[Reporter's view] An uncomfortable gift from the gov

The Ministry of Trade, Industry and Energy is pushing to designate key technologies used in the development of biopharmaceuticals as "national high-tech strategic technologies." If bio-core technology is designated as a state-of-the-art strategic technology, various benefits will follow.

 

They include support for the creation of specialized complexes, training professionals through the establishment of specialized graduate schools, and tax credits.

 

In particular, it is known that tax credits can receive up to 40% of R&D costs and up to 16% of facility investment.

 

In November last year, the Ministry of Industry selected 15 core technologies in semiconductor, display, and secondary battery fields as state-of-the-art strategic technologies.

 

The Ministry of Industry's plan is to provide "semiconductor-level" treatment to the pharmaceutical bio-industry by adding biotechnology.

 

However, the pharmaceutical bio-industry is not positive about this.

 

Some are rather opposed to the Ministry of Industry's policy.

 

It was prepared in good faith, but the person involved did not want it.

 

The reason why the pharmaceutical bio-industry refuses the good faith of the Ministry of Industry is because of the "regulations" accompanying support measures.

 

The biggest concern in the industry is to require companies with related technologies to obtain approval from the Ministry of Industry when they make overseas mergers and acquisitions or establish joint ventures.

 

The global trend of the pharmaceutical bio-industry is open innovation, which is feared to disrupt close and prompt consultations with global companies if it is approved by the Ministry of Industry every time.

 

Furthermore, some point out whether it is appropriate for the state to intervene in transactions between companies.

 

Some say that the pharmaceutical bio-industry and the semiconductor and display industries are physically different.

 

In the case of the semiconductor and display industries, it is necessary to prevent the outflow of core technologies from overseas in a position where Korea leads industries around the world.

 

On the other hand, the pharmaceutical bio-industry is still chasing the global industry.

 

It is pointed out that it will be a burden to have to wait for the approval of the Ministry of Industry every time it is time to narrow the technology gap with global leading companies.

 

Considering these practical benefits, the pharmaceutical bio-industry believes that losses will eventually be greater than profits.

 

Currently, the Ministry of Trade, Industry, and Energy is collecting industry opinions to designate the nation's state-of-the-art strategic technology for core biotechnologies.

 

In this regard, related organizations such as the Korea Pharmaceutical Bio Association are reportedly planning to convey the opposite position.

 

It is hard to say that the Ministry of Industry's intention to provide semiconductor-level treatment to the pharmaceutical bio-industry itself was bad.

 

But there is no guarantee that a good start will necessarily produce good results.

 

The starting point for fostering and supporting the pharmaceutical bio-industry may be to look at the industry from the perspective of the pharmaceutical bio industry.