Work With China, Not Against it
This summer, a 16-member delegation of life-sciences company executives and government officials from Beijing came to Boston to meet with representatives from the state's biotechnology and medical-device companies. The Chinese delegation sought to forge relationships with business, science, and government leaders, and to learn how Massachusetts has become one of most vibrant regions in the world for life-science companies.
During the three-day visit, Beijing officials met with biotech and medical-device-company representatives, and attended the annual Massachusetts Biotechnology Council conference. They also addressed an informational seminar on the China market conducted by the Massachusetts Medical Device Industry Council (MassMedic).
The state's medical-device sector has a strong interest in strengthening its presence in China, among the most rapidly growing healthcare markets in the world. While the China market presents fantastic opportunities for Massachusetts manufacturers, many companies have decided to forego active involvement because of its size and complexity. Members of the Beijing delegation introduced the Beijing life-sciences community by reporting on university research, core competencies, and industry needs. They gave special attention to MassMedic members' greatest concern in entering the China market — protection of intellectual-property rights. Many U.S. medtech manufacturers are excited to enter such a large market, with a growing middle-class that is demanding access to new medical technologies. The optimism, however, is tempered by the possibility that their devices will be copied by domestic manufacturers, effectively eliminating the U.S. manufacturer from the market. In response, the Chinese delegation outlined and discussed details on how national and municipal governments were working to combat this piracy.
In April, MassMedic signed a letter of intent with the Beijing Municipal Government to build and strengthen collaboration between medical-technology companies in both regions. The agreement calls for parties to promote collaboration between companies working in a broad range of areas, including medical devices and instrumentation, surgical appliances and supplies, X-ray and imaging equipment, diagnostics, and orthopedic goods. The parties will develop a process to regularly communicate information on industry developments and send delegations to enhance understanding, promote technology exchange, provide study, training, and visiting opportunities for professionals, and enhance collaborations between industry, research institutes, teaching hospitals and development organizations.
“Massachusetts is one of the foremost locations in the world for life-sciences research, and the home of numerous innovative companies,” says Cheng Lianyuan, General Director of the Beijing Municipal Bureau of Industrial Development. “We believe that Beijing has many of the elements in place to support a vibrant life-sciences community, and we want to learn more about how to support the growth of this industry. We also want to establish and develop relationships with officials and companies that will enhance the interaction between the regions.”
Massachusetts medical-device companies were among the earliest to establish an important presence in China, and are now pursuing a program to accelerate involvement in the emerging region. In 2005, Massachusetts exported over $33 million worth of devices to China, making that country the eighth largest market for the state's medical devices. MassMedic intends to focus its efforts on developing relationships and partnerships with Chinese companies, research institutions, and suppliers.
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