Biotechnology in Taiwan

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Biotechnology in Taiwan
2
Trends for Economic Development

• The Next Silicon Valley
• Battle for the Dot.Coms
• Biotech NBT (The Next Big Thing)
• 83 of local development agenciesplace bio among
  their top two priorities
• 41 countries have biotech development programs as
  strategic priority

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Definition

• Biotechnology
• Firms using genetic and cellular techniques
• Biomedicine diagnostic/therapeutic
• Industry-developed definitions data

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Applications

• Agriculture
• Plant breeding to improve resistance to pests,
  diseases, drought and salt conditions
• Mass propagation of plant clones
• Bioinsecticide development modification of plants
  to improve nutritional and processing
  characteristics
• Medicine
• Development of novel therapeutic molecules for
  medical treatments
• Diagnostics
• Drug delivery systems
• Tissue engineering of replacement organs
• Gene therapy
• Chemical Industry
• Production of bulk chemicals and solvents such as
  ethanol, citric acid, acetone and butanol
• Synthesis of fine specialty chemicals such as
  enzymes, amino acids, alkaloids and antibiotics

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Applications

• Food Industry
• Production of bakers' yeast, cheese, yogurt and
  fermented foods such as vinegar and soy sauce
• Brewing and wine making
• Production of flavors and coloring agents
• Veterinary Practice
• Vaccine production
• Fertility control
• Livestock breeding
• Environment
• Biological recovery of heavy metals from mine
  tailings and other industrial sources
• Bioremediation of soil and water polluted with
  toxic chemicals
• Sewage and other organic waste treatment

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Products of Biotechnology
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Types of Industries

• Pharmaceuticals
• Very large, global firms
• Top ten average 15 billion sales
• Assets are products, distribution, manufacturing
  expertise
• Very Profitable

• Biotechnology
• Small, mostly single establishment firms
• Top ten average 700 million sales
• Principal assets are people, research and future
  potential
• Lose Money

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Experiences from USA Biotechnology Industry

• Biotech tends to cluster
• Leaders have an edge
• Entrepreneurship venture capital are key
• Outlook for biotech-led economic development

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Biotech tends to cluster

• Talent is drawn to where firms are firms form
  where talent is
• Powerful business advantages from agglomerations
• Lock-in to particular arrangements

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Leaders have an Edge

• Falling (further) behind the Leaders
• Biotech is concentrated and growing more so
• Leaders are
• 5 to 10x bigger than followers in research and
• 30 to 100x bigger than followers in
  commercialization

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Keys for New Biotech

• Research base is necessary but not sufficient
• Commercialization Assets
• Entrepreneurial researchers
• Industry-relevant talent
• Technical
• Managerial
• Venture capital--surprisingly localized

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Competitiveness of Asia-Pacific Biotech
Note Survey was conducted by Asia-Pacific IMBN
Secretariat from August-December 1999. 20 leading
experts from around the region were invited to
share their perception of scientific development
in the region. The results are based on inputs
from 12 of these experts. Australia (3), Chinese
Taipei (1), Japan (3), Korea (1), Phlippines (3),
Singapore (1)
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Overview of Asia-PacificBiotech Ventures

Source BioEnterprise Asia, original research,
2001/2
Total Market Cap for about 1000 Asia-Pacific
Biotech Companies estimated to be about 3-5 of
Top 25 US Biotech Companies!
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• Singapore
• 700 million in investment funds
• Establish genome research center by recruiting
  top-rank scientists
• Taiwan
• 570 million in investment funds
• Japan
• 1,000 bioventure companies by 2010

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Evaluation of Asia Pacific Biotech Development

• Hurdles/Challenges
• Limited translation of academic research and
  technology development into commercial
  application
• Lack of strategic and business management
  expertise in life sciences
• Lack of