China's Science and Medical Economy Emerges
- By 2016, China will become Asia's largest, and the world's second largest, pharmaceutical market, second only to the United States, according to UNISCO Institute for Statistics and the World Bank
- China has 1.5 researchers in science, per thousand total employment
- Over 293,000 total patent applications in the life sciences from Chinese residents
- 1.7% gross expenditure on research and development, as a percentage of Gross Domestic Product
- World's largest population
- World's second largest economy
- Growing middle class
China's Strategy
China's strategic aim is to take advantage of its massive population. Instead of merely employing an advantageous cheap labor force and profiting from exported goods, the country's leadership has shifted strategy.
Now, it has invested in the rising education levels of its workforce, and attracts this intellectual talent to stay in their home country. This growing, educated, and better paid workforce has created a stronger middle class. The middle class has the same desires as other developed middle classes, in particular, access to better health care.
That means medications and medical supplies. China's citizens demand treatment by pharmaceuticals the same way the U.S. citizens do.
China has also recognized the financial benefit of building an infrastructure that serves its own population, rather than focusing just on the rest of the world.
That means, the government has created financial incentives for both native science-based start-up companies, and established multinational corporations, to innovate, not merely manufacture, in China.
The shift from manufacturing to innovation requires the country to attract and retain top scientific talent. China's leadership sees the value of drug research and development happening within their borders. So the country has created industry-dedicated funds to help nurture attraction, retention, and growth.
The country has also wisely begun growing its consumer base for such innovation. China now spends more on improving its healthcare infrastructure than ever before in its history. By creating better access to medical services, they have greatly widened the patient population in China, thus creating a ready and willing market for China's newest pharmaceutical medications.
Government-Funded Growth
Like many strategies, growing China's life science and medical supplies innovation and consumption requires a multi-tactic approach.
In addition to funding education and healthcare, incentivizing top research talent to stay and work there, and attracting multinational corporations to perform their innovation in China, the government as found other ways to nurture growth in this sector.
China now boasts some of the world's largest government-funded life science parks and incubation centers. A couple notables are:
- Zhangjiang Hi-Tech Park
- Zhongguancun Life Science Park
China's Life Science Clusters
Biotech, pharmaceutical, and science manufacturing clusters have grown up in:
- Shanghai
- Beijing
- Tianjin
- Guangzhou
- Suzhou
- Wuhan
- Xi'an
For much the same reasons clusters have evolved elsewhere, China's clusters have formed around their top universities and medical centers. In Shanghai and Beijing, where China's top five universities are located, the pharmaceutical and biotech research and development efforts have grown strongest.
For your comparison, here are some other clusters across the globe:
Mature:
?Emerging: