The government’s annual expenditure for bioscience research is around GBP 650 million each year. The UK has a very strong element of the supply chain for biotechnology from the scientific research base through the presence of clusters. The UK has built-in biotechnology clusters and helped in creating a supportive environment for development. Clusters are defined as the geographic concentration of interconnected companies, specialized supplier and service providers, firms in the related industry. London has a number of leading universities and research hospitals and this accounts for one-third of the countries’ publicly funded research in Britain. The EU medicines regulatory agency is also situated in London and can prove to be a huge potential for biotechnology starts ups. (Lord Sainsbury)
It is sometimes very risky to put a price tag on biotechnology companies. Forecasting sales and revenue is most important and arriving at an appropriate conclusion is a difficult task. The operating costs associated with starting up a corporate office would include administrative expenses, cost of running clinical trials etc. Taxation and working capital are also factored in. The UK government has identified biotechnology as the most important industrial growth sectors and have adapted ‘soft loan’ program from Germany where private funding is matched with government investment. London has the most advanced international and domestic infrastructure in Europe. Massive investment in infrastructure has been made by the government in the public transportation sector such as cross rail and the East-west high-speed rail link. London has the world’s best-skilled workforce in Europe which makes it the best place to hire.