Abstract
The U.S. bioeconomy—spanning biomanufacturing, agriculture, energy, advanced materials, healthcare, and environmental technologies—is one of the most promising engines of 21st-century economic growth. While biotechnology’s role in health care has long been in the spotlight, the broader bioindustrial sector is increasingly central to meeting urgent national needs: rebuilding supply chains, addressing climate change, enhancing food security, and revitalizing American manufacturing.
New data from the Biotechnology Innovation Organization (BIO) reinforces this reality. According to its March 2025 report, the bioeconomy contributed $210 billion in direct output and $620 billion in indirect value in 2023 alone. That’s $830 billion in total economic contribution—more than the entire U.S. auto manufacturing sector. It also supported approximately 430,000 direct jobs with average wages over $117,000, far exceeding the national average. These numbers are not just impressive—they are transformative.
And yet, this transformation is incomplete. Despite its enormous potential, the U.S. bioeconomy is hamstrung by systemic barriers that prevent promising technologies from scaling into real-world solutions. Many bio-based innovations—like renewable industrial chemicals, bioengineered crop inputs, and sustainable fuels—languish in what experts call the “Valleys of Death.” These are the perilous stages between research, demonstration, and commercialization where financing is scarce, risk is high, and traditional market mechanisms fall short.
The Federation of American Scientists (FAS), in its recent policy note De-Risking the U.S. Bioeconomy, lays out a compelling framework to overcome these bottlenecks. Chief among its recommendations is the creation of a Bioeconomy Finance Program within the Department of Defense’s Office of Strategic Capital. Modeled after proven approaches in other industries, this program would use a mix of loans, credit enhancements, and volume guarantees to support scale-up efforts and attract private co-investment. These tools are critical to reducing investor risk and unlocking domestic production capacity in critical bioindustrial sectors.
Importantly, the FAS strategy recognizes that building a robust bioeconomy requires action at all levels—not just the federal government. State and regional governments must be empowered and incentivized to create tailored strategies that leverage their unique industrial bases, agricultural assets, and workforce strengths. This includes investing in regional infrastructure like biomanufacturing facilities, co-location hubs, and workforce training programs that prepare Americans for high-quality jobs in this rapidly growing sector.
At the same time, regulatory clarity and predictable market signals are essential. Agencies like the United States Department of Agriculture (USDA), Environmental Protection Agency (EPA), and Food and Drug Adminstration (FDA) must coordinate to streamline approval pathways for bio-based products without compromising safety or environmental standards. Procurement policies and bio-preferred purchasing mandates should be expanded and enforced to help create reliable domestic markets for biobased goods.
The stakes could not be higher. A fully realized U.S. bioeconomy could reduce greenhouse gas emissions across key sectors, lower dependence on fossil fuels, and reshape rural economies through value-added bioproducts. It could also bolster national security by reducing reliance on foreign sources of critical inputs—from pharmaceuticals to fertilizers to specialty chemicals.
But none of this will happen without decisive, coordinated action. If the U.S. fails to act, we risk falling behind in a global race that is already well underway. China, the EU, and other major economies are making massive strategic investments in biotechnology infrastructure and supply chains. The U.S. has the scientific edge, the entrepreneurial culture, and the institutional experience—but it must now match that with the right policy and capital frameworks.
Let FAS’s policy note be a call to action for Congress, federal agencies, governors, investors, and research leaders alike: the future of the American bioeconomy is within reach—but only if we are bold enough to de-risk it now. It is time to turn our scientific breakthroughs into scaled, secure, and sustainable industries that benefit every region of the country and every sector of the economy.