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On November 23, 2025, the Organisation for Economic Co-operation and Development (OECD) published a policy brief entitled "Boosting biotechnology innovation through agile regulation and finance instruments." The policy brief explores the investment and regulatory policy landscapes in the European Union (EU) and the United States, "highlighting shared challenges and lessons that can help accelerate sustainable innovation and strengthen participation in the global bioeconomy." The policy brief lists the following key messages:
- The United States attracts substantially more venture capital funding than the EU across the different fields of biotechnology. Investment in biosolutions in the EU also lags behind the United States, but the gap is smaller.
- Regulatory hurdles to biotechnology innovations are particularly acute in the EU. OECD notes that innovators "cite regulatory complexity, lengthy approvals and fragmented oversight as major barriers to bringing innovations into the market."
- Predictable and transparent regulations can strengthen investor confidence. Evidence points to a correlation between how well governance systems are perceived to function and the level of financing that the two regions attract.
- Agile regulation and collaboration across jurisdictions are needed. According to OECD, governments could reduce bottlenecks by promoting early engagement between innovators and regulators, well before formal approval reviews, and by experimenting with tools such as regulatory sandboxes and innovation test beds.
- Smarter financing can de-risk innovation and boost demand. OECD states that driving biotechnology innovation will require a mix of financial instruments to de-risk investment and to stimulate demand. A coherent strategy could combine targeted de-risking tools, blended finance, and market-shaping policies — all anchored in predictable and transparent regulation.
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