The Importance of Intellectual Property in Taiwan’s Biotech Industry
In 2022, for the first time, a startup team from Taiwan made it to the finals of the US BIO Start-Up Stadium competition.
Since the flourishing development of the biotech industry in the 2000s, in addition to the establishment of Institute for Biotechnology and Medicine Industry (IBMI) and Development Center for Biotechnology (DCB) for the integration of knowledge within the medical industry, the 5+2 Innovative Industries Plan also provides support and assistance in terms of policy and other aspects. As industry performance continues to grow in an upward trajectory, the number of new biotech companies in Taiwan has also increased exponentially.
Starting from the basic pharmaceutical industry, Taiwan’s biotech scene has also ventured into new fields such as medical equipment, applied biotechnology, health and welfare. According to statistics from 2020, the health and wellness industry accounted for the largest market share, at NT$205.5 billion (34.2%). The medical equipment industry came in second at NT$192.4 billion (32%), followed by applied biotechnology at NT$114.2 billion (19%) and the pharmaceutical industry at NT$8.9 billion (14.8%).(Source: nextrends Asia)
The impact of the Covid-19 pandemic could be felt through the growth rate of the biopharmaceutical industry, reaching 10.9% in 2021 as medical device researchers and manufacturers entered a busy period. This has prompted the government, industry, and academia to start thinking if it’s possible for the biotech industry to become the next “magic mountain” that’ll protect the nation or the next TSMC. It is safe to say that a few reasons accounted for the thriving development of the biotech industry — the government’s active promotion of industrial development and Taiwan’s advanced medical system and high-quality scientific research personnel. These can be seen in policies that encouraged corporate investment in research, development, and the founding of biotech startup accelerators and other institutions which have created favorable conditions for the industry’s growth.
The success of Taiwan’s biotech industry lies in its determination for constant exploration and innovation, as well as its continuous attention to global market trends and future development directions. With joint efforts from the government, industry, and academia, Taiwan’s biotech industry is deemed to have bright prospects.
Most Innovative Biotech Startups: Lin Bioscience, AetherAI Technology, Jellox Biotech
Ranked 2nd in Profit Opportunity Recommendation in Asia 2021 by Business Environment Risk Intelligence (BERI), Taiwan has over 128 listed biotech and medical companies with a total value of over US$ 38 billion. With the support of government agencies such as DCB, and through diversified financing channels in the capital market, here are the top 3 biotech startups from 2022:
- Lin Bioscience: Focuses on the development of highly applicable inhibitors, with improved efficacy and reduced toxicity compared to traditional treatments in the progression of cancer or autoimmune disorders.
- aetherAI Technology: A platform that utilizes AI to create medical images for diagnostics, drug development, and personalized medicine.
- Jellox Biotech: Offers imaging services including 3D & 2D scanning and image data analysis that facilitates precision diagnosis and research in the field of digital pathology.
Biotech industry has experienced significant growth in recent years mainly due to Covid-19 accelerating the development of vaccines, treatments, and diagnostics, and is expected to continue to grow. Even in the post-pandemic era, Taiwan’s aging population still calls for innovative healthcare solutions. With robust infrastructure from government programs and universities, the industry will continue to benefit from ongoing partnerships and collaboration with international biotech companies to improve precision medicine and personalized healthcare.
Why Taiwan?
The Taiwanese government provides various tax incentives and subsidies. In addition, Taiwan is an important industrial base for manufacturing and production, including R&D centers for innovative bio-products, clinical trial centers, and PIC GMP (Good Manufacturing Standards) for ODM/OEM. With an advantageous geographical location and a strong ability to link with the international market, Taiwan offers room for collaboration in technical research, development, and promotion.
Taiwan-Berkeley Health Innovation Accelerator ─ Berkeley Public Health Program
In order to strengthen the connection between the biotech industries of Taiwan and the United States, and to assist Taiwanese startups in entering the US biotech market, the National Development Council (NDC) collaborated with Startup Island TAIWAN to work with the School of Public Health (SPH) at the University of California, Berkeley. The project selects outstanding biotech startups from Taiwan to participate in a three-month training program in the United States. Through guidance and training from top experts in the US biotech field, the participating startups can optimize their products and services and learn about innovative management knowledge and regulations. At the same time, the project utilizes the abundant resources and network inside and outside of SPH to connect with the local US market and strive for business opportunities.
The four startups that previously participated in the 2022 SPH program at Berkeley all achieved great progress after training. For example, AcroViz Technology has passed tFDA certification and obtained a patent from the US Patent and Trademark Office. Cancer Free Biotech participated in the well-known Silicon Valley startup funding reality show “Meet the Drapers” and won the championship in the fifth season. Wellgen Medical applied for funding from the Gordon and Betty Moore Foundation shortly after training and collaborated with its subsidiary, the Florence Nightingale Foundation, to develop an identification algorithm for lung tuberculosis detection and prevention programs in India. Astron Medtech won the global championship of SelectUSA Medtech and conducted preclinical validation with doctors from hospitals such as Massachusetts General Hospital and Brigham and Women’s Hospital.
The 2023 SPH program is currently underway with five biomedical startups participating. Taiwan’s startup ecosystem looks forward to what these startups can bring.
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Writer: Sarah Pan, Eddie Busabok
Editor: Patty Ni
Graph Design: Shirley Hsieh
