I just came from a breakfast meeting between Ontario’s Ministry of Research and Innovation and the Governor of Victoria, Australia. Everyone agreed on the importance of quantitative assessment of the biotech industry, and everyone agreed that finding and measuring (and communicating) success is difficult.
So I was glad to be able to head straight for the Battelle-BIO session presenting data gathered by Battelle, BIO and PMP Public Affairs Consulting tracking “the development of the U.S. bioscience industry on a state and metropolitan area basis .. since 2004.” Much of the data in this year’s report ends at 2008, so it predates the worst of the recession and much of the recent pharma M&A (and associated synergies R&D job cuts). Still, there is some interesting hard data on jobs, investment and best practices to add to this blog’s collection of biotech statistics. Notably:
- The only job growth 2001-2007 has been in “Research, Testing & Medical Labs,” which Battelle says includes CRO and startup jobs. Jobs have been flat at best in Ag, Drug/Pharma, and Med Device. Reflects increased pharma outsourcing.
- This data shows a high multiplier, with 5.8 other jobs created per new bioscience job.
- 27 states have grown at least 1,000 jobs since 2001.
What are the policy initiatives that stand out?
- 38 states have R&D tax credits, with 7 of these being refundable programs and 4 allowing transfer of credits.
- 20 states offer tax credits to investors in angel and/or early-stage VC funds.
- 13 states have fund-of-funds programs, 10 states have made direct LP investments and 14 states have made direct investments in bioscience companies.
Here’s a link to the full report: http://www.bio.org/battelle2010
January 21, 2010
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Governments want to create jobs. Not just any jobs, “creativity-oriented jobs” and “knowledge economy jobs.” But what does it cost government to create one of these jobs? We don’t really know, but on this blog we’ve been tracking data points all year to try to get some sense of how to invest effectively to attract the workers who will keep our economy competitive into the next century.
This week, a report from Florida’s legislature created what appears to be a new high-water mark: $1.4 million for each new biotech job. $759 million investment in eight biotech campuses over the last six years, with about equal amounts coming from other levels of government, resulting in a total of 1,100 jobs. However, as the report points out, not that much time has elapsed. This also seems like a count of only the most direct jobs, and these have a high leverage ratio, each one supporting 5-7 additional jobs.
One valuable conclusion from the report: creating a cluster takes a multifaceted approach. The biotech campuses were of limited help because early stage capital was not available.
Photo of meat grinder from flickr user gpiper under a Creative Commons license.
February 18, 2009
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Texas Governor Rick Perry keynoted a conference yesterday on “the challenges and the future of biotechnology in Texas” and “told the group that the biosciences are ‘the next big thing in the global economy.'”
According to the article in today’s Star-Telegram, the Texas Healthcare and Bioscience Institute is encouraging a number of measures this legislative session for bioscience, including:
- A bill that would reauthorize the Texas Emerging Technology Fund, which was established with $200 million by the Legislature in 2005 to promote and finance innovations in technology.
- A bill that would make it easier for patients to enroll in clinical trials for life-threatening diseases, which, officials say, is a necessary step in developing new medicines and medical devices.
Also, some jobs data:
There are about 33,000 Texans employed in biotechnology, with an average salary of more than $84,000, according to the Governor’s Office of Economic Development and Tourism.