Chinese biotech: the need for innovation and higher standards
Grace H W Wong
Grace H.W. Wong is at ActoKine Therapeutics and president of Student Vision. gw@actokine.com
Can Hong Kong serve as the bridge for the development of biotech in mainland China?
Hong Kong Science Park: US $1.5 billion investment by the Hong Kong Government, an example of the Government's efforts to establish a strong knowledge-based industry in Hong Kong.
For many years, Chinese students and scholars have come to the United States to study, and very often they have found employment and chosen to pursue their careers in the United States. Talented, quick to learn and highly skilled, many of these students have become successful scientists and excelled in almost every field of scientific research, both in universities and industry. Their success in overcoming language barriers and cultural differences testifies to their dedication and ability.
At a recent conference1, William Haseltine, founder and former CEO of Human Genome Sciences, presented a keynote speech on the opportunities for collaboration between United States and Chinese biotech and pharmaceutical companies. Haseltine's work has taken him to China on numerous occasions, and he praised the technical abilities and work ethic of his Chinese colleagues. He foresees the growing return to China of scientists training abroad, who will bring knowledge and skills that will greatly benefit the development of biotech and pharma efforts in China. The reasons for returning, according to Scott Wadsworth, research fellow at Johnson & Johnson Pharmaceutical Research & Development, include "their knowledge of the language and culture that allows them to obtain higher positions faster than in the US, and the pay scale that affords them a higher standard of living as well."
Moving beyond low-cost labor China has taken a proactive stance in the development of biotech-based industry. It is aware of the need to become a world leader not just in low-cost production, but in research and innovation as well. According to Haseltine, China must also raise its standard of quality control and regulatory oversight to international standards. The quality of Chinese biotech research and services will undoubtedly improve with the help of returning foreign-educated scientists.
Chinese scientists currently active abroad represent a vast and valuable resource for a country that is rapidly becoming a major player in the international market. The best way for China to tap into this resource is to provide an environment where bright and capable scientists can do innovative research and have the same, if not more, success than they currently enjoy. The skills, experience and contacts these returning scientists will bring back are vital to the growth of biotech in China and to its success in meeting international standards.
China has seen a remarkable surge in investment—both foreign and domestic—mainly due to the availability of a large, low-cost labor pool. However, cheap labor is not enough to succeed in technology-based industries. Low costs are of little benefit if quality and innovation cannot be maintained. Quality and regulatory controls and protection of intellectual property are equally necessary, not only for the successful development of a domestic biotech industry, but also to attract needed capital and scientific input from abroad. Because of its closer ties with the West, Taiwan has already adopted international standards and coupled them with a long-term infrastructure development program. As China has adopted more open economic policies, it has recognized the need to promote R&D activities and adopt international standards to create an atmosphere to attract high-technology business and investment. These types of policies will promote collaboration between Western companies and China, accelerate the development of research-based industries in China and encourage foreign-educated Chinese scientists to return home. Improvement of these biotech R&D in China would increase opportunities for synergistic collaboration between US and Chinese biotech and pharma companies.
A role for Hong Kong If biotech in china were to match international capabilities in some research areas, there would be great potential and opportunities for synergistic collaboration between the US and Chinese biotechceutical companies. Therefore a key objective must address how to gain trust and how to build a stronger relationship between US and China. In this context, Hong Kong could become an important biotech bridge between the West and mainland China. Hong Kong is an internationally well-known business and financial center recognized for its adherence to intellectual property laws, an ingredient crucial for foreign companies planning to enter a developing market. Another important advantage is that English is widely spoken, which can make doing business and conducting research much easier. In the life sciences, Hong Kong provides a strong clinical research infrastructure: clinical trials using patients from mainland China can take advantage of the benefits of both locations (that is, good IP protection and a huge patient population), and can include parallel trials in Hong Kong and mainland China. Patients' safety and rights can also be ensured.
To position Hong Kong as one of the leading biotech hubs in Asia, new biotech laboratories are being built at the Hong Kong Science Park (HKSP; (http://www.hkstp.org/)), a half-hour by train to mainland China. Soon, scientists from around the world can share space with local researchers at HKSP to collaborate on cutting-edge research, and conferences can be organized to enhance international relations. With its highly developed infrastructure and favorable business conditions, Hong Kong can reach the international standards needed to compete in the international biotech industry, and form a bridge between the Chinese market and the rest of the world.
Conclusions Hong Kong's advantages for developing biotech in this region include strong Intellectual property protections, excellent infrastructure and human capital, reliable quality control in the workplace, a billingual society, high standards for regulatory systems and close access to the human capital of mainland China. This should allow Hong Kong to serve as the catalyst or a unique bridge for the development of the biotech industry in mainland China.
To reach this goal, the Hong Kong government must carry forward its efforts to develope and support R&D and new biotech-related business by continuing to increase research funding and infrastructure development, enhancing biotech education and training, promoting job opportunities for life science students and recruiting experienced biotech workers from around the world. The $1.5 billion investment that the Hong Kong government has made to build the HKSP is a major step toward the future.
Through this long-term, pro-active approach, Hong Kong will not only ensure its own place in the expansion of global biotech, but also strengthen and facilitate the relationship between that world biotech community and the emerging Chinese biotech industry.
