 |
|
Execs and Investors Face a World of Biotech Location OptionsGeorge Miller May 8, 2007-Of all world regions vying for a piece of the biotech pie, Asia has perhaps received the most attention recently. Within Asia, China and India appear locked in competition to attract biotech companies and investors. In more developed parts of the world, countries are using drug-development collaborations in addition to offering tax and real estate incentives to attract bio businesses. Outsourcing companies "really put biotech on the map in China" beginning in the mid 1990s with lower-cost services relative to the more traditional sources, according to Gerald Chan, Co-Founder, Morningside Group. That may be fortuitous timing. Traditional drivers of growth in the Chinese economy, primarily exports, over the last ten years will be ineffective for moving forward the state investment to date, said Dr. Anthony Saich, Daewoo Professor of International Affairs, Center for Business and Government, and Victor and William Fung Director, Asia Center, John F. Kennedy School of Government. China is on track to become the world's second largest economy within the next two decades, he said. But its demographics reveal that the country will grow old before it grows rich. Saich said that the biotech development in China today is based on a push model, with government funding biotech initiatives. But China can't pursue this push model too much longer because it doesn't have the large companies to fund the follow-on clinical efforts required of drug development. "Large-scale state-supported R&D followed by state-funded companies can't be sustained," said Saich. "Moving forward will be tougher than in the past, but growth remains imperative for Chinese leaders." Extent of government involvement in business is one area of contrast between China and India, said Tarun Khanna, Jorge Paulo Lemann Professor, Harvard Business School. In China, "the government is everywhere. In India, the government is ubiquitous and inefficient, but it stays out of the way of business." Regarding the propensity to embrace foreign investors, he said that China is still heavily anchored in foreign investment, whereas India is suspicious of foreigners. "India does have a strong indigenous company base, with more grass roots startups that have gone public. China, by contrast, has more state-owned businesses. "It would be a mistake to underestimate the potential of indigenous companies as partners," said Tarun. India and China, however, are far from being the only countries attracting biotech business. Germany, for example, has gone beyond tax breaks and other business incentives to attract biotech companies and investment. Berlin has developed a sister-city type program for biotech cooperation, and one of its sisters is Boston. Berlin is emerging as red biotech center, home to about one-third of all biotech companies in Germany. According to Mayor Harald Wolf, Berlin's cooperation with Boston is illustrated by Boston consultancy Parexel, which currently employs more than 1000 people in Berlin working primarily on clinical trials. Parexel is attempting to extend its business there, said Wolf. It is involved in the Vivantis Health Network, a collaborative of some 5000 beds, running clinical trials for drug development companies all over the world. Wolf also mentioned that Berlin has a cooperative arrangements with scientists at the Massachusetts Institute of Technology, as well as collaborations in Shanghai and Moscow. The 2007 BIO conference program includes presentation from many countries around the world. BIO has archived recent descriptions of each on its website: Download the full listing of 2007 International Profiles.
|
   |
