The Transformation of Biomedical Industry in China: From Academic Affair to Commercialization

Xiaohong Wu
University of Hong Kong

 ABSTRACT

China was the only developing country that participated in the human genome project and contributed 1% of human genome sequencing in 2000. And it finished rice genome sequencing independently in 2002. China’s biomedical industry, however, remains largely an academic affair. The industry is characterized by its inability to support and commercialize innovative research, which in turn has resulted in the prevalence of generic drugs. Managers of Chinese firms have been focusing on the short-term profits that can be generated by generics rather than the longer-term potential profits arising from innovative research. But the viability of such short-cut strategy is now called into question as the IPR infringements will mean hefty fines to the violators in the wake of China’s WTO accession. There is hence an urgent need to make the timely transformation from academic affair to commercialization. This paper examines the reasons why biomedical industry remains largely an academic affair in China by stacking China against the key success factors of biomedical industry in the world. It then suggests the ways to make the transformation by filling the gap between basic research and commercial products and cultivating the necessary business environment for biomedical drugs in China.

Key Words: Biomedical, Commercialization, Biotech Industry, China