Johnson & Johnson Becomes First Foreign-Invested Open Innovation Platform Recognized by Shanghai Municipal Government

Shanghai, February 2, 2021 /PRNewswire/ -- Johnson & Johnson, a global leader in healthcare, is actively expanding external innovation collaborations while continuously introducing innovative products and technologies, supporting the government in enhancing local R&D capabilities, and building an open innovation ecosystem. Leveraging its robust innovation network, which includes the Johnson & Johnson Asia Pacific Innovation Center and the JLABS @ Shanghai incubator, the company has achieved significant results in promoting scientific research innovation and fostering collaborative innovation. To accelerate the clustering and capability enhancement of foreign-funded R&D centers, the Shanghai Municipal People's Government implemented the "Provisions of Shanghai Municipality on Encouraging the Establishment and Development of Foreign-Funded R&D Centers" on December 1, 2020. Johnson & Johnson became the first foreign-funded open innovation platform recognized by the Shanghai Municipal Government, fully supporting Shanghai's efforts to build a science and technology innovation center with global influence, and continuing to play an industry-leading role in strengthening global resource allocation and bolstering innovation engines.

JLABS @ Shanghai, Johnson & Johnson’s Largest Global Innovation Incubator and First in the Asia-Pacific Region

JLABS @ Shanghai: Johnson & Johnson’s Largest Global and First Asia-Pacific Innovation Incubator

As a key component of Johnson & Johnson’s strategy to accelerate external innovation collaboration and build an open innovation ecosystem, JLABS—the company’s largest global incubator and its first in the Asia-Pacific region—was established in Zhangjiang, Shanghai, in June 2019. It was jointly founded by Johnson & Johnson, the Shanghai Municipal People’s Government, the People’s Government of Pudong New Area, and Shanghai Zhangjiang (Group) Co., Ltd.Spanning a total construction area of over 4,400 square meters, JLABS @ Shanghai can accommodate approximately 50 innovative entities in the life sciences and healthcare sectors, covering areas such as medical devices, pharmaceuticals, and consumer health. The facility offers start-ups ready-to-move-in services, providing a one-stop, efficient, and flexible innovation platform equipped with internationally leading laboratory spaces and equipment. Start-ups also benefit from expert guidance in technology, industry, and financing, as well as robust support from Johnson & Johnson’s extensive internal and external innovation networks. These resources help accelerate their innovation processes, deliver high-quality healthcare solutions, improve human health, combat diseases, save lives, and ultimately benefit patients in China and around the world.Since its launch, JLABS @ Shanghai has successfully onboarded 46 start-ups, which have collectively secured over $1.9 billion in financing. The incubator has witnessed the first successful initial public offering (IPO) among its resident companies and seen approximately one-third of them successfully “graduate” from the program.As one of Johnson & Johnson’s four global innovation centers, the Johnson & Johnson Asia Pacific Innovation Center has been based in Shanghai since its establishment in 2014. Operating under an open innovation model, it leverages Johnson & Johnson’s resources, expertise, and regional advantages across Asia-Pacific and globally. The center has collaborated with dozens of leading biopharmaceutical companies, accelerators, and academic research institutions—including HitGen, Benchmark Medical, Danuo Pharmaceutical, Ucai Technology, Ynai Biotechnology, HAX Accelerator, and The Hong Kong Polytechnic University—to deliver breakthrough healthcare solutions to patients and consumers worldwide.

As a global leader in healthcare, Johnson & Johnson places great emphasis on investment in innovative research and development (R&D). In 2020, its global R&D expenditure exceeded USD 12.1 billion, accounting for approximately 15% of its annual global revenue, ranking among the highest in the industry. Johnson & Johnson has established R&D departments in China across its Medical Devices, Pharmaceutical, and Consumer Health businesses, with more than 700 scientists and R&D professionals dedicated to accelerating local innovation. China is also the only market outside the United States where Johnson & Johnson has R&D capabilities across all three business sectors. In addition to increasing internal R&D investment, Johnson & Johnson actively collaborates with industry partners to build an innovation strategic network linking domestic and international resources, with its innovation footprint spanning the globe. Currently, Johnson & Johnson has established various innovation entities, including the Asia Pacific Innovation Center that fosters partnerships and collaborative innovation with local Chinese enterprises, JLABS focused on innovation incubation, JJDC responsible for venture capital, and business development units, continuously injecting new momentum into innovation-driven growth. Wang Dan, Head of Johnson & Johnson Innovation in the Asia Pacific region, stated, “At Johnson & Johnson, we witness entrepreneurs, scholars, and innovators creating potentially groundbreaking healthcare solutions every day. Leveraging our scale, influence, and expertise, Johnson & Johnson supports and participates in the development of both local and global innovation ecosystems. Through our global network, resources, and platforms, we accelerate the commercialization and global impact of disruptive innovations.”

The Chinese market is a vital component of Johnson & Johnson’s global innovation network. Over the 36 years since entering China, Johnson & Johnson has not only introduced globally leading products and technologies and promoted local R&D and innovation, but also actively collaborated with external partners across government, industry, academia, and research institutions to build an open innovation ecosystem. This effort supports the high-quality development of China’s healthcare industry. Currently, Johnson & Johnson’s innovation network in China includes the Asia Pacific Innovation Center, JLABS @ Shanghai, JJDC, the Johnson & Johnson Lung Cancer Initiative (LCI), and the World Without Disease Accelerator. These open innovation platforms and institutions operate through flexible and efficient mechanisms to support and drive the R&D and commercialization of disruptive products and technologies. They accelerate the implementation of Johnson & Johnson China’s dual-engine strategy of “growth + innovation,” thereby contributing to the Healthy China initiative.

Even in the highly challenging year of 2020, Johnson & Johnson still forged innovative collaborations across multiple fields with numerous leading domestic and international enterprises, including the partnerships announced last November during the third China International Import Expo, such as the collaboration with Yingxi Intelligence to leverage artificial intelligence for enhancing drug discovery efficiency, and with Diannei（Shanghai）strategic collaborations with Bio Ltd. to develop AI solutions for lung cancer detection, with Taikang Online Insurance Co., Ltd. to create innovative healthcare solutions for sports injuries, and with U2s.ai to automate echocardiogram analysis, as well as the joint establishment of an innovation incubation base with Tmall. Meanwhile, Johnson & Johnson has actively deepened its collaboration with startups in cultivating innovative talent. In June 2020, Johnson & Johnson’s global talent development program, EXPAND, was launched for the first time in the Chinese market. The first cohort comprised 15 employees from various business units and functional departments across Johnson & Johnson, who engaged in six-month part-time assignments at startups collaborating with the Johnson & Johnson Asia Pacific Innovation Center and JLABS @ Shanghai. This initiative aimed to expand bilateral innovation exchanges and focus on nurturing a group of leaders with an innovative spirit. The first cohort successfully graduated in January 2021, marking the successful conclusion of the program and achieving a “triple-win” outcome for Johnson & Johnson, the talents, and the startups. Preparations for the second cohort are progressing smoothly, with expectations to expand the program to other Asia-Pacific markets within the year. These innovative initiatives have strengthened communication and collaboration between Johnson & Johnson and its innovation partners, demonstrating the company’s committed efforts to deepen its presence in the Chinese market, cultivate innovative talent, and uphold its development philosophy of shared growth and win-win cooperation.

Johnson & Johnson Held the EXPAND Program for Innovative Talent Exchange in China, with the First Cohort Graduating Successfully in January 2021

Recently, the Outline of Shanghai’s 14th Five-Year Plan was officially released, emphasizing the promotion of high-quality development, focusing on the “five types of economy,” strengthening the “four core functions,” deepening the construction of the “five major centers,” enhancing the function of sourcing scientific and technological innovation, and creating new advantages for economic and social development. As Shanghai further elevates its level of openness, improves its business environment, and introduces a series of policies to encourage and facilitate the development of foreign investment in the city, Johnson & Johnson will continue to fully support the government’s innovation-driven development initiatives.“We are delighted to see that the vigorous growth of China’s healthcare industry offers broad prospects for independent innovation. Both the national 14th Five-Year Plan and the 2021 Shanghai Municipal Government Work Report regard ‘innovation-driven development’ as a key driver, providing strong support for the innovative development of foreign enterprises in China, which is deeply encouraging,” said Song Weiqun, Global Senior Vice President and Chairman of Johnson & Johnson China. “As a healthcare company powered by innovation, Johnson & Johnson looks forward to continuing our collaboration with the government and partners across the industry to expand and strengthen our innovation network. We are committed to integrating a higher-level, higher-quality open innovation ecosystem into the global scientific and technological innovation network, thereby more efficiently promoting the rapid development of China’s healthcare sector and improving the health and well-being of the public.”