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On Biotechnology Industry 1 www.asiabiotech.com GOVERNMENT POLICIES ON BIOTECHNOLOGY INDUSTRY 1. The Central Government’s Development Strategy on Biotechnology Following its policy on “Developing hi-tech, realizing industrialization” in 1982, the Central Government has implemented a series of national programs to mobilize national resources in science and technology to build a nationwide framework for the industrialization of high technology. It has repeatedly indicated in a number of recent policy documents that biotechnology is one of the national priorities and has ear-marked various programs and funds to support both basic and applied research, as well as technology •Encourages the study of bio-ethics and biosafety; transfers in biotechnology. •To further strengthen international cooperation in The “State Policy on Industry and Technology commercial and intellectual endeavors. 2002” re-confirmed biotechnology as one of the nation’s In 1994, the Municipality issued the first statute key hi-tech areas. The government: (1) encourages for the biotechnology industry in Shanghai, entitled R&D in genetic engineering, cellular engineering, “Regulations on Supportive Measures for Developing enzyme engineering, biochemical engineering, and Biotechnology and Pharmaceutical Industry of bio-medicine; (2) follows closely the development in Shanghai”, with the following key proposals: the Human Genome Project, gene therapy and •The Municipal Government allocates special funds transgenic plants and animals; and (3) promotes the annually to support biotechnology and pharmaceutical application of biotechnology in agriculture, medicine, projects; energy and environmental protection. •The Shanghai Municipal Government supports R&D, industrial scale-up and technology improvement of 2. Shanghai’s Biotechnology Policy biotech-related projects; The Shanghai Municipal Government has issued a •Preferential policy and financial supports; series of policy guidelines to boost the local biotech •Provision of preferential and low-interest loans to the industry. The city government: biotech industry. •Encourages original innovation in science and In the “Regulations on accelerating the developing of technology especially the biotech enterprises; hi-tech industries in Shanghai” issued in 1997, the •Promotes commercialization of achievements in Shanghai Government further reiterates the important science and technology; economic role of the biotech industry and has implemented the following measures to speed up the •Encourages biotech enterprises to increase their own growth of the industry: R&D input and technological innovation; •Encourage original innovation, and the integration of •Fosters investment atmosphere, improves intermediary industry with education and research; services, and creates multiple investment markets for •Encourage the introduction, assimilation and the biotech industry; innovation of advanced technology from overseas; •Gives the green light for the recruitment of skilled •Issue passage of legislatures to facilitate the talent; commercialization of R&D achievements in •Enhances Intellectual Property Rights (IPR) protection; biotechnology; 188 APBN • Vol. 7 • No. 5 • 2003 •Significantly boost investment in the biotechnology •Various domestic and foreign capital (including private and pharmaceutical industry, by increasing input from capital) is encouraged to establish venture capital both government and enterprises, cultivating the bodies. Approved venture capital companies can invest venture capital market and attracting international with all of their funds. capital; •Hi-tech achievements can be used as intangible assets •Strengthen the effort of talent recruitment; for the investment. •Improve the leadership for the commercialization. •For vocational hi-tech achievements to be converted, accomplishers can be granted corresponding equity, To accelerate the process of commercialization of profits or bonus depending on different conversion R&D achievements, in 1997, the Science and methods. Technology Commission of the Shanghai Municipal • Productive factors such as technology and Government issued “Regulation on the Promotions of management are allowed and encouraged to participate High-Tech Conversion by Shanghai Municipality”. The in the distribution of profits. regulation was further modified in 2000 to emphasize the government’s commitment to the opening market • Enterprises are encouraged to increase investment and commercialization of R&D achievements. The into technological development. Expenses from the publication and implementation of these policies has purchase of special and crucial testing equipment for greatly stimulated the processes of commercialization the development of hi-tech and new products can be expensed once or in several times after approval by and lead to continual improvement in the supporting financial and tax department. system of technology, law, finance, and start-up investment. • Foreign investors are encouraged to invest into The essences of the regulation are: hi-tech industry, to establish research institutes and to transfer advanced technology. •The city has established a certification system for the conversion of scientific and technological achievements, • The hi-tech projects with proprietary intellectual, after the certification by the authority, brought to Shanghai and a special-purpose organization is set up thereby to by the central governmental departments, other carry out certification of the aspects as technological provinces, overseas students and foreign scientists can level, market potentials, project risk and intellectual enjoy the same preferential treatment, e.g. interest property rights for local or introduced hi-tech refund, financial guarantee and government’s priority achievements home and abroad. of purchasing the products, as the local projects do • Shanghai Municipality has set up Shanghai Hi-tech • Scientists of universities and research institutes are Service Center to coordinate the certification for hi-tech encouraged to take up part-time jobs to participate in achievements conversion projects. The center offers the commercialization of hi-tech achievements or to ‘one-stop’ service that covers company registration, tax establish start-up. registration and the implementation of other preferential • All the certified hi-tech projects that meet the policies for certified projects. It is also responsible for condition to apply for patents and suitable to get fostering and instructing other intermediary protection with patents ought to apply for patents. organizations involved in the conversion of high-tech Shanghai Intellectual Property Right Bureau will finance achievements; collecting and disseminating scientific part of the patent application and maintenance fee for information to promote foreign and domestic the corporations and individuals in Shanghai that apply achievements, and to facilitate information exchange for the foreign and domestic invention patens. between academic and industrial circles; establishing channels of communication among scientific circle, • Shanghai Hi-tech Professional Qualification industrial circle and financial circle, and helping hi-tech Appraisal Committee is established, whose goal is to enterprises to be listed on domestic or foreign stock appraise and grant the qualification of engineers, exchanges. technicians and managers who make contribution in the conversion of hi-tech achievements in Shanghai, •Shanghai Municipality has also set up Shanghai and the qualification of intermediate service Technology Exchange to serve as a specialized equity organizations. Shanghai Talent Development Fund is market facing the country and the world. It provides established to finance the high-tech enterprises to attract services such as property right exchange and equity superior talents, and to assist senior executives in the financing for hi-tech projects, hi-tech enterprises and conversion of hi-tech achievements to solve specific growth enterprises. problems. APBN • Vol. 7 • No. 5 • 2003 189 www.asiabiotech.com H IGHLIGHTS OF B IOTECHNOLOGY IN SHANGHAI cientists in Shanghai enjoy an excellent chimpanzee genomic project, have successfully international reputation in the following areas of constructed the world’s first genetic map of Oryza sativa S research: structural and functional genomics, spp. Japonica, and participated in the completion of neurophysiology, tissue engineering, biochips, the the sequence of rice chromosome 4 in the International modernization of Traditional Chinese Medicines (TCM), Rice Genome Sequencing Project. and drug discovery. Neurophysiology Shanghai is known for its research in the areas of developmental neurobiology, neurogenetics, systems and behavior neurobiology, and cognitive neurobiology, particularly in molecular and cellular mechanism of brain development and functions. The study of TCM application in treatment for cardiovascular diseases and Alzheimer’s diseases has recently led to a number of breakthroughs. Tissue Engineering Shanghai was the first to study tissue engineering in the nation. It focuses at seed cells, biomaterials, Structural and Functional Genomics construction of tissue and organs. Special attention is paid to solving key issues in tissue engineering, with Shanghai’s genome program focuses on the the aim to establishing new theories and techniques structural and functional study of human genomics and pertinent to the field. The scientists have been successful agricultural genomics, as well as the development of
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