Despite common research initiatives in the study of Chinese herbal medicine for use in modern medication, Taiwanese firms are not looking to China for research partnerships, officials in Taiwan said.
"We don't see any close relationships between Taiwan and China right now," said Wu Maw-kuen (
Wu said Taiwanese biotechnology and pharmaceutical firms are limiting their contact with China to manufacturing projects.
Biotech industry pundits say Taiwan's proximity to China, the common language and culture shared between the two and strong use and belief in Chinese herbal medicine could be a source of strength for Taiwan's biotech industry.
Low-end center
Instead, firms here are doing research on their own and look at China as a location for low-end manufacturing, not for R&D.
Taiwan's own biotech industry is young. The big push into biotechnology did not begin until the middle of last year, when President Chen Shui-bian (
As is typical in Taiwan, local companies immediately followed the government's lead and piled into the sector.
Some companies, such as Uni-President Enterprises Corp (統一企業), had already launched their own biotech investment funds. But with the government putting its NT$52 billion stamp on the industry, a number of traditional firms, venture capitalists and banks jumped on the bandwagon.
By the end of last year, analysts estimate that nearly US$4 billion was available for investment in biotechnology -- mostly heading out of Taiwan, rather than being put into companies here.
It is hoped this money comes back in the form of technology transfer opportunities and possible joint development projects.
A history of high-tech and biotech investment shows the technology and partnership return-on-investment does come back around to Taiwan.
Money invested by Taiwanese venture capitalists in Canada brought it to the attention of some potential biotechnology partners.
"The strong will on the part of Taiwan to seek biotech partners and investment" is what attracted Normand Balthazard, president of BioCapital, a Montreal, Canada-based firm, to seek an Asia Pacific biotech partner in Taiwan last year.
He said investment throughout the "Quebec Corridor" of biotech companies by Taiwanese showed them to be both savvy and well informed about the industry.
Attracting foreign projects has also been a top priority for the government. US-based Tanox Inc recently signed a high-profile pharmaceutical deal worth NT$14 billion in Taiwan. The government helped Tanox find NT$12 billion in funding through the Industrial Bank of Taiwan (
Now, many in government are pushing for more international collaboration and conferences appear to be the primary tool.
Taiwan intends to use a coming APEC Biotechnology Conference on Wednesday and another conference, dubbed BioBusiness Asia 2002, on Thursday and Friday, to boost its international standing in the biotech industry.
"We would like to invite investors to come to Taiwan and see Asia," said Johnsee Lee (李鍾熙), director of the Biomedical Engineering Center (生醫工程中心) at the Industrial Technology Research Institute (工研院), a leading public funded research group in Taiwan.
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