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This paper explores the potential role of industrial biotechnology in the biobased economy. Along the way it examines emerging trends, the impact of innovation, the convergence of technologies, and goes on to identify the challenges involved. It concludes with a need for an integrated and strategic approach to allow industrial biotechnology to fulfil its potential as a force for good, not a panacea, in the struggle with climate change. Industrial biotechnology has suffered a lack of investment at all levels, and there is a serious mismatch between future expectations of this industry and this low level of investment. Policy intervention is seen to be required across three broad criteria – social/environmental, industrial performance and economical. To make this all happen requires not only national but international policy in a rapidly globalising world.

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