Biobased economy or bioeconomy refers to economic activity involving the use of biotechnology in the production of (bio-based) goods, services, or energy from biological material (or biomass) as the primary resource base. An important aspect of the bioeconomy is understanding mechanisms and processes at the genetic, molecular, and genomic levels, and applying this understanding to creating or improving industrial processes, developing new products and services, and producing new energy.
The biobased economy is closely linked to various sectors
Terms for the biobased economy are widely used by regional development agencies, national and international organizations, and biotechnology companies. They are closely linked to the evolution of the biotechnology industry and the capacity to study, understand, and manipulate genetic material that has been possible due to scientific research and technological development. This includes the application of scientific and technological developments to agriculture, health, chemical, and energy industries.