Healthy ageing with a good quality of life is priceless
The aging population with augmenting affluence and knowledge in healthcare options is likely to drive the continuing demand for biomedical products. In 2014, the global biomedical sector was valued at US$1.88 trillion and was expected to grow by 5.2% annually in 2014-20181. In recent years, the
sector has seen stronger focus on emerging markets as revenue growth in developed countries slows down while population in developing countries are likely to suffer from chronic or lifestyle diseases associated with affluence due to their new-found wealth. China, in particular, has shown much potential in the healthcare sector, thanks to the average incomes that tripled between 2000 and 2012. Chinese urbanites have sized up their healthcare budgets about 200% since
2005 and rural residents 600%2. Biomedicine
was one of the fastest-growing sectors as prioritised in the 12th Five-Year Plan by the Chinese government who targeted to invent 100 new drugs by 2020. In the near future, China may even overtake the U.S. and Japan in terms of biomedical R&D investment3.
Yet, it isn’t easy to start a business in China because of the different legal and taxation systems, not to mention other cultural differences. On that front, Hong Kong Science Park’s Biomedical Technology Cluster is your access pass to tap into the promising future of Chinese and Asian biomedical markets.
Chinese urbanites have sized up their he
200%althcare budgets about
1 2015 Global life sciences outlook: Adapting in an era of transformation, Deloitte Development LLC, 2014. https://www2.
deloitte.com/content/dam/Deloitte/global/Documents/Life-Sciences-Health-Care/gx-lshc-2015-life-sciences-report.pdf.Retrieved on 10 Oct 2015.
2 National Bureau of Statistics of China. Cited in Fortune favors the bold: Unlocking the future of China’s pharmaceutical
market, Deloitte Development LLC, 2014
http://www2.deloitte.com/content/dam/Deloitte/tw/Documents/life-sciences-health-care/tw-lshc1-en.pdf. Retrieved on 10 Oct 2015.
3 Biomedical Sector: Boom as China’s top scientists set out to cure World’s Ills, Euromoney, 2015. http://www.
euromoney.com/Article/3424754/Biomedical-sector-boom-as-Chinas-top-scientists-set-out-to-cure-worlds-ills. html. Retrieved on 10 Oct 2015.
The winning formula for biomedical enterprises
HONG KONGThe best place to set up your business is where the government is stable, credible and supportive. Hong Kong is one of your top choices.
The government is committed to long-term plans that foster innovation and technology in Hong Kong. By January 2015, its Innovation and Technology Fund (ITF) has provided about HK$8.9 billion for more than 4,200 projects4. Diverse R&D funding schemes are
available to tech companies, such as R&D Cash Rebate Scheme, Enterprise Support Scheme, Innovation & Technology Support Programme, General Support Programme for Patent Application Grant, University Industry Collaboration Programme. For more details, please visit www.itf.gov.hk.
Protection of intellectual property is the basis for creativity and innovation to flourish. Hong Kong has well-established intellectual property laws that are stringently enforced. According to The Global Competitiveness Report 2014-2015, Hong Kong ranks number 10 for its intellectual property laws and protection5. Trademarks, copyrights, patents,
design patents, and domain names are all protected by the laws.
Intellectual property laws and protection
The tax system is simple with low tax rate. Profits made in Hong Kong are taxed 16.5%. There is no VAT, no withholding tax, nor tax on capital gain, dividends or transfer of estate.
Hong Kong and mainland China signed a free trade agreement known as Closer Economic Partnership Arrangement (CEPA) that grants Hong Kong businesses greater access in the mainland market. It is the perfect springboard for foreign investors to tap into business potential in the mainland.
4 The government of the HKSAR, 2015 Policy Address. http://www.policyaddress.gov.hk/2015/eng/p41.html.
Retrieved on 10 Oct 2015.
5 World Economic Forum. The Global Competitiveness Report 2014-2015.
Cutting-edge R&D endeavours entail top-notch technologies. Yet, not many companies, especially start-ups, have the financial leeway to acquire state-of-the-art equipment. Hong Kong Science Park provides one of the best research environments both in and out of the park. Just steps away from your office, the Biomedical Technology Support Centre (BSC) comes fully equipped with advanced technologies such as Next Generation DNA Sequencer, 5-colour Cell Sorter, Flow Cytometer, Fast Protein Liquid Chromatography System, Fluorescent Microscope and high resolution mass spectrometer. Time-shared laboratories and equipment rental are available by project or on hourly basis.
Tenants also have access to 11 State-approved key laboratories in biomedicine, including the Clinical Trial Centres at The University of Hong Kong (HKU) and The Chinese University of Hong Kong (CUHK), both strategic partners of Hong Kong Science Park. Trial data are accepted by FDA, EMA and CFDA for regulatory approvals.
11State-Approved key laboratories in biomedicine
At the heart of Asia, Hong Kong is only a two-hour drive away from Pearl River Delta, China where a number of high-tech manufacturers are located. Most major cities in Asia (such as Beijing, Shanghai, Seoul, Tokyo, Bangkok, Kuala Lumpur, Singapore and Taipei) can be reached within four hours of direct flight from Hong Kong.
Hong Kong Science Park is also a strategic partner of Shenzhen High Tech Industrial Park and Guangzhou Development District, opening up unlimited possibilities of collaborations and partnerships.
TALENT POOLEducation is a long-term investment and Hong Kong is committed to nurturing talents in R&D sectors. In 2016, around 34,000 university graduates major in science, engineering and technology disciplines will join the workforce6. With the current
immigration scheme, tech enterprises also have access to the huge talent pool in mainland China and Southeast Asia.
Major in science, engineering and technology disciplines
INFRASTRUCTUREHong Kong Science Park’s 22-hectare waterfront site totals 330,000 sq m of floor space with offices, laboratories, conference and exhibition venues. A variety of R&D office units are available for enterprises of varying sizes, ranging from SME plug-and-play offices to build-to-suit premises for larger operations.
Totals 330,000 sq m of floor space
Lab spaces and facilities can be tailor-made according to your specific research needs.
6 LCQ14: Hong Kong’s competitiveness, 13 Nov 2013. http://www.info.gov.hk/gia/general/201311/13/P201311130464.htm.
As of June 2015, the biomedical community at Hong Kong Science Park comprises 26 bio-therapeutics, 11 biotech and 24 medtech companies which benefit from the Park’s all-round services and facilities. It comprises of companies specialising in six core biomedical disciplines:
• food & nutrition/TCM/cosmetics
• medical devices
• eHealth apps
• stem cells
From resources such as land, labour, finance and funding, via cluster synergy and networking for collaborative opportunities, to clinical trials and commercialisation, Hong Kong Science Park has everything you need under one roof. Networking events and study tours hosted by the Park are highly popular among investors, academics and government officials. These are vital opportunities for tenants to touch base with like-minded potential partners and collaborators in the region.
PROGRAMMESThe incubation programmes operated by Hong Kong Science and Technology Parks Corporation (HKSTP) provide incubation services to assist technology start-ups in their vulnerable inception stages, enabling them to grow and flourish.
Having a good idea is one thing. Whether you have the resources to turn it into a commercially viable business is another. To all tech start-ups, any help in the vulnerable inception stage would be useful to secure their footing. Incu-bio is a 4-year incubation programme tailor-made to support start-up companies which need wet lab environment for their operation.
Each incubatee has access to an independent laboratory space in the Biotech Centres in Science Park with subsidised rent and various supporting services. An account manager is assigned to offer consultation on business operation. From recruiting staff members to business and management training, incubatees are given guidance to kick-start their enterprise smoothly. Financial aid, lab facilities and advanced equipment are also available. Regular networking events are the perfect occasions to meet and greet with potential investors and partners while exposing their newly founded businesses to a wider audience.
A 3-year incubation programme for tech start-ups, Incu-Tech incubatees could enjoy working space in the Technology Incubation Centre at the Park with subsidised rent. Various business and technology supporting services are available.
The Leading Enterprises Acceleration
Programme (LEAP) is the initiative that provides in-depth assistance on business and corporate development to selected incubatees and graduates of HKSTP Incubation Programmes as well as selected current tenants of the Park for them to grow into a regional or global enterprises. Business and Investment matching, professional panel and mentoring services are also available for selected
companies to prepare them for eventual IPO or M&A.
Soft Landing Centre
Setting up a full-fledged tech enterprise in Hong Kong without any funding and financial assistance could be difficult. What if there’s a way to test the water before setting up an operation in full swing? The Soft Landing Centre provides low-cost entry-level office facilities for those interested in making the first contact with investors, manufacturers and potential clients in Hong Kong, mainland China and other Asian markets. Office cubicles with reception service, Wi-fi access, shared conference room and basic office support are available for as little as HK$500 per week. The fee also covers business matching service, fundraising support, professional service referral, business plan consultancy and access to talent pool recruitment platform.
There is an admission and screening process for both Incu-bio and Soft Landing Centre. For more details, visit www.hkstp.org.