Nowon S-DBC deemed fit for Boston-style biotech cluster, backed by strong research density

[by Yu, Suin] "The 'Seoul Digital Biocity (S-DBC)' project already contains many of the core components required to establish an ecosystem similar to the 'Boston Bio Cluster,' but the ability to fully support incubators will be realized only when venture capital (VC), infrastructure, and forward-looking government policies operate in tandem."

Johannes Fruehauf, CEO of BioLabs and Chairman of LabCentral, widely regarded as a key figure in Boston’s rise as a leading global biocluster, made these remarks during the S-DBC Conference held at the main building of Seoul City Hall on the afternoon of November 24. He subsequently shared his assessment of the 'S-DBC' project currently being promoted by the Seoul Metropolitan Government and the Nowon District Office.

The 'S-DBC' initiative is a large-scale development project aimed at establishing a cutting-edge bio cluster in Nowon District, the last major undeveloped area in Seoul. With the relocation of the 'Changdong Depot' and the 'Dobong Driver's License Testing Center' becoming more imminent, the project envisions transforming the 75,000-pyeong (approximately 240,000 square meters) site into a central hub for cutting-edge biotechnology. The plan seeks to create a new national growth engine by constructing a ‘bio complex’ that will include shared research facilities for biotechnology startups, headquarters for mid-sized and major pharmaceutical and biotech firms, medical institutions, a large shopping mall, a cinema, and other multi-cultural facilities.

To advance this initiative, the Seoul Metropolitan Government and Nowon District are holding ongoing discussions with CEO Fruehauf to attract ‘BioLabs,’ a leading model of a successful US co-working wet lab platform. Founded in Boston in 2010, BioLabs is a private incubator that now operates across the East and West Coasts of the United States as well as overseas, supporting more than 1,200 companies. Collectively, these companies have secured approximately USD 30 billion in venture capital and achieved exits through initial public offerings (IPOs) or mergers and acquisitions (M&As). In addition, more than 250 clinical trials have been initiated based on new drug candidates discovered and developed within the lab, with over 20,000 patients having benefited from these treatments, demonstrating real and tangible real-world impact.

Fruehauf attributes Boston's emergence as a world-class biotechnology cluster to its strong academic foundation and high geographic density. "Boston was built upon an exceptionally robust academic base. The city hosts several leading educational institutions, including Harvard University, MIT, and the University of Massachusetts, which collectively contributed to the development of Kendall Square, a one-square-mile district that now holds the highest concentration of innovation in the world," he explained.

"Major pharmaceutical companies moved into the area to remain close to innovation and emerging startups. As a result, numerous jointly operated research institutes have been established between pharmaceutical companies and universities, such as the Whitehead Institute and the Broad Institute, both co-operated by MIT and Harvard," he further commented.

"This level of geographic density is a decisive factor. I believe the S-DBC project possesses many of the elements necessary to systematically implement what evolved organically in Boston," Fruehauf remarked.

He referenced the case of Germany as another illustrative example, reiterating the advantages of ‘geographic density.’ He explained that Germany has a solid foundation in basic science and an increasing number of startup incubators, and that the government has begun to acknowledge the necessity of strengthening support for biotechnology.

However, Fruehauf noted that Germany, as a federal state, faces structural limitations in cluster formation, as competition among individual states leads to duplication and overlap rather than the emergence of a unified consolidated ecosystem. He further observed that Germany faces additional barriers to growth, including insufficient scale-up capital, a shortage of experienced managerial talent, and limited international connectivity.

"Germany's market-centric approach also presents challenges, producing a significant and painful innovation gap. Although Germany's R&D investment per capita is roughly on par with that of the United States, its economic performance lags," he further added.

"When BioLabs entered Germany, our objective was to enable promising researchers to found their companies in Germany rather than relocating to the United States. To accomplish this, we formed partnerships with universities, built facilities near the epicenter of academic discovery, operated mentoring and training programs, and strengthened our networks with venture capital investors," Fruehauf stated.

"It has now been exactly two years since the Heidelberg site opened, and the results have been encouraging. We currently host more than 20 companies, including 10 international firms based outside Germany, that selected BioLabs because they wished to maintain their operations in Germany," he continued.

"To date, the Heidelberg site has raised approximately EUR 200 million and is actively engaged in a broad spectrum of technologies, including therapeutic and non-therapeutic fields as well as materials science. We have also expanded our efforts with new initiatives in Berlin and Munich," he further said.

Fruehauf assessed that Korea (particularly Seoul) holds strong potential to systematically build an innovation ecosystem comparable to that of Boston, citing the country’s robust basic science capabilities and high regional density. In fact, Nowon hosts competitive science and engineering universities such as Kwangwoon University and is located near major medical centers, Korea University Hospital, Kyung Hee University Hospital, and Korea Cancer Center Hospital. Nevertheless, Fruehauf emphasized that unlocking this value will require the formation of a cohesive community that connects academia, industry stakeholders, entrepreneurs, and related partners.

"Innovators and entrepreneurs cannot accomplish this on their own. Many are first-time founders, professors, researchers, and graduate students. Although they may possess deep expertise in their respective fields, they require support to successfully commercialize their ideas," he elaborated.

Fruehauf called the S-DBC project an ‘ambitious and promising opportunity,’ noting that it represents a rare chance to develop an entirely new industrial sector by utilizing a large site located in the heart of the city. "S-DBC is about securing the nation's future competitiveness. The 21st century is the century of biotechnology, and biotechnology is an industrial paradigm that can be applied not only to therapeutics but also to a wide range of fields, including food, materials, and building materials," he emphasized.

He went on to note, "In the short term, the development of real estate will inevitably involve collaboration with developers, construction companies, and regulatory authorities, but in the long term, our focus must shift toward innovation." He continued, "If the Seoul Metropolitan Government and Nowon District build the physical infrastructure, we (BioLabs) will help ensure that it becomes a space where innovation truly happens. If possible, we would welcome the opportunity to participate in this process."

However, Fruehauf stated, "For this project to succeed, proactive policy support is essential, including tax incentives, regulatory frameworks that enable innovation, and strategies for talent recruitment. All three factors, VCs, infrastructure, and government policies, must function together. If even one is missing, it will be difficult to provide sufficient support for an incubator." He further underscored, “We need a long-term mindset that nurtures entrepreneurship over 5, 10, 15, and even 20 years, and supports researchers in building their own companies.”