08.16.2001
Biotech a possible key industry for the future

• Development: President Chen called biotechnology the most important industry to Taiwan’s future economic development at a recent Bioscientist Synposium. US President Bush last week also decided to permit limited U.S. funding to be used for a limited category of stem cell research.

• Analysis: The Taiwan government has been spending roughly US$250m per year over the past 5-6 years on biotech research. Although there have been no outstanding successes to date, Taiwan has a significant opportunity and specific advantages in the development of commercial applications for biochips, molecular motors, bio-remediation, genetically modified foods, some areas of genomics and stem cell research. The strict limits placed on funding for stem cell research in the USA will enable Taiwan to attract outstanding US-based talent in this area.

• Primasia View: UMC and TSMC were originated by government research programs. While it is too early to be specific, it is highly probable that Taiwan’s biotech investments will eventually pay off. Much ado has been made about the migration of jobs in technology to the mainland but little has been mentioned about work already in the pipeline to provide new jobs and attract fresh scientific talent to Taiwan.