| | 07-0019 | Biotechnolog | 54 | Professional, Scientific, and Technical Services |
| | The ECPC received 22 separate responses requesting the creation of new industries for medical biotechnology products, food |
| | and agricultural biotechnology products, and industrial biotechnology products. The proposals were assigned docket |
| | numbers: 07-0013, 07-0014, 07-0015, 07-0016, 07-0018, 07-0019, 07-0020, 07-0022, 07-0023, 07-0024, 07-0025, 07-0026, |
| | 07-0027, 07-0028, 07-0029, 07-0030, 07-0031, 07-0036, 07-0037, 07-0041, 07-0044, and 07-0049. The proposals did not |
| | contain information regarding the size of the potential industries, importance of the industries in Canada or Mexico, or any |
| | information regarding the separate production function justification for creating the new industries. In order to evaluate the |
| | proposals, the ECPC consulted with an industry trade association to clarify the requests for new industries. |
| |
| | The ECPC clarified the requests as proposals to create industries for establishments that use biotechnology inputs, use |
| | biotechnology processes, or produce biotechnology outputs. The practical impact of these proposals would be to group |
| | establishments that are currently classified in the Agriculture; Manufacturing; and Professional, Scientific and Technical |
| | Services sectors of NAICS. |
| |
| | The ECPC used the principles of NAICS to evaluate these requests. The ECPC recommends against creating the three |
| | industries requested based on the mixture of production processes that would be involved. These activities are currently |
| | classified throughout the NAICS system. For example, growing genetically modified crops is in farming, production of biotech |
| | enzymes is in the chemicals subsector of NAICS, and manufacturing foods from biotech inputs is classified in food |
| | manufacturing. The ECPC considered the production processes and similarities to other production processes already |
| | separately identified in NAICS. Growing a genetically modified crop may require a different production function from the |
| | growing of a more traditional version of the crop because of decreased need for pesticides or other inputs. The production |
| | process is still closer to other agriculture production processes than it is to manufacturing production processes or |
| | professional service production processes. A similar rationale applies to food manufacturing production processes, |
| | pharmaceutical manufacturing production processes, and industrial manufacturing production processes. |
| |
| | The ECPC recognized the importance of biotechnology as an emerging technology that should be accounted for in NAICS. |
| | While recommending against the proposals received in response to the Federal Register notice, the ECPC does recommend |
| | creation of a new industry for Biotechnology Research and Development. This industry will contain units that are using |
| | biotechnology processes to develop general knowledge and to develop new products and processes using biotechnology. |
| | The new biotechnology research and development industry is in conformance with the principles of NAICS: 1) the new |
| | industry will group similar establishments using biotechnology processes in experimental research and development; 2) the |
| | new industry addresses a new and emerging activity resulting in the production of advanced technologies; and 3) is expected |
| | to be comparable with a new biotechnology research and development industry proposed in the on-going revision of the |
| | International Standard Industrial Classification of All Economic Activities, ISIC, of the United Nations. In order to minimize time |
| | series disruptions, splitting NAICS 541710, Research and Development in the Physical, Engineering, and Life Sciences, into two |
| | portions will create the new industry. The two parts can be reaggregated to match the previous industry detail in NAICS |
| | United States 1997 and NAICS United States 2002. The ECPC proposes the following structure: |
| | |
| | 54171 Research and Development in the Physical, Engineering, and Life Sciences |
| | 541711 Biotechnology Research and Development |
| | 541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) |
| |
| | The ECPC also reviewed the results of a biotechnology use survey performed by the Department of Commerce and reviewed |
| | preliminary survey results regarding biotechnology research and development from the 2002 Economic Census. Both sources |
| | indicate that the proposed industry will be supportable in collection and publication. The ECPC recommends that the |
| | respondents work with statistical data collection programs in order to ensure that adequate biotechnology product detail is |
| | included in future data collection efforts. |