Flush with cash after a decade of solid growth, officials in Taiwan are preparing for the next phase of the information revolution -- biotechnology. And the government is using many of the same incentives that built the country into the world's number three IT producer to attract biotech investment.
"Taiwan has very significant potential in biotechnology for a number of reasons," said Gerry Norris, Asia-Pacific representative of the Pharmaceutical Research and Manufacturers of America.
He pointed to government incentives similar to those that stimulated Taiwan's information technology industry, as well as education as some of the most important factors in biotechnology development here, noting the large number of chemistry graduates with overseas experience in research and commercial enterprises.
Taiwan's Biotechnology & Pharmaceutical Program Office (BPPO,
Taiwan's fledgling biotech industry today stands at around 40 local companies with annual revenues near US$500 million, according to the BPPO.
The Ministry of Economic Affairs (MOEA,
To carry out its task MOEA armed the new office with far reaching incentives, including a fund that would inject up to NT$500 million into eligible biotech projects.
It has also offered special incentives through the Tainan Science-Based Industrial Park (
These incentives were enough to attract one of biotechnology's heaviest hitters, Celera Genomics. The US company, involved in the recent drafting of the human genetic code, is cooperating with two local companies in a new genetic research lab to be located in the Science Park.
ScinoPharm (
Shen and her US-partners originally came to Taiwan to raise venture capital for an OEM pharmaceutical manufacturing venture, "but we were nicely surprised by such a strong focus in [biotechnology and pharmaceuticals]," she said.
In addition to monetary and other government incentives, Shen said construction costs also made Taiwan a good choice for her company.
"We estimated that when we finished phase II, [the new ScinoPharm manufacturing buildings] would cost US$120million," said Shen, "but an identical plant in the US would cost US$500 to US$600 million."
She said the speed of construction also surprised her company. They expected to finish in two to three years, "but in fact it only took 14 months."
Further biotechnology projects Taiwan firms have tackled include the development of bio-informatics, "bio chips" and other information technology tools used in genetic research, and pharmaceuticals or chemicals used in products like human/veterinary immunotherapeutics and vaccines.
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