Shifting to a market pull environment requires focus on delivering commercial value FIGURE 1 Biotechnology Synthetic biology Bio-convergence technology Fermentation technologies Bio-pr ocessing technologies Others Differentiating applications, pr oducts or services thr ough: Ensuring bio-innovation creates unique value that delivers commercial viability is fundamental to adoptionAddr essing critical demand or cr eating new demand Delivering performance and cost advantage Product properties Production systems Sour ce: World Economic Forum analysis, Bioeconomy Community inputDiverse value chain ecosystemsCommer cialization r oute Technology push Market pull Biology will deliver differentiating value. Biology offers unique value, enabling businesses to innovate and address significant challenges. Earlier positioning around how bio-innovation value addresses demand will shape the corresponding impact. To clarify positioning, two distinct yet interconnected lenses for differential value creation through biology can be applied: product properties and production systems (see Figure 2). –Value creation through product properties. Bio-innovation is capable of replacing existing inputs or products with responsibly produced bio-based alternatives. Bio-innovation is also producing fundamentally novel products that transform how businesses operate and/or how people experience daily life. Such benefits must be readily perceivable for customers, including both businesses and end-consumers, and perceived as superior for a given use case. –Value creation for production systems. Biology-driven processes and approaches present value for businesses that incorporate them into their production systems. By enhancing operational environments and reshaping value chains to deliver innovative products and services, bio-innovation provides more flexibility and resilience in the face of market pressures, and within regulatory and policy boundaries, to better respond to market demands. These categories are not mutually exclusive, but rather synergistic – improving production systems will benefit customers, and differential bio-based products will benefit all players in the production system. Bio-innovations span a wide range of industries and are diverse in how they integrate into value chains; thus, they will vary greatly in how, and the extent to which, they deliver value. Commercial success depends on how different types of value are combined and leveraged to enable business models that meet market needs or reshape markets through differential value creation for customers. Next Generation Bio-Innovation: Delivering Commercial Value 4

Next Generation Bio Innovation 2025