Updated: Dec 19, 2019
When seeking market entry to China and “landing” the business into China’s industrial technology parks, enterprises and especially those from overseas often struggle with evaluating and weighing the geographic advantages and preferential policies offered by different parks. Choosing the right place to locate the company is crucial in terms of obtaining R&D capabilities, sourcing talents, capital support, land resources, preferential economic policies, and the overall expedition of its commercialization process in China. In this issue, we will introduce you to the Yuhang Biomedical High-Tech Industrial Area located in Hangzhou, Zhejiang Province.
Industrial Park Profile
Zhejiang Yuhang Biomedical High-Tech Industrial Area is located in the Yuhang Economic Development Zone, Hangzhou. Yuhang Economic Development Zone was founded in 1993 and was upgraded as a national-level economic and technological development zone in 2012. In November 2015, the development zone merged with the Qianjiang Economic Development Zone, forming its current state with a total area of 76.94 km2 and a resident population of 300,000.
Yuhang Economic Development Zone is located in the heart of the Yangtze River Delta Economic Circle, an hour of distance from 15 major cities including Shanghai, Suzhou, and Nanjing. As the “East Hangzhou Intelligent Manufacture Corrido” that the Hangzhou government strives to build during the 13th five-year plan, the economic development zone is becoming a major platform for technological innovation and China-West communication and serving as a crucial economic growth pole.
Yuhang Biomedical High-Tech Industrial Area was approved in 2014 by the Provincial Department of Science and Technology and the Provincial Development and Reform Commission of Zhejiang Province. It is currently the only biopharmaceutical industrial park in the province. The park is located in Linping district, one of the eight districts of Hangzhou and the central region of the Yangtze River Delta Metropolitan Area, serving as the bridgehead of communicating with Shanghai - China’s window to the international market. The total planning area of the industrial park is 20.76 km2 and the pilot region covers 10.68 km2 . The industrial park has 220 biopharmaceutical research and production enterprises, 72 above-scale enterprises, 156 registration licenses of medical devices, and 447 registration licenses of pharmaceutical products so far. It has generated a manufacturing output value of 13.9 billion RMB in the first half of 2019.
The primary industrial development focus of the industrial park is medical devices and innovative drugs. Leveraging innovative research capabilities, high-end manufacturing standards, and biomedical technologies and bioinformatics ecosystem, the industrial park is shaping into the largest base for the modern medical equipment industry in the Yangtze River Delta Region. The industrial park has attracted World Top 500 enterprises in the biopharmaceutical space including GlaxoSmithKline, Amgen, Eli Lilly, and Sanofi. Some leading domestic biotech companies reside in the part too, such as Betta Pharma, Tianyuan Bio-Pharmaceutical, Minsheng Pharma, and Hu Qin Yu Chinese Pharmacy. In 2014, biopharmaceutical enterprises achieved a total industrial output value of 4 billion RMB.
The industrial park is equipped with the Zhejiang Yuhang Biomedical High-Tech Industrial Area - Medical Device Evaluation Service Center, which consists of three major service platforms including the Zhejiang Medical Device Evaluation Center - Yuhang Medical Device Evaluation Service Platform, the Zhejiang Institute for the Control of Medical Device - Yuhang Branch, and the Zhejiang Food and Drug Administration Registry Approval Center - Yuhang Branch. With these platforms, the industrial park can offer in-park services for sub-provincial-level examination and approval, facilitating the preliminary research, development, manufacturing, and quality control of medical devices with consulting services regarding inspection, testing, and policy consulting, as well as third-party technology consulting. Meanwhile, the industrial park has issued well-established preferential policies tailored to the needs of the companies in the park, creating a favorable policy environment for the growth of the companies.
Unique Advantages for Enterprises in the Park
The park offers attractive options and generous rewards for domestic and foreign companies, enterprises, and talents relocating to Yuhang. The following are its four unique advantages:
1. Working Space Guarantee
Through the park’s incubator strategy, they aim to increase the main area by 500,000 m2 in 2019, mainly focusing on the biomedical accelerator and the robotic industrial park. By the end of 2021, the total area of innovation space will reach 3,000,000 m2, including the newly added 1,600,000 m2.
2. Talent Acquisition
Attracting Talent – Overseas Technology Talents Station
Discovering talents from innovation-driven cities such as Toronto, Houston, Nottingham, and Tel Aviv, further expanding the layout of overseas technology talents station, and introducing a group of talents in the medical device industry with high-quality projects, advanced technology, valuable resources, and diversified channels.
Retaining People – Human Resource Industrial Park
Utilizing a 5,000 m2 working space as the pilot program, the park provides one-stop services for companies in terms of talent acquisition, HR assistance, social security, and employment insurance assistance.
Think Tank – Top Experts in Medical Device Industry
Industry experts from various organizations - prestigious universities, research institutes, industry associations, medical institutions, financial institutions, industry leaders, etc. - as part of the innovation center Think Tank to provide a full range of professional technical support for companies located in the park.
3. Public Platform
Building a public service platform to build an eco-system for the medical device industry. Services include R&D, device registration, clinical trial, inspection test, distribution and logistics, and value chain integration.
Introducing accredited R&D institutions and industry leaders to strengthen the public service platform. For example, the park has introduced the “Zhejiang Institute of Medical Device Supervision and Testing - Yuhang Economic Development Zone” for registering devices through the fast track.
Maintaining strategic cooperation with Zhejiang Food and Drug Administration and local Market Supervision Bureau, 38 processes have been included and recognized by the authorities. The park ensures that administrative services could be simplified and provided inside the park.
4. Policy Support and Capital Reward:
Angel Fund – Enterprises that pass the evaluation can apply for the Angel Fund capital support up to a maximum of 1.5 million RMB;
Technology Loan – Eligible enterprises can borrow at the bank benchmark interest rate, with a maximum of 10 million RMB;
Industry Fund – Eligible enterprises can apply for government-led equity investment fund up to 20 million RMB;
Public Listing Reward – Enterprises listed on the domestic stock exchanges will be rewarded with 3 million RMB, and enterprises listed on the National Equities Exchange and Quotations (NEEQ) will be rewarded with 1.5 million RMB. The personal income tax generated from defining property rights, capitalizing common reserves, and reinvesting income occurred in the listing process will be rewarded with the same amount as the contribution.
Technology Project Grant Support – The park hosts numerous technological innovation events, such as the “China Technological Innovation and Entrepreneurship Competition” where both international and domestic companies can showcase their innovative technology. The winner will receive a technology grant with 300,000 RMB maximum.
Bridge Point Capital is a private equity firm based in New York with a focus on U.S.-China cross-border investment. We invest in disruptive late-stage healthcare companies that can benefit from penetrating the vast yet unexplored Chinese healthcare market. We aim to leverage our expertise in both healthcare and capital markets to establish a sustainable investment platform for our investors.