Biotechnology is typically associated with the centres of learning and firms in industrialised countries but usually not with institutions in developing countries. Developing nations are however, becoming active in this field and are increasingly using recombinant methods to produce new and innovative health products for their populations. Here we will examine health biotechnology development in two developing countries, Brazil and Cuba. We will compare the major characteristics of their health biotechnology sectors and highlight factors that have shaped their development in order to understand better what main factors and conditions can promote health biotechnology innovation in developing countries.