Investment Incentives
	Stock Listing (IPO) Recommendation

The Industrial Development Bureau (IDB), MOEA, has promulgated the IDB of MOEA Contracted Proposal for Points Regarding Industry Technology and Production to be Developed Successfully and Having Marketability to relax the listing requirement of local biotechnology companies to apply for listing on the Taiwan Stock Exchange and OTC Exchange.

The biotechnology companies with developmental potential and marketable products and technology can apply for stock listing via the recommendation of the IDB. The criteria for application are as follows:

1. Technology enterprises with successfully developed product and with marketability shall meet the following requirements:

a. Companies within the scope of the biotechnology, pharmaceutical and medical health industries:

i. Companies engaged in human clinical trials or field tests that are legally permitted by the competent authority; or R&D for the biotechnology and pharmaceutical and medical health industries and have existing product manufacturing, sales, providing technology service for biotechnology, pharmaceuticals and medical health.
　

ii. The R&D expenditure for the previous year of companies engagede in relavant R&D with research results must exceed three percent (3%) of total net sales revenue of the said company or ten percent (10%) of total paid-in capital and employing five full-time college-above graduated R&D personnel can be excluded from the above limitation.

iii. If that product is within the scope of newly emerging industries and its relevant technical service scope has achieved the stage of production or provides service, and according to the laws and regulations the product has obtained the approval or certification by competent authorities before selling, carrying out human clinical trail or field tests.

iv. If that product or service is already on the market, or has the potential to be commercialized in 3 years, and approved by related market survey report.

b. Companies within other industries:

i. The net sales revenue generated by newly emerging industry products and related technical service shall exceed fifty percent (50%) of the total sales revenue of this company for the previous year upon application.

ii. Companies having an R&D department and research results, R&D expenditure for the previous year must exceed three percent (3%) of total net sales revenue of the said company or NT$ 70 million.

iii. If that product is within the scope of newly emerging industries and its relevant technical service scope has achieved the stage of production or provides service, If that product or service is already on the market, or has the potential to be commercialized in 3 years, and approved by related market survey report.

2. Technology enterprises with successfully developed technology and with marketability shall meet the following requirements:

a. The developed technology is within the scope of the newly emerging product industry and its relevant technical service.

b. Companies having an R&D department whose R&D expenditure for the previous year exceeded ten percent (10%) of total paid-in capital or NT$40 million.

c. Employs over fifteen full-time college-above graduated R&D personnel or personnel with relevant R&D experience.

d. The developed technology is leading and has market value, has obtained proper patent rights and intellectual property rights, shall provide results that can be transacted on the market, and shall provide a relevant market value appraisal report by a college or institute, research organization, intellectual property rights service company or professionals.

3. Future Development It is widely recognized that as we enter the 21st century, biotechnology and pharmaceuticals hold great potential as newly emerging industries, and are regarded by the government as the key for promoting Taiwan as an Asia-Pacific region biotechnology and pharmaceuticals R&D, manufacturing and operations global operations management center. In its pursuit of this goal, not only has the government completed the related legal framework and certification system, established intellectual property rights protection, promoted international mutual accreditation, and established a biotechnology industry information database system, but has also actively transferred technology, strengthened assistance and incentives, and promoted R&D and the commercialization of its results to industry, based on its strengths. Such strengths include its biotech clusters, in choosing the most suitable products to develop, and in focusing on Asian-prevalent disease therapeutics.

Looking into the future, under the joint cooperation of industry, academia and research institutes, and with the government's policy to fully promote the sector, it is believed that Taiwan will have five major development directions: These are: To become a research and clinical trials center focusing on Asia-prevalent diseases; to become a drug and biotech products manufacturing center, to become a biomedical engineering application and production hub; to become a worldwide subtropical floriculture and marine biotech hub; and to build the most vibrant biotech-focused venture capital industry in Asia. It is Taiwan's overall goal to become the leading Asia-Pacific biotechnology R&D, manufacturing and operations center.