Forecast: Biotechnology R&D Intensity in the Business Sector in South Korea

The Biotechnology R&D intensity in South Korea's business sector has shown variable trends over the past decade. Starting at 2.48 BERD in 2013, it experienced fluctuations, peaking at 2.83 in 2020, before settling at 2.69 in 2023. The year-on-year variations reflect significant highs and lows: a sharp decline of 8.54% in 2017 and a substantial increase of 9.86% in 2020. The last two years indicated slight negative variations, with -4.05% in 2022 and -0.15% in 2023. The five-year CAGR till 2023 stands at 1.77%, indicative of a moderate growth trend.

Looking ahead, the forecast from 2024 to 2028 shows a stagnation in R&D intensity at 2.68-2.69 BERD, with a forecasted five-year CAGR of -0.06%. This implies minimal growth potential in the short term, with the intensity essentially plateauing. Notably, the projected five-year growth rate to 2028 is a minimal -0.28%, further reinforcing the expectation of steady levels rather than significant growth.

Future trends to watch for:

  • Innovative funding models and government policies aimed at revitalizing R&D investments.
  • Impact of global economic conditions on biotech sector investments.
  • Technological advancements and their uptake within the business sector, influencing R&D priorities and subsequently, intensity levels.