These Regulations are based on Article 22-1, item 2 of the "Statute for Upgrading Industries."

The biotechnology research and development (R&D)achievements in this Regulation is mainly focused on biotechnology related R&D achievements.

The Ministry of Economic Affairs of the Republic of China is the competent authority for the Regulations.

The competent authority will appropriate funds to projects that qualify under the Regulations. The competent authority will draw up a budget annually for expenses required. The competent authority can appoint a subordinate agency to execute the Regulations.

In order to qualify, an applicant must meet be:
1.Biotechnology related manufacturing and technology service industries companies established under the Company Act.
2.A financially stable company with a net value equal to one-half of its paid-in capital, and which is not prohibited from bills transactions.
3.A company with an R&D department and R&D specialists in Taiwan.

An applicant must submit an application form, commercialization proposal, and other related information including:
1.Company profile
2.Introduction of new products
3.SWOT analysis of new products
4.Details of project execution
5.Breakdown of subsidy applications

An applicant must independently carry out the R&D work under the commercialization plan. However, an applicant may entrust a technical support organization (such as an industry research organization or technology service provider) to assist with a portion of the R&D work.

The subsidized project can not exceed three years in length

In order to deliberate application based on Article 6, the competent authority may establish Council of Deliberation and invite related organization representatives, scholar, and experts to be the council members.
The missions for Council of Deliberation should be as follows:
1.To deliberate the contents of commercialization project: Including the ways of project execution, project's feasibility, project fund, project duration, and expected accomplishment of the project.
2.To deliberate the significant modifications of commercialization project.
3.To set out detailed regulations for deliberation of commercialization project.
4.Other matters shall be deliberate by Council of Deliberation based on these Regulations.

The subsidy amount can not exceed one-half of the total expense of the commercialization project. The subsidy amount is further limited to NTD5,000,000 per applicant per year and total expenditure on a project can not exceed NTD10,000,000. Subsidies may only be used for the following purposes:
1.Expenses for full-time and/or part-time researchers.
2.Expenses for consumable equipment and materials.
3.Expenses for equipment usage and/or maintenance.
4.Expenses for technology transfers.
5.Expenses for domestic and international business trips.

Examination of projects applying for subsidies must be completed within five months of the date of receiving the application documents.

Once the application is approved, the competent authority shall notify the applicant, sign a contract with the applicant, and then appropriate funds to the applicant.

The applicant must open a separate bank account for management of the subsidy. The competent authority is authorized to audit the account details and check on the project progress at anytime as needed.
The applicant is obligated to answer all the above queries and to submit a mid-term report and a final report on the project progress and the expenditure details to the competent authority for appropriation of the next subsidy payment if approved.

The competent authority may terminate the subsidy contract and seek the return of any subsidies paid if it verifies that any of the following situations has occurred:
1.The funds are transferred to another usage.
2.Development work is stopped without due cause.
3.The progress of the project implementation is far behind expectation.
4.There is a large difference between the technical specifications of the actual and originally proposed products commercialized.

Intellectual property rights derived from a commercialization project belong to the applicant.

The competent authority will announce the document format to be followed under the Regulations.

Products developed under the commercialization project may not be manufactured outside Taiwan for up to two years after they first become available in the market, except when the competent authority approves.
If the applicant violates any of the stipulations in the Regulations, the competent authority may demand repayment of the subsidy and refuse other applications from the applicant for a period of five years.

The Regulations shall take effect from the date of their official announcement.