From Policy to Practice Actionable Recommendations for a Commercial Bioeconomy 2025

ARPA-H’s $25 million grant to Cellino is a step in the right direction. ARPA-H is a US government agency within the Department of Health and Human Services that supports transformative biomedical and health breakthroughs. To further their mission, ARPA-H provided significant capital to Cellino in 2024 to bolster scaling efforts in developing an ultra-scalable, autonomous, cassette-based advanced biomanufacturing technology for personalized regenerative medicines. Such support will go a long way in helping this early-stage company scale its disruptive technology and bring it to more patients. In this fashion, Cellino’s NEBULA (NExt-generation Biomanufacturing ULtra-scalable Approach) project was the first project funded by the Scalable Solutions Mission Office under the ARPA-H Open Broad Agency Announcement. While ARPA-H’s support in scaling Cellino’s technology is significant, earlier and more significant sums of blended capital are needed to help companies reach commercial scale. When larger, blended investments are made earlier, innovators and early-stage ventures will be better positioned to achieve commercial success. Recommendation 10 Government funding that is flexible and right sized to bio-innovation What if governments tailored their funding to match the pace and scale of bio-innovation, offering flexible, targeted financial solutions to empower more breakthroughs? Over the past decade, governments have increasingly recognized the potential of the bioeconomy. Given the timelines required to scale and deliver on the full potential of disruptive bio- innovation, ultimately reaching commercial scale will require additional time, the duration of which will remain unpredictable in the immediate future. To better position bio-innovation to meet strategic goals, governments must not only commit greater amounts of capital, but also structure investments with timelines that are realistic and appropriately sized for commercialization. In a world where governments are taking a longer-term, outcomes-based approach, funding models must evolve to become more flexible and better aligned with the unique needs of bio- innovation. Such flexibility will ensure that investment terms and support mechanisms are right-sized to overcome the inherent challenges of delivering breakthrough bio-innovations for society. Description Governments offer flexible, appropriately sized funding tailored to the timelines of bio-innovation to better support enterprises in reaching commercial scale, driving improved societal outcomes. Example SPRIN-D (Federal Agency for Disruptive Innovation) offers flexible financing timelines tailored to the unique needs of disruptive innovation.47Recommendation 10 SPRIN-D, the German Federal Agency for Disruptive Innovation, is a government funding agency that supports disruptive innovations by identifying and developing research ideas with high transformative potential. Recognizing that breakthrough innovations often require flexible support structures, SPRIN-D customizes its financing timelines to align with the specific development stages and needs of each project. By offering adaptable financing timelines, SPRIN-D can effectively support projects that don’t fit within traditional funding schedules, ensuring innovators receive the resources and assistance needed throughout their development journey.Refining government funding approaches to better align with the unique needs of bio-innovation will go a long way in supporting their disruptive nature. Flexibility in timescales is essential to ensuring long- term success. Agencies like SPRIN-D exemplify effective models by providing substantial capital alongside accommodating timelines that support proving out the demonstration of disruptive technological advancement and commercial viability. These approaches help balance and share risks with private investors, ultimately creating a stronger foundation for bio-innovation to thrive commercially and benefit society. From Policy to Practice: Actionable Recommendations for a Commercial Bioeconomy 23