Guangdong aims to develop a biopharmaceutical and healthcare industry cluster with a combined output value of more than 1 trillion yuan ($140.82 billion) in 2027, according to a plan released by the provincial government.
The action plan for promoting the high-quality development of the biomedical industry in Guangdong, issued on Oct 9, projects the scale of the local pharma enterprises, each with annual business revenue reaching 20 million yuan, to surpass 500 billion yuan by 2027.
Its goal is to develop at least 15 businesses, each with annual revenue exceeding tens of billions of yuan to hundreds of billions of yuan; form a group of specialized and innovative companies in specific fields; foster unicorn companies — startups valued at more than $1 billion — and industry champions; and promote well-known domestic and foreign pharmaceutical companies to establish regional centers in the province.
To this end, the action plan has listed 38 tasks and measures centering around multiple areas including innovative mechanisms, product upgrading, industry clustering and building an industry-friendly environment.
Competitive strengths
Over years of development, Guangdong has established a foundation and advantages in growing the biomedical industry.
Since 2018, large-scale biomedical industrial enterprises in the province have seen an average compound annual growth rate in their operating revenue exceed 10 percent.
The biomedical and healthcare industry cluster in Guangdong achieved 663.8 billion yuan in operating revenue in 2023, putting the province at the forefront of the country.
Guangdong has also maintained its No 1 position in China for years in terms of medical device industry scale. Currently, there are more than 58,000 people working in research and development in the biomedical industry.
"This plan fully demonstrates Guangdong province's emphasis on the biomedical industry. In this plan, I see many opportunities, such as building platforms," said Liu Jian, CEO of the Bioisland Innovation Center at BeiGene.
"China established many incubators before, but now it is not just about incubation; researchers themselves also engage in commercialization and industrialization of their research achievements. Currently, institutions such as the Shenzhen Bay Laboratory and Guangzhou Laboratory are focusing on commercialization and industrialization of research results. The release of this plan, I believe, will provide further support for accelerating the commercialization of related achievements."
Michael M. Yang, senior vice-president (innovation and enterprise) of City University of Hong Kong and the Yeung Kin Man chair professor of biomedical sciences at the school, said that the development of the biomedical industry requires collaboration and cooperation among various sectors such as government, industry, academia, researchers, investors and medical professionals.
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The Guangdong-Hong Kong-Macao Greater Bay Area, which has abundant industrial and supply chain resources, as well as a foundation for innovation, can play an important role in the global collaborative development of the biomedical industry, he said.
Modern system
The biopharmaceutical and healthcare sector is one of the 10 strategic pillar industry clusters that Guangdong is developing.
In June 2020, Guangdong proposed to ramp up the construction of a modern industrial system led by scientific and technological innovation, by developing 20 strategic industry clusters.
Of them, 10 focus on the strategic pillar industries of new-generation electronic information; green petrochemicals; smart home appliances; automobiles; advanced materials; the modern light industry and textiles; software and information services; ultrahigh-definition display; biopharmaceuticals and health; and modern agriculture and food.
The other 10 strategic emerging industries cover semiconductors and integrated circuits; high-end equipment manufacturing; smart robots; blockchain and quantum information; cutting-edge new materials; new energy; lasers and additive manufacturing; digital creativity; safety, emergency response and environmental protection; and precision instruments and equipment.
Official data show that the 20 strategic industry clusters' added value achieved a year-on-year increase of 5.2 percent in 2023, accounting for 40 percent of Guangdong's GDP.
The revenue of the 10 strategic emerging industry clusters reached nearly 3 trillion yuan in 2023, a year-on-year increase of 9.2 percent in added value, nearly doubling the GDP growth of Guangdong during the period, becoming a new engine of the province's economic growth.
Another ambitious move
On Sept 30, the provincial government issued another action plan for future industries — future networks, general intelligence, life and health, low-carbon energy, advanced materials, future space and quantum technology.
By 2027, Guangdong aims to make breakthroughs in core technologies in several key areas; establish high-level innovation platforms for future industries; create demonstration scenarios for the industries; and foster internationally influential leading and innovative enterprises. By then, the clusters of future industries will have taken shape, according to the plan.
By 2035, the entire innovation chain of future industries is projected to be in place in Guangdong, forming a number of benchmark products and services ranking at the forefront of science and technology in future industries.
In areas such as future networks, general intelligence, and life and health, several globally leading future industry clusters will be formed, making Guangdong a global source of innovation and a highland for the development of future industries.
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"The industry layout in Guangdong reflects (the decision-makers') foresight and strategic thinking," said Zhu Keli, founding director of the China Institute for New Economy and director of the Bay Area Institute of New Economy.
This move will not only help Guangdong gain the upper hand in future competition but promote the optimization of its economic structure and enhance its competitiveness, Zhu said. Guangdong has a complete industrial support system and comprehensive supply and industry chains for the development of future industries across the board, he added.
Additionally, Guangdong has a super-large market scale and is rich in application scenarios, which contribute to the rapid iteration and growth of future industries.
At the same time, the province has strong manufacturing and technological innovation capabilities, which enables Guangdong to take a leading position in the landscape of future industries. It is expected to accelerate the formation of several globally leading future industry clusters.
As the No 1 manufacturing province and economic powerhouse in China, Guangdong is at the forefront of the country in fostering and developing industrial clusters.
The province has established eight industrial clusters, each capable of generating over 1 trillion yuan in annual production output value. They encompass new-generation electronics and IT, the modern light industry and textiles, advanced materials, green petrochemicals, modern agriculture and food, smart home appliances, software and information services, and automobiles.
In addition, three industrial clusters — new energy, ultrahigh-definition display, and digital creativity — have annual production capabilities surpassing 500 billion yuan each. Seven industrial clusters — biomedicine and health, safety emergency and environmental protection, high-end equipment manufacturing, semiconductors and integrated circuits, precision instruments and equipment, lasers and additive manufacturing, and cutting-edge new materials — have annual production capacities exceeding 100 billion yuan each. And two industrial clusters — smart robots, as well as blockchain and quantum information — boast annual production capacities of over 10 billion yuan each.
