Abstract: While the economic impact of biotechnology is disputed, empirical data and research about diffusion and economic impacts of biotechnology in application sectors is rather limited. In this paper, actual and prospective diffusion of biotechnology in different application industries is analysed on a disaggregated level by combining production data with a written expert survey. On the basis of these results, an input-output model was used to calculate the direct and indirect employment effects of biotechnology in Germany for the years 2004 and 2020. The results suggest a further diffusion of biotechnology in all application sectors. The subsequent employment occurs in both application industries and upstream sectors.