In a new report from The Öresund Institute and Medicon Valley Alliance The life science sector in the Danish part of the Öresund region is surveyed. Over the past five years, 10 more people have been employed in the industry on the Danish side of the Öresund. And the report shows that 500 people are employed by the approximately 58 companies operating in life science in eastern Denmark.
The Öresund area, also known as Medicon Valley, has long been home to many life science companies, and the sector is growing steadily. The new report shows that around 200 new life science companies have been founded in Eastern Denmark since 2017. The majority of the new companies are active in biotechnology and are located in Copenhagen. The growth is expected to continue in the coming years as new regional investments in, among other things, facilities and research laboratories worth 32 MDKK are planned.
450 companies in Skåne
There is also a lot happening in the industry on the Swedish side of the Öresund. The latest survey of life science in Skåne was carried out 2020, when the Øresund Institute, on behalf of Medicon Valley Alliance, investigated what the life science cluster in Skåne looks like.
"Skåne has approximately 450 companies operating here and 7 people work in the private life science industry. In recent years, it has become increasingly clear that this sector is very important when it comes to job creation and tax revenue," says Peter Hartman, CEO of Medicon Village Innovation in Lund.
He says that the Swedish side of the cluster has also had positive development for several years.
"In the last five years, we have seen a very positive development in Skåne, something we have noticed clearly here at Medicon Village. Lund has become very much a research and development hub, with many small innovative companies, while Malmö has become home to production and many of the larger companies. The two cities complement each other very well."
The years since the survey was conducted have been eventful, for both the industry and the wider world.
"The pandemic led to a heavy burden on the healthcare system, which in turn meant that, for example, clinical studies had to be paused or postponed. It has been difficult to participate in trade fairs and investor meetings, but overall I would say that it is an industry that has coped well through the crisis and growth has continued, albeit at a slightly slower pace. Our industry holds the key to how pandemics and other health-related challenges are handled, and politicians have really opened their eyes to how the sector can contribute during the crisis."
The industry is prepared for uncertain economic conditions
Although the pandemic has subsided, 2022 will be marked by turbulence in the stock and bond markets, which has led many investors to be more cautious. But the development is not too worrying, says Petter Hartman.
"It is mainly the smaller companies that are affected when investors become more uncertain and that is of course tough. Now we are facing a turning point where one can imagine a slowdown after several years of strong growth. But here in Skåne, the innovation system is very strong where universities, incubators and research parks have created a favorable environment for companies. We have seen that the environment where companies are close to research, potential partners and financiers provides a greater survival rate, which means that we are quite well equipped for a period of greater economic uncertainty."
Hartman is convinced that the Öresund Cluster will remain attractive, even when risk appetite in the economy decreases.
"As long as research is strong, which it is here in Lund, there will be attractive ideas that lay the foundation for new viable companies and then the investments will find their way here."
Want to see investments in bioentrepreneurship
An obstacle to the industry's continued growth is a skills shortage.
"As companies increase in number and also expand, the competition for labor also increases. We see a major shortage of people with, for example, regulatory expertise, but also with the right business knowledge, it is a bottleneck. If you look at the technical education programs, it is not uncommon for students to do internships or degree projects at companies, but that tradition does not exist in the same way in medicine."
To remedy this, Petter Hartman would have liked to see greater investment in bioentrepreneurship within academia.
"I know that there are good initiatives underway, we must ensure that researchers and students have the opportunity to cultivate their entrepreneurship to a greater extent."
Another challenge is internationalization.
"The pandemic has made international trade more complicated and it can be especially difficult for smaller companies to scale up to an international level. But now it's important that we get out into the world again and continue where we left off before the pandemic."