BIO4 Campus - Serbia’s Next Giant Step in Technological Innovation and Increased Economic Ties with the West

BIO4 Campus is a very ambitious eur450M greenfield project aimed at jumpstarting the biotechnology sector in Serbia.  On more than 25 hectares, it will house seven life science-oriented departments of the University of Belgrade, nine institutes, as well as business-oriented facilities, such as the Science and Technology Park serving as an incubator for biotech startups and R&D centers of pharmaceutical and life science companies.  With over 1,000 Ph.D.’s in 300+ labs, it will provide the critical mass of people, knowledge, and infrastructure for an accelerated scientific and economic development.  Notably, its main financing comes from the Development Bank of the Council of Europe (CEB), which will ensure that the project will be carried out in accordance with the highest Western standards.

In order to understand the potential for biotechnology in Serbia, and BIO4, in particular, one has to look at the success of another major innovative industry - the IT sector.  By every measure, this has been a remarkable success in Serbia, where the export of IT services (almost exclusively to Western countries, mostly to the US) have grown tenfold to ~$3,6 billion over ten years, and 30+% YOY in 2023.  Major companies such as Microsoft, Cisco, Oracle, IBM, Epic and NCR have significant presence, with Microsoft Serbia and its development center having over 650 employees.  The key to this success was Serbia’s traditional quality of STEM education, which will also form the basis for the development of the biotechnology industry. This knowledge base enhances Serbia’s potential in two ways, both domestically by having a deep talented employee pool, and internationally by leveraging a large network of successful expat scientists and entrepreneurs primarily in the US, but also in Europe, who are keen to help their homeland.

A transformational moment occurred in Serbia during the covid pandemic.  Against all odds, the tiny Serbia soared ahead of all 27 EU countries, performing vaccinations at around double the rate of Germany, Spain, and Italy and four times the speed of the Netherlands.  Serbia's US-educated prime minister was the first European leader to receive the Pfizer-BioNTech vaccine.  Serbia’s leadership made a crucially important call to view vaccination as a healthcare issue and not a political matter and focused its efforts to get things done.  It also deftly leveraged its good relationships around the world to gain access not only to Western vaccines, but also the Chinese and Russian ones, as well as to a state-of-the-art molecular testing platform for the virus.  Logistics for this complex effort was supported by locally created software system, powered by advanced algorithms, that from day one handled supply chain, applications for vaccinations, scheduling, certificates and more. This tremendous success bore the idea that just like in IT, Serbia could be a major player in the biotechnology industry.  In a matter of months, the new Serbian government put the development of biotech as one of its major goals in its platform.  A key player in Serbia’s success in tackling covid was the Institute for Molecular Genetics and Genetic Engineering (IMGGI) under the leadership of Dr. Jelena Begovic, who later became the Minister of Science, Technological Development, and Innovation, and who is leading the BIO4 project.

One key difference between the two sectors is that the biotech industry is much more capital intensive.  While an IT startup can be formed in a small office with a few smart programers and computers, life science R&D requires expensive labs and equipment, animal facilities, and an infrastructure for clinical trials.  That is why the Serbian government is making a bold visionary move to make the significant investment in the BIO4 campus, which will kick-start the whole sector.

Biotechnology and innovation hubs often play a crucial role in advancing economic ties by fostering research, development, and collaboration between academic institutions, businesses, and government bodies.  The BIO4 team has already established a plethora of contacts in the US and Europe.  More importantly, they have already signed several high-profile MOU’s, including pharmaceutical giants Pfizer, Astra Zeneca, Roche, MSD (Merck in US), SK bioscience and Takeda, plus a few biotechs including Ginkgo Bioworks.

One can envision several ways in which the BIO4 campus could potentially contribute to Serbia’s economic growth and a closer cooperation with the Western countries, particularly with the world’s biotech leader the United States:

• Research and Development (R&D) Collaborations: Having state-of-the-art laboratories and facilities, BIO4 will attract researchers and scientists leading to collaborative R&D projects involving local and international partners that can enhance Serbia's innovation capabilities and create opportunities for technology transfer.

• Foreign Direct Investment (FDI): Establishing the BIO4 campus may attract foreign companies and investors looking to capitalize on research and development opportunities. This can bring in foreign direct investment, contributing to the economic growth.

• Skill Development and Workforce: The R&D hub would likely contribute to the development of a skilled workforce in the biotechnology sector. A highly skilled workforce can attract foreign companies seeking a talent pool, leading to increased economic ties.

• IP, Technology Transfer and Commercialization: Successful research outcomes and innovations from the BIO4 campus can create valuable intellectual property, which in turn can be commercialized, leading to the creation of new biotech startups and industries. This commercialization process often involves partnerships with companies from the West, thereby strengthening economic ties.

• Networking and Partnerships: The BIO4 campus could serve as a hub for networking and building partnerships between Serbian researchers and businesses with their counterparts in Western countries. This can lead to joint ventures, collaborative projects, and increased economic cooperation.

• Regulatory Alignment: BIO4 may also contribute to aligning Serbia's regulatory frameworks with international standards in the biotechnology sector. This alignment can facilitate smoother collaboration with Western companies and research institutions.

The construction of the BIO4 campus is the foundational step in making Serbia a serious contender in the lucrative biotechnology driven healthcare sector.  However, the long-term success will be measured in attracting capital and world-class talent in order to at least mimic the tremendous achievements of renowned innovation hubs like the Silicon Valley and both Cambridges (MA and UK).  These centers did not appear overnight, and the private sector plus the entrepreneurial class have been the driving force behind their phenomenal growth.  In that regard the Serbian government has a great challenge ahead, which can be met only through extensive partnering and connectivity with the leading venture capital firms, large and small pharma/biotech companies, and academic institutions. As the undisputed world leader in biotechnology, the United States is the most important potential partner for BIO4.

Ivan Trifunovich

Pharma & Biotech Executive, Co-founder of Dren Bio

Pupin Initiative Advisory Board Member