Outsourcing R&D in Poland – when is it worthwhile?

Developing your own R&D (Research and Development) facilities in the supplement industry is a costly and time-consuming process, especially for companies entering the market or planning rapid portfolio expansion. This is where R&D outsourcing comes in. Is this solution always profitable? When is it better to invest in an internal laboratory? Learn everything about R&D outsourcing in Poland.

What is R&D outsourcing in the nutraceutical industry?

R&D outsourcing in the dietary supplement industry is a strategy that involves assigning research and development work to an external partner. Specialized companies engaged in R&D outsourcing have their own technological facilities, know-how, and experience. 

In practice, R&D outsourcing (Research and Development) may include tasks performed on behalf of the client, such as:

• purity and stability testing;
• selection of ingredients and development of a dietary supplement formula;
• preparation of technical and registration documentation;
• support with certification (e.g. BIO or Vegan);
• support in adapting the final product to export markets.

Models of cooperation with R&D companies

Cooperation with a research and development partner may take the form of:

• project-based (contract work) – in this case, the company offering R&D outsourcing completes the project from A to Z, according to the client’s guidelines, within the agreed budget and timeline;
• partnership-based – this model assumes joint formula development by both parties. Intellectual property is shared according to the provisions of the contract. This form of cooperation is particularly valued in projects co-financed by grants.

Within R&D outsourcing, it is also possible to: 

• use technological support as part of long-term cooperation, e.g. when developing an entire product line;
• benefit from technological support through a subscription service;
• purchase a ready-made formula – either exclusively or under sublicense.

Everything depends on the arrangements between the contracting company and the R&D outsourcing provider.

Pros and cons of outsourcing research and development

R&D outsourcing is a popular solution among nutraceutical companies. It is particularly beneficial for those companies that do not have their own technological facilities or want to focus on building brand recognition and sales. 

The main advantages of R&D outsourcing in Poland include:

• no need to invest in modern laboratories, equipment, and a technology team;
• access to know-how and experts who have developed hundreds of formulas and know the market well;
• access to niche raw materials and innovative technologies;
• time savings;
• compliance with regulations, e.g. requirements of the Chief Sanitary Inspectorate (GIS) or the European Food Safety Authority (EFSA), which reduces the risk of formal errors.

Like any strategy, R&D outsourcing also has certain limitations. These include, for example: 

• lack of control over the process, choice of raw materials, and technologies – much depends not on us, but on the partner’s competence and timeliness;
• risk of losing intellectual property (if the contract is poorly structured).

These risks can be effectively mitigated through a well-designed cooperation agreement and by choosing a reliable R&D provider.

How to choose an R&D provider in Poland?

When selecting the right company offering R&D outsourcing, the key factors are:

• experience in the industry;
• transparent communication and a clearly defined scope of responsibility;
• support in legal safeguards.

Eubioco offers a wide range of R&D services tailored to the needs of companies at various stages of development. We operate in compliance with GMP, HACCP, and ISO 22000 standards, and our strengths also include many years of market presence and know-how across different segments of the dietary supplement industry. 

You can commission us not only to develop the concept and formula of a product, but also:

• optimize production technology;
• conduct stability testing and physicochemical analyses.

We also offer support in preparing registration documentation and product certification.

Choosing to outsource research and development to Eubioco instead of investing in an in-house laboratory is a milestone, enabling both rapid implementations and the execution of advanced nutraceutical projects with full technological and legal support.

Financing R&D projects – grants

Finally, a few words about financing R&D outsourcing with grants – it is definitely worth taking advantage of this option. If you plan to develop innovative dietary supplements, you can finance part of the R&D work with public funds. 

Real financial support for companies operating in the nutraceutical field is offered by programs such as: 

• BRIdge Alfa of the National Centre for Research and Development;
• Horizon Europe (continuation of the Horizon 2020 program).

Through grants, it is possible to obtain funds for developing innovative formulas and technologies or for conducting stability and bioactivity tests of ingredients. Funding may also cover activities related to commercialization and scaling up production. Everything depends on the innovativeness and market potential of your idea!

R&D outsourcing in Poland – frequently asked questions

I. What is R&D outsourcing in the supplement industry?

R&D outsourcing in the dietary supplement industry is a strategy that involves delegating research and development work to an external partner instead of creating an in-house department.

II. What are the main advantages of R&D outsourcing?

The main advantages of R&D outsourcing are: no need to invest in laboratories, equipment, and technology teams, access to know-how and experts, access to niche raw materials and innovative technologies, and time savings.

III. Does R&D outsourcing involve risks?

Like any strategy, R&D outsourcing also has certain limitations. These include, for example: limited control over the process and the risk of losing intellectual property.

IV. How to protect against losing a formula?

You can protect against formula loss through NDAs and a well-structured cooperation agreement.

V. What competencies do R&D companies in Poland offer?

R&D outsourcing companies in Poland offer: purity and stability testing (including pilot batches), selection of ingredients and development of a dietary supplement formula, preparation of technical and registration documentation, as well as support with certification and adapting the final product to export markets.

VI. Is it possible to finance R&D outsourcing with grants?

Yes, R&D outsourcing can be financed through NCBR grants or under the Horizon Europe initiative.

VII. When is it worth creating an in-house lab and when to outsource?

An in-house laboratory is worthwhile for large-scale operations and multiple projects. For companies without their own technological facilities or those wanting to focus on building brand recognition and sales, outsourcing R&D is a better solution.

VIII. Why do start-ups most often choose R&D outsourcing?

Start-ups most often choose R&D outsourcing due to lack of resources, the flexibility of this solution, and shorter time to market.

BIBLIOGRAPHY

1. Billette de Villemeur, E., Versaevel, B. (2019). One lab, two firms, many possibilities: On R&D outsourcing in the biopharmaceutical industry. Journal of Health Economics, 65, 260–283. https://doi.org/10.1016/j.jhealeco.2019.01.002.
2. Billette de Villemeur, E., Scannell, J.W., Versaevel, B. (2022). Biopharmaceutical R&D outsourcing: Short-term gain for long-term pain? Drug Discovery Today, 27, 11, 103333. https://doi.org/10.1016/j.drudis.2022.08.001.