identified the most common reason for startup failure as a lack of market need, followed by running out of cash, not having the right team, getting outcompeted, and pricing or cost issues.
Italian success stories like Tomapaint (valorizing tomato byproducts into biobased resins), Coffeefrom (transforming coffee waste into polymers), and Caviro (producing bioethanol from grape waste) demonstrate that there is potential.
Skills Development: Bridging Academia and Industry
Another panel discussed the need for a skilled workforce. The future of biotech depends on bridging the gap between academic research and industry needs. We need a broad spectrum of skills, thus, a holistic approach is required, as opposed to the previous focus on specialization. The “Pact for Skills,” launched by the European Commission, aims to define what is necessary for the upskilling and reskilling of the workforce. Additionally, the Biobased Industry Consortium has released a document that emphasizes vocational training as a key aspect of skill development.
Final Thoughts
As the forum concluded, one message was clear: Europe has the potential to lead in industrial biotechnology, but only if it can overcome challenges related to scaling, regulation, and collaboration. With the right focus on ecosystem-building, regulatory reform, and skills development, Europe can be at the forefront of the global biobased revolution. As we look to the future, it’s not just about creating new technologies, but about ensuring these innovations can thrive in a connected, competitive, and sustainable European market. Flanders’ Food and other clusters are vital in pushing this vision forward.
