Mr James C. Greenwood, the president and CEO of the Biotechnology Innovation Organization (BIO), pointed out that Taiwan has two advantages in developing biotech industry: AI and big data.  However, Taiwan also faces two disadvantages: insufficient IP protection for innovation and low NHI drug prices.  Those disadvantages would hinder the development of the biotech industry.

The Biotech Forum of the BIO Asia-Taiwan Exhibition was opened by Mr Greenwood and Dr Johnsee Lee, the President of Taiwan BIO.  Mr Greenwood stressed that Taiwan has the capacity for leading the world in the development of biotech, semi-conductor and health databank.  He stressed that the collaboration between Taiwan and the US will have an impact on the businesses in Asia and create new opportunity in the healthcare industry.

Mr Greenwood pointed out that the biotech industry in the US hires 1.47 million people.  85% of the employees have a salary higher than the national average.  In the US, about USD 2 trillion are injected into the biotech industry every year.  It includes USD 20 billion from private venture capital funds.  The Patent Office receives about 27,000 applications of new patents.  These make the US one of the heavyweights of the biotech industry.

Furthermore, the US government corporations continue investing in the industry.  The US FDA’s open and professional review mechanism, the protection for IP rights and the free market mechanism are the driving forces behind the prosperous biotech market.  Taiwan has its advantages, but also has its challenges, said Mr Greenwood.

According to Greenwood, IP protection is most critical to the development of innovative industries.  As the NHI drug prices are quite low, the Taiwanese government needs to invent new measures for helping the industry’s product outflow.  International collaboration might be an answer, said Mr Greenwood.

Ms Katherine Andersen, the Head of Life Science & Healthcare Relationship Banking at SVB, expressed that the global biotech industry has a huge demand of innovation which is immune from the global trade war.  Taking Asia for example, 90% of the investment is on new drugs, said Ms Andersen. 

【2019-07-24 / Economic Daily】