On October 29th 2014, Johnson & Johnson (NYSE:JNJ) Innovation announced that it has launched an Asia Pacific Innovation Center located in the heart of Shanghai. This announcement comes in the light of Johnson & Johnson (NYSE:JNJ) carrying out many R&D projects in coordination with Chinese and Australian universities. This is fourth of its kind of innovation center. Johnson & Johnson (NYSE:JNJ) have already established such centers in London, Boston and California.
At a recent interview conducted with Dr. Jimmy Zhang, the vice President of Transactions at Johnson & Johnson (NYSE:JNJ) innovations in China. The interview revolved around the pharmaceutical research being done in China. According to him, different innovation centers were opened globally about a year and a half ago in order to bring together innovators and entrepreneurs to form a synergy and bring out the best science and technology has to offer. The Asian Pacific innovation center is the fourth of its kind that has satellite connections with Singapore, Australia and Japan. This center is catering to Consumer, Pharmaceutical and medical Device and Diagnostics sectors.
The reason why Shanghai was chosen is because the city is an innovation hub. It brings out academic, research and investment opportunities. Another reason was to support the local government and establish an innovation hub to find solutions for existing medical needs.
Innovation in China has been on the rise, not only in terms of statistics but we see the Chinese presence in the premier journals and in the last ten years these publications have increased dramatically. Also, the government is in favor of fully supporting the idea of innovation and the biotech industry. They believe this would eventually become and economic pillar for the country, determining its economic success in the long run. Hence the government is putting in a lot of financial support into the research.
Another factor that attracted Johnson & Johnson (NYSE:JNJ) towards Shanghai was that China has a lot of money, coming from the real estate or mining industry and since the government is in support of the biotech, a lot of the money is being invested there. A lot of International investors are also entering the Chinese market, hence making it more attractive for big companies. This development in the Chinese economy has encouraged local pharma companies to reach out to US companies and acquires their assets to strengthen cross border partnerships. Since many multinational firms have set mark in the Chinese economy and have established R&D centers here, this has made China an interesting territory for Johnson & Johnson (NYSE:JNJ).
Johnson & Johnson (NYSE:JNJ) aims to take advantage of China’s innovative methods for drug formation as well as its low development cost. Also with Chinese publications on innovations on the rise, it’s time to work together and translate those into actual products or medicines that can be of benefit to patients. Johnson & Johnson (NYSE:JNJ) plans to identify the publications that seem the most promising and with the help of certain structures turn it into something beneficial.