Many of the applications of industrial biotechnology will necessarily be researched, developed, and commercialized outside of traditional biotechnology centers. The reason for this geographical distribution stems from the location of raw materials and skills in handling them. Many of the raw materials for industrial biotechnology are raw agricultural products or biological waste streams such as farm waste or remnants from processes such as forest management and beer production. The skills necessary to produce these raw materials are often located in rural areas and other areas distant from high concentrations of biotechnology and pharmaceutical activity, and the weight of the raw materials makes it economically unfeasible to transport great distances.

The necessity to locate industrial biotechnology research, development, and commercialization near the sources of raw materials and far from established biotechnology centers creates financial, management, and personnel challenges that are shared by non-industrial biotechnology firms alike. Some of the recommendations to support biotechnology development outside of established centers are: