Biotech-Economics: An Analysis of Economic Assessments and Governance Strategies

Biotech-Economics is a new concept in the literature on Sustainable Development implying the revision of production processes using renewable bio-resources and technological innovations. Bioeconomic activities have two common features: resource sustainability and economic efficiency towards Sustainable Development Goals. Theoretical foundations related to the transition to Bio-Economics emphasize the Circular Economy as the theoretical-applied model. Given the growing trend of the Bio-Economics in the world, this research pursues two goals. First, explaining the theoretical foundations of Bio-Economics and evaluating the transition process. Second, to provide a framework for identifying and analyzing variables affecting transition, based on the Circular Economy and on the macroeconomic scale. Indicators of Bio-Economics are based upon the three indices of Sustainable Development including economic-social-environmental variables. Empirical research in Bio-Economics shows that due to data limitations and heterogeneity of index measurement methods, statistical analysis methods using cross-sectional data are the most applied methods. Accordingly, using Factor Analysis method and bio-economic data of the European Circle Economy, the variables explaining the transition process have been identified. The results suggest that the most important economic variables of the transition include the share of investment and value added in the Bio-Economics, the biomaterial trade, and the market sentiment index. The effective variables regarding social and environmental indicators include daily calorie per capita, biowaste recycling, organic farming and innovations, respectively. Finally, the necessity of Iran's economy for transition to Bio-Economics was analyzed from two perspectives: Oil Vulnerability Index and Sustainable Development Goals, emphasizing the necessity of the transition to the Bio-Economics.