The Committee on Finance of the United States Senate requested the Commission to examine the competitive conditions affecting certain industries that are developing and adopting new industrial biotechnology (IB) processes and products. IB was defined as the manufacture of liquid fuel and chemical products using enzymes, micro-organisms, or renewable resources. The application of IB can improve the efficiency of the industries and lead to the development of new products. Thus, this book focuses on U.S. liquid biofuel producers and firms in the U.S. chemical industry. An analysis of the current impact of IB on the U.S. economy is also provided. Industrial biotechnology (IB) activities in the U.S. by the chemical and liquid fuel industries increased substantially during the 2004-2007 period. Sales of U.S. produced bio-based products, for example, increased by over 30% during the period. As discussed in this book, much of this growth is accounted for by the ethanol and biodiesel industries, which are strongly supported by government tax incentives or mandatory use regulations, or both.
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