Business Potential for Agricultural Biotechnology - Asian Productivity ...

1. MARCHING TOWARDS THE MARKET:
THE BUSINESS POTENTIAL OF AGRICULTURAL
BIOTECHNOLOGY IN THE REPUBLIC OF CHINA
INTRODUCTION
– 89 –
Dr. Pan-Chi Liou
Taiwan Agricultural Research Institute
Taichung
One of the important potential benefits of biotechnology is its application to improve agricultural
production. In agriculture, the scope of biotechnology, using a broad definition, includes
tissue culture, applied microbiology, and applied molecular biology. As in many other countries,
the research and commercial applications of plant tissue culture and applied microbiology in the
Republic of China have a longer history than molecular biology. Research on molecular biology
in agriculture may be traced back to the early 1980s. In its early stage, this was confined to basic
activities such as gene cloning, transformation, and genetic marker analysis in plants and animals.
During this period, most of the research was funded by the government, and it was done
primarily in universities and public research institutes. Due to its high application potential, and
in order to accelerate its development, biotechnology was included by the government in 1982
among the eight key areas of research. Many related education or training programs were also
initiated at this time. The Development Center for Biotechnology (DCB), the first autonomous
and nonprofit organization specifically for biotechnological research, was established in 1984.
After nearly a decade of effort, the research gradually proceeded to more practical and important
activities, including the development of transgenic plants and animals, DNA-based genotyping
for breeding, and the development of biopesticides, biofertilizer, and animal vaccines.
With more private companies joining in different aspects, preparations were made for marketing
the products from agricultural biotechnology. From the late 1980s to the middle 1990s, important
regulations and guidelines concerning biotechnology and biosafety were established by
the government. The Experimental Rule of Recombinant DNA was issued by the National
Science Council (NSC) and the Guidelines for Risk Assessment in GM Plants and GM Animals
by the Council of Agriculture (COA). The Plant Variety and Seed Act, the most important law in
agriculture, was enacted in 2003; in taking biotechnology into account, it opened the door to a
new era. Creation of some animal- and fish-related regulations and laws in this field has also
been ongoing. Today a fundamental framework has been constructed for managing biotechnology
and biosafety. During the past five years, further effort, on the part of both government
and society, has promoted the development of agricultural biotechnology, including the establishment
of several biotech science parks, among which at least four are specifically set up for
agricultural development. In 2005, total investment in biotechnology has reached TWD150
billion. All these efforts have laid a good groundwork for the further development and application
of agricultural biotechnology in Taiwan.
CURRENT STATUS OF THE AGRICULTURAL
BIOTECHNOLOGY PRODUCTS INDUSTRY
Profile of the Agricultural Biotechnology Business
In industry, there is always great interest in adopting new technology with a high potential
for economic benefits. Biotechnology, a relatively new science born in the 1970s, is regarded in
the world as a highly promising profitmaker. However, industry in the Republic of China seems
to have responded rather late, especially in agriculture. An inquiry conducted by the Taiwan