[New Wave] Current Status and Prospects of Innovative Bio Clusters

The bioindustry inherently involves fundamental uncertainties in technology development, such as new drug development, which requires a long time, significant development costs, and faces high regulatory barriers. It is characterized by interdisciplinarity, the continuous emergence of new technologies, and cumulative progress, based on an integrated nature of the research and development (R&D) process and explicit knowledge such as patents, but mostly tacit knowledge that is invisible. The bioindustry ecosystem is a continuous and cyclical structure that allows ideas from basic research to be transformed into commercializable products. Additionally, through this cyclical process, value can be created from each component within the ecosystem, featuring relevant stakeholders and industries in each area along the product development value chain.

Considering these characteristics of the bioindustry and seeking innovation in science and technology, one of the models is the bio cluster. A bio cluster serves as a bridge between science and industry, centered on biotechnology as the axis of innovation, formed by the agglomeration of new industries created by biotechnology and industries where biotechnology has been applied to existing industries, triggering innovation.

The success factors of a bio cluster require close interactions among various actors based on internal capabilities, diverse resources, and internal procedural cyclical relationships, along with external environment and locational conditions. A cluster that only has external conditions without internal interactions will not meet the original purpose of enhancing innovation among members in adjacent areas and will show limitations in successful value creation.

In South Korea, more than 16 bio clusters have been established nationwide. These include the advanced medical complexes in Osong, Chungbuk, and Daegu-Gyeongbuk, as well as Incheon Songdo, primarily led by the government and local governments. Korean bio clusters have faced limitations due to a lack of inter-ministerial cooperation under the operation of central government ministries, and the absence of timely investment and strategies considering the value chain, resulting in basic research not being linked to commercialization. In response, the government has been promoting plans since 2017 to form a wide-area cluster network by supporting region-specific specialization and linkage programs, preventing overlapping investments among clusters, and establishing organizations to promote collaboration. It is also preparing institutional improvements to promote hospital-centered bio R&D and its commercialization, aiming to expand a cluster-centered bio ecosystem.

The models of Boston and San Diego in the United States and Singapore, which are cited as successful examples, lead at a global level rather than just for domestic use through policies and institutional considerations to actively attract advanced foreign companies. Initially government-led, these clusters have evolved into public-private joint models with active private sector participation, featuring strong incubation functions that enable technology commercialization through internal interactions among bio ventures, universities, companies, and support organizations based on the region. It is necessary to actively benchmark such bio clusters and consider strategic approaches to strengthen interactions among members within the region.

The government has been implementing plans since last year to foster R&D special zones to overcome the limitations of existing large-scale R&D zones and strengthen regional interactions. By designating small-scale, high-density concentrated spaces called "Gangso Special Zones" centered on key institutions such as universities, research institutes, and public enterprises located in the region, this model, where the government and private sector collaborate, shows high potential for development. Since it approaches new directions by improving existing problems, efforts and careful consideration are needed from the early stages of implementation to lead the ecosystem through cooperation between the private sector and government, benchmarking successful global clusters to establish a world-class success model.

Jung Yuntaek, Director, Pharmaceutical Industry Strategy Institute