Engineering biology among 'frontier industries' named in UK industrial strategy

The government's much-anticipated industrial strategy published this week aims to provide a new long-term approach to regulation and lay the foundations for a revivified relationship between business, government and investment in the UK.

As part of the strategy, the government has set out growth-driving sectors and the "frontier industries" that sit within them. In the digital and technologies sector plan, engineering biology has been highlighted as one of six frontier industries that will be key to driving UK economic growth.

Potential prioritised

Engineering biology involves the use of synthetic biology and biotechnology to create new products and services derived from organic sources. It has the potential to address complex, pressing problems such as climate change, food security, fossil-fuel replacements, fashion and textile supply chain issues, and healthcare challenges. With such potential, it is easy to see why it has been highlighted as a frontier industry.

There had been calls for some time for the government to prioritise the engineering biology industry, with the Lords Science and Technology Committee previously calling on the government to take immediate policy action to seize the opportunities of engineering biology. The Regulatory Horizons Council has also focused on the industry, making recommendations to ensure effective governance of engineering biology products. Although the government initially responded to both of these reports, greater emphasis has now been placed on the industry through the new industrial strategy.

Global competition

Although the digital and technologies sector plan acknowledged that the UK retains its position as Europe's leading biotechnology hub, the UK faces competition from not only the US and China (which are the global leaders in engineering biology) but also from the EU and countries such as India and Japan, which are increasing investment in the sector.

In an attempt to leverage the UK's strong legacy of research in biological sciences, the government aims to reform its approach to regulating engineering biology products and decrease the regulatory burden associated with gene editing – gene editing and access to genetic resources fundamentally underpin the industry.

Government interventions

The government has set out five interventions it is taking to boost the industry and maintain and improve the UK's global competitiveness.

Driving cross-economy innovation through R&D

The government has allocated an initial £196 million for a National Engineering Biology Programme to fund researcher-led projects. The focus of the programme will be to target critical research and development (R&D) for transformative applications of engineering biology and will be monitored by specific metrics, such as R&D collaborations and investment leverages.

Enhancing adoption and manufacturing capabilities

An initial £184 million has also been allocated for an engineering biology scale-up infrastructure programme, with the aim of building and upgrading pilot and scale-up facilities. It will be imperative to ensure that these facilities meet the needs of innovators.

Acceleration of regulatory reform

The government plans to partner with the new Regulatory Innovation Office (RIO) to ensure the responsible adoption of engineering biology products and services. This will build on the existing Engineering Biology Sandbox, although little further detail on how this will be achieved is given.

The government states that the Genetic Technologies (Precision Breeding) Act 2023 and associated implementing regulations that are due to come into force in November will enable a route to market for precision-bred products, which should encourage investment in agri-tech.

However, it is not year clear whether the UK's deregulatory plans will be slowed down as a result of the agreement between the UK and the EU to enter into a sanitary and phytosanitary (SPS) agreement. This would require dynamic alignment by the UK with EU rules in this area applying, although there is the possibility of a carve out to this rule. Steve Reed, the secretary of state for the Department for Environment, Food and Rural Affairs, is optimistic that gene editing can be excepted from the SPS agreement but that remains to be seen. If the pace of the UK's gene editing reforms are slowed down, this could potentially slow the growth of the industry.

Connecting the engineering biology ecosystem

The government plans build networks of researchers, innovators and larger companies through schemes such as the new UK Research and Innovation's Engineering Biology Innovation Network.

International leadership

The government plans to continue working bi- and multilaterally to shape the global engineering biology landscape and ensure the UK remains a priority destination for investment. It is also looking to forge closer international ties with other leading engineering biology countries, for example, with the US through a future US-UK technology partnership.

Osborne Clarke comment

The identification of engineering biology as one of six frontier technologies that the government deems integral to both future economic growth and security is a positive step for the industry. The sector plan announces the ambitious goal of the UK being a world leader in responsible innovation, making a positive impact on global health, economic and security outcomes via engineering biology by 2030.

Although the sector plan is light on detail, the government has committed new funding to assist with engineering biology R&D and scale-up – securing these foundations will be essential for the future growth of the industry.

It is not a new announcement that the government intends to undertake regulatory reform, particularly in this industry, but it is encouraging that the industrial strategy indicates that this remains a priority for the current government. It remains to be seen how the RIO will operate in practice and whether the Engineering Biology Sandbox successfully assists in establishing new ways of innovators and regulators working together to speed up the regulatory approval process, and consequently the time to market.

Whether the forthcoming UK-EU SPS agreement slows down the UK's deregulatory progress relating to gene editing, a technology underpinning the sector, also remains to be seen. However the sector plan's roadmap to 2035 proceeds on the basis that the implementing regulations will come into force this November, suggesting that it is at least the government's intention for gene editing to be excepted from the dynamic alignment requirements foreseen by the SPS agreement.