Industry Trend Analysis - Government Efforts Will Boost Pharmaceutical Sector Investment - APR 2018
BMI View: The medical research sector in Taiwan will continue to strengthen over the coming years and the country will be well-positioned to gain from Asia's increasing attractiveness as a key region for research and development. Factors perpetuating this trend include increased government support given the sector's capacity to support economic growth and meet the rising healthcare burden in the country.
Robust government support for the biomedical industry will be integral to Taiwan's attractiveness as a site for medical research. The Tsai administration is making a heavy commitment of resources to promote seven sectors of the economy as the key to transforming Taiwan's industry. The 'pillar industries' include Internet of Things, Biomedical, Green Energy, Smart Machinery, High-Value Agriculture, Circular Economy and Defence. Through this '5+2 Major Innovative Industries' policy, the administration aims to shift the country's industrial base away from its traditional concentration on contract manufacturing and gear it towards a value-added, service- and solutions-oriented business model.
To facilitate the development of Taiwan's research and development (R&D) industry, the government proposed a 'biomedical industrial innovation promotion program' in November 2016, to serve as the nation's blueprint for innovative biomedical research. A draft amendment to the Act for the Development of Biotech and New Pharmaceuticals Industry was also passed to raise the output value and competitive capabilities of the biotechnology industry, and position Taiwan as the hub of biomedical R&D in the Asia Pacific region. According to the Ministry of Science and Technology, three domestically engineered medicines were launched in the market in 2017. In addition, 63 locally produced medicines under development entered clinical trials, including 50 that received approval from the US Food and Drug Administration.