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State Legislative Best Practices in Support of Bioscience Industry Development
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Major Building Blocks of Industry Development
A strong partnership between industry, academia, and state and local government is essential for the development of a successful bioscience cluster. States with large bioscience industry clusters actively encourage and facilitate technology transfer from academic research institutions as well as helping to promote investment in bioscience companies.
There are five components essential for bioscience industry development that state policy makers should be aware of:
Technology Transfer: The successful transfer of government funded research for commercialization is crucial to the long-term viability of the industry. Although technology transfer has been recognized by universities, government, and the public as generally beneficial, there are other objectives that are equally important to consider. Universities create and share information through publication and public disclosure. Government agencies appropriate funds for basic research and broker fiscal and intellectual assets for the public good. Successful technology transfer identifies ways to create appropriate conversion of public resources to private enterprise while hopefully improving the economic prosperity for a state or region.
Specialized Facilities: Bioscience companies have two characteristics that distinguish them from young companies in other technology industries. First, bioscience firms are subject to a longer and more costly federally mandated oversight process. In 2006, this protracted R&D regimen was averaging 10-12 years and could cost more than $1 billion to get a human drug product approved. Second, unlike other technology industries, bioscience companies are required to conduct research in highly specialized and government inspected facilities. The specialization required in these research facilities make them some of the most expensive business real estate to develop. Many states are now investing in the development of specialized facilities to serve as incubators for small, emerging bioscience companies.
Capital Formation: The need for early-stage funding for bioscience companies is essential. Locating funding to underwrite innovative research is an on-going challenge to bioscience companies. Small startup companies with high quality research and personnel look for the vital funds needed to get up and running where as established bioscience companies require funding to invest in additional infrastructure and clinical research to move products into the marketplace.
Educated Workforce: States that possess a high-quality labor force are very attractive to any industry. Because the skills required for many aspects of bioscience commercialization are so high, a continuing flow of educated (Ph.D., MS, BS, AA) and technically proficient workers is essential if a state desires to enhance the industry's presence. Conversely, if a state does not have an indigenous bioscience industry, it is difficult to retain those individuals receiving science and technical degrees from state universities.
Supportive Public Policy for Bioscience Development: The need for a stable and supportive public policy framework is vital to industry firms large and small. It is almost impossible for any state or region to ignore the need for selective incentives to either hold existing bioscience companies or attract new enterprises. In addition, state efforts to restrict certain types or research within the biosciences can impact their ability to promote other areas of industry development.
DISCLAIMER: The examples cited in this document are only a small fraction of policies state governments have put in place to grow the bioscience industry. It is not intended to be exclusive of other policies to develop technology-based industries.
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