Although Taiwan has shown great success in establishing venture businesses in information technology, a push into biotechnology at Hsinchu science park that began in the early 1990s has been slower to develop. However, some new initiatives by the Taiwan government are expected to boost the growth of start-ups in the years ahead.

To date there are only 15 biotech companies in Taiwan's two science parks — Hsinchu near Taipei and Tainan in southern Taiwan — employing a total of fewer than 500 people. About five companies are formed each year, but this figure is expected to double soon, according to Jeff Wang, science adviser at the Ministry of Economic Affairs.

Venture capitalists in Taiwan have been reluctant to invest in biotechnology because of their desire for the quick returns seen in the information technology sector. So, as in Singapore, the Taiwan government has created a large fund of US$600 million to promote biotech start-ups over the next five years, and is taking measures to create the necessary infrastructure, including clinical trials, training, and venture funds.

The government is also making substantial investments in research, which are expected to help cultivate start-ups. Some $NT1,663 million (US$51 million) are being invested in agrobiotechnology research between 1998 and 2004, while medical genetics will receive $NT875 million over the same period. Pharmaceuticals and biotechnology research will be given $NT2,920 million in 1999-2004.

Wang says there are many Taiwanese bioscientists in the West willing to return to Taiwan if and when the environment is right. These programmes, due to employ 430 principal investigators, 630 postdoctoral research fellows and hundreds of PhD students and part-time staff, may mean that now is the time.