Pingshan District Launches First 'Specialized, Refined, Differentiated, and Innovative' Biopharmaceutical Industrial Park in Shenzhen

A Review of the Development History of China's Medical Industry: The past approach of large-scale expansion and rapid growth has made significant contributions to the industry's swift development. However, historical factors such as weak innovation, lack of proprietary intellectual property, limited international competitiveness of products, and insufficient risk resistance have also led to China's longstanding "stranglehold" situation in core technologies and products.

In recent years, relevant national departments have successively issued policy documents such as the "Guiding Opinions on Promoting the Healthy Development of Small and Medium-sized Enterprises," the "Notice on Supporting the High-quality Development of 'Specialized, Refined, Distinctive, and Innovative' Small and Medium-sized Enterprises," and the "Notice on Issuing the List of Practical Matters for 'Specialized, Refined, Distinctive, and Innovative' Small and Medium-sized Enterprises" to guide small and medium-sized enterprises toward a development path that is "specialized, refined, distinctive, and innovative."

"Specialized, Precise, Unique, and Innovative" enterprises focus on niche markets, possess strong innovation capabilities, and master key core technologies, with the potential to address long-standing "bottleneck" challenges in the medical field.

At the same time, "the construction and recognition of a number of 'specialized, refined, distinctive, and innovative' industrial parks will be carried out to accelerate the concentration development of 'specialized, refined, distinctive, and innovative' enterprises; support will be given to these industrial parks to enhance their service functions, encourage the introduction of key projects and enterprises into the parks, and foster and strengthen key industrial clusters..." This policy call has already begun to spread across China, making the creation of 'specialized, refined, distinctive, and innovative' enterprise clusters a growing trend.

In October 2022, Pingshan District of Shenzhen City issued the "Announcement on Soliciting Intentional Purchasing Enterprises for Pingshan Specialized, Precise, Unique, and Innovative Biomedical Industrial Park." As the first pilot project in Pingshan, the “Specialized, Precise, Unique, and Innovative” (Biomedical) Industrial Park offers an innovative land supply model, providing tailored industrial space for high-quality biomedical enterprises that have not yet reached the land-use threshold but possess development potential. Currently, the park is in the midst of an intensive recruitment process.

Phase I of Pingshan District Biomedical Innovation Industrial Park

It is reported that Shenzhen covers a land area of less than 2,000 square kilometers. Among first-tier cities, its area is approximately one-third of Shanghai's, one-fourth of Guangzhou's, and one-eighth of Beijing's, making usable industrial space extremely scarce. For this reason, Shenzhen’s current land policies set high requirements for enterprises in terms of output value, taxation, and investment estimates. For high-quality growth enterprises in the scale expansion phase, it is difficult to meet Shenzhen’s high thresholds, and spatial demand has become an urgent issue to address. In 2022, Shenzhen adhered to its foundation of prioritizing industry development, determined to resolve the constraints on industrial space by implementing a "vertical industrialization" factory space construction plan. The city issued the "Shenzhen Pilot Reform Plan for High-Quality Industrial Space Supply," which allows high-quality industrial spaces to be subdivided and sold to eligible enterprises, ensuring industrial development space through multiple approaches.

As is well known, "specialized, refined, distinctive, and innovative" enterprises are generally not large in scale, and "innovation" is their common soul. Therefore, the cultivation and support of these enterprises often need to be more precise to be more effective.

Pingshan District "Specialized, Precise, Unique, and Innovative" (Biomedical) Industrial Park (Rendering)

The positioning of Pingshan District's "Specialized, Precise, Unique, and Innovative" (Biopharmaceuticals) Industrial Park is precisely this. On one hand, the park provides innovative and high-quality spatial solutions for fast-growing enterprises, while on the other hand, it focuses on the specific needs of these companies by offering specialized industry resources and more refined, efficient industrial services, thereby creating an excellent environment and conditions for the emergence of specialized and innovative "little giant" enterprises and hidden champions.

According to the introduction by relevant responsible persons in the park, Pingshan's "Specialized, Precise, Unique and Innovative" (Biomedical) Industrial Park has three major characteristics. The first is a flexible supply method. The pilot project for high-quality industrial space innovates the land supply model, allowing for segmented sales to enterprises that meet certain conditions. This effectively lowers the threshold for enterprises to acquire land, which is a significant advantage for high-quality small and medium-sized enterprises.

Second, precisely match enterprise needs. According to reports, while formulating the project planning proposal in the early stage, the park simultaneously initiated the project recruitment work. Up to now, 25 companies have expressed interest. Meanwhile, the park is conducting surveys and interviews with enterprises to customize factory spaces based on their different production space requirements. Through "standardization + customization" construction, the park aims to achieve precise alignment between industrial space and enterprise needs.

Third, reduce enterprise costs. Led by the government and implemented by state-owned enterprises, this project does not aim for profit maximization. It significantly lowers enterprises' property acquisition costs through a "total cost + minimal profit" model. Enterprises can obtain high-quality, low-cost development spaces tailored to their needs with relatively low initial capital investment. Properties can be resold after being held for a certain period and meeting regulatory conditions.

Moreover, for specialized and innovative enterprises, the "total cost + minimal profit" model can significantly reduce the company's housing and operational costs, allowing limited funds to be allocated towards technological innovation. The park's focus on the unique attributes of "specialized and innovative" businesses can also provide targeted support and services to these enterprises.

The "Specialized, Precise, Unique and Innovative" (Biomedical) Industrial Park is the first pilot project for segmented sales in Pingshan District. Its foundation still stems from Pingshan's mature industrial base and market environment, as well as the high-quality soil suitable for the development of "Specialized, Precise, Unique and Innovative" enterprises.

Pingshan is the area with the largest industrial space reserve and the most contiguous zones in Shenzhen, boasting prominent advantages in industrial space and ample room for innovation and entrepreneurship. It is the region most capable of providing spatial support for the citywide implementation of high-quality major projects.

Pingshan District "Specialized, Precise, Unique, and Innovative" (Biopharmaceuticals) Industrial Park (Rendering)

Biomedicine is one of the three leading industries in Pingshan District. As early as 2005, Shenzhen became one of the first national biotechnology industrial bases, with the Pingshan District biomedicine industrial park as the core area of the base. In 2020, the Shenzhen Municipal Government issued the "1+3 documents" to promote the agglomeration and development of the biomedicine industry, clearly positioning Pingshan as the core park for Shenzhen's biomedicine industry development. In the same year, the Standing Committee of the Shenzhen Municipal People's Congress issued the "Decision on Accelerating the High-Quality Development of the Biomedicine Industry," explicitly stating support for Pingshan to build the core agglomeration area for Shenzhen's biomedicine industry.

Driven by strong policy support, Pingshan's biomedicine industry focuses on three key segments: biologic innovative drugs, high-end medical devices (including high-end intelligent rehabilitation aids), and biotechnology. It is accelerating the development of a biomedicine industrial cluster led by small and medium-sized innovative enterprises and original companies, supported by critical platforms. Leveraging the institutional and policy advantages of the Greater Bay Area and the Pilot Demonstration Zone, it integrates high-quality resources from Hong Kong and Macao, striving to build Pingshan into a world-class biomedicine technology industrial city.

As of the end of 2022, the number of biopharmaceutical companies in Pingshan District exceeded 1,000. The number of biopharmaceutical manufacturing enterprises accounted for one-fourth of the total in Shenzhen, attracting industry-leading companies such as Sanofi Pasteur, Sinopharm Zhijun, New Industries Biomedical Engineering, and Edan Instruments. It has also gathered small and medium-sized innovative enterprises represented by companies such as Puruikin, Huaxian Pharmaceutical, and MicroVast. This has formed a development trend of a biological industry cluster. In 2022, the output value was nearly 25 billion yuan, forming a steady growth trend in the biological industry.

In addition, Pingshan District has always adhered to innovation, focusing on the development of the real economy, vigorously developing strategic emerging industries, and continuously cultivating specialized, refined, distinctive, and innovative ("Little Giant") enterprises. Currently, Pingshan District is home to 13 national-level specialized "Little Giant" enterprises, 35 provincial-level specialized enterprises, and 107 municipal-level specialized enterprises.

As of now, the意向enterprises gathered for Pingshan's "Specialized, Precise, Unique, and Innovative" (Biopharmaceuticals) Industrial Park are mainly high-end medical device companies, including IVD, medical equipment, interventional devices, etc. A notable characteristic of the registered enterprises is that they have been developing in Pingshan District for many years and are at a stage of capacity expansion. It is relatively difficult for them to acquire land independently in Shenzhen; thus, this type of segmented sales model is not a bad choice for these enterprises.

For instance, Noran Meditech, founded in 2012, is a developer and manufacturer of high-end medical devices. The company focuses on the research and development of precision surgical, treatment, and care equipment for operating rooms, ICUs, and neonatal departments, which have significant market potential. It has completed a series of technical solutions represented by life information monitors, anesthesia machines, ventilators, infant incubators, and infant radiant warmers. Currently, Noran Meditech's products serve more than 100 countries and regions worldwide. Its R&D spans across China and Europe, with its global strategy integrated into all departments.

Cardiolink Science, founded in 2015, is a platform company focusing on the research, development, production, and sales of medical devices in the field of tumor intervention. It has now obtained seven Class III medical device registration certificates. In the field of tumor interventional therapy, Cardiolink Science focuses on the layout of TACE therapy with tumor vascular interventional embolic microsphere products (various drug-loaded microspheres, blank microspheres) and precision interventional support products (microcatheters, balloon microcatheters, steerable microcatheters, etc.).

For specialized and innovative enterprises that have settled in, apart from meeting the demand for industrial space, innovative service platform resources and the industrial chain ecosystem are crucial to driving their innovative development.

As one of the youngest administrative districts in Shenzhen, Pingshan District has consistently focused on the biopharmaceutical industry chain, continuously developing the R&D innovation chain and improving public service platforms. It aims to leverage its industrial foundation and well-established innovation service platforms to attract more specialized and innovative enterprises from within and outside the city to settle in the park, creating an agglomeration effect of such enterprises and accelerating the innovative development of the biopharmaceutical industry.

In terms of industrial chain services, Pingshan District has improved the biopharmaceutical R&D industrial chain, promoting the settlement of major projects such as the Shenzhen Academy of Medical Sciences, the national high-end intelligent rehabilitation aid industry base (park), and the National Medical Device Industry Metrology and Testing Center in Pingshan. It also established a clinical research center relying on the Shenzhen Sami Medical Center to accelerate new drug R&D and technology transfer to international standards.

In terms of innovative platforms, Pingshan District has established new R&D and innovation platforms such as the College of Pharmacy at Shenzhen Technology University, the Pingshan Biomedical Research Institute of Southern University of Science and Technology, the Shenzhen Academy of Beijing University of Chinese Medicine, and the Pingshan Biomedical Research and Transformation Center of Shenzhen Bay Laboratory.

In addition, in terms of public service platforms, Pingshan District has also promoted the construction of the South China Safety Evaluation Center of the Shanghai Institute of Materia Medica, Chinese Academy of Sciences, the Shenzhen Laboratory Animal Resources and Technology Research and Development Base (Pingshan), and the Pingshan Laboratory of the Guangdong Provincial Medical Device Quality Supervision and Inspection Institute.

It is reported that by 2025, Pingshan District plans to build a one-stop industrial linkage service platform, gather a group of high-level talents and teams, and form a biopharmaceutical industry chain system covering "R&D + clinical + manufacturing + application."

In the exploration of industrial space, Pingshan has carved out its own path of "specialized, refined, and innovative" development. Currently, enterprises are still being recruited for Pingshan's "Specialized, Refined, and Innovative" (Biomedical) Industrial Park. In the next step, based on the needs of the applying companies, Pingshan will continue to adjust customized solutions in a "one company, one plan" manner. At the same time, efforts will be intensified to solicit and visit companies, targeting the biomedical industry to create a hub for "little giant" enterprises.