Abstract: China invests vast amounts of resources into research programs in order to foster basic research and applied science, in particular concerning the sponsorship of future technologies such as biotech. The budget of research institutions and universities has grown with an annual growth rate of 20% recently. This development and other contributing factors such as the local presence of high-skilled scientists, a supporting regulatory environment and low costs of research give rise to the establishment of China as a powerful research location. This is especially true for the biotech sector and is encouraged by an ongoing settlement of international pharmaceutical companies.

Driver 

Economic / Industrial

The reason for the attractiveness of China as a research location for biotech is mainly an enormous cost advantage. The relatively low expenditures on clinical tests and the availability of high-skilled scientists such as chemists, biologists and pharmaceutical chemists, whose initial salary levels are way below the standard in the EU and the United States, might lead to a further settlement of international pharmaceutical companies in China and a clustering of biotechnological skills and know-how.

Political

Particularly beneficial regulations concerning the conduction of genetic assays or fiscal benefits, such as reduced tax rates or even exemptions for high-tech companies might further attract international companies to conduct pharmaceutical research in China.

Indication

Change in current innovation patterns

Traditionally new technologies, medicines and vaccines are researched and developed in Western industries. This Weak Signal could indicate, that in the future, fundamental achievements and innovations in biotech and pharmaceutics might emerge mainly in research clusters in China.

Sector specifics / cultural specifics

Specific to the biotech and pharma industry

Source

Scientific Literature

China´s jump into the biotech-age,

URL: www.process.vogel.de/management_und_it/forschung_entwicklung/grundlagenforschung/articles/112535/

Studies

China on it’s way to the global research lab, URL: www.pwc.de/portal/pub/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4p3NgsASZnFG8Q76kfCRHw98nNT9YP0vfUD9AtyI8odHRUVARB3vvI!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0JfQ0VS