Chongqing International Medical Innovation Center: Accelerating High-Efficiency Technology Commercialization through the 'University-Centric Innovation Ecosystem'
Chongqing International Medical Innovation Center (hereinafter referred to as the “Innovation Center”) is located on the first floor of an office building in Building 12, Times Paradise Walk, Yuzhong District. This area connects some of the busiest transportation routes in the main urban district and is adjacent to the First Affiliated Hospital of Chongqing Medical University, which has the highest daily outpatient volume in the city, making it one of the most densely populated areas in Chongqing. The exhibition hall on the first floor of the Innovation Center showcases the latest achievements of more than 100 domestic and international medical innovation projects through videos and physical exhibits, with a few projects also conducting basic product validation on-site. On the second floor, in the office area, work related to incubating and accelerating innovative projects, as well as facilitating partnerships and resource integration, is proceeding with great momentum.
In early 2019, as a key initiative to advance the construction of the “University-Centric Innovation Ecosystem,” the Yuzhong District People’s Government, in collaboration with the Chongqing Municipal Science and Technology Bureau and Chongqing Medical University, established a medical innovation platform—the CQMU-Centric Innovation Ecosystem. Leveraging venture capital as a nexus, the ecosystem aims to build an internationally oriented and domestically leading hub for medical innovation around Chongqing Medical University. It will establish “one center, one cluster, one chain, and one fund” in Yuzhong District.
“One Center,” namely the Chongqing International Medical Innovation Center, primarily functions to attract the implementation of advanced international medical technologies in Yuzhong District, while incentivizing and promoting local research institutions, such as Chongqing Medical University, to strengthen technological innovation and achievement transformation; “One Cluster,” namely the Chongqing Advanced Medical Services Industry Cluster, focuses on advancing pilot projects for advanced medical service industries represented by artificial intelligence, big data, cloud computing, and telemedicine, thereby leading a new model of medical industry development; “One Chain,” namely the creation of a complete upstream and downstream medical industry chain, forming an integrated chain encompassing scientific research, CRO (Contract Research Organization), finance, services, production, logistics, and sales, and providing comprehensive supporting services and spatial carriers; “One Fund,” namely the Medical Innovation Development Guidance Fund, will provide all-around, full-process entrepreneurial development funding support for projects within the Innovation Center, and gradually establish a comprehensive financial support system covering banking, guarantees, financial leasing, and industrial funds.
Signing Ceremony for Collaboration to Build Chongqing Medical University’s Innovation Ecosystem | Image source: Provided by the interviewee
In recent years, as a strategic emerging industry under key national support, the medical device sector has enjoyed robust momentum, bolstered by a suite of policies ranging from deepened review and approval reforms, innovation in high-value consumables, Diagnosis-Related Groups (DRG), Supply, Processing, and Distribution (SPD) models, to medical consortia, tiered diagnosis and treatment, and the Marketing Authorization Holder (MAH) system for medical devices. Statistics show that China’s medical device market reached RMB 628.5 billion in 2019, and is projected to exceed RMB 900 billion by 2022.
On the other hand, over the past decade, the number of enterprises engaged in the research, development, and manufacturing of medical devices in China has increased year by year, with continuous optimization of the industry structure. Data from China Business Industry Research Institute shows that as of 2018, there were 17,236 medical device manufacturers in China, an increase of 1,112 compared to the same period last year. It is projected that the number of domestic medical device manufacturers will reach 20,000 by 2020.
Chongqing’s long-accumulated comparative advantages in manufacturing have laid a solid foundation for the growth of innovative medical device companies, with the municipal government attaching great importance to the development of innovative medical devices and even the broader biopharmaceutical industry.
On May 10, 2019, the General Office of the Chongqing Municipal People’s Government issued the “Several Policies on Accelerating the Development of the Biopharmaceutical Industry in Chongqing,” introducing a series of incentive measures for the research and development of innovative biopharmaceutical products, the industrialization of R&D achievements, and the clinical supply of new products. Among these measures, innovative drugs and medical devices can receive policy rewards of up to RMB 15 million during the process of applying for and completing clinical trials and accessing green approval channels.
On April 24, 2020, the Chongqing Municipal People’s Government issued the Action Plan for Promoting High-Quality Development of the Big Health Industry in Chongqing (2020–2025) (hereinafter referred to as the “Action Plan”), which reiterated the requirement to vigorously develop the regional medical device industry and clearly defined the development priorities for medical devices in different areas.
The Action Plan proposes leveraging Chongqing’s comparative advantages in manufacturing, with the nine central urban districts as the core, to develop high-end medical devices such as advanced medical imaging systems, medical robots, biomedical materials and implantable/interventional products, and intelligent medical devices. It also aims to develop a portfolio of competitive products including artificial hearts, capsule endoscopes, specialized hospital beds, and in vitro diagnostic (IVD) tests. In the surrounding districts and counties, the focus will be on developing home-use medical instruments and equipment, as well as medical consumables such as blood processing materials, ultrasound accessories, injection and infusion devices, and testing reagents, thereby establishing an industrial base for medical devices and consumables characterized by the incubation of innovative products.
The head of the Innovation Center told VCBeat that Yuzhong District has a relatively mature foundation for medical innovation, and among the nine main urban districts of Chongqing, this area boasts the most comprehensive healthcare system. It is understood that Yuzhong District has currently established a 10-minute healthcare service circle, with a robust public health system, a full range of medical specialties, distinct specialist features, and grassroots public healthcare institutions covering the entire district. A tiered diagnosis and treatment system has been initially established, with medical service capabilities and standards leading the city.
Meanwhile, Yuzhong District has become the preferred destination for Chongqing residents seeking medical care, and even for patients from neighboring cities traveling for treatment. According to VCBeat, in 2019, outpatient services in Yuzhong District recorded a total of 16.15 million visits, accounting for 9.20% of the city’s total; the number of discharged inpatients reached 530,700, representing 7.07% of the city’s total. Furthermore, Yuzhong District is home to one national key medical laboratory, one national clinical medicine research center, and 30 national-level key clinical specialties. Its robust high-quality medical resources are sufficient to serve the entire municipality and extend their influence across western China.
With the introduction of various municipal healthcare policies and the favorable prospects of the medical industry, Yuzhong District has received key municipal support in its strategic layout by leveraging its locational advantages. “This is also a major reason why we ultimately decided to take the lead in building an innovation ecosystem around universities in Yuzhong District.”
Chongqing City On-site Photo. Image source: Provided by the interviewee.
Specifically, the Chongqing Medical University Innovation Ecosystem (hereinafter referred to as the “Ecosystem”) is positioned within industrial ecosystems encompassing biopharmaceuticals, medical devices, smart healthcare, and medical services. It has strategically developed products in areas such as in vitro diagnostics (IVD), implantable high-value consumables and devices, rehabilitation equipment, and home-use medical devices. “In alignment with the Ecosystem’s key development sectors, the innovation center’s associated investment funds have established a relatively comprehensive portfolio across IVD, medical imaging, orthopedics, and cardiovascular intervention.”
Furthermore, the ecosystem fosters a favorable environment by providing robust policy support, ancillary services, talent supply, and financial backing, thereby offering enhanced incubation and acceleration conditions for innovation and entrepreneurship projects.
Photo taken in Chongqing. Image source: Provided by the interviewee.
According to the person in charge, on the policy front, the ecosystem primarily emphasizes encouraging and supporting enterprise development, as well as attracting and incentivizing talent for innovation and entrepreneurship. A specialized policy support system has been established to promote the development of medical devices. “Specifically, support in terms of taxation, land use, and talent policies will be provided based on the project’s technological and market maturity, investment amount, and output per unit. For major projects, preferential policies will be granted through a ‘case-by-case’ review process.”
Secondly,Industrial Support Service Platform, Chongqing Medical University, the Health Commission, and various medical institutions within the jurisdiction have coordinated uniformly to help enterprises connect with resources in the area. Recently, Hangzhou Huadesen established a branch in Yuzhong District and is currently liaising with the Health Commission to establish an independent third-party medical laboratory. This facility aims to provide specialized medical testing and liquid biopsy research technical services to comprehensive medical institutions in Chongqing and surrounding regions. A person in charge of Chongqing Huadesen told VCBeat, “There are fewer than five similar testing laboratories in the entire municipality of Chongqing.”
Support from Industrial Innovation Carriers, the ecosystem has established a strong partnership with Chongqing Medical University by founding the Chongqing Medical University Technology Transfer Center, which accelerates corporate growth through hospital patent commercialization and clinical collaborations. Currently, the Chongqing Medical University Technology Transfer Center has initiated further development efforts, including clinical collaborations and joint grant applications, with more than 20 chief experts from Chongqing Medical University and its affiliated hospitals.
In Terms of High-Quality Government ServicesThe Yuzhong District Government plans to introduce the “Special Support Measures for the Medical Industry Development in the Vicinity of Chongqing Medical University” to fully boost platform development, providing financial support to high-level entrepreneurial talents selected for municipal and district-level projects, thereby unleashing the most enduring appeal through an optimal business environment.
As a key initiative by the Innovation Center to foster innovation and entrepreneurship and facilitate the commercialization of scientific and technological achievements, the inaugural “Direct to Cleveland” International Medical Innovation and Entrepreneurship Competition was successfully held in 2019, garnering significant attention. During the three-month competition period, more than 300 healthcare-related projects registered, with 60 high-quality projects shortlisted into the premium project pool. Following evaluation and screening across five competitive regions, 19 projects, including those from Weike Biotechnology and Chongqing Medical University, were selected for the finals. Two teams were subsequently dispatched to attend the 2019 Cleveland Healthcare Innovation Summit in the United States, where they presented their projects to a global audience.
Group Photo of the 1st “Direct to Cleveland” International Medical Innovation and Entrepreneurship Competition. Image source: Provided by the interviewee.
Guided by the Chongqing Municipal Science and Technology Bureau, the People’s Government of Yuzhong District, Chongqing, and Chongqing Medical University; hosted by the Chongqing Yuzhong District State-owned Assets Operation and Management Co., Ltd., the Chongqing Yuzhong District Science and Technology Bureau, and the Administrative Committee for the Construction of the Dashihua New Area in Yuzhong District, Chongqing; organized by the Chongqing International Medical Innovation Center, VCBeat, and Firestone Creation; and co-organized by Chongqing Science and Technology Venture Capital Co., Ltd., Baichuanghui International Biotechnology (Wuhan) Co., Ltd., Shanghai Chuangrui Investment Management Co., Ltd., and Chongqing Headquarters City, the 2nd Bairuike Cup “Direct to Cleveland” International Medical Device Innovation and Entrepreneurship Competition officially launched in May 2020. Project submissions are now being actively solicited!
The 2nd Competition aims to gather the most innovative enterprises in the medical device sector across China, leveraging first-mover advantages and focusing on industrial clusters to attract the country’s top innovators in the health and healthcare industry, thereby accelerating the comprehensive and balanced development of Chongqing’s medical device ecosystem. Open to applicants nationwide, the competition features both offline and online regional rounds. A diverse judging panel, comprising experts from Cleveland Clinic, national venture capital firms, and hospitals, will conduct evaluations, due diligence, on-site defenses, and entrepreneurial mentoring to identify the core future leaders of the medical device industry.
From now until 20:00 on July 12, 2020, enterprises that self-assess as meeting the eligibility criteria may voluntarily register on the official competition website at www.cncimic.com and submit complete application materials to the designated email address of the Competition Organizing Committee at 2020brk@cncimic.com. Applicants shall be responsible for the accuracy and authenticity of the information provided.
Or scan the QR code to register!