The ERA-Net Industrial Biotechnology 2 (ERA-IB-2) will increase Europe’s competitiveness in Industrial Biotechnology (IB) by providing a platform for long-lasting collaboration and cooperation between national/regional programme owners and managers of a large number of European countries, including new Member States and Associated /ICP Countries.The key mission of ERA-IB-2 is to contribute to a European knowledge-based bio-economy (KBBE) by reducing fragmentation in IB R&D funding and by fostering the exchange of knowledge across borders, and to increase cost-effectiveness by pooling resources and optimising mechanisms for joint calls.The KBBE is the tool to achieving sustainable economic growth in Europe, as it will lead to sustainable, environmentally sound industrial processes and products which substitute fossil resources with bio-based (renewable) raw materials.Industrial Biotechnology will be one of the key technologies of this KBBE, and ERA-IB-2 will ensure Europe makes full use of her potential by identifying IB-related R&D needs through stakeholder dialogue and responding to these needs with coordinated, joint actions (joint calls).These calls will lead to greater integration of IB R&D actors and activities, and will also improve access to finance and stimulate industry participation – and thus industry investment – in the lead market of bio-based products.As a consequence, the limited resources of each country will be used more efficiently.ERA-IB-2 builds on the success of the FP6 project “ERA-IB” and develops the network further, into a truly pan-European approach to IB R&D funding which should ultimately lead to a self-sustained network.ERA-IB-2 will also align with other initiatives in the area and e.g. support the developing JPIs by presenting to them the view of the national/regional programmes on IB topics.