Recent years have seen aggressive efforts on the part
of the government in promoting the biotechnology industry; many business
owners both within the industry as well as outside of it have taken note
of the government's lead and are now also focusing on this emerging
industry. The government has spearheaded efforts to directly promote the
private sector, with the aim of scaling up the industry to competitive
levels. One of the unique features of this effort is the establishment
of the Executive Yuan's Development Fund. The Development Fund is
primarily geared towards new investments, playing the role of a
pioneering investor. The total investment by the Development Fund in any
one corporation cannot exceed 49%. It is hoped that with the involvement
of the Development Fund, the sector's development will surge.
In order to encourage the development of the biotech
industry in Taiwan and speed up R&D of crucial technology, the Executive
Yuan, following the directive of the "Promotion Plan for the
Biotechnology Industry," announced the "5-Year Investment Plan of the
Executive Yuan for Investing in the Biotech Industry." NT$20 billion has
been set aside to encourage the private sector to participate and invest
in the biotech industry. The scheme was later revised into the
"Executive Yuan Development Fund Biotech Industry Investment Scheme," in
2001; with its implementation period extended to 2005.
Moreover, the fund has worked in conjunction with the
government to promote the "Knowledge Economic Development Project". In
2001, the government drafted the "Development Fund Increasing Investment
in Venture Capital Business Plan," whereby the Executive Yuan's
Development Fund provided NT$30 billion to the private sector's NT$70
billion; a total of NT$100 billion has been earmarked for investment in
VC businesses. By increasing the funds available to venture capitalists,
the government aims to enhance the development of biotechnology on the
island.
