Let’s rewind to 2002. Cao Rong was seconded to participate in the development and construction of the Zhangjiang Biomedical Base. At the time, he was a technical professional with a background in architecture, and his initial mission was simple and direct — to build buildings.

“Most of the companies moving in back then were CROs, such as WuXi AppTec (then called Discovery Chemistry), Medicilon…” Cao recalls. That was Zhangjiang’s 1.0 era, leveraging China’s cost advantages to undertake global R&D outsourcing.

By 2006, as the physical construction of the park was largely completed, Cao faced a choice: return to his original employer, or stay on the land where he had already invested so much effort?

He chose the latter. What prompted him to stay was a simple intuition: “The state has spent so much energy, manpower, and money to build a park like this and develop this industry. There are bound to be plenty of opportunities ahead.”

He turned his focus to professional services within the park. In 2007, he took over Zhangjiang Pharma Valley Business Management Co., Ltd., starting from scratch to establish a professional property service system for this unique park, covering hazardous chemical management and waste disposal.

He held this role for nearly 20 years.

During those long years of providing services, Cao keenly sensed the pulse of the industry. After 2008, with the establishment of several incubators, he began to feel that a new era was brewing: scientists who had served as executives at major multinational pharmaceutical companies started returning to China.

“My logic was simple: once the CROs are here, innovative drugs will follow,” Cao says. This straightforward judgment led him, in 2019, to truly transform from a “service provider” into a “participant.” By acting as a limited partner (LP) investing in specialized funds, he began to partially engage in innovative drug investment.

If 2015 marked the policy-driven starting point for encouraging innovation, then 2018–2019 represented the peak of capital influx. Yet in Cao Rong’s eyes, the most fascinating sight during this period was not the fluctuations in valuations, but the transformation of “people.”

“Watching them evolve, step by step, from scholars arriving with backpacks and PowerPoint presentations into entrepreneurs — that process has been particularly striking,” Cao remarked.

He observed a common phenomenon: scientists who are new to the entrepreneurial world often display an extreme dedication to academic pursuits, but struggle to adapt to the rhythms of corporate management and external communication.

“Doing scientific research and running a company are two different things. Research requires persistence, but management demands both flexibility and finesse — a sense of proportion.”

Cao gave an example: “When you go to raise funds, you might say your drug has a 90% success rate. The investor then asks, ‘What’s the 10% failure?’ A scientist might truthfully explain the 10% risk, and then the deal falls through. But with a different way of expressing it, the outcome could be completely different.”

This kind of transition is not easy. Some succeed, while others remain trapped within the confines of academia and are ultimately eliminated by the market.

“A successful company must ultimately be led by an entrepreneur, not a pure researcher.” This is the simple conclusion he has drawn after witnessing countless rises and falls over more than two decades in Pharma Valley.

This sensitivity to people also carries over into Cao’s investment decisions.

He frankly admits, “I don’t really understand the technology. So as an LP, first, I don’t participate in decision-making; second, I don’t offer guidance. What I can do is provide services to the companies — helping to resolve any issues they need assistance with.”

By delegating decision-making authority to professionals and trusting their judgment, the intuition gained from communicating with project teams and founders becomes the key factor in deciding whether to increase investment. Once he is convinced, he may consider adding more capital later.

“The entire investment cycle for innovative drugs is very long. In standard terms, it requires patient capital.” His sustained optimism about the biomedical industry is not blind confidence, but is grounded in an understanding of the fundamental logic of China’s pharmaceutical sector: the world’s best CRO industrial base, combined with the most diligent and brilliant research talent, will inevitably give rise to world-class innovative drugs.

As a deeply engaged participant in the industry, Cao Rong does not shy away from addressing the challenges facing Zhangjiang.

He likens Zhangjiang to a bountiful "apple tree." "There are so many apples on the tree that sometimes it's hard to take care of them all," he admits.

He notes that many high-quality companies that started in Zhangjiang, upon reaching the clinical stage requiring substantial funding, are often lured away by other local governments offering more favorable policies and funds due to intense local competition for financing and high costs. "In Zhangjiang, you're just one among many; elsewhere, you become the 'highlight' that's been plucked."

While this is a normal market choice, it is indeed regrettable. How to retain these companies? Cao believes that in addition to market-based financing, government industrial guidance funds need to more precisely target companies at different stages, especially those in the most difficult "preclinical" phase.

Beyond that, he is also looking further afield — can we seek markets, payment mechanisms, and commercialization pathways overseas?

"Southeast Asia is very interested in China's innovative drugs and medical devices. Their assessment of European and American products is that they are 'expensive and provide poor service,' whereas our products offer high cost-effectiveness and fast service response."

Cao reveals that he is currently leveraging platforms such as the CAS Center for Excellence in Bangkok to help domestic companies connect with resources, find agents, and navigate registration and sales channels in countries like Thailand and Indonesia.

He believes this represents not only an opportunity for companies but also a trend in the holistic export of China's pharmaceutical industry chain. "With intense competition in the domestic market, going to Southeast Asia is about replacing European and American products with Chinese manufacturing — this is a major trend."

Next year, Cao Rong will reach retirement age. Looking back on his more than two decades in Zhangjiang, he feels fortunate. From a real estate project builder, to a dedicated provider of industrial services, to a participant in the wave of capital, he has kept pace with every pulse of China's innovative drug development at each step.

"To be able to take part in it — that is both a contribution, a driving force, and a share of the dividends." Today, this "old-timer of Pharma Valley" is still on the move, still finding new possibilities in his own way for the companies and scientists he has watched grow up along the way.

As he puts it, "We're not just bystanders. To be a participant — that is the best there is."