The European Commission has defined the Knowledge-Based Bio-Economy (KBBE) as the process of transforming life science knowledge into new, sustainable, eco-efficient and competitive products. The term "Bio-Economy" encompasses all industries and economic sectors that produce, manage and otherwise exploit biological resources and related services. Over the last decades biotechnologies have led to innovations in many agricultural, industrial, medical sectors and societal activities. Biotechnology will continue to be a major contributor to the Bio-Economy, playing an essential role in support of economic growth, employment, energy supply and a new generation of bio-products, and to maintain the standard of living. The paper reviews some of the main biotechnology-related research activities at European level. Beyond the 7th Framework Program for Research and Technological Development (FP7), several initiatives have been launched to better integrate FP7 with European national research activities, promote public-private partnerships and create better market and regulatory environments for stimulating innovation.