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States Are Tapping Bioscience Specialties to Fuel Economies Report Finds

SAN FRANCISCO, CA (June 7, 2004) -- Employment and other economic activity in the biosciences has grown dramatically in the past three years, and states working to attract bioscience companies are learning that success means specializing in specific sub-sectors, according to a new study by the Battelle Memorial Institute and the State Science and Technology Institute (SSTI) for the Biotechnology Industry Organization (BIO).

The study is the most comprehensive analysis ever done to quantify the scope and impact of bioscience employment in all 50 states. It also examines programs in each state to promote the development of bioscience companies. This state-by-state analysis expands on a 2001 study that looked at activities in 42 states.

Key findings include:

  • In 2004, 40 states specifically target the biosciences for development and all 50 states have economic development initiatives available to assist bioscience companies. Investments have grown — as much as $500 million in Florida, and experimental approaches, such as tax credits to encourage investment in private venture capital funds, have also increased significantly.
  • More than 885,000 people in the United States are employed in the biosciences. The largest segment of this group is working in the areas of medical devices and equipment, which accounts for 37 percent of bioscience employment.
  • In 2003, bioscience workers on average were paid at least $26,600 more than the overall national average private sector annual wage.

“This study demonstrates the tremendous, recent growth of the biosciences and should be helpful to inform policymakers and industry leaders who want to encourage this growth throughout the United States,” said BIO President Carl B. Feldbaum. “We are proud of the substantial contribution our industry is making to the nation’s economy.”

While there are many reasons why states are focusing on the biosciences, the fact that the biosciences cut across manufacturing, services and research and are not limited merely to medicine or agriculture appears to be a significant factor. States and regions that are promoting bioscience development are focusing on the activities best suited for the area.

For example, North Dakota is focusing on bioprocessing in value-added agriculture, while Missouri is seeking to become a leading center in plant and animal health. States such as Colorado, Massachusetts, Minnesota and Utah are working in the area of medical devices, while other states are devoting their attentions to research and testing.

Partly as a result of economic development programs, 15 states have at least 5 percent employment in at least one bioscience sector, and 24 states have at least 3 percent employment in one or more sub-sectors, according to the report. Twelve states — California, Illinois, Indiana, Iowa, Massachusetts, Minnesota, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee and Virginia — have both large employment bases in the biosciences and are specialized in at least one industry sub-sector. 

“The states realize that the biosciences have the potential to generate vibrant economies,” said Walt Plosila, Ph.D., vice president, Technology Partnership Practice, Battelle Memorial Institute. “What is exciting is that many states appear to be setting realistic and achievable development goals.”

Factors that appear to influence a state’s ability to grow bioscience employment include the degree of involvement by research institutions, available capital, access to facilities and equipment, a stable and supportive tax and regulatory environment and a long-term perspective. That long-term perspective is reflected in every state’s renewed emphasis on science and math education, including programs throughout the K-12 school years aimed at preparing students for bioscience careers.

Recent initiatives include Connecticut’s creation of a $5 million BioSeed Fund, which invests up to $500,000 in early-stage companies and Kentucky’s $5 million Natural Product Fund. North Carolina created a Life Sciences Industry Revenue Bonding Authority to finance biomanufacturing equipment and lab fit-outs.

Some state programs already have a record of success in assisting bioscience companies. Maryland’s Industrial Partnership Program provided some initial support for development of the manufacturing facility for MedImmune’s $1.6 billion Synagis®, which prevents a respiratory disease in infants, and Martek Bioscience's additive for infant formulas, which helped the company generate $114 million in revenue in 2003.

The biosciences incorporate a range of industry sectors that rely on insights into the way living things work. The five major sub-sectors are:

  • Agricultural feedstock and chemicals;
  • Drugs and pharmaceuticals;
  • Medical devices and equipment;
  • Research and testing; and
  • Academic health centers, research hospitals and research institutes.

The study was funded by BIO and Fleishman-Hillard Inc., a global strategic communications firm. The study is available at http://www.bio.org/local/battelle2004/.

 

Battelle Memorial Institute is a private nonprofit organization recognized worldwide for technology development, management, and commercialization.

SSTI is a national nonprofit organization dedicated to improving government-industry programs that encourage economic growth through the application of science and technology.

BIO represents more than 1,000 biotechnology companies, academic institutions, state biotechnology centers and related organizations in all 50 U.S. states and 33 other nations. BIO members are involved in the research and development of health-care, agricultural, industrial and environmental biotechnology products.

Fleishman-Hillard Inc., with its headquarters in St. Louis, Missouri, offers strategic communications counsel to local, national and international clients. Founded more than 55 years ago, the firm currently operates throughout North America, Europe, Asia, Latin America, Australia, and South Africa.

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