The intellectual capital invested in biotechnology raises important questions about protection. Some of them hold risks. That makes it a lucrative market. But it is much more than that. Public calls, particularly in Europe, for better information about the true effects of GMO food on health and the environment, have served to push the stakes for the concerned industries higher still.
Modern biotechnology aims to understand and exploit biological processes for practical ends.
It would not exist without the knowledge that goes into it. That means nearly half the value of the industry is embedded in its intellectual capital. This sometimes happens in the pharmaceuticals industry, where drugs are imitated and marketed at cut prices, particularly in poorer countries. Biotechnology companies have to feel that their heavy investment in knowledge is worth it, that they will hold the rights to their research findings and to profit from them. Patenting also encourages them to be forthcoming with the results of their research.