A focus on commercial value With potential for far-reaching implications in virtually every industry, bio-innovation holds promise for a better world. In many cases, biology offers distinctive commercial advantages unmatched by other approaches. Despite compelling attributes, the bioeconomy has yet to drive meaningful transformation for both consumers and businesses. Building technology is not enough – a fundamental shift from the current technology-push mindset to a deliberate focus on market pull and differentiated value creation is essential. In the absence of this shift, bio-innovations will continue to face an uphill battle to break through industries and become true drivers of transformational change. Shifting towards differentiated value creation to transform the bioeconomy. Bio-innovation lacks a compelling articulation of value that would resonate with diverse stakeholders. To gain market traction, bio-innovation must not only be technically achievable at scale, but also deliver sufficient value. Furthermore, bio-innovation must solve the right customer problem while simultaneously driving commercial viability. Adding to the complexity, bioeconomy perceptions differ across regions and industries, making the required articulation of value and alignment on the potential ecosystem-wide transformation challenging. This paper proposes a reframing of the value of bio-innovation that can unite policy-makers, investors, regulators, consumers and business leaders around an inspiring vision of what is possible when employing biology as commercial technology. Biology’s commercial value is under delivering. Still struggling to successfully navigate the “valley of death” (i.e. scaling and overcoming commercial pressures to achieve profitable growth), bio- innovation must refocus on unique value creation that delivers commercial viability, so that it can achieve widespread adoption across industries (see Figure 1). Since the early 2000s, the rapid expansion of biotechnology tools – alongside the convergence of complementary technologies – has driven significant investment aimed at unlocking the commercial potential of biology. The combined biotechnology industries of the United States (US) and Europe, for example, secured approximately $81.1 billion in capital in 2023,1 and the recent investments of SGD (Singapore dollar) 44.8 million into Singapore’s Sustainable Bio-manufacturing Technology Platform (SBTP),2 $7 billion from the Ministry of Economy, Trade and Industry of Japan (METI) to support Japanese start-ups3 and over $200 million into two BioMADE US pilot facilities4 further underpin regional commitments to commercial bio-innovation. Up to this point, biotech investments have largely resulted in a technology-push environment that is ill-aligned to existing demand or has failed to create the necessary demand. Where successful, bio- innovations have met significant market needs and struck the right balance for commercial viability – highlighting the potential for exploring various value types and real-life examples of commercial success.Next Generation Bio-Innovation: Delivering Commercial ValueJune 2025 Biology is poised to drive commercial value. A shift towards differentiated value creation can transform the bioeconomy. Next Generation Bio-Innovation: Delivering Commercial Value 3

Next Generation Bio Innovation 2025