1、 itif.org How Innovative Is China in Biotechnology?SANDRA BARBOSU|AUGUST 2024 China used to be considered a laggard in biotech.But with a comprehensive national strategy and extensive resources now supporting the industry,it is becoming more innovative.In fact,several indicators suggest it is narrow

2、ing the innovation gap with global leaders in the West.KEY TAKEAWAYS Recent Chinese government policies have emphasized domestic biotech innovation.A new national strategy has been crucial to the sectors growth.Several factors are spurring growth,including subsidies,financial incentives,science park

3、s,start-up incubators,talent recruitment schemes,public-private partnerships,and reforms to expedite drug review and enhance IP protection.Indicators suggest Chinese biotech is becoming more innovative.For example,the U.S.FDA approved three new Chinese drugs in 2023.Chinas out-licensing deals grew f

4、rom 15 in 2019 to 33 in 2023,with the largest increase being in oncology.These deals consisted of a range of therapeutic modalities,involving both small molecule and biologics.Clinical trial activity in China more than doubled from 2,979 trials in 2017 to 6,497 trials in 2021.In oncology,Chinese tri

5、als grew 146 percent from 1,040 in 2017 to 2,564 in 2021,the highest for any country.China still lags behind in its ability to turn science into products.America remains ahead,leveraging its sophisticated ecosystem of national funding sources,VC start-up funding,pharma R&D investment,robust IP,and s

6、trong commercialization ability.China increased its global share of value-added pharmaceuticals output from roughly 5.6 percent in 2002 to 24.2 percent in 2019.INFORMATION TECHNOLOGY&INNOVATION FOUNDATION|AUGUST 2024 PAGE 2 CONTENTS Key Takeaways.1 Executive Summary.3 Background and Methodology.4 Im