When Russia launched the first-ever satellite into space 50 years ago on 4 October 1957, it was an event that won worldwide admiration. There was some trepidation too. With the Second World War barely over a decade earlier and the Cold War in deep freeze, West Europeans were understandably a little nervous at the thought of Soviet “Sputnik” satellites floating over their territories.

As the 8th annual OECD Forum in May showed, everyone agrees that innovation is important, but not everyone agrees on the reasons why.

Biotechnology and genetics research have been the subject of extensive investment by both the public and private sectors, with a growing impact on healthcare. Advances in medical genetics promise faster, better, diagnosis as well as a new generation of targeted therapies.

Genetically engineered crops are no longer an idea of the future, but have well and truly arrived. Crops like maize, soybean, rapeseed and cotton are being approved for commercial use in an increasing number of countries.

Biotechnology is one of the fastest-growing areas of scientific research, the latest OECD Science, Technology and Industry Scoreboard shows.

No, life cannot be patented. But an invention which includes genetic material as an isolated, purified molecule outside the human body can. That means genes. More than 3 000 patents on genetic inventions have been granted since 1980 by the United States Patent and Trademark Office, with the European and Japanese patent offices not far behind.

What do worms, fruit flies and people have in common? In fact, humans have a great deal in common genetically with other organisms, even "primitive" ones. Apart from that, they share the distinction of being among the first DNA blueprints to have been mapped and published.

Increased use of agrochemicals, irrigation and farm machinery in recent years in OECD countries has led to increased energy use, pollution of ground and surface water and in some places soil erosion.

Genetics is playing an increasingly important role in health care. New technical advances and information deriving from human genome research are changing health care practices and the economics of healthcare provision. These advances have broad social implications, particularly with the prospect in the future of a significant increase in the choice of genetic tests on the market.

Sir, In the current environment in which food consumers have expressed their concerns about bacterial contamination, about hormone, pesticide and antibiotic residues, and about genetically modified organisms, in their food, it is important that the analysis about these concerns is as comprehensive as possible. It is also important that the results of such analysis are discussed widely in order to reduce the public’s feelings of distrust.

So what is ‘biotechnology’? A quick look at the word suggests a technology that is based upon bio-logy, the study of living things, and this is reflected in the definition which first appeared in the 1982 OECD publication Biotechnology: - International Trends and Perspectives and which is still accepted today: ‘the application of scientific and engineering principles to the processing of materials by biological agents to provide goods and services’.

I have read with interest the Spotlight on Biotechnology in the March edition of the Observer (no 216). The issues treated -- public perception, consumer concerns over food safety, IPRs, trade barriers -- reflect concerns currently expressed in OECD countries. It is disconcerting, however, -- particularly as someone who is quite familiar with the OECD Development Centre's work on biotechnology -- to find only a few short sentences throughout the Spotlight referring specifically to countries outside the OECD.

It is not surprising that in such a novel technology field, several ‘pioneer’ inventions have been presented in the recent years. Patent offices have tended to provide these novel inventions broad protection. These patents cover protection of future, as yet unknown, uses, even though the patent was issued on the basis of the first therapeutic breakthrough.

The intellectual capital invested in biotechnology raises important questions about protection. Some of them hold risks.

When it comes to assessing regulation and safety with regard to particular goods, cost-benefit analysis does not receive the emphasis it should, particularly when compared with the importance of pure risk analysis. The Uruguay Round agreements (see p. 28) give economic assessment only a limited role in the settlement of sanitary and technical disputes.

The issue of GMOs in food and their possible effects on the environment have featured highly in the European media since the start of the year. The OECD Observer invited Julie Hill to explain the reasons behind this upsurge in concern.

Most whole food has never been the object of specific regulation, but that is changing with the emergence of genetically modified produce. So what should be the trigger for regulating such products? And what practical tools can we use to ensure the safety of novel foods?

There are many definitions of biotechnology and most of them have been argued about, agreed on, decon-structed, reconstructed and indeed manipulated over the years. Here are a few from the 1980s which, like the one the OECD offers at the start of this Spotlight appear to have withstood the tamperings of time.

Biotechnology is a fairly broad term and it is difficult to talk of it as a specific sector or industry. Still, Ernst & Young make a pretty good stab at measuring it. In their biotechnology report (European Life Sciences, 1998) they sometimes call it the entrepreneurial life sciences sector and in their analysis include those companies which use modern biotechnological techniques to develop pro-ducts or services for health care, animal health, agriculture, food pro-cessing, renewable resources and the environment.

Since 1980 the OECD has been a leading player in addressing biotechnology--related issues. During that time, modern biotechnology has evolved from a scientific curiosity towards commercial applications, and has reached the in-trays of more and more policy advisers, in different ministries or government agencies – science, industry, agriculture, health, environment, education, development, trade, patent office and others. It became impossible for any one agency to pretend to a monopoly on it.

Modern biotechnology is changing fast and is beginning to have a major impact on agriculture and the environment. Increasing the efficiency of safety assessment and promoting transparency in the exchange of information are among the key aims of the OECD.

Consumers want their governments to pay closer attention to food safety and quality. That may mean more regulation, which if ill-defined or excessive can damage trade and well-being. Weighing up the costs and benefits of particular regulations, rather than just assessing risk, could help improve safety, while avoiding -protectionism.

To many, biotechnology is all about genetically modified foods and cloning. Yet, it is also proving its value to the industrial production process, offering clear environmental and economic advantages over conventional methods.