INVESTMENT OPPORTUNITIES

Biotechnology in Argentina
Knowledge + Innovation to meet global market needs

Photo: courtesy of INTI. National Institute of Industrial Technology
Highlights
>> FACING A GLOBAL OPPORTUNITY
The global biotechnology market has been growing at a strong rate, driven
by constant technological and scientific advances and broadening areas
of application. Mainly concentrated in the U.S., the biotechnology industry
presents attractive opportunities for those countries with the right set of
resources.

>> REMARKABLE DOMESTIC POTENTIAL

Growing private and public R&D activities, a pool of highly qualified human
resources in biosciences, and developed pharmaceutical and food & beverage
industries put Argentina in a strong position to take advantage of growth in the
global biotechnology market.

>> PROMISING PERFORMANCE AND A WIDENING SCOPE

As one of the regional leaders in the biotechnology industry, Argentina’s
domestic sales and exports have grown significantly. Mainly focused on
agricultural applications, local firms are currently making progress throughout
all biotechnology application areas.

>> MEETING GLOBAL DEMANDS

By continuing to embrace biotechnology and its applications, Argentina will
be able to meet an increasingly global and sophisticated demand for food and
health products while protecting the environment for future generations.

>> CHALLENGES AHEAD

The main challenges for the growing local biotech market include furthering
the integration of biotechnology with the overall economy; keeping up with the
increasing demand for qualified human resources; increasing R&D capacity; and
improving public & private sector coordination.

May 2009


 I. Why Invest in Biotechnology in Argentina?
Photo: courtesy of Bio Sidus labs
• HUGE POTENTIAL. Biotechnology consists in the
application of science and technology to living
organisms, biological systems, or derivatives thereof,
to make or modify products or processes for the
production of knowledge, goods and services. Modern
biotechnology can substantially contribute to improve
human welfare and current living conditions by
delivering essential outputs as pharmaceutical products
or vaccines and increasing both the quantity and quality
of food.
• A THRIVING GLOBAL INDUSTRY. The global
biotechnology industry has been growing steadily,
at a compound annual growth rate of 13% during
2000-2007. Despite worldwide economic turmoil,
the industry sustained its solid performance in 2008,
growing 12% in revenues to US$89.7 billion. While the
U.S. accounts for over half of global revenues, other
countries are exhibiting significant growth rates.
Argentina is among those countries.
• REGIONAL LEADERSHIP. Knowledge being the key
component in the biotech industry, Argentina managed
to leverage its strong research capacity to host and
create companies that use or produce biotechnology
inputs. With over 80 established companies, Argentina
is the country with the highest amount of biotechnology
companies per capita in Latin America. Domestic
firms feature a wide range of activities, from the use
of biotechnological supplies in production processes
to the manufacture of modern biotechnology products
through recombinant DNA techniques.

• COMPETITIVE RESOURCES. The combination of
growing private and public R&D activities, a pool
of highly qualified human resources in biosciences,
and well-developed pharmaceutical and food and
beverage industries put Argentina in a privileged
position to capitalize on existing global opportunities.
In particular, the large number of researchers (highest
per active person in Latin America), over 35 biosciences
research institutes within firms and universities,
doctoral and postdoctoral biotechnology training
institutions, and a leading position in genetically
modified crop use, provide Argentina with strong
foundations to build a dynamic and sophisticated
biotechnology industry.
• PROFITABLE AREAS OF APPLICATION. Modern
biotechnology has applications in many fields, including
human and animal health, agriculture, fishing and
forestry, food processing, industrial processing, and
natural resource extraction. At the global level, the
health sector is the largest, representing almost
two thirds of total revenues. The agriculture & food
processing segments account for approximately
12%. Argentina has already established competitive
advantages in some niches within the industry,
particularly in agricultural, food and health segments.
The local market is especially focused on the production
of agricultural inputs, pharmaceutical products, human
diagnosis products and fine chemicals (amoniacids,
pigments, antibiotics and vitamins).
II. Industry Structure and Performance
STRUCTURE INDUSTRY SEGMENTS
Diverse and competitive sector. More than 80 A diverse array of products are being produced locally,
firms produce modern biotechnological products locally, covering several areas of biotechnology applications.
covering a wide range of activities: 29% of firms produce Agriculture, food processing, human heath and diagnosis,
inoculants, 23% seeds and plant varieties, 12% animal and animal health are segments in which domestic
health products, 12% food ingredients and 24% human biotechnology presents attractive competitive advantages.
health products. The sector is composed of a mix of global
players and growing domestic companies. Global leaders Agricultural sector. Within agriculture, biotechnology
such as Bayer CropScience, Dow AgroSciences, Nidera, has many applications, including genetic modifications
Monsanto and Pioneer are active in the country, and (GM) of plant varieties, seeds, inoculants, pesticides,
local firms like Bioceres, Biocientífica, Biogénesis-Bagó, fertilizers, vet products and genetic selection for cattle
BioSidus, Cassará, Indear and Wiener Lab are competitive breeding. The worldwide performance of GM crops stands
players in diverse segments. Around 80% of firms are out, increasing its market size 65-fold in 1996-2008 to
domestic small and medium size companies, focused US$7.5 billion. GM crops currently cover an area of 125
almost exclusively on biotechnological activities. million hectares in 25 countries in six continents. These
figures are expected to double in the next ten years.
INDUSTRY BUSINESS PERFORMANCE
Sales and exports. Conservative estimations calculate GM Crop Area by Country

biotechnology annual sales at US$400 million and China 3% Others 5%

employment in the sector at more than 5,000 workers. The India 6%

Canada 6%
agricultural sector leads the sales by area of application:
seeds and plant varieties concentrate 41% of total sales, Brazil 13% U.S. 50%
animal health explains 25%, and inoculants add an
additional 8%. The food ingredients sector accounts for
Argentina 17%
15% of sales and human health for the remaining 11%.
Biotechnology exports amount to over US$80 million Source: International Service for the Acquisition of Agri-biotech Applications (ISAAA)

(60% in agro related activities and 24% in human health),
resulting in a biotech trade surplus of over US$50 million.
Seeds and plants and human health explain together 72%
of total employment, distributed in almost identical shares.
Private R&D explains over 5% of sales, reaching some
US$20 million in total, with the highest ratio seen in human
health (15%). The number of patents presented to the U.S.
Patent and Trademark Office (USPTO) ant the European
Patent Office (EPO) by the Argentine biotech sector
amounts to 53 and 12 per year in 2001-2007 respectively.
Endowed with vast extensions of arable land (32 million
hectares), Argentina embraced, at an early stage, the use
and generation of genetically modified crops, leading to
an agricultural revolution that increased both the size of
the cultivated land and the yields per hectare of its main
crops. Record-high levels of agricultural production
are reached year after year. Argentina is today a leading
country in adopting biotech crops: it has the highest
percentage of arable land planted with GM crops (65%),
it is the second largest producer of GM crops (21 million

Biotechnology by Segment
Share of total firms, sales, employment and exports Soybean Area and GM Soybean Evolution
100%
11 20.000 10 0
  90
6 18.000
In thousand of hectares

80% 1
16.000 80
1 1
14.000 70
60% 1  11
12.000 60
10 0 10.000 50 %
0% 
8.000 40
1 6 6.000 30
0% 
0 4.000 20
8 8 4 2.000 10
0%
- -
Firms Sales Employment Exports
3

9
7

/0

/0

/0

/0

/0

/0

/0
/0
/9

/9

/9

/0

/0

02

03

04

05

06

07

08
00
96

97

98

99

01

Inoculants Seeds & Plants Animal Health Food Ingredients Human Health
20

20

20

20

20

20

20
20

20
19

19

19

19

.
Source: Bisang, Gutman, Lavarello, Sztulwark and Diaz (2006) Source: CONABIA and SAGPYA Total soybean area GM soybean/ Total soybean


 hectares; 17% of world GM area) and enjoys top-notch
productivity in soy, corn and their derivatives. Some
companies also produce bioinsecticides and pulse crop
inoculants, while others use seedling micropropagation
and vegetable tissue culturing technologies.
Food Processing. Argentina counts with a large and
highly competitive food and beverage industry, with
total sales of US$53 billion (31% of total manufacturing
production sales) and exports of US$21 billion (30% of
total manufacturing production exports). Significant
applications of biotechnology are being developed
and implemented in this field. Biotechnology in food
processing is focused on the production of high-fructose
corn syrup and its intermediate product glucose syrup.
Five companies stand out in this segment. While three
of them are domestically-owned (Alimentaria San Luis,
Arcor and Georgalos), the other two have been acquired by
global food companies (Industrias de Maíz and Refinerías
de Maíz). Two leaders in the dairy sector (SanCor and
La Serenísima-Danone) have recently launched their
probiotic milk lines by incorporating Lactobacillus and
Bifidobacterium strains that, as probiotic species, favor the
intestinal microbacterial ecosystem.
Food & Beverages: Production and Exports
(in US$ million)
60.000
Production
Exports
50.000
40.000
30.000
20.000
10.000
-
2002 2003 2004 2005
Source: Center of Studies for Production (CEP)
Human Health and Diagnosis. Applied biotechnology’s
greatest impact in terms of industry has occurred in
pharmaceuticals, where a long-standing tradition of
biomedicine combines with a large domestic industry.
With local pharmaceutical production growing at an
annual rate of 16% between 2002 and 2008, investments
have increased 10 times during this period. Pharmaceutical
domestic companies have the capacity to develop new
products covering all stages from product innovation
through commercialization, including pilot plant tests,
manufacturing, clinical trials and regulatory authority
approval. Most products result from applying Recombinant

DNA technology, including human erythropoietin, human
interferons, colony-stimulating factors and human growth
hormone. These products are already sold in Asia, the
Middle East and Latin America. Argentina is, along
with the U.S., Australia, Korea and New Zealand, one of
the few countries in the world with the technology of
pharmaceutical diary. It is also one of nine countries with
capacity to clone animals successfully. BioSidus is one
of the sector’s leaders. In the field of diagnosis, there are
products and developments using recombinant protein
and monoclonal antibodies to detect infectious diseases,
such as Chagas’ Disease, Cholera, Hepatitis B and C,
and HIV. There is also capacity for molecular oncology,
leukocyte differentiation antigens, genetic predisposition to
hereditary diseases, and filiations and personal identity.
Sales of Domestic Pharmaceutical Production
(in US$ million)
2.500
Exports
Internal market
2.000
1.500
1.000
500
0
2002 2003 2004 2005 2006 2007 2008
Source: National Institute of Statistics and Census (INDEC)
Animal health. The strong local pharmaceutical
tradition and the knowledge generation in related areas
allowed for the production of transgenic cattle and animal
vaccines. Important progress was made in the areas of
animal food and health due to the active involvement
of national and multinational companies present in
2006 2007 2008
Argentina. A salient case in the area of animal vaccines
is the production of the vaccine against bovine neonatal
diarrhea caused by rotavirus. This vaccine was the result
of a joint project between the Center for Animal Virology
(CEVAN) and the National Council for Scientific and
Technical Research (CONICET). Other examples of public-
private collaboration include the vaccines developed by
the Virology Lab of the National Institute for Agricultural
Technology (INTA) that were produced and marketed
by Biogénesis and San Jorge-Bagó labs. This sector also
produces and markets vaccines against foot-and-mouth
disease and exports vaccines for salmons. Vilmax, a leading
company in the production of colorants, manufactures
specific colorants to purify proteins.
CASE STUDY
Bio Sidus: translating scientific breakthroughs into products for a better quality of life
BioSidus, under the guidance of the pharmaceutical
firm Sidus, has become a leading organization in
the biotechnological field, thanks to the efficient
integration of both enterprise and technology.
By the end of the 1970s, the managing staff of
“Instituto Sidus”, conscious of the central role
of modern biotechnologies, decided to enter
in the biotechnological research field. In 1980,
Sidus’ Area of Biotechnology was created,
under Sidus’ entrepreneurial support and the
scientific concurrence of an important group of
professionals from the University of Buenos Aires.
The goals successfully achieved in technological
and manufacturing developments led Sidus in
1983 to create BioSidus as an organically individual
enterprise, which by 1990 had rolled out its first
biogeneric product: erythropoietin. Almost 20 years
later, BioSidus commercializes locally and abroad
seven recombinant proteins for use in human health:
erythropoietin, interferon alfa 2a and 2b, interferon
beta 1a, filgrastim, lenograstim and somatropin.
Additionally, BioSidus counts with a pipeline of
multiple biosimilar candidates in different stages of
development. Lead products in the pipeline include
PTH 1-34, interferon beta 1b and streptokinase.
Over 75% of BioSidus revenues come from exports
to almost 30 countries in Latin America, Middle East,
Eastern Europe and Asia Pacific (including India,
Thailand and Lebanon) holding a significant market
share in these territories. Furthermore, the company is
filing for regulatory approval to distribute its products
in 10 additional countries through partnerships with
local pharmaceutical firms. Its recently launched
product, Interferon beta 1a, is rapidly gaining market
presence in different countries.
In addition, the company is taking steps to prepare
for its eventual commercialization in developed
countries. To achieve this goal, BioSidus is in the
process of upgrading its manufacturing processes
and refurbishing a new facility in line with U.S. FDA
and EMEA regulatory standards. To accomplish this,
BioSidus has entered into a strategic association with
an U.S. based firm to distribute its current product
portfolio in the U.S..
With significant investments in R&D, BioSidus activities
include the development of expression systems to
produce, formulate and clinically test recombinant
proteins for human health. The company’s R&D efforts
focused on innovative transgenic biopharmaceutical
manufacturing merit special mention. BioSidus has
built up a pharmaceutical dairy comprised of a herd
of 33 cloned transgenic cattle, including twelve cows
producing biopharmaceutical grade recombinant
human growth hormone in their milk and seven bulls
to ensure the perpetuity of the transgenic lineage.
Human growth hormone obtained from the milk
of these transgenic cows has already been tested
for bioequivalence against the bacterial-derived
reference product and is about to start efficiency
clinical trials. The production of recombinant human
proteins in the milk of transgenic cows is expected
to be a highly efficient and cost-effective method
compared to more traditional manufacturing
techniques, with the yield from only a small number
of transgenic cows meeting market demand for
many medical applications. Additionally, BioSidus has
developed lineages of transgenic cows to produce
bovine growth hormone for veterinary use. However,
the most ambitious target in this technological
platform is the development of transgenic cattle for
human insulin precursor. To this day, eight cloned
transgenic cows were born which will be induced to
lactation in the coming months to assess presence
of human insulin precursor in their milk. As from this
milk, the human insulin precursor will be purified to
homogeneity and submitted to an enzymatic cleavage
to recover biopharmaceutical degree human insulin.
This will be of special significance because it will allow
large quantities of product at an affordable cost to
meet the increasing demand of insulin to treat the
growing population of diabetes patients.
Ongoing projects also include gene therapy targeting
angiogenesis of ischemic heart tissue. BioSidus has
developed and produced pharmaceutical grade
naked plasmid DNA codifying for the human protein
vascular endothelial growth factor and has assessed
through preclinical testing in laboratory animals
that its injection into the cardiac muscle resulted in
increased growth of new blood vessels as well as in
muscle regeneration. These findings led to conduction
of Phase I clinical studies currently underway with
promising results. Phase II clinical trials are set to start
in 2009.
In collaboration with the Argentine Dirección Nacional
del Antártico, research has been conducted aimed
at the isolation and characterization of certain
microorganisms from the Antarctic territory that
are particularly adapted to extreme temperature.
A novel species has been isolated and identified
- Bizionia argentinensis, and its full genome has been
sequenced. In this sense, BioSidus is once again a
pioneer in genomics in Argentina since this is the
first national experience of integral sequencing of
a microorganism genome. The genome is currently
under analysis seeking for genes that encode for
enzymes active at cold temperature. There is a great
potential for industrial applications of these “cold
enzymes” in the food, textile and laundry industries,
among others.

 III. Foundation for Success
LOCAL SKILLS AND TALENT
Qualified human resources. Developing
biotechnology requires highly qualified human resources.
Argentina is the country with the highest number of
researchers per active person in Latin America (3.4/1,000
active) and has internationally renowned scientific
skills and a pioneering spirit. In natural sciences, this
tradition is evidenced by three Nobel Prizes awardees (B.
Houssay, L. Leloir and C. Milstein). In total, over 59.000
researchers and scholars undertake research activities
both in the public and private sectors. These talents are
also growing thanks to the Program RAICES, a strategic
project from the Ministry of Science and Technology
that promotes and facilitates the return of Argentine
distinguished researchers working abroad. In the last few
years more than 600 professionals have been relocated in
local research institutions.
Specialized research and training. Today, 1,350
researchers and technicians undertake scientific
research in biosciences. Specifically, 241 scientists and
101 technicians are involved in biotechnological research
lines. More than 30 universities and higher education
institutions offer undergraduate and graduate careers
in biotechnology. Scientific researchers continue their
education through doctoral and postdoctoral scholarships
sponsored by CONICET. Additionally, courses for
researchers coming from the public and private
sector are offered at the Argentine-Brazilian School of
Biotechnology (EABBIO). From 1987 to 2003, EABBIO

financed courses for more than 2,400 students from
Argentina, Brazil, Uruguay and Paraguay
RESEARCH AND DEVELOPMENT
Research institutes. Research institutes from
universities and companies carry out R&D activities in
a wide range of disciplines and specialties in Argentina.
Almost 70 of these centers (41 companies and 27 research
groups) are focused on agricultural issues and 37 are
dedicated to biosciences. Specifically, 28 are devoted
to biotechnology research, including public centers,
university centers and private foundations.
Regional hubs and business incubators. A recent
trend has been the emergence and consolidation
of technological hubs and business incubators in
different knowledge-intensive fields. A highlight within
agricultural research is the Rosario biotechnological
hub in the province of Santa Fe. Comprised of several
institutions mainly devoted to vegetal biotechnology,
the hub brings together more than 400 professionals,
constituting the main biotechnological pole in Latin
America. The Argentine-Spanish Center for Plant
Genomics (CEBIGEVE) and the National Institute for
Agro-biotechnology (INDEAR) are two of its members.
CEBIGEVE is an R&D center resulting from the scientific
cooperation between Spain and Argentina. INDEAR, in
turn, results from the partnership between the private
firms Bioceres and BioSidus and the CONICET.
Photo: courtesy of Biogénsesis Bagó
 Photo: courtesy of Roemmers labs

COMMUNITY INDUSTRY NETWORKING

Public perception. Argentina has a positive public There are several organizations that promote
perception of biotech products and a good acceptance biotechnology and communicate the sector´s news
of transgenic organisms. The first genetically-modified and achievements in Argentina:
crop in Argentina’s agriculture was glyphosate-tolerant
soybean, approved in 1996. Since then, several crops • FAB (Argentine Forum on Biotechnology):
and their features have been tested in the field, and with 20 years of continuous experience, the
this type of technology has spread rapidly. In the last organization promotes biotechnology and
agricultural campaign, they accounted for over 90% of cooperation and collaboration among researchers,
soybean planted area, around 70% of corn planted area, companies and the government to fully develop
and approximately 60% of the cotton planted area. At the biotechnology.
government level, Argentina supports biotechnological
undertakings, leveraging communication and information, • BIOTECSUR: a biotechnology platform that
and improving controls to provide security to consumers. brings together the private, academic and public
sectors from the four countries of MERCOSUR
and works to establish a common long-term
vision for the development and application of new
Sowed Area by Type of Crop technologies in the region.
(in thousands of hectares)

• ASA (Argentine Association of Seed Traders):

30,000 GMO’s
Conventional it has a proactive attitude to spread biotechnology
25,000

20,000
through the “Por qué Biotecnología” (Why
15,000
Biotechnology?) program.
10,000

5,000 • RedBio (reporting to Food and Agriculture

- Organization): responsible for a communication
3

8
7

campaign at primary, secondary and tertiary

/0

/0

/0

/0

/0

/0

/0
/9

/9

/9

/0

/0
00

02

03

04

05

06

07
96

97

98

99

01
20

20

20

20

20

20

20

20
19

19

19

19

Source: Argentine Association of Seed Traders (ASA) and Secretariat of Agriculture, Livestock, fishing and Food (SAGPYA). educational levels.


 IV. Policy Initiatives
Photo: courtesy of INTI. National Institute of Industrial Technology
BUSINESS PROMOTION
Incentives. Government, private companies and
research institutions are working together in the
promotion of modern biotechnology. Law 26,270
sets promotional measures that are related to human
resources and capital expenditures during R&D and
production of technologies applicable to several
productive areas. The law’s main benefits, which are in
process of being regulated by the technical authorities,
include accelerated amortization of the income tax,
early reimbursement of Value Added Tax, and tax credit
bonds for contributions to the social security and services
purchased from government-owned research institutes.
It also establishes the development of a special fund for
new undertakings. Innovation resulting from the benefits
of the scheme shall be, in the first place, patented by the
relevant domestic patent offices.
Venture capital. Government is increasingly involved
in the promotion and development of venture capital
funds for technology-based companies in Argentina.
The Ministry of Science and Technology has put in place
the Program CREARCIT to encourage the growth and
creation of innovative firms in all technological fields
through venture capital investment.
SCIENTIFIC PROMOTION
Funds for R&D. The national government has
implemented several programs and instruments that
promote and facilitate basic research and technological
10
investment, and biotechnology has always been a priority
topic during the last decades. These tools have been
deepened since the creation in 2007 of the Ministry
of Science and Technology. Within the Ministry, the
National Agency for Scientific and Technological
Promotion (ANPCyT) encourages scientific, technological
and innovation-related activities with resources coming
from contributions from the national budget and the
Inter-American Development Bank (IDB). The two
main Agency funds are the Fund for Scientific and
Technological Research (FONCyT) and the Argentine
Technology Fund (FONTAR).
National Agency for Scientific and
Technological Promotion (ANPCyT)
Fund for Scientific and Technological Research
(FONCYT): Supports research projects targeted
at generating new scientific and technological
knowledge. Promotion and financing instruments are
awarded, in all cases, through public bids. The FONCyT
has sponsored an important number of projects in the
area of biotechnology between 2003 and 2008, for
over US$37 million.
Argentine Technology Fund (FONTAR): Supports
projects targeted at improving the private sector
productivity on the basis of technological innovation.
There are various financing instruments granted
through public bids or permanent window. The
FONTAR has approved biotechnological projects for
over US$15 million in 2003-2006.
REGULATORY FRAMEWORK
Environmental and health safety. In Argentina,
GMOs are evaluated before these products are marketed.
Since 1992, 400 field trials for different transformation
events have been assessed and authorized. The
evaluation process includes three steps. First, the
National Advisory Committee for Agricultural
Biotechnology (CONABIA) evaluates the likely impact
on the agricultural ecosystem, comparing potential
environmental consequences with those of conventional
plants, initially through experimental release and then
more extensive release into the environment. Second,
the National Service of Agricultural and Food Health
and Quality (SENASA) conducts a food safety evaluation.
Third, the National Direction for Agricultural Food
Markets (DNMA) makes an evaluation of potential
commercial impact by analyzing the status of the GM
product under study in the destination markets in terms
of whether the product has been approved or not and, as
a result, whether the addition of a GM crop to Argentina’s
exports might represent a potential barrier to access
these markets. To date, 10 GM crop varieties have been
authorized for sale.
Promoting and protecting health. The National
Administration of Drugs, Foods and Medical Technology
(ANMAT) promotes and protects human health by
assuring the quality and efficacy of medical products,
food and domestic-use products, medical and diagnosis
devices. Since 1992, the Ministry of Health is in charge of
providing authorization for release to the market.
Intellectual Property Rights. As a signatory of the
Trade-Related Aspects of Intellectual Property Rights
agreement (TRIPS), Argentina provides an effective
patent protection system, including pharmaceutical
products. The National Institute of Industrial Property
(INPI) made significant progress in reducing its patent
backlog, including the implementation of fast-track
procedures and a one-time opportunity in 2005 for
companies to prioritize their patent applications before
INPI. FONTAR offers subsidies to SMEs to apply for
patents both locally and abroad.
Photo: courtesy of Biogénsesis Bagó
11
 V. Main Challenges

Industry players and government agencies face key

challenges to sustain growth and consolidate the sector’s
competitiveness. In themselves, these challenges present
attractive opportunities for the industry and Argentina.

• Increase the availability of qualified human

resources: an increasing domestic and international
demand for Argentine biotech products will require
expanding the current R&D capacity in human resources
and facilities on which Argentina sustains its competitive
advantage.

• Consolidate and expand its leadership in the use

and development of GM crops: Argentina’s substantial
use of GM crops presents a vast area of application for
biotechnology, which must be consolidated as a driver for
local industry growth.

• Promote and foster the integration of

biotechnology research centers with companies:
the adequate institutional processes must be developed to
further close the gap between research in biotechnology
and its technology transfer to the demanding industries.

• Establish efficient interaction mechanisms

between the public and private sectors: achieving
a balanced growth within the industry will require
strengthening the strategic cooperation among firms and
government agencies.

• Develop and provide biotechnological solutions

to regional economic activities: regional activities
like wine and fruit production could surely benefit from
the application of new biotechnologies.

OUR CHALLENGES ARE YOUR OPPORTUNITIES.

12

SOURCES: The trends, data and figures included
in this material were elaborated by ProsperAr
based on information provided by: Argentine
Association of Seed Traders / Argentine Forum on
Biotechnology (FAB) / BiotecSur / Bisang, Campi
and Cesa, “Biotecnología y desarrollo”, CEPAL,
2009 / Bisang, Gutman, Lavarello, Sztulwark and
Diaz (comp.) “Biotecnología y desarrollo. Un
modelo para armar”, UNGS-Prometeo, Buenos
Aires, 2006 / Center of Studies for Production
(CEP) / Ernst & Young, Beyond Borders: Global
Biotechnology Report 2009 / ISAAA Report
on Global Status of Biotech/GM Crops, 2008 /
Ministry of Science and Technology (MINCYT) /
National Institute of Statistics and Census (INDEC)
/ National Observatory for Science Technology
and Innovation, Strategic Plan, 2005 / OECD,
Biotechnology Statistics, 2006 / Sánchez,
Rozemberg, Butler and Rufo, “The emergence
of new successful export activities in Argentina:
self-discovery, knowledge niches, or barriers to
riches?”, IDB, 2008 / Secretariat of Agriculture,
Livestock, fishing and Food (SAGPYA).
Photo: courtesy of INTI. National Institute of Industrial Technology
The information provided through this brochure
does not in any way constitute legal or
professional advice. ProsperAr (Agencia Nacional
de Desarrollo de Inversiones) reserves the right
to revise, amend, alter or delete the information
provided herein at any time and in no way be
held responsible or liable in respect of any such
revisions, amendments, alterations or deletions.
Cover photo: courtesy of Roemmers labs.
13
 Argentina at a glance

Country profile

Official name República Argentina

Capital city Buenos Aires

Main cities Córdoba, La Plata, Mar del Plata, Mendoza, Rosario

Surface area 2.7 million square kilometers

Population 40.6 million inhabitants

Population growth 1.0% per year

Adult literacy rate 98%

Life expectancy at birth 75 years

GDP per capita (PPP) US$ 14,413

Currency Argentine peso ($)

Form of government Federal Presidential Republic

Political division 23 autonomous provinces and the Autonomous City of Buenos Aires

Time zone GMT-03:00

Official language Spanish

Main Economic Indicators

2003 2004 2005 2006 2007 2008
GDP growth rate (annual %) 8.8% 9.0% 9.2% 8.5% 8.7% 7.0%
GDP (PPP) (millions of US$) 333,399 373,041 419,568 469,750 524,140 572,860
GDP (millions of US$) 128,078 152,158 181,967 212,868 260,682 328,502
Exports of goods and services (millions of US$) 34,439 39,864 47,024 54,547 66,088 82,608
Imports of goods and services (millions of US$) 18,827 27,930 34,939 41,120 53,353 67,492
Balance of trade of goods and services (millions of US$) 15,612 11,934 12,085 13,427 12,735 15,115
Trade surplus (% of GDP) 12.2% 7.8% 6.6% 6.3% 4.9% 4.6%
Current account surplus (% of GDP) 6.4% 2.1% 2.9% 3.6% 2.7% 2.3%
Primary fiscal surplus (% of GDP) 2.3% 3.9% 3.7% 3.5% 3.2% 3.1%
Gross capital formation (% of GDP, constant prices) 14.3% 17.7% 19.8% 21.6% 22.6% 23.0%
Gross national savings (% of GDP, current prices) 19.6% 20.6% 23.7% 26.4% 26.6% 26.7%E
Foreign direct investment (millions of US$) 1,652 4,125 5,265 5,537 6,473 7,979
Exchange rate ($/US$) 2.95 2.94 2.92 3.07 3.12 3.16
Foreign reserves (millions of US$) 14,119 19,646 28,077 32,037 46,176 46,386
Unemployment rate (% of EAP) 17.3% 13.6% 11.6% 10.2% 8.5% 7.9%

Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations
Conference on Trade and Development (as of April 30, 2009).

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ProsperAr is Argentina’s National Investment Development Agency
Our mission is to develop direct foreign and domestic investment to contribute
to Argentina’s competitiveness and sustainable development.

ProsperAr’s four main objectives are:

Provide services to investors
ProsperAr provides investors with personalized professional services throughout the investment
process, from initial advisory services to investment facilitation and aftercare. The Agency’s team
assesses on investment projects, responds to queries from investors and provides key business
information. Leveraging the Agency’s cooperative relationships with different government bodies,
ProsperAr’s integral services offer investors a unified one-stop support system.

Attract and generate investment

ProsperAr works in the promotion, attraction and expansion of both domestic and foreign investment.
We identify investment and innovation opportunities in high growth sectors, communicating
them to national and overseas investors through international missions, conferences, meetings and
publications. We work to build relationships that enable multinational companies to take advantage of
local, regional and global opportunities. We also encourage domestic firms to expand and develop their
businesses.

Boost the Investment Environment

ProsperAr works to strengthen Argentina’s investment environment. We interact with local and
multinational companies, as well as potential investors, identifying and removing possible obstacles to
doing business in Argentina. Through active dialogue with the private sector, and in coordination with
other government departments, we advocate for the formulation of policies and programs to optimize
the investment and innovation environment.

Promote the internationalization of local companies

ProsperAr promotes the growth and internationalization of Argentine firms. Fostering local vocation
for innovation and entrepreneurship and promoting overall competitiveness are key aspects of
the Agency’s strategy. Two programs “Entreprenuer Development” and “Pioneers” are in place to
strengthen local companies’ critical capacities in different growth phases. ProsperAr also assists
international companies to invest in and/or work with their local counterparts to form global joint
ventures.

ProsperAr is your strategic partner to invest and prosper in Argentina.

What ProsperAr can do for you:

>> Provide timely and relevant information on business sectors and geographical
locations in Argentina.
>> Help identify investment and innovation opportunities in strategic sectors.
>> Troubleshoot red tape and obstacles; facilitate the investment process and doing
business in Argentina.
>> Assist in building partnerships between foreign investors and local companies.

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To learn more about how investing in
BIOTECHNOLOGY in Argentina
can benefit you, please contact us:

www.prosperar.gov.ar
info@prosperar.gov.ar
+54 11 4328 9510