Private sector development of stem cell technology and therapeutic cloning

Based on data collected in June 2002, more than 30 biotechnology startup firms in 11 countries are pursuing commercial development of stem cell technology and therapeutic cloning. These firms employ 950-1000 scientists and support staff and spend just under $200 million on research and development each year. The field has the look and feel of a high-tech cottage industry, with about half the startups employing fewer than 15 FTEs (full time equivalents). Funding is mostly from venture capitalists and private investors. Participants are geographically dispersed, with about 40% of the activity outside the United States. Focus is equally split between embryonic and adult stem cells. Taken as a whole, both the structure and scope of the private sector in stem cell research seem appropriate to the promise and development time frames of this important new technology.