INCUBATORS IGNITING BIOSCIENCE ECOSYSTEM

Incubators and accelerators are driving small and medium enterprises (SMEs) in Asia through the development of novel therapeutics and encouraging innovations and commercialisation. Biotechnology incubators provide a stimulating environment that attracts investors, talent, and companies to collaborate on research, thereby fostering industry growth. While the appetite for laboratory space is constantly growing among biotech ventures, countries in the Asia Pacific (APAC) region are actively investing to construct life science hubs that foster innovation strategies and strengthen R&D capabilities. Let’s explore prominent startup incubators and accelerators in key APAC economies that are cultivating biotech innovations to create unicorns.

The development of innovative clinical therapeutics involves a complex transition from drug discovery to clinical trials to manufacturing and marketing. The APAC region is experiencing an increase in the demand for R&D facilities which can incubate innovative startup ideas in a cost-effective space. In national interest, statemaintained incubators are offering infrastructure and R&D facilities to meet the high-specifications while maintaining environmental standards and biosafety requirements. Many early-stage R&D and late-stage therapeutics developments are supported by government funding and initiatives, which incubate research endeavours before they become commercially viable. Further, Accelerators can reinforce the incubator through mentoring and network-building opportunities to propel the startup’s growth and strengthen its value proposition.

The governments in the APAC region are making efforts to promote biotechnology activities in their countries by setting up biotechnology parks, incubators, as well as pilot projects through publicprivate partnerships. The gradual emergence of co-labs and incubator programmes strengthens R&D capability while governments facilitate financial and tax incentives to foster a startup ecosystem. In addition to providing experimental space and equipment, personnel exchange and support programmes help researchers translationally advance their ideas, to help spin out businesses. In short, incubators are crucial avenues to unlock the commercial value of startups through commercialisation.

APAC biotech companies have demonstrated substantial business process understanding and innovation strategies. A collaborative network involving public-private partnerships, biotech companies, and academia is essential for the

APAC startup ecosystem to flourish. The biotech incubators are thus shaping the industry by building up the pipeline of promising projects creating an entire orchard of opportunities. A government-academia-industry collaboration framework can assist in creating launch pads and growing high value diversified biotech business ventures, while creating ample opportunities for knowledge sharing, collaboration, networking and partnerships to help startups succeed in the marketplace.

APAC countries, notably Australia, India, Japan, Singapore, and South Korea have cultivated startup ecosystems by nurturing promising innovations through a series of R&D, collaboration, innovation, grants, venture capital investment, R&D tax credits

and more. Here are some APAC biotechnology and life science clusters that are contributing to the growth of SMEs (small and medium enterprises) by fostering early-stage development and assisting spinoffs.

SINGAPORE

As a leading biomedical sciences hub at the heart of Asia, Singapore is the choice location for companies to develop and produce new products that better meet Asia’s healthcare needs. The Singapore Government announced in December 2020 that it will sustain investments in Research, Innovation and Enterprise (RIE) activities at about 1 per cent of GDP, or S$25B, for 2021 – 2025. Besides public funding, a healthy research ecosystem featuring a large tenant pool also continues to encourage investments from private sectors in well established biocluster such as Biopolis.

Biopolis, Singapore’s first-ever co-working space for biotech startups is a custom-built biomedical research hub, located near the National University of Singapore (NUS) which hosts research activity in many life science firms. Biopolis hosts nine

Agency for Science, Technology and Research (A*STAR) biomedical research institutes and over 60 companies, with a thriving R&D ecosystem for commercialisation of new scientific discoveries. The co-location of research institutes and companies within Biopolis, and its proximity as the LaunchPad at one-north startup ecosystem, promotes joint lab collaborations. This allows companies to access talent and cutting-edge R&D infrastructure under one roof in Biopolis to efficiently scale up their operations.

There is a thriving startup scene in Singapore, which is supported by infrastructure and innovation programmes such as the A*STAR, Diagnostics Development Hub and MedTech Park. In addition, Enterprise Singapore (ESG) aims to work with more than 3,000 small and medium-sized enterprises including biotechnology with cash grants of up to 90 per cent to aid in their transformation journey in three principal areas: core capabilities, innovation & productivity, and market access. Audrey Lok, health and biomedical director, ESG, said “Funds raised have increased more than five times to $464 million in 2020, from about $86 million in 2016”.

In November 2019 Enterprise Singapore launched Singapore’s first private biotech incubator, NSG BioLabs, as part of its Startup SG Accelerator program, to cater to the needs of the country’s biotech startups.

Later in September 2021, the Cowork-CoLab of the Life Science Incubator (LSI) was opened by German Ambassador Dr Norbert Riedel and Minister of State for Trade and Industry (MTI) Alvin Tan. The LSI is a state-of-the-art BSL Level 2 coworking laboratory that facilitates Biotech, Foodtech and Medtech companies to develop and grow in an accessible, agile and affordable facility and to be a space conducive to collaboration and cross-pollination. “LSI’s mission is to attract and support local and international startups in Singapore as we look towards providing more resources for our local startups, and encouraging collaborations between startups, MNCs and academia” says Alvin Tan. Structured innovation is one of Singapore’s national strategies. The A*STAR statutory board under the Ministry of Trade and Industry of Singapore, launched the Biomedical Sciences (BMS) initiative, which has gone through three phases since 2000. A*StartCentral, an incubator lab established in 2016, assists biotechs in bringing innovations to market while offering a lowasset model for early-stage startups.

Further, A*STAR’s drug discovery and development units and the Experimental Biotherapeutics Centre (EBC) have integrated to form a national platform for drug discovery and development, called the Experimental Drug Development Centre (EDDC). More than 70 academic institutions and 25 regional and international companies have formed partnerships with them in Singapore and overseas. Singapore has been providing

“Life Science Incubator’s mission is to attract and support local and international startups in Singapore as we look towards providing more resources for our local startups, and encouraging collaborations between startups, MNCs and academia.” - Alvin Tan, Minister of State for Trade and Industry (MTI), Government of Singapore

“Funds raised have increased more than five times to $464 million in 2020, from about $86 million in 2016.” - Audrey Lok, Health and Biomedical Director, Enterprise Singapore (ESG)

a conducive ecosystem and infrastructure for life science and biotech startups. In its 6th Science and technology plan- Research, Innovation and Enterprise (RIE 2020) the government has committed S$4 billion ($3 billion) to health and biomedical science including grants for research projects. Between 2010 to 2021, Singapore biotech landscape has incorporated more than 90 regional biotechnology startups.

Considering the demand for a conducive ecosystem, JTC, formerly the Jurong Town Corporation, a statutory board under the MTI, plans to further develop Biopolis to meet the needs of startups. Biopolis Phase 6 is the latest development in the Biopolis precinct, one of JTC’s key projects to boost the biomedical industry in Singapore. The Concept and Price Tender of S$171.8 million was launched in 2019 to construct Biopolis Phase 6 in the One-North innovation district and adjacent Buona Vista neighbourhood to construct a 12-storey tower block for biomedical sciences development. The project is expected to complete in the year 2022-23.

Phase 6 of Biopolis will address challenges faced by biotech startups, to access wet labs once they graduate from incubator or accelerator spaces & struggle to develop their own wet labs, constrained by high capital requirements. The Biopolis Phase 6 business park space will foster biomedical science research activities by providing well-equipped laboratory spaces that will reduce startup costs & shorten the time-to-market.

AUSTRALIA

Australia with its pioneering biotechnology innovation industry has dedicated around $630 million on annual R&D spending. In March 2022, the Australian Federal Government announced its second term Medical Research Future Fund (MRFF), a 10year investment plan which will support health and medical research in Australia by investing $6.3 billion between 2022–23 and 2032–33. The plan provides funding for 21 initiatives over the 10-year period, to support life-saving research, create jobs, strengthen the local industry base for commercialising research and innovation, and boost Australia’s medical and biotechnology research sector.

The BioMedtech Incubator Grant (2021) opportunity is a major part of MRFF and the Medical Research Commercialisation Initiative, which funds the organisations that can identify and collaborate with Australian Small and Medium-sized Enterprises (SMEs) who are undertaking early-stage medical research and medical innovation projects with commercial potential. The grant provides up to $5 million in funding for an SME over five years to develop a research project by facilitating an incubating ecosystem to develop next-generation therapeutics, technologies, and treatments in association with organisations mentoring these SMEs.

In late 2021, Australia established its first national biotech incubator, CUREator, which received a $40 million grant from the government’s Medical Research Future Fund (MRFF) to promote Australian biotech research and entrepreneurship. The incubator is run by the Brandon Capital-managed Medical Research Commercialisation Fund (MRCF) and aims to nurture up to 40 promising research discoveries and early clinical stage assets over the next three years to boost translational research and new age therapeutics.

Dr Simon Wilkins, Head of operations at CUREator, has trained over 350 researchers, attracted over $6 million in investment, and accelerated research worth $60 million across clinical and pre-clinical streams along with the establishment of nine research-based startups. “CUREator will deliver two streams of activity, involving $20 million each with any SME, or life science researcher at an Australian university or research institute, eligible to apply for funding” says Dr Wilkins.

In July 2022, CUREator announced over $17 million in funding for 23 projects across six states and territories. In round one funding $8.5 million is awarded to 17 pre-clinical biomedical technologies demonstrating proof-of-concept stages and $8.9

“CUREator will deliver two streams of activity, involving $20 million each with any SME, or life science researcher at an Australian university or research institute, eligible to apply for funding.” - Dr Simon Wilkins, Head of operations, CUREator

“Incubator residents would benefit from CSL’s onshore translational R&D expertise and capacity as they comingle with employees at its state-of-the-art R&D hub, providing opportunities for cross pollination, learning and the sharing of ideas.” - Paul Perreault, CEO, CSL

million to support the clinical development of novel, clinical-stage drug therapies.

Further, a strategic partnership between Australian universities has been developed to ensure health and medical discoveries are fast-tracked to commercialisation through AusBiotech, Australia’s Biotechnology Industry Organisation. By converging skills, perspectives, and resources at startups and business incubators, the framework promotes rapid innovation across disciplines and sectors.

Commenting on AusBiotech’s Biotechnology Blueprint, A Decadal Strategy for the Australian Biotechnology Industry, AusBiotech’s CEO Lorraine Chiroiu said “Industry-academia framework is an important step towards creating strong and effective partnerships between Australia’s biotechnology industry and universities to commercialise highquality ideas.”

In addition, the Australian Government will invest $37.4 million from 2022-23 to 2025-26 to establish the new CSIRO Research Translation Start-up Program to help foster an entrepreneurial culture in the research workforce.

Furthermore, Australia is bracing to launch a new biotech incubator by 2023 with a $95 million investment. Global biotechnology company Commonwealth Serum Laboratories (CSL) is leading the project from its Parkville headquarters in Melbourne. CSL, WEHI (formerly Walter and Eliza Hall Institute of Medical Research), the University of Melbourne have joined forces to create an incubator and commercial wet lab space for biotech startups backed by funding incentives from the Victoria State government.

The new incubator will have the capacity to host 40 startups, and will be Australia’s first and only incubator that is co-located with a leading biopharmaceutical company, the CSL that will provide comprehensive support to Australian biotech startups.

CSL’s CEO, Paul Perreault, said “Incubator residents would benefit from CSL’s onshore translational R&D expertise and capacity as they co-mingle with employees at its state-of-the-art R&D hub, providing opportunities for cross pollination, learning and the sharing of ideas”.

University of Melbourne’s Deputy Vice-Chancellor (Research) Professor Jim McCluskey said “the incubator would provide a strong innovative environment that will nurture biotech startups, attracting more local and international investors, talent and companies into research collaborations. The biotech incubator strategically supported by

State government investment in translation of medical research, drives economic prosperity”.

JAPAN

The Japanese government is making efforts to develop a strong startup ecosystem in cooperation with their local universities and private sectors. The government in July 2020 has chosen the four urban areas as Global Startup Cities: Tokyo Metropolitan Consortium, Central Japan Startup Ecosystem Consortium, Osaka-Kyoto-Hyogo-Kobe Consortium, and Fukuoka Startup Consortium.

The Tokyo Metropolitan Consortium comprises the Tokyo Metropolitan Government, Yokohama City, Kawasaki City, Ibaraki Prefecture, Tsukuba City, Wako City, private sectors and universities in the area. With this development, the collective area will get extended subsidies, eased regulations, and other support by the national government towards developing and enriching their startup ecosystems.

“The City opened a centre dedicated to the growth of startup companies called “YOXO BOX,” through which we are actively promoting innovation in collaboration with private companies, universities, and research institutions“says Mayor of Yokohama, HAYASHI Fumiko.

“Industry-academia framework is an important step towards creating strong and effective partnerships between Australia’s biotechnology industry and universities to commercialise high-quality ideas.” - Lorraine Chiroiu, CEO, AusBiotech

“The incubator would provide a strong innovative environment that will nurture biotech startups, attracting more local and international investors, talent and companies into research collaborations. It is strategically supported by State government investment in translation of medical research, drives economic prosperity.” - Prof. Jim McCluskey, Deputy Vice-Chancellor (Research), University of Melbourne

The Osaka-Kyoto-Hyogo-Kobe Consortium that comes under the Kansai region is the heart of Japan’s biotech industry and is home to more than 300 life sciences companies, top medical institutions, and institutes for advanced healthcare research.

Many universities in Japan are framed into Bioclusters supporting entrepreneurship by establishing incubation facilities on campus.

University of Tokyo is also ahead in startup support activities. The Division of University Corporate Relations (DUCR) operates and manages incubation facilities for research outcomes from the University. Currently, there are four types of incubation facilities operated by the DUCR under startup support programmes. ‘The University of Tokyo Entrepreneur Plaza’, the largest facility among the four facilities, housing a total of 29 rooms out of which 20 rooms can also be used as a wet laboratory capable of conducting P2 level biotechnology experiments. The incubator also provides legal support, network opportunities, and introduction to various professional services as well as supports commercialisation through introduction to investors and various companies.

Similarly Kyoto University hosts “Innovation Hub Kyoto”, a facility for open innovation, aiming to nurture venture companies in the biomedical field and grow research seeds into business. It fosters translational advancements in medical science discoveries through business seed opportunities. Incubation CORE-LAB is another facility for general biomedical experiments to spin startups out of Kyoto University. Besides universities having incubation centres, pharmaceutical companies like Takeda Pharmaceutical have set up innovation clusters to foster a bioscience ecosystem. Takeda Pharmaceutical has set up the Kobe Biomedical Innovation Cluster (KBIC) and Shonan Health Innovation Park (Shonan iPark), the leading bioclusters in Japan.

The KBIC is the largest biomedical cluster in Japan, with a concentrated network of close to about 370 companies, universities, research institutes, and specialised hospitals. It has more than 200 cluster firms in biotechnology and 13 public research institutes for biomedical research and medical device development. KBIC hosts Foundation for Biomedical Research and Innovation at Kobe (FBRI), which vigorously pursues biomedical cluster formation in Kobe through advanced clinical research.

“We will continue aiming to attract business incubators that offer support from the idea stage to commercialisation, as well as to expand the entrepreneur base, including students, and put a mechanism in place that will ensure the continuous generation of startups in Kobe,” says Takeda Taku, director of the New Business Promotion Division at Kobe.

Shonan Health Innovation Park (Shonan iPark) is a co-sharing space for researchers, industry experts, venture startups, government, and academia which creates a platform for collaboration and co-creation to accelerate research. Approximately 300,000 sq m floor area with biological/synthesis and RI lab space (total 76 wet lab suits) is available for open innovation in biotechnology, pharmaceutical, nextgeneration medicine, AI, and many more.

In May, 2022 Shonan iPark collaborated with Johnson & Johnson Innovation, Janssen Research & Development, LLC, and Takeda Pharmaceutical to launch Japan Innovation Bloom GRANT call 2022 to attract research based on innovative science and technology from academia and venture companies.

Toshio Fujimoto, General Manager of Shonan iPark, said, “With combined expertise of four partnering firms in drug discovery and incubation, we are delighted to host the second phase of the project and look forward to connecting science-based

“The City opened a centre dedicated to the growth of startup companies called “YOXO BOX,” through which we are actively promoting innovation in collaboration with private companies, universities, and research institutions.’’ - HAYASHI Fumiko, Mayor of Yokohama City

“With combined expertise of four partnering firms in drug discovery and incubation, we are delighted to host the second phase of the project and look forward to connecting science-based cutting-edge technologies on offer from academia and venture companies with the power of business to reach patients around the world.” - Toshio Fujimoto, General Manager, Shonan iPark

cutting-edge technologies on offer from academia and venture companies with the power of business to reach patients around the world.”

Further, Japan supports homegrown startups through programmes such as Start-up Incubation from Core Research (SCORE), which cultivates new seed ventures by universities and other institutions. The Japan Venture Capital Association (JVCA) also supports startup companies in Japan’s establishment, growth, and development.

Japan External Trade Organisation (JETRO) promotes foreign direct investment into Japan and helps Japanese startups and scaleups maximise their global potential. It promotes mutual trade and investment between Japan and the rest of the world in various sectors, including digital health, medical devices, healthcare services, biotechnology, life science, and pharmaceuticals. The eligible companies will receive support from Pre-Seed to Series B.

MALAYSIA

Industrial parks are just one example of Malaysia’s infrastructure support. There are three main Biotech parks: Bio-XCell in Nusajaya, in Johor, Penang Science Park, and Kulim High Tech Park in the North-West, in Peninsular Malaysia.

In 2005, Malaysian Biotechnology Corporation (BiotechCorp), was established to serve as a onestop centre for developing the biotech industry. The Biotechnology Implementation Council oversees the BiotechCorp, while the Biotechnology International Advisory Panel serves as its adviser. The prime minister chairs both the Council and the Panel. The BiotechCorp’s main functions include catalysing spin-offs into the private sector, facilitating marketdriven R&D, commercialisation via funding, industry development services, advancing R&D, as well as commercialisation in agriculture biotechnology, healthcare biotechnology, and industrial biotechnology.

BiotechCorp promotes the growth of Malaysian biotechnology companies by rewarding them BioNexus status. This is a recognition awarded to qualified companies that participate in and undertake value-added biotechnology activities. A BioNexus status is awarded to qualified biotechnology-based companies. Such companies are further eligible for tax deduction, tax exemption, research grants, and work permits for foreign expatriates.

“We have seen a significant boost in the biopharmaceutical business especially diagnostics, vaccines, medical supplies, and services. Our biological resources, tax incentives, and strong government support through Bioeconomy Corporation, cements Malaysia’s position in the global bioeconomy. With the presence of emerging local startups and early-stage SMEs in the biotechnology and bio-based industries, Bioeconomy Corporation is nurturing and facilitating them to scale up their growth, encourage technology adoption, and strengthen their business strategies through the Biobased Accelerator Programme (BBA),” says Mohd Khairul Fidzal Abdul Razak, Chief Executive Officer, Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) The Malaysian Genome Institute (MGI) located in University Kebangsaan Malaysia, promotes, supports, and encourages collaboration in the R&D programme under the National Biotechnology Policy.

KOREA

Korea has an ambitious and pioneering biotech cluster. To foster bio-specialised regions and enhance national competitiveness, the Korean government operates specialised biotechnology centres in each region to foster local biotech companies.

The Seoul Metropolitan Government established a biotech cluster, Seoul Bio Hub, in October 2017, operated and managed by the state-run Korea Health Industry Development Institute. The organisation supports early-stage biohealth startups in developing their businesses and tapping global markets.

Seoul Bio Hub is at the forefront of efforts to create such a cluster in Korea. Seoul’s strong bioscience expertise, hospitals, venture capital investors, startups and biomedical specialties are aiming at creating an ecosystem of business opportunities by nurturing biotech clusters.

“With the presence of emerging local startups and early-stage SMEs in the biotechnology and bio-based industries, Bioeconomy Corporation is nurturing and facilitating them to scale up their growth, encourage technology adoption, and strengthen their business strategies through the Biobased Accelerator Programme (BBA).” - Mohd Khairul Fidzal Abdul Razak, Chief Executive Officer, Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation)

The Seoul Bio Hub and Hongneung region are intended to become the one-stop shop for all biomedical business needs in Korea by providing strategic support to biohealth startups that are less than five years old, through fundamental consultation around intellectual property, clinical trials, regulatory approval, venture capital fundraising, and networking. Such elements influence in deducing a clear business model and exit strategy plan. As of August 2022, Bio Hub has attracted KRW 372.1 billion investments with 147 tenant companies currently progressing their innovations.

Some of the Innovation Platforms for Biomedical startups surrounding the Seoul Bio Hub include BTIT Convergence Center, Seoul Bio Innovation Center, and Seoul Industry-Academia Bio Center. The Seoul Bio Hub is also creating incentives and infrastructure to create a cluster of biomedical startups and businesses in Hongneung.

Similarly, the biomed startup ecosystem in Hongneung is a concentrated cluster of research organisations, hospitals, and universities, centred around Seoul Bio Hub with a massive potential for the growing biomedical industry and its startups. Korea has several other biotech clusters, including Songdo, located in Incheon, and Osong Bio Valley, located in Osong, North Chungcheong.

Korea Bio Association (KBA) plays a central role in promoting technology development and industrialisation in the Korean bio industry. Major research institutions like Korea Research Institute of Bioscience and Biotechnology play a lead role in the development, foundation, platform & technology commercialisation areas, as well as in advanced Biotechnology ventures. Similarly, Institute Pasteur Korea is a joint research organisation with Pasteur Institute in France and nurtures biotechnology-related research, education, and technology. Korea Bio Park, which is home to 30 bio companies, is the hub of the bio-business network.

INDIA

India is moving to the next phase in the industry’s evolution, by supporting its states in building life science incubator hubs, to promote a biotech startup culture. At a national level, the Department of Biotechnology (DBT) under the Ministry of Science and Technology is creating an ecosystem for startups by establishing biotech and life sciences parks and incubators across the country through The National Biotechnology Parks Scheme. The DBT so far, has supported 9 Biotechnology Parks in various states. They are

1. Biotech Park, Lucknow, Uttar Pradesh;

2. Biotechnology Incubation Centre, Hyderabad, Telangana;

3. Tidco Centre For Life Sciences (TICEL) Biotech Park, Chennai, Tamil Nadu;

4. The Golden Jubilee Biotech Park For Women, Chennai, Tamil Nadu;

5. Biotech Park Technology Incubation Centre, Guwahati, Assam;

6. Biotechnology Incubation Centre, Cochin, Kerala;

7. Biotechnology Park, Bangalore, Karnataka;

8. Industrial Biotechnology Parks (IBTPs),

Jammu & Kashmir UT; and

9. Chhattisgarh Biotech Park, Naya Raipur, Chhattisgarh.

These parks are successfully accelerating the commercialisation of new technologies, nurturing and maintaining emerging ventures and assisting new enterprises to forge appropriate linkages with other stakeholders of the biotechnology sector including academia and government.

In addition, the Association of Biotechnology Led Enterprises (ABLE) partners with the Government in their biotechnology initiatives to accelerate the growth of the Biotechnology sector in India.

The objective of this forum is to create a positive regulatory environment, encourage entrepreneurship and investment, provide a platform for domestic and international companies to explore partnership and collaboration, strengthen ties between academia and industry, and highlight the strengths of the Indian biotech industry.

Southern state capital, Bangalore is home to around 60 per cent of all major biotech firms in India including 380 companies and 200 startups. The state of Karnataka encourages the establishment of R&D centres through the allocation of financial grants and incentives under its new industrial policy 2020-2025.

Grooming the startups

Supporting aspiring entrepreneurs through incubators has become an integral component for driving innovation in economic development programmes. In summary, while incubators are geared towards speeding up the growth and success of startups and early stage companies by providing mentorship, investor introduction and infrastructure support, it is also necessary to create a thriving, selfsustaining ecosystem for biotech over the long term. Successful startups need to contribute back to the sector in order to groom the next batch of startups.