Taiwan's push into the biotechnology arena has gained steam over the past few years, but industry watchers say the nation lags in research and development.
"There's lots of money but no good targets [for R&D investment in biotech]," said Willie Lin (林衛理), associate vice president of the China Development Industrial Bank (中華開發工業銀行), "so all the money goes out [to foreign biotech investment opportunities]."
The China Development Bank alone has NT$3.8 billion (US$110 million) to invest in biotechnology, and although Taiwan would be preferred, the bank has had to look overseas for solid biotech R&D initiatives in places like Canada, the US and Israel.
A host of Taiwan firms and government offices have also set up biotechnology investment branches, including President Enterprises (
"The main reason [there are no good R&D companies] is because researchers are unwilling to give up their university jobs to start a company," Lin said.
The lifetime employment guarantee and iron rice bowl package of benefits for government employees -- all academic and research institute employees are considered government workers -- appeals to local researchers. But a lack of creative job contracts between officials and researchers compounds the problem.
In the US, where the biotech sector is running in high gear, universities have encouraged creative research by offering special work packages. A US academic who wants to leave the university and start his own firm can work out a 60/40 clause, for example, in his contract, whereby 60 percent of his time is spent at the university and 40 percent at the start-up company. Under this system, the professor may tap into the institution's research facilities, investment money and -- at some universities -- patent and marketing offices to help commercialize products.
Moreover, to encourage original work, US faculty members making a discovery that leads to a patent are ensured a cut of the profits, thereby getting paid for innovation.
Lin pointed out this kind of flexibility with regard to researchers has led to the current boom in US biotechnology and brought on close collaboration between academics and commercial firms. Government attempts to move toward this model in Taiwan, however, have been stymied by greed in government employee circles.
"The government tries to change the law every year," said Lin, "but when it comes down [to the floor of the Legislative Yuan] people say, 'if you want to give [university researchers] a privilege, then what about the rest of the civil service? University professors are viewed simply as government employees, and [the belief is] everyone should be treated equally."
Making matters worse, Taiwan's universities base promotions on the antiquated concept of `publish or perish' -- advancement based on publishing research in scientific journals -- a situation which "encourages basic research, not new research," charges Lin. US academics advance through publishing and patenting. Private companies have fared no better.
Emphasis on manufacturing has led to a situation in which local pharmaceutical companies are "not at all keen on R&D," according to Philippe Auvaro, chairman of the European Council of Commerce and Trade's Pharmaceutical Committee.
Auvaro, who spent 10 years in Japan with European pharmaceutical giant Aventis before transferring to Taiwan says the Japanese government turned it's pharmaceutical industry away from manufacturing and toward R&D in the early 1980s. A decade later, the nation introduced a plethora of new drugs. Auvaro believes Taiwan could do even better.
Educated in North America and Europe and with strong connections in the areas where biotechnology is strongest, Taiwanese researchers have both the contacts and cultural skills to take the local scene global in a big way.
"Japanese researchers are more reluctant to collaborate with [Westerners]," said Auvaro, "and poor [English] language skills have also hurt them."
So poor were their language skills and "global outlook," Jap-anese pharmaceutical companies were nearly kicked out of North America and progressed very slowly in Europe, finally licensing their products to foreign firms. Auvaro sees a chance for Taiwan to develop new products and go global in a way Japan never could, as long R&D can move forward.
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