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A Comparative Assessment of National Competitiveness in Advanced Biotechnology, with Implications for South Korea

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  • Jieun Jung

    (Korea Institute for Industrial Economics and Trade)

Abstract

As the advanced biopharmaceutical industry becomes a cornerstone of health security, cell and gene therapy (CGT) has emerged as a major sub-field with significant industrial and economic growth potential. This paper analyzes the industrial competitiveness of the CGT sector in seven major countries, revealing that the South Korean CGT sector lags in terms of industrial competitiveness, with an industrial competitiveness index score of just 4.81 points, trailing the first-place United States (9.61) by a significant margin. The study also finds that Korea suffers from a brain drain of doctoral talent and a clinical trial structure skewed toward legacy therapies, and finds a lack of Korean products approved by the Food and Drug Administration (FDA) of the United States. Korea also offers fewer government subsidies compared to its competitors. Furthermore, 12 of 16 key items in the materials, parts, and equipment (MPE) sector are import-dependent, creating a potentially fatal supply chain vulnerability. To address these issues, Korea must focus on three short-term goals: cultivating a skilled workforce, localizing the production of key MPE, and diversifying imports. In the medium to long term, it is essential to foster domestic talent with skills across disciplines and promote mission-oriented R&D to widen competitive advantages and establish global supply chain leadership.

Suggested Citation

  • Jieun Jung, 2026. "A Comparative Assessment of National Competitiveness in Advanced Biotechnology, with Implications for South Korea," Industrial Economic Review 022843, Korea Institute for Industrial Economics and Trade.
  • Handle: RePEc:ris:kieter:022843
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    JEL classification:

    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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