Biotechnology is shaping up as one of the most lucrative industries in Taiwan. Comprising health and well-being services, medical devices and pharmaceuticals, the sector is characterized by an innovative approach to product development and high standards of care.
A recent report by Paris-based Organization for Economic Cooperation and Development revealed that bio-based sectors are expected to account for more than half of gross domestic product in developed countries in the future. Given the economic and social importance of this field, the government is sparing no effort in promoting biotechnology via a raft of comprehensive industry support measures while positioning Taiwan as a regional hub of related R&D.
One of the key policies in this regard is the five-plus-two innovative industries initiative. A core component of the New Model for Economic Development, the undertaking covers the biotech and pharmaceuticals, green energy, national defense, smart machinery and Internet of Things sectors, as well as the circular economy and a new paradigm for agricultural development.
Biomedicine is receiving the lion’s share of attention under the initiative. According to the Ministry of Science and Technology, industry revenues rose 3.4 percent year on year to NT$486 billion (US$16.2 billion) in 2017. This growth follows wide-ranging government measures in past decades rolled out by such organizations as state-backed Institute for Biotechnology and Medicine Industry. These include annual awards recognizing biomedical companies and researchers for significant contributions to patients, industry and Taiwan’s overall health care environment, as well as the Symbol of National Quality highlighting the safety of local biomedical offerings.
Main government measures accelerating sector growth center on the Biomedical Industry Innovation Program. This undertaking aims to transform biomedicine into a trillion New Taiwan dollar industry by 2025 through fostering 20 new pharmaceuticals, bringing 80 high-value medical devices to market and cultivating at least 10 major health and well-being service brands.
As part of these efforts, two laws were amended last year. The Act for the Development of Biotech and New Pharmaceuticals Industry, promulgated in 2007 to give tax breaks for investments in related R&D and personnel training, was expanded to cover emerging fields like preventative and regenerative medicine. The Fundamental Science and Technology Act was also revised to facilitate biotech talent flows between the academic and private sectors.
Pharmaceutical development is the best signpost of progress. As of the end of April, 247 drugs produced by Taiwan companies were undergoing clinical research at home and abroad, an increase of 12.3 percent from the year before. Of this number, 140 got approval for trials from the U.S. Food and Drug Administration (FDA). Local medical device manufacturers registered similar successes, with 55 innovations earning premarket approval from the FDA in 2017.
Growth in the biomedical sector is expected to advance the government’s goal of promoting balanced regional development. Major biotech clusters are located at science parks nationwide, including in northern Taiwan’s Taipei City and Hsinchu County, central Taiwan’s Taichung City, and southern Taiwan’s Kaohsiung and Tainan cities.
The government is also throwing its weight behind platforms cultivating overseas-sourced opportunities for domestic firms. An outstanding example is the upcoming BioTaiwan trade show, which attracted around 600 local and foreign companies from 19 countries and territories displaying wares at 1,310 booths last year.
In rolling out the right policies and providing tailored support, the government is ensuring the long-term success of the biotechnology industry. This will help strengthen the economy and keep Taiwan marching along the road to greater prosperity.