SPECIAL ADVERTISING SECTION -- Site Selection magazine, September 2004

Biotech is big business from the Bay Area to Boston.

by BETH BRODY

iotech is big, big business, and cities, counties, and states across the United States are vying to attract what is believed to be the most dynamic economic growth industry of the 21st century.
A new study by the Battelle Memorial Institute and the State Science and Technology Institute (SSTI) for the Biotechnology Industry Organization (BIO) found that employment and other economic activity in the biosciences has grown dramatically in the past three years. The study revealed that all 50 states have economic development initiatives available to assist bioscience companies, and that the industry employs more than 885,000 people. Those workers in 2003 made US$26,600 more than the average private sector annual wage.
"This study demonstrates the tremendous, recent growth of the biosciences," remarked BIO President Carl B. Feldbaum in a BIO announcement. "We are proud of the substantial contribution our industry is making to the nation's economy."
And that contribution is quite significant. Ernst and Young reports that biotechnology industry revenues more than quadrupled from $8 billion in 1992 to $33.6 billion in 2002. And, the U.S. Department of Commerce reports that biotechnology-related R&D expenditures amounted to $16.4 billion in 2001, about 10 percent of all U.S. industry R&D that year.

Third Frontier Has Bio In Its Sites

Look at the economic development plan of any state and you're likely to find the words biotechnology or bioscience near the top. "With so many states vying for the attention of the biotech industry, it is a real challenge to find ways to set yourself apart," says Bruce Johnson, state development director for the State of Ohio. "In Ohio, we've found success utilizing innovative programs to build upon our traditional strengths such as our research capabilities and existing competencies such as medical devices and pharmaceuticals."
According to Tony Dennis, President of Omeris, a non-profit organization dedicated to biosciences in Ohio, Ohio research organizations earned $661 million in NIH funding and $80 million in NSF funding in FY 2003, a jump of 31 percent over the past three years.. Five Ohio research institutions are ranked in the top 100 in NIH funding. "What sets Ohio apart, though, is the level to which our efforts are unique collaborations between academic centers and corporations," says Dennis. He points to the state-sponsored Wright Centers of Innovation program, which invests millions of dollars in world-class technology research and commercialization. Recent Centers include the Center For Computational Medicine at Cincinnati Children's Hospital, The Center for Stem Cell and Regenerative Medicine in Cleveland, and The Biomedical Structural, Functional and Molecular Imaging Enterprise in Columbus.
Efforts are paying off. Bioscience employment in the Buckeye State grew by 64 percent between 1996 and 2002, compared with national growth of 31 percent. One example of a company benefiting from Ohio's business climate and talent pool is Cincinnati-based Procter & Gamble Pharmaceuticals, with sales of more than $800 million. Because Ohio has an involved, dynamic corporate culture, P&G Pharmaceuticals President Mark Collar states, "We found Ohio a great place to do business."
Johnson pledges continued innovation in targeting biotechnology growth. An example is Governor Bob Taft's $1.1-billion Third Frontier project, which has pumped $221 million into research, development and commercialization efforts. Says Johnson, "The real story is that those dollars reflect our strategic focus on commercialization. In Ohio, we have a unique network of universities, private researchers and companies that together are focusing not just on research, but research with clear commercial potential. It is our firm belief that this approach will ultimately provide the greatest boost to our state's economy and the quality of life for its citizens."

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