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Thanks to legislative and regulatory policies that support innovation,
the United States today leads the world in biosciences, with 17,207 establishments, including more
than 1,500 biotech companies, that employ almost 900,000 people at an average salary of more than
$60,000 a year.
| Average Annual U.S.Wages per Employee, 2003 |
| Category | Amount |
| Drugs & Pharmaceuticals | $73,731.00 |
| Research & Testing | $73,553.00 |
| Agricultural Feedstock & Chemicals | $55,261.00 |
| Medical Devices & Equipment | $51,936.00 |
| Biosciences Average | $62,555.00 |
| U.S. Private Sector Average | $35,925.00 |
| Source: Department of Labor, Bureau of Labor Statistics. Preliminary data. |
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Stoking the Pipeline
Regions as diverse as Hyderabad,
India, and Munich, Germany, are investing in biotechnology development to gain an economic edge in
what has been called the Biotech Century. The United States got a head start in the 1970s and ’80s
thanks to pro-innovation policies. Today, the nation’s biotech industry leads the world, accounting
for a majority of biotech products on the market and in the pipeline. The economic benefits begin
with job creation. Biotech jobs include not just science and engineering positions, but also
manufacturing, information technology, marketing and management positions. And their numbers are
growing: Through 2012, the Bureau of Labor Statistics projects that bioscience employment will grow
at an annual rate 13 percent above that of other industries. U.S. workers are striving to keep up
with that growth — the number of biological sciences degrees jumped 62 percent between 1990 and 2000.
Biotechnology’s enviable track record of growth has inspired 40 states and dozens of regions throughout
the United States to cultivate biotechnology as a cornerstone of economic development.
What is Your State Doing to Develop Biotech?
 Biotechnology’s
track record of double-digit growth is inspiring states, counties and cities across the United States to court
biotechnology. To give just a few examples:
- State and local governments in Florida are investing more than $500 million in a new branch of the
Scripps Research Institute, the prestigious academic center that helped make San Diego one of the world’s
leading biotech cities.
- State and local governments in Arizona worked with the private sector to commit $90 million to attract a
genomics research center to Phoenix.
- Pennsylvania has earmarked $2 billion in tobacco settlement funds for life-sciences investment.
- Missouri is using tobacco settlement funds to support life sciences with $36 million per year from 2007 through 2025.
- Georgia has launched a $1 billion public-private cancer research initiative.
Moreover, many states have revised their tax laws to be biotech-friendly by not only offering R&D
tax credits, but also allowing companies to transfer tax benefits. Thirty states allow companies
to carry forward net-operating losses — in most cases for 15 to 20 years — and four offer refundable
R&D tax credits.
| No. of states |
| Targeting biosciences | 40 |
| Bioscience incubators | 37 |
| Biotech associations | 33 |
| Funding for bioscience R&D facilities | 33 |
| R&D tax credits | 33 |
| NOL carryovers | 30 |
| Commercialization funds | 22 |
| Bioscience strategy | 28 |
| Commercialization assistance | 19 |
| Tax credits for investment in VC funds | 18 |
| Direct state investment in VC funds | 13 |
| Source: BIO, Battelle Memorial Institute |
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State officials know that the competition for bioscience industries and jobs is heating up, and
they are committing know-how and investment to bringing those benefits home. For information on your
state’s approach to developing biotechnology, see Laboratories of Innovation: State Bioscience
Initiatives 2004. This study from the Battelle Memorial Institute examines in detail state-level
support for biotechnology in all 50 states. It is available in full for downloading on bio.org.
Frequently Asked Questions
Can biotechnology continue to grow at the same pace it has in the
past?
There are no guarantees, but with a rich pipeline of products to address unmet
health and environmental needs, biotech seems poised for continued growth and success. More than 370
medicines and vaccines are in clinical testing, more than 100 improved crops are in field trials,
and industrial biotech researchers are refining and perfecting technologies to produce energy and
manufactured goods more efficiently. The advent of technologies such as proteomics and pharmacogenomics
herald still more product possibilities. For the long term, however, the key will be maintaining a
public policy climate supportive of innovation.
How can government policy support biotech innovation?
The biotechnology industry’s success hinges upon a number of factors directly subject to legislation
and regulation, including tax policy, intellectual property protection, investment incentives,
science-based regulation, support for the basic sciences, accurate reimbursement for biotech
medicines, and intellectual freedom. For detailed information on biotech policy needs, visit
bio.org.
| Biotech Company Perceptions: Top 10 Barriers to Growth |
| Barrier type | Percentage of executives who say it’s a “High Barrier” * |
| Regulatory approval process and costs | 58.5 |
| Research costs | 53.2 |
| Access to start-up capital | 52.8 |
| Patent rights held by third parties | 34.9 |
| Patent fees and approval process | 34.8 |
| Liability concerns/insurance costs | 29.2 |
| Marketing costs | 26.3 |
| Lack of understanding or interest by U.S. government policymakers | 25.5 |
| Lack of patent protection abroad for product | 23 |
| Antiquated rules and regulations | 21.3 |
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