Industrial & Environmental Biotechnology >
The United States got a head start on the Biotech Century in the 1970s and ’80s with proinnovation policies, but the industry then was largely confined to the Boston and San Francisco areas.
Today, nearly every region of the country is targeting biotechnology as a linchpin of economic development. State-level initiatives are described in detail in Laboratories of Innovation: State Bioscience Initiatives 2004, a report by the Battelle Memorial Institute and the State Science and Technology Institute on behalf of BIO.
According to the study, 40 states have pinpointed the biosciences as a specific target for development and 28 have developed a bioscience strategy—up from 14 in 2001.Moreover, every state reported that economic development initiatives are in place to assist bioscience companies.
“The states realize that the biosciences have the potential to generate vibrant economies,” said Walt Plosila, Battelle’s vice president for its Technology Partnership Practice. “What is exciting is that many states appear to be setting realistic and achievable development goals.”
The biosciences already employ more than 885,000 workers in the United States, and employment is expected to grow faster than employment in the rest of the economy through at least 2012, according to the Bureau of Labor Statistics.Moreover, the average salary of $62,555 is about 75 percent higher than the U.S. private-sector mean.
What the States Are Doing
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No. of states |
| Targeting biosciences | 40 |
| Biotech associations | 39 |
| Biosciences incubators | 37 |
| Funding for biosciences R&D facilities | 33 |
| R&D tax credits | 33 |
| Net operating loss carryovers | 30 |
| Commercialization funds | 22 |
| Bioscience strategy | 28 |
| Commercialization assistance | 19 |
| Tax credits for investment in venture capital funds | 18 |
| Direct state investment in venture capital funds | 13 |
Source: BIO, Battelle Memorial Institute |
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The medical devices and equipment industry employs the largest number of those workers (37 percent), according to the Laboratories of Innovation report. The drugs and pharmaceuticals subsector is almost as large, at 33 percent. Agriculture is the most dispersed sector, with a presence in 21 states.
Factors linked to bioscience success at the state level include research institution involvement, available capital, access to facilities and equipment, a stable and supportive tax and regulatory environment, and a long-term perspective. Because it can take 10 to 15 years to bring biotech products to market (and sometimes longer), state leaders must realize that today’s investment is really planting the seeds for success around 2020.
The full report, including a report on each individual state, is available on the BIO Web site, bio.org.
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