Bioeconomy

Abstract: A central theme in this chapter is the integration of the bioeconomy with the circular economy, a concept that emphasizes continual material use, resource efficiency, and waste minimization. The idea of a circular bioeconomy merges these two paradigms, promoting the sustainable use and reuse of biological resources. This synergy is essential for achieving long-term sustainability goals, aligning economic development with ecological boundaries (Kardung et al., 2021). The chapter also revisits historical economic theories, such as those proposed by the Physiocrats and von Thünen, to contextualize the principles of the circular economy within a broader economic framework. It underscores the relevance of price systems, spatial logistics, and resource flows in shaping sustainable economic systems. Additionally, it critically examines the Planetary Boundary Approach, stressing the need for flexible, dynamic models that accurately reflect the complex interplay between human activity and environmental systems. Furthermore, this chapter presents empirical findings and methodological innovations from the BioMonitor project that enhance our understanding of the bioeconomy’s contributions to sustainable development. It explores advanced modeling tools such as input-output analysis, material flow models, and hybrid frameworks, which provide valuable insights into the bioeconomy's economic, environmental, and social dimensions. Finally, the chapter concludes with future opportunities and challenges that await the EU bioeconomy.

Abstract: This article develops an approach for estimating employment and value added in bio-based activities for EU NUTS2 territorial units. This method integrates regional statistics with firm-level data to increase the granularity of regional economic information, thereby enabling a more accurate identification of bio-based activities. A case study of Italy reveals a heterogeneous territorial distribution of bio-based activities, as well as substantial differences in region-specific bio-based shares across manufacturing sectors that are not captured by conventional approaches. Overall, the proposed approach represents an improvement in the measurement of the regional bioeconomy, which is essential for policy evaluation and monitoring.

Abstract: This article develops an approach for estimating employment and value added in bio-based activities for EU NUTS2 territorial units. This method integrates regional statistics with firm-level data to increase the granularity of regional economic information, thereby enabling a more accurate identification of bio-based activities. A case study of Italy reveals a heterogeneous territorial distribution of bio-based activities, as well as substantial differences in region-specific bio-based shares across manufacturing sectors that are not captured by conventional approaches. Overall, the proposed approach represents an improvement in the measurement of the regional bioeconomy, which is essential for policy evaluation and monitoring.

Abstract: The present report summarises the enhancements made with recognised (bioeconomy) economic modelling tools (MAGNET and AGMEMOD/BioMAT) to better capture the nuances of bio-based markets and provides a plausible medium-term baseline that combines the strengths of the simulation models. As such, this study is envisaged as an initial preparatory step for further scenario-based analyses that might serve as further insides into different pathways for the EU bioeconomy, in the event of the upcoming update of EU Bioeconomy Strategy and Action Plan expected at the end of 2025. The design of the modelling framework, which started in 2023, considers a range of modelling enhancements and alignments that are relevant to policy documents and topics.

Abstract: The bioeconomy encompasses a wide range of activities that utilise renewable biological resources, from agriculture and forestry to biotechnology and bio-based industries, to produce food, materials, and energy, as well as related services. In 2023, the biomass producing and converting sectors created 17.1 million jobs, equivalent to 7.9% of total EU’s employment. Additionally, it generated a value added of EUR 863 billion, accounting for 5% of EU’s GDP. The bio-based industry accounted for EUR 583 billion in economic value added, half of which (EUR 305 billion) are generated by food, beverages and other agro-manufacturing. The manufacturing of bio-based pharmaceuticals with EUR 102 billion, followed by wood products and furniture (EUR 61 billion), paper (EUR 52 billion), and bio-based textiles (EUR 29 billion), bio-based chemicals (EUR 14 billion) and bio-based plastics and rubber (EUR 4 billion). When including the services, the size of all bioeconomy-relevant sectors is significantly higher. The bioeconomy-relevant sectors generated EUR 1.9-2.7 trillion in value added (11-16% of EU’s GDP) and created between 42 and 60 million jobs (19-28% of EU’s total employment). In 2023, the business expenditure in research and development (R&D) from the biomass producing and converting sectors in the EU was estimated at EUR 17.3 billion, corresponding to 6.7% of the total EU's business expenditure in R&D. If related scientific and knowledge-based activities are included, the amount is EUR 23.2 billion (9.0% of total EU´s business expenditure). Over the last years, the socioeconomic indicators of the bioeconomy have shown an increasing contribution to GDP and R&D expenditure, evincing the potential for fostering innovation, productivity and competitiveness.

Abstract: This report presents a patent-based indicator to measure the innovation output of the bioeconomy, which is a key driver for the European Union's transition to a sustainable and circular economy. The analysis covers the period 2008-2020 and provides insights into the trends and patterns of bioeconomy-related patenting activity in the EU. The results show that the share of bioeconomy patents in the EU patent portfolio is modest but significant, with a mixed growth trend over the observed period. The proposed indicator could be a useful tool for policymakers to monitor and promote the uptake of the bioeconomy in the EU.

Abstract: Life sciences-related sectors play a vital role in addressing EU challenges, driving innovation in key areas like healthcare, biotechnology, and agriculture to enhance competitiveness, sustainability, and strategic autonomy. This policy brief examines the socioeconomic relevance, structure, and trends of Life Sciences sectors using three key economic indicators: employment, value added and R&D business expenditure. The analysis shows that Life Sciences sectors are crucial to the EU economy, accounting for 9.3% of GDP and employing 29 million people. These sectors have also driven economic growth in recent years, with increasing GDP contributions and job creation in productive sectors, and offer high growth potential and innovation capacity to address EU challenges.

Abstract: Pharmaceuticals and Medical Technologies (PMTs) patents represent 12.6% of the total IP5 patent families filed worldwide in the period 2010-2020. The US are the biggest player in the field, filing 25.1% of all PMTs IP5 patent families 2010-2020. The EU is second with 17.2%, followed by Japan (8.5%), South Korea (4.4%) and China (3.2%). Among EU Member States, Germany has by far the highest number of PMTs IP5 patent families filed in the observed period, accounting for 36% of all the patents filed by the EU 2010-2020.

Abstract: Monitoring income distribution in the bioeconomy and food system is necessary to understand their contributions to socioeconomic development and inform related policies. This report proposes a set of replicable methodologies for the inclusion of income distribution indicators within the frameworks of the Bioeconomy Monitoring System (BMS) and the EU Food System Monitoring Framework (FSMF). The report develops four indicators to measure income distribution in the bioeconomy and food system sectors, focusing on the functional income distribution. The indicators include the average salary by sector, share of labour income over value added, employee' earnings ratio, and share of value added by sector in the food chain. The report applies these indicators to the EU bioeconomy and food system sectors, revealing significant divergences in income distribution across sectors and Member States.

Abstract: This chapter emphasises the strong interlink between the diversity of bioeconomy visions that emerged around the world in recent decades and the framing of bioeconomy statistical frameworks. Today, two main visions of the bioeconomy coexist. One is science and technology centered, depicting the bioeconomy as a core element of the biotechnology industry. Associated bioeconomy statistical frameworks emphasise the role of research and innovation and information technology activities within their sectorial scope and delineate bioeconomy activities according to the processes they implement. The other vision is more centered on the objective of substituting non-renewable resources in the production of bio-based products and bio-based energy. Associated statistical frameworks restrict their scope to those activities that either produce or transform biomass. Using the example of the value-added indicator, the chapter shows that these two visions and associated frameworks yield very different estimates. A second part illustrates different development strategies across the European Union through the lens of the statistics of the European Commission's Joint Research Centre, showing bioeconomy orientations in Europe distribute around the concentration/diversification and labour-intensive/labour-productive axes. The statistics used for that analysis are compared with four other quantification methods, highlighting (1) their complementarities for the monitoring of bio-based markets, bio-based services, bioeconomy sourcing activities (upstream activities), and (2) the use of economic multipliers for identifying the sectors that have the highest potential for generating additional outputs.