Last week, a number of news items underscored the growing importance of China to the world's life science industry -- a bullish outlook for China's R&D.
A Thompson Reuters report showed that China currently ranks number two in the world for scientific research output – as measured by the number of scholarly papers published (see
story). Its output is, in fact, only one-third that of the US: 112,000 papers last year for China versus 340,000 for the US. Those statistics, however, obscure the fact that China is catching up quickly. If both countries continue at their current pace, China's research output will surpass that of the US in just ten years. The research output in life sciences is one of the fastest growing of China's scientific interests.
Showing a continuing commitment to innovation, China's National Development and Reform Commission, together with the Ministry of Finance inaugurated an Emerging Industries Venture Capital Program with 9 billion RMB ($1.3 billion) to encourage high-tech emerging industries (see
story). The NDRC and the MOF signed the agreement with seven local governments to set up 20 venture capital funds. The 20 funds plan to raise a total of 9 billion RMB, of which 1 billion RMB will come from China's central government, 1.2 billion RMB from local governments and the rest from private investment.
Just after announcing a $1.25 billion investment in China R&D, Novartis (NYSE:
NVS) said that India is not a place to do R&D because its IP laws are not strong enough to protect discoveries (see
story). In 2006, Novartis made a commitment to build a $125 million R&D facility in Hyderabad. The next year, after the company lost a patent battle over its blockbuster cancer drug, Gleevec (Glivec outside the US), Novartis reneged on the center. In contrast to India, China's IP laws had made tremendous progress, according to Novartis' CEO.
Pfizer (NYSE:
PFE) announced it would close six out of its 20 R&D facilities around the globe as part of its post-Wyeth-acquisition consolidation (see
story), but the company's Shanghai R&D operation is not affected – an implicit endorsement of China's R&D. Pfizer did not disclose how many of its R&D staff would be fired, though it said R&D square footage would be reduced by 35%.
