Battelle 2006

BI SCI O ENCE 06
Pe ae fr rp rd o: BO itc n lg Id sr O g nz t n I Boe h oo y n u t ra i i y ao
Pe ae b : rp rd y B t l T c n lg P r es i Pa t e at l e h oo y at rhp rci ee n c a dS T n SI A r 20 pi 0 6 l
Battelle Memorial Institute is a private nonprofit organization recognized worldwide for technology development, management, and commercialization. In 1990, Battelle created the Technology Partnership Practice (TPP) to focus Battelles broad experience and capabilities to better serve local, state, and regional organizations, universities, nonprofit technology organizations, and others in designing, implementing, and assessing technology programs and in helping firms access and use federal, university, and industry-developed technology. SSTI is a national nonprofit organization dedicated to improving government-industry programs that encourage economic growth through the application of science and technology. PMP Public Affairs Consulting, Inc., is an independent consulting firm serving the public and constituent relations needs of bioscience-related companies and associations. BIOBiotechnology Industry Organizationrepresents 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.
Battelle Memorial Institute (Battelle) does not endorse or recommend particular companies, products, services, or technologies, nor does it endorse or recommend financial investments and/or the purchase or sale of securities. Battelle makes no warranty or guarantee, express or implied, including without limitation, warranties of fitness for a particular purpose or merchantability, for any report, service, data, or other information provided herein. Copyright 2006 Battelle Memorial Institute. Use, duplication, or distribution of this document or any part thereof is prohibited without the written permission of Battelle Memorial Institute. Unauthorized use may violate the copyright laws and result in civil and/or criminal penalties.
DISCLAIMER
BI SCI O ENCE 06
G o n teN t n Bo c n eS co: rwig h ai isi c e tr os e S aeBo c n eIiaie 2 0 tt isi c nt t s 0 6 e i v
Pe ae fr rp rd o: BO itc n lg Id sr O g nz t n I Boe h oo y n u t ra i i y ao
Pe ae b : rp rd y B t l T c n lg P r es i Pa t e at l e h oo y at rhp rci ee n c a dS T n SI A r 20 pi 0 6 l
The project team wishes to thank SSTIs state contacts, BIOs state affiliates, and the many others who were interviewed for this report for their time and input. The state and industry organization contacts provided information, answered questions, and reviewed draft profiles, often under tight timelines. Without their cooperation, this effort would not have succeeded. Thanks are also due to Battelle and BIO for their financial support of this effort.
Battelle Technology Partnership Practice SSTI PMP Public Affairs Consulting, Inc.
ACKNOWLEDGMENTS
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Page Executive Summary .................................................................................................................................... vii Introduction................................................................................................................................................... 1 The Biosciences in the United States............................................................................................................ 7 State Initiatives............................................................................................................................................ 37 Conclusion .................................................................................................................................................. 73 State Profiles ............................................................................................................................................... 75
Appendix: Data and Methodology............................................................................................................ A-1
List of Figures
Figure 1. The Bioscience Subsector Industries .......................................................................................... 8 Figure 2. U.S. Employment Distribution among the Bioscience Subsectors ........................................... 10 Figure 3. U.S. Bioscience Employment by Major Subsector, 2001 and 2004 ......................................... 11 Figure 4. Real Average Annual Wages in the Bioscience and Total Private Sectors, 2001 and 2004..... 13 Figure 5. Capital Funding Cycle and the Types Needed and Sources at Each Stage............................... 56
List of Tables
Table 1. Table 2. Table 3. U.S. Bioscience Employment and Establishments by Major Subsector, 2001 and 2004 ......... 10 Average Annual Wages by Major U.S. Industry, 2004 ............................................................ 12 States with Large and Specialized Employment Bases in the Agricultural Feedstock and Chemicals Subsector..................................................................... 17 Metropolitan Statistical Areas with the Largest Employment Levels in Agricultural Feedstock and Chemicals ..................................................................................... 18 Metropolitan Statistical Areas with the Highest Location Quotients in Agricultural Feedstock and Chemicals ..................................................................................... 19 States with Large and Specialized Employment Bases in the Drugs and Pharmaceuticals Subsector........................................................................................................ 22
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Table 4.
Table 5.
Table 6.
Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006
Table of Contents (continued)

Page Table 7. Table 8. Metropolitan Statistical Areas with the Largest Employment Levels in Drugs and Pharmaceuticals....................................................................................................... 22 Metropolitan Statistical Areas with the Highest Location Quotients in Drugs and Pharmaceuticals....................................................................................................... 23 States with Large and Specialized Employment Bases in the Medical Devices and Equipment Subsector.............................................................................. 26
Table 9.
Table 10. Metropolitan Statistical Areas with the Largest Employment Levels in Medical Devices and Equipment .............................................................................................. 27 Table 11. Metropolitan Statistical Areas with the Highest Location Quotients in Medical Devices and Equipment .............................................................................................. 28 Table 12. States with Large and Specialized Employment Bases in the Research, Testing, and Medical Laboratories Subsector........................................................................... 31 Table 13. Metropolitan Statistical Areas with the Largest Employment Levels in Research, Testing, and Medical Laboratories ........................................................................... 32 Table 14. Metropolitan Statistical Areas with the Highest Location Quotients in Research, Testing, and Medical Laboratories ........................................................................... 33 Table 15. States with Large and Specialized Bioscience Subsectors........................................................ 35 Table 16. State Bioscience Initiatives, 2006 ............................................................................................. 38 Table 17. State Support for Bioscience R&D Programs........................................................................... 41 Table 18. State Faculty Development Programs....................................................................................... 45 Table 19. State Initiatives to Encourage University/Industry Research Partnerships ............................... 47 Table 20. State Commercialization Funds, Levels of Investment, and Sizes ........................................... 52 Table 21. State-Supported Bioscience Entrepreneurial Support Programs............................................... 54 Table 22. State Seed Capital Tax Credits.................................................................................................. 56 Table 23. State and Regionally Supported Pre-seed/Seed Funds.............................................................. 58 Table 24. Bioscience Company Facilities Financing ................................................................................ 63 Table 25. Statistical Data Sources and Notes for the State Profiles.......................................................... 75
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The 21st Century is being viewed by observers worldwide as the Bio Century. Just as information technology drove economic progress in the latter part of the 20th Century, the convergence of advanced technologies in information technology, engineering, and biological sciences is producing widespread opportunities for the development and growth of companies engaged in drug development, medical implants and devices, agriculture and food processing technologies, biosecurity, biofuels, and many other bioscience and bio-related applications yet to be developed or imagined. It is not surprising then that states, regions, and countries around the world are seeking to capitalize on the breakthroughs being made in human, plant, and animal biosciences to both grow their economies and benefit their citizens. In 2004, with support from BIO, Battelle, SSTI, and PMP Public Affairs Consulting, Inc., for the first time developed data to measure the size, composition, and geographic distribution of the biosciences across the country. The data showed that bioscience employment was geographically dispersed across the 50 states, but that states varied greatly in terms of the composition of their bioscience bases. The report also showed a great deal of activity at the state level to make investments and implement policies that create a business climate that is supportive of bioscience companies.
Defining the Biosciences
The biosciences are a diverse group of industries and activities with a common link they apply knowledge of the way in which plants, animals, and humans function. The sector spans different markets and includes manufacturing, services, and research activities. By definition, the biosciences are a unique industry cluster and are constantly changing to incorporate the latest research and scientific discoveries.
This 2006 report presents updated data, examines growth trends, and identifies metropolitan areas with the largest and most concentrated employment in each of the bioscience subsectors identified in the 2004 report. These include agricultural feedstock and chemicals; drugs and pharmaceuticals; medical devices and equipment; and research, testing and medical laboratories. A fifth center of bioscience activity, academic health centers and research hospitals, is not included because current industrial classifications and available data do not allow research-oriented hospitals to be separated from the larger hospital sector. This report also identifies current key trends in state and regional initiatives to support the biosciences. Key findings are outlined below.
A Note about the Data The 2004 BIO report stated that the bioscience sector employed 885,000 people in 17,000 establishments in the 50 states in 2002. Puerto Rico, which has a very substantial bioscience base, was not included in the 2002 data. Adjustments have also been made in the definitions of the bioscience subsectors. The research and testing subsector, for example, has been expanded to include medical laboratories. As a result, the data in this report are not directly comparable with those presented in the 2004 report. With the inclusion of Puerto Rico and the changes in definitions, this report finds that 1.2 million people were employed in more than 40,000 establishments in 2004, the most recent year for which the data are available. All growth data captured in this years report is based on the 2001 to 2004 time period. Based on the new definition and the inclusion of Puerto Rico, 1.227 million employees were employed in more than 37,000 bioscience establishments in 2001.
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Key Findings: The Nations Bioscience Sector

Total employment in the biosciences in the United States reached 1.2 million in 2004 (the latest year for which data are curently available), with bioscience workers found in all 50 states, the District of Columbia, and Puerto Rico. Two-thirds of this employment is found in the medical devices and equipment and the research, testing, and medical laboratories subsectors, which each have more than 400,000 workers (Figure ES-1). The drugs and pharmaceuticals subsector employs more than 313,000 workers, and agricultural feedstock and chemicals accounts for approximately 105,000 workers (Table ES-1 and Figure ES-2). While bioscience employment increased just over 1 percent since 2001, total U.S. employment declined by 0.7 percent during the same time period. These jobs spanned more than 40,000 establishments. (Please note that these data are not directly comparable with the same data tabulated and reported in the 2004 report, Laboratories of Innovation: State Bioscience Initiatives 2004. See text box on previous page.)
Figure ES-1. U.S. Employment Distribution among the Bioscience Subsectors
8% 33% 25%
Agricultural Feedstock & Chemicals Drugs & Pharmaceuticals Medical Devices & Equipment
33%
Research, Testing, & Medical Laboratories
Table ES-1. U.S. Bioscience Employment and Establishments by Major Subsector, 2001 and 2004 p y y j
Bioscience Subsector Agricultural Feedstock & Chemicals Drugs & Pharmaceuticals Medical Devices & Equipment Research, Testing, & Medical Laboratories Total U.S. Biosciences 2001 Employment 112,693 304,829 426,949 382,105 1,226,576 2001 Establishments 2,103 2,606 15,163 17,222 37,094 2004 2004 Employment Establishments 104,893 2,111 313,207 2,589 411,460 15,190 413,550 20,565 1,243,109 40,454
Source: Battelle calculations based on Bureau of Labor Statistics, QCEW program data from the Minnesota Implan Group.
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Figure ES-2. U.S. Bioscience Employment by Major Subsector, 2001 and 2004
450,000 2001 Employment 400,000 2004 Employment
350,000
300,000
250,000
200,000
150,000
100,000
50,000
Agricultural Feedstock & Chemicals Drugs & Pharmaceuticals Medical Devices & Equipment Research, Testing, & Medical Laboratories
The research, testing, and medical laboratories subsector grew 8 percent between 2001 and 2004, adding more than 31,000 jobs; drugs and pharmaceuticals grew by 3 percent during this time period. Agricultural feedstock and chemicals and medical devices and equipment declined by 6.9 percent and 3.6 percent, respectively. The decline of these two sectors is not surprising given the overall economic weakness following the recession of 2001. The nations 1.2 million bioscience jobs generated an additional 5.8 million jobs in the economy, resulting in a total employment impact of 7.0 million jobs. To measure the impact of the bioscience sector on the overall economy, Battelle applied direct-effect employment multipliers. Multipliers quantify how employment in one industry sector results in additional job increases in other sectors. This occurs because the bioscience sector (companies and employees) purchase goods and services from supplier industries (indirect impacts). In addition, workers in these supplier industries use their additional earnings to make purchases, resulting in additional economic activity and increased employment (induced jobs). Using multipliers provided by the U.S. Bureau of Economic Analysis (BEA), Battelle calculated that each bioscience job in the United States results in 5.7 additional jobs. The average annual wage of bioscience workers in the United States was $65,775 in 2004, more than $26,000 greater than the average private sector annual wage (Table ES-2). Not only do bioscience workers earn considerably higher than average wages, but real earnings (adjusted for inflation) of bioscience workers have increased by 6.4 percent since 2001, compared with only a 1.4 percent increase in real earnings for the average U.S. private sector worker The drugs and pharmaceuticals subsector is the highest-paying bioscience subsector. Individually, all four bioscience subsectors pay higher average wages than the manufacturing sector and total private industry.
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Table ES-2. Average Annual Wages by Major U.S. Industry, 2004
The bioscience industries as a whole are extremely profitable. U.S. Average Annual Wages per Employee, 2004 While considerable attention is Drugs & Pharmaceuticals $ 79,303 focused on the youngest segment of Finance & Insurance $ 69,889 this set of inter-related industries Total Biosciences $ 65,775 research, testing, and medical Research, Testing, & Medical Laboratories $ 65,414 Agricultural Feedstock & Chemicals $ 63,383 laboratorieswhich have Professional, Scientific, & Technical Services $ 62,411 traditionally lost money, the Information $ 60,530 profitability of agricultural feedstock Medical Devices & Equipment $ 56,449 and chemicals, medical devices and Manufacturing $ 47,705 equipment, and drugs and Construction $ 40,297 pharmaceuticals over any extended U.S. Total Private Sector $ 39,003 time period far exceeds the losses in Transportation & Warehousing $ 38,758 research, testing, and medical Real Estate & Rental & Leasing $ 37,167 laboratories. Furthermore, successful Health Care & Social Assistance $ 36,606 research, testing, and medical Retail Trade $ 24,337 Source: Battelle calculations based on Bureau of Labor Statistics, QCEW program data laboratory firms often become fully from the Minnesota Implan Group. integrated biopharmaceutical firms. Data include Puerto Rico. Examples of firms that have made this transition include Amgen, Biogen, Genentech, and Gilead, among several dozen others. Sizable bioscience employment is found in a little less than half the states. Nineteen states and Puerto Rico have a sizable employment base (3 percent of total subsector employment) in at least one of the bioscience subsectors, and 13 states and Puerto Rico have a large employment base (5 percent of total subsector employment) in one of the subsectors. Only two statesCalifornia and New Yorkhave a large employment base in three of the four subsectors. No state has a large employment base in all four subsectors.
While many states have bioscience sectors, they vary greatly in their specific composition. Thirtyseven states and Puerto Rico have a specialization (a location quotient of 1.2 or higher) in at least one of the bioscience subsectors. The level of concentration is a meaningful way in which to gauge a states activities within a subsector relative to the national average. The location quotient (LQ) measures the degree of concentration within a state or region relative to the nation. 1 States with an LQ greater than or equal to 1.00 match or exceed the national industry concentration and are said to be concentrated in the industry. When the LQ is significantly above average, 1.20 or greater (20 percent or more above the average), the state is said to have a specialization in the industry. This means that if a state has a LQ of 1.35 for the drugs and pharmaceuticals subsector, its share of employment is 35 percent greater than for the nation as a whole. Only one state, New Jersey, has a specialization in all four bioscience subsectors. Connecticut, Indiana, and Puerto Rico have a specialization in three industry subsectors, and nine states have a specialization in two industry subsectors. The remaining 25 states have a specialization in only one bioscience industry subsector. Eleven states and Puerto Rico have large employment bases and are specialized in at least one of the industry subsectors. Five statesCalifornia, Illinois, Massachusetts, New Jersey and Pennsylvaniaare large and specialized in at least two industry subsectors.
1
Location quotients (LQs) are a standard measure of the concentration of a particular industry in a region relative to the nation (reference area). The LQ is the share of total regional employment in the particular industry divided by the share of total industry employment in the nation (reference area). A LQ greater than 1.0 for a particular industry indicates that the region is relatively concentrated, whereas an LQ less than 1.0 signifies a relative underrepresentation. An LQ greater than 1.20 denotes employment concentration significantly above the national average.
EXECUTIVE SUMMARY
Metropolitan areas of all sizes are heavily engaged in bioscience activities. While the five largest bioscience metro areas account for anywhere from 20 percent to nearly 40 percent of total national employment in one particular subsector, these bioscience activities are widespread, with hundreds of metropolitan areas throughout the United States having some commercial or research involvement in the biosciences. In fact, 193 of the nations 361 metropolitan statistical areas have a specialization in at least one of the four bioscience subsectors. The following pages provide an overview of each of the bioscience sectors.
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AGRICULTURAL FEEDSTOCK AND CHEMICALS

The agricultural feedstock and chemicals subsector applies life sciences knowledge and biotechnologies to the processing of agricultural goods and production of organic and agricultural chemicals.
Agricultural Feedstock & Chemicals

Employment Size as share of total U.S. Employment
Principal Components Organic and agricultural chemicals Agricultural feedstock and processing Examples of Products Ethanol and biodiesel fuels Biodegradable materials synthesized from plant-based feedstock Fertilizers and pesticides Sustainable oils and lubricants Biocatalysts Food and feed additives and ingredients Examples of Companies Archer Daniels Midland Co. Bayer CropScience, Inc. Cargill, Inc. Dow AgroSciences, LLC DuPont Corporation Genencor International, Inc. Monsanto Company The Scotts Company States that are Both Large and Specialized* Texas Illinois Ohio Iowa Metro Areas with the Largest Employment Levels Houston-Baytown-Sugar Land, TX Decatur, IL New York-Northern New Jersey-Long Island, NY-NJ-PA Lakeland, FL Baton Rouge, LA
Substantial Increase, (1,000+)
Specialized, (L.Q. > 1.20) Concentrated, (1.20 > L.Q. > 1.00) Expanded, (1.00 > L.Q. > 0.80) Under-average, (L.Q. < 0.80)
Large, (5% +) Sizable, (3% to 4.9%) Small, (1% to 2.9%) Undersized, (0% to 0.9%)

Level of Employment Concentration relative to the U.S.

Employment Gains and Losses, 2001-2004
*States are listed in descending order by subsector employment levels.
Moderate Increase, (1 to 999) Unchanged or Small Loss, (0 to -999) Substantial Loss, (-1,000 or more)
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DRUGS AND PHARMACEUTICALS

The drugs and pharmaceuticals subsector produces commercially available medicinal and diagnostic substances. The subsector is generally characterized by large multinational firms heavily engaged in research and development activities to bring drugs to market.
Drugs & Pharmaceuticals

Principal Components Therapeutics Diagnostic substances Examples of Products Vaccines Oncology, neurology, and cardiology treatments Herbal supplements and vitamins Tissue and cell culture media Dermatological/topical treatments Diagnostic substances Examples of Companies Abbott Laboratories, Inc. Amgen Biogen Idec, Inc. Genentech, Inc. MedImmune, Inc. Merck & Co., Inc. Novartis Pfizer, Inc. Roche Diagnostics Sanofi-Aventis/Sanofi Pasteur States that are Both Large and Specialized New Jersey Puerto Rico Pennsylvania North Carolina Illinois Indiana Metro Areas with the Largest Employment Levels New York-Northern New Jersey-Long Island, NY-NJ-PA Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Chicago-Naperville-Joliet, IL-IN-WI Indianapolis, IN LA-Long Beach-Santa Ana, CA


Substantial Increase, (1,000+) Moderate Increase, (1 to 999) Unchanged or Small Loss, (0 to -999) Substantial Loss, (-1,000 or more)
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MEDICAL DEVICES AND EQUIPMENT

Medical device and equipment firms produce a variety of biomedical instruments and other health care products and supplies for diagnostics, surgery, patient care, and laboratories.
Medical Devices & Equipment

Principal Components Equipment and supplies Devices Examples of Products Bioimaging equipment Orthopedic and prosthetic implants and devices Dental instruments and orthodontics Laser eye surgery instruments Automated external defibrillators (AEDs) Vascular stents and other implantable devices Examples of Companies Bausch & Lomb Boston Scientific Corp. Ethicon, Inc. GE Healthcare Medtronic, Inc. Siemens Medical Solutions Stryker 3M Health Care States that are Both Large and Specialized California Minnesota Massachusetts Metro Areas with the Largest Subsector Employment Levels Los Angeles-Long Beach-Santa Ana, CA Minneapolis-St. Paul-Bloomington, MN-WI New York-Northern New Jersey-Long Island, NY-NJ-PA Boston-Cambridge-Quincy, MA-NH San Jose-Sunnyvale-Santa Clara, CA


Substantial Increase, (1,000+) Moderate Increase, (1 to 999) Unchanged or Small Loss, ( 0 to -999) Substantial Loss, (-1,000 or more)
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RESEARCH, TESTING, AND MEDICAL LABORATORIES

The research, testing, and medical laboratories subsector includes a range of activities; from highly research-oriented companies working to develop and commercialize new drug discovery/delivery systems, to more service-oriented firms engaged in medical and other testing services.

Principal Components Research laboratories Medical/diagnostic laboratories Testing laboratories Examples of Products Functional genomics and drug discovery techniques Diagnostic testing Preclinical drug therapeutics Protein receptors Drug delivery technology Research models and laboratory support services Examples of Companies Cellomics, Inc. Charles River Laboratories, Inc. Diversa Corp. Invitrogen Corp. Laboratory Corp. of America Pharmacopeia Drug Discovery, Inc. Quest Diagnostics ViaCell, Inc. States that are Both Large and Specialized California Pennsylvania Massachusetts New Jersey Metro Areas with the Largest Subsector Employment Levels NY-N. NJ-Long Island, NY-NJ-PA LA-Long Beach-Santa Ana, CA Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Boston-Cambridge-Quincy, MA-NH Washington-Arlington-Alexandria, DC-VA-MD-WV


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Key Findings: State and Regional Bioscience Initiatives 2

States, in the aggregate, are spending billons of dollars to support bioscience research and the infrastructure (research facilities and equipment) needed to support it. California leads the way in terms of research funding, with voters approving $3 billion in bond funding to create the California Institute of Regenerative Medicine. But, other states are also investing large sums in R&D generally and the biosciences specifically. The State of Washington created a $350 million Life Sciences Discovery Fund that will begin allocating $35 million annually from tobacco-settlement dollars to support bioscience research with economic development potential. In Pennsylvania, the Governor has proposed creating a $500 million Jonas Salk Legacy Fund that would support bioscience faculty recruitment and facilities construction. Other states have major initiatives to support several technology sectors, including the biosciences. The Missouri Governor has proposed creating a $450 million Lewis and Clark Discovery Initiative that would fund university capital improvement projects, technology commercialization, scholarships, and endowed professorships. Ohios $1.6 billion, recently expanded, Third Frontier project awarded $300 million as of late 2005, 60 percent of which went to bioscience-related initiatives. Michigan has allocated $100 million for research, commercialization, and infrastructure in 2006 from its $2 billion 21st Century Jobs Fund, an umbrella economic-development initiative targeting development of four sectors, including the biosciences. The states also reported that billions of dollars are being spent to construct, expand, and modernize their academic and medical research facilities, with funding for these facilities coming from state, federal, and private sources. Forty-four states and Puerto Rico reported that major new bioscience research buildings had been constructed since 2004 or are currently under construction. Arizona passed legislation in 2003 authorizing $440 million for construction of university research facilities, primarily in the biosciences. South Carolina passed the Research University Infrastructure Act loosening a cap on state borrowing to accommodate $220 million in general obligation bonds for university facilities. A recent National Science Foundation study confirms the major increases in spending on A survey of Science and Engineering Research Facilities academic facilities, with $7.6 billion reported conducted by the National Science Foundation related an being spent on new construction of science 11 percent increase in the amount of research space at research-performing colleges and universities between FY and engineering research space in the FY 2002 2001 and FY 2003, the largest such increase ever and FY 2003 time period, 56 percent of which reported. Academic institutions reported an investment of was going into bio-related facilities. And at least $7.6 billion for the construction of new research space started during the FY 2002 and FY 2003 time period. construction is expected to continue. Fifty-six percent of this space will be used for research in Academic institutions reported that they plan the biological or medical sciences. to begin construction on an additional Source: Universities Continue to Expand Their Research Space 19 million square feet of research space during with the Largest Increase Since 1988; Data Reported for Networking. InfoBrief, NSF05-314, the FY 2004 and FY 2005 time period at a cost June 2005. of $9.1 billion. Engineering and the biological and medical sciences account for 72 percent of the new space coming on line. A key question with the leveling off in federal National Institutes of Health (NIH) funds is whether industry and other research partners (philanthropic) can fill the gap and provide the research funding necessary to sustain the researchers who will occupy these facilities.
Universities Expanding Research Space
These key findings are based on both the information collected in the state profiles as well as Battelles knowledge of regional initiatives underway throughout the United States.
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Smaller states that have not traditionally invested in developing their bioscience base are beginning to do so. In Alabama, for example, the state has committed $50 million, which is being matched by $80 million in private resources, to construct a facility to house the newly established, not-for-profit Hudson-Alpha Institute for Biotechnology in Huntsville. The Governor has also proposed investing $50 million to support bioscience research at the University of Alabama at Birmingham. Since 2004, Montana has created the Montana BioScience Alliance, opened two wet-labcapable incubators, and is developing a venture capital initiative. North Dakota has created a Center of Excellence in Life Science and Advanced Technologies at the University of North Dakota, and South Dakota created three new Centers of Excellence focusing on the biosciences. It appears that activities in states with smaller bioscience R&D bases have been spurred, in part, by their participation in NIHs Biomedical Research Infrastructure Network (BRIN) and IDeA Network of Biomedical Research Excellence (INBRE) programs.
Peoria Builds on its Research Assets
States and regions are focusing activities on developing their agricultural, industrial, and environmental bioscience sectors in addition to their biomedical and health sectors. A dozen years after the first approval of a biotechnology medicine, the first biotechnology-enhanced crop entered the marketplace. Now, scientists are using bioscience technologies to improve manufacturing processes, chemical synthesis, and production; and a number of states and regions are focusing on the opportunities this presents for their economies. Iowa has developed a Biobased Products and Bioenergy Vision and Roadmap; and Kansas is targeting human and animal health, food safety, biologically inspired materials, and bioproducts. In Missouri, the Governor has appointed an Advisory Council for Plant Biotechnology that is analyzing the states current life science environment to determine how the state can better capitalize on the industrys potential. New York has developed a plan that would make the state a worldwide center for clean, renewable energy research and product development. States and regions across the nation are focusing on how to leverage their growing bases of academic and medical research facilities to create a physical environment that can be supportive of, and a magnet for, bioscience companies. In particular, a new wave of strategically planned mixed-use campus expansions are taking place across major research universities in communities
To promote entrepreneurship and innovation throughout Central Illinois as blue-collar jobs continue to leave the state, Illinois and local economic development agencies, universities, and the private sector broke ground in 2005 on the Peoria NEXT Innovation Center, a high-tech business incubator designed to support technology innovation. The State of Illinois is the biggest investor in Peoria NEXT, committing a total of $4.5 million for the project. With this center located half-way between Chicago and St. Louis, funding for entrepreneurship and biosciences innovation in this region has already accelerated with strong emphasis on partnering with universities, federal agencies, and private enterprise. Because Caterpillar, the University of Illinois College of Medicine at Peoria, Bradley University, the Peoria regions medical community, and the U.S. Department of Agriculture National Center for Agricultural Utilization Research are investing more than $1 billion annually in the region on basic and applied research, this incubator was essential to the regions economic development partners to diversify the local industrial base. Oklahoma Citys Investment in the Biosciences Pays Off More than 40 years ago, Greater Oklahoma City business and community leaders made a commitment to build a regional world-class medical center. Today, that vision has largely been achieved. Oklahoma Citys medical complex includes the University of Oklahoma Health Sciences Center, the Oklahoma Medical Research Foundation, the Dean McGee Eye Institute, Hough Ear Institute, Childrens Hospital, University Hospital, and Veterans Administration Hospital. The Oklahoma Health Center covers 300 acres and employs 12,500 people, making it one of the largest concentrations of employment in the state. It represents a $2.5 billion capital investment that now contributes $1.8 billion annually to the regional economy. In the mid-1980s, these same leaders recognized the economic benefits that could be realized by encouraging the growth of biomedical companies in proximity to the medical complex and developed the Presbyterian Health Foundation Research Park Today, the park is completing its sixth building with a master plan for four more. With 550,000 square feet of Class A wet lab and office space, the research park is currently home to 34 tenants.
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across the country such as Raleigh, Seattle, Portland (Oregon), New York City, Denver, Chicago, and San Francisco. States are also creating SmartZones (Michigan), Innovation Zones (New Jersey and Pennsylvania) and Technology Zones (Indiana, New York, and Wisconsin) around universities and medical complexes that contain incubator and multitenant space and provide incentives for start-up companies. Regions and states are recognizing that, to build the deep research base needed to A combination of public and private sources pledged sustain the biosciences, it may not be $120 million in 2002 to support the development of the enough to have one university and/or one Translational Genomics Research Institute (TGen), a nonprofit biomedical research institute focused on medical center and may be necessary to developing earlier diagnostics and smarter treatments. build or attract additional public and Today, TGen has more than 25 active research teams and private research anchors. To date, states and employs 200 people. It also is the anchor for the Phoenix Biomedical Campus, a 15-acre academic and research regions have focused on attracting and park. When fully developed the campus is proposed to leveraging nonprofit research institutions such contain 1 million square feet of labs, office, classrooms, as the Stowers Institute in Kansas City, and other facilities. The $29.4 million first building of the Arizona Biomedical Collaborative, a joint venture of Arizona Scripps Institute in Florida, and The State University and the University of Arizona, is under Translational Genomics Research Institute in construction. Also underway are efforts to expand the Phoenix. States and local governments have University of Arizona College of Medicine presence to downtown Phoenix and Phoenix voters recently passed a made significant investments in infrastructure bond issue to build an expanded downtown campus for to support such developments. State and local Arizona State University. governments in Florida put together a $510 million state/local incentive package to attract Scripps Florida, a unit of the San Diegobased Scripps Institute. The institute has hired 160 scientific staff thus far; and the Governor has proposed a $250 million Innovation Incentive Program to pursue one-time opportunities like the Scripps recruitment in the future, plus a $50 million quick action closing fund cash incentive program for recruitments. Distinctive features of such research anchors are the scale of their operation, their extensive collaborations with other research institutions, and their multidisciplinary approach that integrates complementary technologies to create a focus in a broad-based area of the biosciences. This broad-based foundation promotes both sustainability and flexibility in a rapidly changing bioscience universe. Other examples include The Danforth Plant Science Center in St. Louis and The Broad Institute in Cambridge, Massachusetts.
Phoenix Builds its Bioscience Base by Attracting TGen
States and regions also are beginning to put programs in place to attract large industry anchors. South Carolina is implementing the Life Science and Venture Capital Investment Act that was passed by the Legislature in 2004, which made bioscience companies eligible for discretionary incentives for companies making investments of $100 million or more that create 200 jobs paying 1.5 times the states per capita income. A Targeted Industry Company Attraction Program to support company attraction opportunities within industry sectors targeted by the Third Frontier project, including the biosciences, has been proposed in Ohio. Legislation has been proposed in Rhode Island to allow $5.39 million in credit enhancements for private development of a 100,000-square-foot biomanufacturing facility. This focus on attracting bioscience companies is somewhat new as, in the past, states and regions concentrated predominantly on trying to launch and grow new bioscience ventures around research discoveries. Some states and regions are recognizing that it is not possible to be strong in all areas of bioscience research and are strategically directing significant resources to develop signature research strengths around which to build a bioscience industry base. What is required is a focus on big bang or extraordinary investments in select research areas that serve to attract talent and generate opportunities for the creation of new firms and even new industries. Such investments are being made around clear foci of activity grounded in specific core competency areas that can position them as global leaders. In EXECUTIVE SUMMARY xviii
Phoenix, for example, The Virginia G. Piper Charitable Trust has pledged an investment of $50 million over 5 years to attract to the Phoenix area 10 of the worlds most distinguished leaders in the development of personalized medicine. The Piper Chairs will be leading scientists, engineers, and clinicians in the fields of bioscience, nanotechnology, and advanced information technology. INGEN, the Indiana Genomics Initiative, is the largest research undertaking in the history of Indiana University and the Indiana University School of Medicine. It was funded by a $105 million grant from the Lilly Endowment. The Seattle region has chosen to focus on global health. Seven university, nonprofit, and charitable institutions have created a Puget Sound Partners for Global Health, a collaborative that makes resources available for both pilot research and training grants; and the University of Washington recently received approval to create a new Department of Global Health. Both initiatives are being supported by the Bill & Melinda Gates Foundation. Stem cell research as a topic and focus of discussion has swept across the nation in the advent of Californias historic, single largest-ever state investment in the biosciences$3 billionbut, while there has been a great deal of discussion, few state dollars have been invested to date. New Jersey became the first state to fund research on human embryonic stem cells when the New Jersey Commission on Science and Technology issued $5 million in grants to 17 teams at research institutions across the state. These grants were preliminary to establishing the New Jersey Stem Cell Institute for which the state has committed $11.5 million in funding in FY 2005. Also proposed are $150 million in capital spending and a ballot initiative that, if passed, would provide $230 million for stem cell research. Connecticut in 2005 committed to invest $100 million over a 10-year period to fund embryonic and adult stem cell research. The Illinois Institute of Regenerative Medicine, which was created by Executive Order of the Governor and is managed by the Department of Public Health, has been given $10 million to fund research projects. In Wisconsin, the Governor has proposed a $5 million fund to recruit stem cell companies to Wisconsin; and legislation has been passed in Maryland to provide funding for stem cell research and the Governor has indicated that he will sign it. Meanwhile, Californias initiative is being delayed pending a legal challenge. Industry, educators, and public officials seem to have a renewed interest in building a better pipeline of students interested in science, technology, and math education in the K-12 system. The competitive position of the United States depends on this; and, increasingly, the assets of bioscience firms are not just their intellectual property, but their talent pool from technicians to Ph.D.s to a cadre of serial entrepreneurial managers. Phoenix and Utah reported the creation of new bioscience high schools, and Memphis is launching an Academy of Science and Engineering. Outreach efforts to interest students in careers in the biosciences are widespread, with the state bioscience associations playing a lead role in many states. Hospitals and medical centers are leading the renewed interest in building career pathways in the health sciences but with applicability to the remainder of the biosciencesfrom high school to community college to 4-year and graduate and postdoctoral education and experience. To have a sufficient talent pool for the future, regions need to begin now to build a long-term pipeline. Examples include Connecticut, which has put in place a career ladders program for allied health care and is piloting a statewide K-12 biotech/healthcare track as part of the states technology-related career development efforts for advancing science, technology, engineering, and math skills. This is designed to prepare these students to pursue postsecondary education seamlessly in technology fields and emerge with the skills required to work effectively in the states knowledge economy. A key component is providing experiences for high school students interested in pursing a career in health care. Similar initiatives are taking shape through innovative nonprofits, such as the BioTechnical Institute of Maryland and the Berkeley Biotech Education, Inc., in California.
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The national imperative to advance translational research, often referred to as going from bench to bedside, is taking hold at the institutional level, but only a few states and regions are advancing specific strategies to link basic and clinical research. The NIH Roadmap and the U.S. Food and Drug Administrations Critical Path report cast light on the need to accelerate the process of translating new basic research discoveries into real-world technologies and treatments. Nearly every academic health institution is responding to maintain their competitiveness. Increasingly a number of states and regions, such as Arizona and Philadelphia, are seeking St. Louis Addresses Need for Risk Capital new systematic approaches; but, broader Five years ago, the St. Louis region committed to interventions in translational research remain investing aggressively to grow the regions technology economy by becoming the premier location in the world for largely un-mined. States and regions continue to struggle to obtain sufficient risk capital. The average venture fund in the United States last year closed at more than $200 million, making it extremely difficult for such funds to invest in the pre-series A stage of investments. Regions and states are experimenting with ways to encourage angel investors and locally developed seed funds to fill this critical funding gap. Twenty-one states have some form of tax credit available to encourage angel investors to invest in early-stage companies or to encourage investments in local seed and venture funds. Arizona offers a tax credit for investing in bioscience enterprises; and the Maryland Biotechnology Investment Incentive Tax Credit provides a tax credit to investors, Maryland venture capital firms, and other corporations that invest in Maryland biotechnology companies. Other states, including Connecticut and Georgia, have created bioscience seed funds; but, most are fairly small.
plant sciences and a major center in the life sciences. One of the challenges the region faced was the lack of local early-stage capital. The bioscience community, both public and private, came together and formed the Coalition for Plant and Life Sciences that was able to greatly increase the availability of risk capital in the region. In the last 5 years, more than $565 million has been invested in venture capital funds specializing in investing in plant and life sciences with a focus on the St. Louis region.
Technology commercialization, as compared with technology transfer, continues to receive considerable attention. There has been a great deal of activity within the states to encourage and support the commercialization of discoveries coming out of universities, national laboratories, and other research institutions. States are providing funding to universities to build technology transfer and commercialization capacity and supporting freestanding commercialization centers that provide in-depth assistance to create and grow companies. These centers provide help with venture formation, recruitment of management teams, strategic planning, and accessing capital. It is becoming increasingly common for universities, university alumni, and state governments to support commercialization funds that provide financing for early-stage, proof-of-concept activities. Many of these funds provide small amounts of support, generally up to about $50,000; but, some, particularly those focused on the biosciences, now provide as much as $200,000 to $500,000. Examples include efforts at Arizona State University and University of Arizona using state and private funds; the Deshpande Center at the Massachusetts Institute of Technology and the Stevens Institute for Technology Commercialization at the University of Southern California, both funded by alumni; the St. Louis BioGenerator, supported by a combination of philanthropic and other support; Oklahomas i2E and Pittsburghs Idea Foundry and Innovation Works, one of Pennsylvanias four Ben Franklin Technology Partners. i2E, the Idea Foundry, and Innovation Works receive state funding.
Conclusion
The biosciencesbroadly definedare a growing and vibrant sector of the U.S. economy, employing 1.2 million people in all 50 states, Puerto Rico, and the District of Columbia. When multiplier effects are
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taken into account, the biosciences impact another 5.8 million jobs, for a total impact of 7.1 million jobs on the U.S. economy. More than 40,000 business establishments are involved in activities ranging from agricultural and chemical production, to drug and pharmaceutical manufacturing, and research and testing activities in a laboratory setting. The bioscience industry provides high-skilled, high-wage jobs, with an average annual wage that is $26,000 higher than the average annual private sector wage. Not surprisingly, states and regions across the country are working to develop and promote the growth of their bioscience bases with some level of activity in all 50 states and Puerto Rico. But, they recognize that not all states have the same bioscience assets; it is only by focusing on each states or regions strengths that they will succeed in capturing the economic benefits of bioscience discoveries. In Iowa, this means focusing on bio-fuels. In St. Louis, it means focusing on plant and life sciences. In Maine, it means focusing on marine aquaculture. The investments that states and regions are making are long-term investments in their universities in terms of R&D dollars and state-of-the-art facilities and in their citizens in terms of education and workforce development. In most states, investments in the biosciences are part of a larger strategy that involves investing to build other technology sectors as well. An additional benefit of state investments in the biosciences is that it can help lead to new treatments and disease prevention contributing to improved health care for all its citizenry. The biosciences have the potential to support both a healthy economy and a healthy citizenry. A challenge for states and regions in the coming years will be the leveling off of federal bioscience R&D dollars. Many of the initiatives described in this report were begun at the time in which the federal government was doubling the NIHs research budget. Competition for funding is likely to increase, making state investments even more important. Another challenge for states will be responding to the national mandate to advance translational research, often referred to as going from bench to bedside. Few states have developed strategies to link basic and clinical research, although some are beginning to do so. Meeting the bioscience industrys need for skilled, well-educated workers across a range of occupations is another area that will need to be addressed. Doing so will require industry, educators, and public officials to work together to build a pipeline of students interested in science, technology, and mathematics.
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The 21st Century is being viewed by observers worldwide as the Bio Century. Just as information technology drove economic progress in the latter part of the 20th Century, the convergence of advanced technologies in information technology, engineering, and biological sciences is producing widespread opportunities for the development and growth of companies engaged in drug development, medical implants and devices, agriculture and food processing technologies, biosecurity, biofuels, and many other bioscience and bio-related applications yet to be developed or imagined. It is not surprising then that states, regions, and countries around the world are seeking to capitalize on the breakthroughs being made in human, plant, and animal biosciences to both grow their economies and benefit their citizens. In 2004, with support from BIO, Battelle and SSTI for the first time developed data to measure the size, composition, and geographic distribution of the biosciences across the country. The data showed that bioscience employment was geographically dispersed across the 50 states, but that states varied greatly in terms of the composition of their bioscience bases. The report also showed a great deal of activity at the state level to make investments and implement policies that create a business climate that is supportive of bioscience companies.
Defining the Biosciences The biosciences are a diverse group of industries and activities with a common link they apply knowledge of the way in which plants, animals, and humans function. The sector spans different markets and includes manufacturing, services, and research activities. By definition, the biosciences are a unique industry cluster and are constantly changing to incorporate the latest research and scientific discoveries.
Since that report was prepared, new bioscience discoveries have continued to fuel the growth of the bioscience sector and states and regions have significantly increased their commitment to building an infrastructure that encourages innovations and applications of bioscience research discoveries in multiple industries. To understand how and where the bioscience sector is growing and what public policies are supporting its growth, Battelle, SSTI, PMP Consulting, and BIO have again joined together to provide data on bioscience employment and establishments at both the state and metropolitan area level and to develop profiles of the bioscience initiatives in the 50 states and Puerto Rico.
A Note about the Data The 2004 BIO report stated that the bioscience sector employed 885,000 people in 17,000 establishments in the 50 states in 2002. Puerto Rico, which has a very substantial bioscience base, was not included in the 2002 data. Adjustments have also been made in the definitions of the bioscience subsectors. The research and testing subsector, for example, has been expanded to include medical laboratories. As a result, the data in this report are not directly comparable with those presented in the 2004 report. With the inclusion of Puerto Rico and the changes in definitions, this report finds that 1.2 million people were employed in more than 40,000 establishments in 2004, the most recent year for which the data are available. All growth data captured in this years report is based on the 2001 to 2004 time period. Based on the new definition and the inclusion of Puerto Rico, 1.227 million employees were employed in more than 37,000 bioscience establishments in 2001.
Key findings
The bioscience sector is a rapidly growing, global industry characterized by scientific discovery and technological innovation. Collectively, these firms employ more than 1.2 million people across the nation and pay an average annual wage of approximately $66,000. The research , testing, and medical laboratories subsector is projected to grow 2.9 percent annually for the next 8 years, and the drugs and pharmaceuticals sector is projected to grow 2.6 percent annually based on the latest Bureau of Labor Statistics industry employment projections covering the 10-year period ending in 2014. This is much greater growth than is predicted for the overall private sector, which is 1.4 percent annually. The medical devices and equipment subsector will grow more slowly at 0.6 percent, and agricultural feedstock and chemicals will continue to lose employment at a rate of 2 percent annually. The overall bioscience growth rate will be 1.6 percent, which is still higher than overall private sector growth. The bioscience industry offers the opportunity to create high-skilled, well-paying jobs across a range of occupations. The biosciences offer employment opportunities that require a variety of skills and education, from research scientists and medical doctors to technicians, laboratory researchers, and manufacturing workers. The average salary for workers in the biosciences is significantly above the national average annual wage. The bioscience industry in 2004 paid more than $26,000 above the average annual wage for the nation. States, in the aggregate, are spending billons of dollars to support bioscience research and the infrastructure (research facilities and equipment) needed to support it. California leads the way in terms of research funding, with voters approving $3 billion in bond funding to create the California Institute of Regenerative Medicine. But, other states are also investing large sums in research and development (R&D) generally and the biosciences specifically. The states also reported that billions of dollars are being spent to construct, expand, and modernize their academic and medical research facilities, with funding for these facilities coming from state, federal, and private sources. Forty-four states and Puerto Rico reported that major new bioscience research buildings had been constructed since 2004 or are currently under construction. Smaller states that have not traditionally invested in developing their bioscience base are beginning to do so. It appears that activities in states with smaller bioscience R&D bases have been spurred, in part, by their participation in the National Institutes of Healths (NIHs) Biomedical Research Infrastructure Network (BRIN) and IDeA Network of Biomedical Research Excellence (INBRE) programs. States and regions are focusing activities on developing their agricultural, industrial, and environmental bioscience sectors in addition to their biomedical and health sectors. A dozen years after the first approval of a biotechnology medicine, the first biotechnology-enhanced crop entered the marketplace. Now, scientists are using bioscience technologies to improve manufacturing processes, chemical synthesis, and production; and a number of states and regions are focusing on the opportunities this presents for their economies. States and regions across the nation are focusing on how to leverage their growing bases of academic and medical research facilities to create physical environments that can be supportive of, and a magnet for, bioscience companies. In particular, a new wave of strategically planned mixed-use campus expansions are taking place across major research universities in communities across the country such as Raleigh, Seattle, Portland (Oregon), New York City, Denver, Chicago, and San Francisco. States are also creating SmartZones (Michigan), Innovation Zones (New Jersey and Pennsylvania) and
Technology Zones (Indiana, New York, and Wisconsin) around universities and medical complexes that contain incubator and multitenant space and provide incentives for start-up companies. Regions and states are recognizing that, to build the deep research base to sustain the biosciences, it may not be enough to have one university and/or one medical center and may be necessary to build or attract additional public and private research anchors. To date, states and regions have focused on attracting and leveraging nonprofit research institutions such as the Stowers Institute in Kansas City, Scripps Institute in Florida, and The Translational Genomics Research Institute in Phoenix. Distinctive features of such research anchors are the scale of their operation, their extensive collaborations with other research institutions, and their multidisciplinary approach that integrates complementary technologies to create a focus in a broad-based area of the biosciences. This broad-based foundation promotes both sustainability and flexibility in a rapidly changing bioscience universe. States and regions are also beginning to put programs in place to attract large industry anchors. This focus on attracting bioscience companies is somewhat new as, in the past, states and regions concentrated predominantly on trying to launch and grow new bioscience ventures around research discoveries. This seems to be aimed at attracting large biopharmaceutical operations. Some states and regions are recognizing that it is not possible to be strong in all areas of bioscience research and are strategically directing significant resources to develop signature research strengths around which to build a bioscience industry base. What is required is a focus on big bang or extraordinary investments in select research areas that serve to attract talent and generate opportunities for the creation of new firms and even new industries. Such investments are being made around clear foci of activity grounded in specific core competency areas that can position them as global leaders. Stem cell research as a topic and focus of discussion has swept across the nation in the advent of Californias historic, single largest-ever state investment in the biosciences$3 billionbut, while there has been a great deal of discussion, few state dollars have been invested to date. Just four states, California, Connecticut, Illinois, and New Jersey, have committed funds to support stem cell research; and Californias initiative is being delayed pending a legal challenge. Industry, educators, and public officials seem to have a renewed interest in building a better pipeline of students interested in science, technology, and math education in the K-12 system. The competitive position of the United States depends on this; and, increasingly, the assets of bioscience firms are not just their intellectual property, but their talent pool from technicians to postdocs to a cadre of serial entrepreneurial managers. Hospitals and medical centers are leading the renewed interest in building career pathways in the health sciences but with applicability to the remainder of the biosciencesfrom high school to community college to 4-year and graduate and postdoc education and experience. To have a sufficient talent pool for the future, regions need to begin now to build a long-term pipeline. The national imperative to advance translational research, often referred to as going from bench to bedside, is taking hold at the institutional level, but only a few states and regions are advancing specific strategies to link basic and clinical research. The NIH Roadmap and the U.S. Food and Drug Administrations FDAs) Critical Path report cast light on the need to accelerate the process of translating new basic research discoveries into real-world technologies and treatments. Nearly every academic health institution is responding to maintain their competitiveness. Increasingly, a number of states and regions are seeking new systematic approaches; but, broader interventions in translational research remain largely un-mined.
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States and regions continue to struggle to obtain sufficient risk capital to build the farm team of firms that may someday become of major league stature. But, they will never get to the major leagues if they do not get the opportunity to learn and grow. The average venture fund in the United States last year closed at more than $200 million, making it extremely difficult for such funds to invest in the pre-series A stage of investments. Regions and states are experimenting with ways to encourage angel investors and locally developed seed funds to fill this critical funding gap. Technology commercialization, as compared with technology transfer, continues to receive considerable attention, but remains an art form, not a science. There has been a great deal of activity within the states to encourage and support the commercialization of discoveries coming out of universities, national laboratories, and other research institutions. States are providing funding to universities to build technology transfer and commercialization capacity and supporting freestanding commercialization centers that provide in-depth assistance to create and grow companies. The next section discusses state policies that affect the bioscience sector. These policies are not included in individual state profiles.
State tax policies

States continue to revise their tax policies to be more supportive of bioscience and technology companies. In Mississippi, legislation was passed that makes technology-intensive companies eligible for local property tax exemptions, state sales and use tax exemptions, the states Jobs Tax Credit, the Advantage Jobs program, and the Rural Economic Development Corporate Income Tax Credit. Technology-intensive companies are defined as those that employ at least 10 full-time workers, 10 percent of which must be scientists, engineers, or computer specialists who have an annual wage of 150 percent of the state average, and provide a basic health plan for employees. Nebraska also passed legislation that overhauled the states tax incentives. It created a refundable R&D tax credit and other incentives to benefit start-up and early-stage companies. Puerto Rico offers special low tax rates for companies that establish operations in core pioneer industries which use technology not in place prior to 2000. Maryland reauthorized its R&D tax credits in 2004 and created a tax credit against state income tax for individuals, corporations, and venture capital firms that invest in qualified biotechnology firms. Legislation is pending that would appropriate $6 million in operating funds to implement the Biotechnology Tax Credit. New York amended the states Qualified Emerging Technology Company tax credit program to include refundable tax credits up to $250,000 a year per firm for a wide variety of expenses including R&D and soft costs involved in fund raising or commercialization, facilities, and training. New York also expanded Empire Zone benefits to noncontiguous projects in the biosciences and other technology areas. Companies located in one of Pennsylvanias Keystone Innovation Zones (KIZs) qualify for $25 million in tax credits targeted at very early-stage businesses with rapid revenue growth. These credits can be sold, along the model of the states R&D tax credit for which the statewide pool was expanded from $15 million to $30 million.
State use of tobacco settlement funds

States continue to use tobacco settlement dollars to support their bioscience initiatives. A study by the National Conference of State Legislators reported that state governments used nearly $1.5 billion of their tobacco settlement dollars to fund health research between 2001 and 2004. States have also used tobacco settlement funds to support technology commercialization, venture capital, bioscience facilities, and workforce training. The following programs are examples of the kinds of programs being funded with tobacco settlement dollars:
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Alabama is using tobacco settlement dollars to develop the USA Cancer Research Institute at the University of Southern Alabama. Alaska has proposed using funds from refinancing its tobacco settlement dollars for an Integrated Science Facility at the University of Alaska-Anchorage. Hawaii is using tobacco settlement dollars to back $150 million in bonds to build a new campus for the University of Hawaii Medical School. In Georgia, $4.8 million in tobacco settlement funds are being used to support the Cancer Coalitions Distinguished Cancer Clinicians and Scientists Program. The 21st Century Jobs Fund legislation passed in 2005 restored Michigans commitment to use tobacco settlement dollars to support technology-based economic development initiatives. North Carolinas Golden LEAF Foundation, which administers a large portion of the states tobacco settlement dollars, is implementing a $60 million Biomanufacturing and Pharmaceutical Training Consortium. Golden LEAF also made a major placement of endowment funds in a bioscience venture fund. Ohios Third Frontier Project is funded, in part, with tobacco settlement dollars. Pennsylvanias Life Sciences Greenhouses were funded with a $100 million commitment from the State Tobacco Settlement Investment Board, which was matched by local communities. Sixty million in tobacco settlement dollars have also been used to invest in four venture capital funds that operate in Pennsylvania. The Governor has proposed that part of the 19 percent of the tobacco settlement that is currently used to fund a research initiative operated by the Department of Health be diverted to back $500 million in bonding capacity for a Jonas Salk Legacy Fund that would support bioscience faculty recruitment and facilities construction. Starting in 2008, Washington will allocate $35 million annually from tobacco settlement funds to the states Life Sciences Discovery Fund, which will fund research with economic development potential. This report contains three sections. The first section, The Biosciences in the United States, presents updated data on bioscience employment and establishments in the 50 states and Puerto Rico, examines growth trends, and identifies metropolitan areas with the largest and most concentrated employment in each of the bioscience subsectors identified in the 2004 report. These include agricultural feedstock and chemicals; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories. A fifth center of bioscience activity, academic health centers and research hospitals, is not included because current industrial classifications and available data do not allow research-oriented hospitals to be separated from the larger hospital sector. The second section, State Initiatives, is an analysis of the data collected on state initiatives to support the development of the biosciences. This section includes examples of specific state programs and policies. These are intended to be illustrative. The final section of the report includes the state-by-state profiles that describe all of the initiatives underway in each state and Puerto Rico.
Bioscience Sector and Subsectors

The biosciences are a diverse group of industries and activities with a common linkthey apply knowledge of the way in which living organisms function. The sector spans different markets and includes manufacturing, services, and research activities. By definition, the biosciences are a unique industry cluster, and are constantly changing to incorporate the latest research and scientific discoveries. Given the diverse and dynamic nature of the industry, defining the biosciences is difficult. The federal statistical classification system does not identify one single industry code that encompasses all bioscience activities; therefore, defining the industry requires a careful examination of all industries engaged in bioscience-related work. In assisting numerous states and regions across the country in developing their bioscience industry base, Battelle has identified four major subsectors that involve key bioscience economic activity. The four major subsectors of the biosciences include the following: 1. Agricultural Feedstock and Chemicalsfirms engaged in agricultural production and processing, organic chemical manufacturing, and fertilizer manufacturing. Includes the emerging use of biocatalysts in organic chemical manufacturing. 2. Drugs and Pharmaceuticalsfirms that develop and produce biological and medicinal products and manufacture pharmaceuticals and diagnostic substances. 3. Medical Devices and Equipmentfirms that develop and manufacture surgical and medical instruments and supplies, laboratory equipment, electromedical apparatus including magnetic resonance imaging and ultrasound equipment, dental equipment and supplies, and ophthalmic products. 4. Research, Testing, and Medical Laboratoriescompanies engaged in R&D in the life sciences, testing laboratories, and medical laboratories and other diagnostic centers. Figure 1 presents the industries included within each major bioscience subsector. A fifth center of bioscience activity might include academic health centers, research hospitals, and other research-driven institutions. Many U.S. hospitals partner with universities and other research institutes to further advances in the biosciences with a particular focus on healthcare applications. Unfortunately, current industrial classifications and available data do not allow for an isolation of these research-oriented establishments outside of the larger hospitals sector. The major bioscience subsectors each have a distinct specialization and their own set of supply relationships. To varying degrees, the subsectors do intersect in beneficial ways. For example, new biological research discoveries directly impact the development of new drugs and lead to new uses for agricultural feedstocks; testing laboratories provide key breakthroughs for medical devices; and plant and animal scientific findings contribute to further innovation in drugs and pharmaceuticals as well as research and testing.
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Figure 1. The Bioscience Subsector Industries NAICS Code NAICS Description Agricultural Feedstock & Chemicals 311221 Wet corn milling 311222 Soybean processing 311223 Other oilseed processing 325193 Ethyl alcohol manufacturing 325199 All other basic organic chemical manufacturing 325221 Cellulosic organic fiber manufacturing 325311 Nitrogenous fertilizer manufacturing 325312 Phosphatic fertilizer manufacturing 325314 Fertilizer (mixing only) manufacturing 325320 Pesticide and other agricultural chemical mfg. Drugs & Pharmaceuticals 325411 Medicinal and botanical manufacturing 325412 Pharmaceutical preparation manufacturing 325413 In-vitro diagnostic substance manufacturing 325414 Other biological product manufacturing Medical Devices & Equipment 334510 Electromedical apparatus manufacturing 334516 Analytical laboratory instrument manufacturing 334517 Irradiation apparatus manufacturing 339111 Laboratory apparatus and furniture manufacturing 339112 Surgical and medical instrument manufacturing 339113 Surgical appliance and supplies manufacturing 339114 Dental equipment and supplies manufacturing 339115 Ophthalmic goods manufacturing 339116 Dental laboratories Research, Testing, & Medical Laboratories 541380* Testing laboratories 541710* Physical, engineering, and biological research 621511 Medical laboratories 621512 Diagnostic imaging centers
*Includes only the portion of these industries engaged in relevant biological or other life sciences activities.
Each major subsector varies in its degree of bioscience sophistication and adoption of related technology. Similarly, each firm within these groups will vary. Therefore, while some subsector companies are leaders in their field and utilize cutting-edge bioscience technologies, others are not currently utilizing these same technologies. In reality, this means that the depth, scale, and scope of a bioscience-related establishment can vary considerably in any given state or region. The overall presence of this activity within a state or local area, however, provides further potential for economic growth and clustering among various bioscience establishments. It is possible, in fact probable, that the major bioscience subsectors do not entirely cover the full extent of bioscience activity within a state. Firms and enclaves of economic activity may exist that have adopted bioscience-related technologies, but lie outside the industrial structure defined here. To measure the size, distribution, and overall economic impact of the biosciences in the United States, Battelle tabulated employment, establishment, and wage data for each state, the District of Columbia,
Puerto Rico, and every metropolitan statistical area (MSA). 1 The data were calculated for each of the four bioscience industry subsectors for 2001 and 2004, the most current annual data available. The Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages (QCEW) program data were used as the primary data source for this industry analysis. The QCEW provides the most accurate data on employment and wages at the subnational level. The data represent a census of workers covered under the Unemployment Insurance system, as reported by employers. 2 For a full discussion of the data and methodology used in this analysis, see the Appendix to this report. Data are used to measure and compare the size and concentration of each subsector across all 50 states, the District of Columbia, Puerto Rico, and each metropolitan area. Figures for 2001 and 2004 are comparable within this report, as both years data are classified under the new North American Industry Classification System (NAICS), implemented by BLS in 2001. The introduction of this system limits the ability to compare these data over time, as data collected prior to 2001 were not coded under the NAICS. All growth rates and other changes measured in this report refer to differences since 2001. MSA data that measure the degree of employment concentration in this analysis are tabulated and presented by the overall employment level of the MSA. Each MSA is classified as either large, medium, or small with respect to private sector employment. A large MSA has total employment at or above 250,000. A medium MSA has employment greater than or equal to 75,000, but less than 250,000. A small MSA has employment less than 75,000. Within each size classification, the top 15 metropolitan areas are then ranked by their location quotient (LQ). Dividing the MSAs by overall employment size allows for a more apples to apples comparison of employment concentration. Due to updates and adjustments to definitions and methodology used in calculating these bioscience industry metrics, these data are not completely comparable with those presented in the previous Biotechnology Industry Organization report, Laboratories of Innovation: State Bioscience Initiatives 2004. While differences are important to note, overall trends and subsector definitions generally reflect those presented in the 2004 report and provide an update on each states progress in further developing their bioscience base. Changes since the 2004 report and comparability issues are discussed in the Appendix.
The U.S. Census Bureau defines a metropolitan statistical area as a core area containing a substantial population nucleus, together with adjacent communities having a high degree of social and economic integration with that core. Metropolitan and micropolitan statistical areas comprise one or more entire counties. A conceptually similar set of areas is defined in New England using cities and towns and is referred to as New England city and town areas. In general, QCEW monthly employment data represent the number of covered workers who worked during, or received pay for, the pay period that included the 12th day of the month. Virtually all workers are reported in the state in which their jobs are located. Covered private-industry employment includes most corporate officials, executives, supervisory personnel, professionals, clerical workers, wage earners, piece workers, and part-time workers. It excludes proprietors, the unincorporated self-employed, unpaid family members, and certain farm and domestic workers. An establishment is an economic unit such as a farm, mine, factory, or store that produces goods or provides services. It is typically at a single physical location and engaged in one, or predominantly one, type of economic activity for which a single industrial classification may be applied. Total wages: Covered employers in most states report total compensation paid during the calendar quarter, regardless of when the services were performed. A few state laws, however, specify that wages be reported for or be based on the period during which services are performed, rather than for the period during which compensation is paid. Under most state laws or regulations, wages include bonuses, stock options, severance pay, the cash value of meals and lodging, tips and other gratuities, andin some statesemployer contributions to certain deferred compensation plans such as 401(k) plans.
The Size, Composition, Impact, and Growth of the U.S. Bioscience Industry
Total employment in the biosciences in the United States reached 1.2 million in 2004, increasing just over 1 percent since 2001. These jobs spanned more than 40,000 business establishments. The medical devices and equipment and research, testing, and medical laboratories subsectors are the largest components, each representing one-third of total bioscience employment (Table 1 and Figure 2).
Table 1. U.S. Bioscience Employment and Establishments by Major Subsector, 2001 and 2004 2001 2001 2004 2004 Bioscience Subsector Employment Establishments Employment Establishments Agricultural Feedstock & Chemicals 112,693 2,103 104,893 2,111 Drugs & Pharmaceuticals 304,829 2,606 313,207 2,589 426,949 15,163 411,460 15,190 Medical Devices & Equipment Research, Testing, & Medical Laboratories 382,105 17,222 413,550 20,565 Total U.S. Biosciences 40,454 1,226,576 37,094 1,243,109
Figure 2. U.S. Employment Distribution among the Bioscience Subsectors
8%
33% 25%
Drugs & Pharmaceuticals Medical Devices & Equipment
33%
Since 2001, two of the major bioscience subsectors have experienced employment growth (Figure 3). The research, testing, and medical laboratories sector grew by more than 31,000 jobs, or 8 percent. Employment in drugs and pharmaceuticals increased by almost 3 percent during the same 3-year period. By comparison, total U.S. employment was down slightly over the period (-0.7 percent). It is important to note the business cycle context during this period. The overall decline in U.S. employment and two of the bioscience subsectors is not surprising given the overall economic weakness following the recession in 2001. 3 Among the subsectors, the number of establishments changed little over the 2001 to 2004 period, except for research, testing, and medical laboratories. The research subsector added 3,343 establishments, boosting its total by 19 percent to 20,565. This currently represents half of all bioscience establishments in the United States.
3
The National Bureau of Economic Research (NBER) Business Cycle Dating Committee is the official arbiter of U.S. Business Cycles. The committee determined that a peak in the business cycle occurred in March 2001, marking the end of an expansion and the beginning of a recession. The peak ended a record-long expansion (10 years). The business cycle trough occurred in November 2001, ending a recession of relatively short duration. For more information, visit http://www.nber.org/cycles.html/.
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Figure 3. U.S. Bioscience Employment by Major Subsector, 2001 and 2004

450,000 2001 Employment 400,000 2004 Employment
350,000
300,000
250,000
200,000
150,000
100,000
50,000
Agricultural Feedstock & Chemicals Drugs & Pharmaceuticals Medical Devices & Equipment Research, Testing, & Medical Laboratories
As a share of total private U.S. employment, the biosciences are still relatively small, about 1.1 percent. The impact of this growing sector, however, goes beyond the direct level of employment and earnings discussed in this report. The biosciences, like other industries, have interdependent relationships with suppliers of other goods and services. The sector both supports and depends upon other economic entities in the local area, region, and nation to supply everything from marketing or legal services to transportation or janitorial services to assist in running daily operations. As a result, the industry has a regional impact that is greater than its sum of employment might suggest. To measure the additional regional impact of adding bioscience jobs, a set of state multipliers can be used. Multipliers quantify the ripple effect outlined above where one industry, in this case the biosciences, can create and support additional economic activitiesincluding jobs, taxes and public revenues, and spending from the salaries of bioscience and other industry workers. The Bureau of Economic Analysis (BEA) has developed regional factors to conduct this impact analysis using its Regional Input-Output Modeling System, also known as RIMS II. 4 Multiplier effects can be categorized into three types of impactsdirect, indirect, and induced. The direct impact is how the bioscience sectors employment, earnings, and economic output directly translate into economic gains for other industries that support it through goods or services. The indirect impact measures the jobs and wages generated among suppliers, retailers, and other entities connected with bioscience industry producers and/or researchers. The induced impact reflects the additional income generated and spent not only among bioscience workers, but also among local residents who are indirectly dependent upon the industry. Using the direct-effect employment multipliers provided by BEA, Battelle has calculated state and national employment impact factors for each major bioscience subsector. 5 The multipliers represent the total change in number of jobs in all industries (direct, indirect, and induced effects) that result from a change of one job in the corresponding industry sector. At the national level, these direct-effect
4 5
For additional information on BEAs RIMS II multipliers, see the Appendix to this report. All state and national subsector multipliers and total employment impacts are shown in the state profile tables within this report. Multipliers for Puerto Rico are not available from BEA.
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multipliers range from 3.2 for the research, testing, and medical laboratories subsector, to 10.9 for the agricultural feedstock and chemicals subsector. The total indirect and induced employment impact of the 1.2 million U.S. bioscience jobs is an additional 5.8 million jobs throughout the remainder of the economy. Together, these direct, indirect, and induced bioscience impacts account for a total employment impact of 7.0 million jobs. This reveals a total bioscience direct-effect employment multiplier of 5.7. U.S. bioscience workers earn more, on average, than their counterparts in most other major industries. In 2004, the average employee in the biosciences earned an annual wage of $65,775. This earnings figure is more than $26,000 greater than the average annual wage for the entire U.S. private sector in 2004, $39,003 (Table 2). In fact, the average salary in each of the four bioscience subsectors is significantly more than the total U.S. average. Higher wages for bioscience workers are not surprising given its mix of high-skilled occupations including research scientists, laboratory workers, engineers, and manufacturing workers.
Table 2. Average Annual Wages by Major U.S. Industry, 2004 U.S. Average Annual Wages per Employee, 2004 Drugs & Pharmaceuticals $ 79,303 Finance & Insurance $ 69,889 Total Biosciences $ 65,775 Research, Testing, & Medical Laboratories $ 65,414 Agricultural Feedstock & Chemicals $ 63,383 Professional, Scientific, & Technical Services $ 62,411 Information $ 60,530 Medical Devices & Equipment $ 56,449 Manufacturing $ 47,705 Construction $ 40,297 U.S. Total Private Sector $ 39,003 Transportation & Warehousing $ 38,758 Real Estate & Rental & Leasing $ 37,167 Health Care & Social Assistance $ 36,606 Retail Trade $ 24,337
Source: Battelle calculations based on Bureau of Labor Statistics, QCEW program data from the Minnesota Implan Group. Data include Puerto Rico.
Since 2001, real (inflation-adjusted) earnings have increased by 6.4 percent for all bioscience workers, compared with a 1.4 percent increase in real earnings for the average U.S. private sector worker. Among the bioscience subsectors, workers in the medical devices and equipment sector experienced the largest real earnings increase as average earnings rose by 10.1 percent during the 2001 to 2004 period to $56,449 (Figure 4).
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Figure 4. Real Average Annual Wages in the Bioscience and Total Private Sectors, 2001 and 2004
$90,000
2001 Avg. Wages (in '04 dollars)

$80,000
2004 Avg. Wages

$70,000
$60,000
2004 Dollars
$50,000
$40,000
$30,000
$20,000
$10,000
$Drugs & Pharmaceuticals Total Biosciences Research, Testing, & Medical Laboratories Agricultural Feedstock & Chemicals Medical Devices & Equipment Total Private
Source: Battelle calculations based on Bureau of Labor Statistics, QCEW program data from the Minnesota Implan Group .
Forty states, the District of Columbia, and Puerto Rico all have a degree of employment concentration that exceeds the national average within one or more of the bioscience subsectors. Among these, 37 states, the District of Columbia, and Puerto Rico have a degree of concentration that significantly exceeds the national average and is thus considered a state specialty. Data were tabulated for each state, the District of Columbia, Puerto Rico, and each MSA to determine the size of its bioscience employment base and the level of concentration for each of the major subsectors. In addition, percentage changes were calculated for selected metrics over the 2001 to 2004 period. In the following subsector discussions, these three measuressize, concentration, and employment growthare used to highlight those states with significant bioscience employment bases or those whose subsectors are growing. Size measures the absolute level of employment activity within each state. To allow for relative comparisons across states, the states share of total U.S. employment within each of the major subsectors is analyzed. States with more than 5 percent of total U.S. subsector employment are labeled large, while states with more than 3 percent but less than 5 percent are deemed sizable. The level of concentration is a meaningful way in which to gauge a states activities within a subsector relative to the national average. The LQ measures the degree of concentration within a state relative to the nation. 6 States with an LQ greater than or equal to 1.00 are said to have a concentration in the industry.
Location quotients are a standard measure of the concentration of a particular industry in a region relative to the nation (reference area). The LQ is the share of total regional employment in the particular industry divided by the share of total industry employment in the nation (reference area). A LQ greater than 1.0 for a particular industry indicates that the region is relatively concentrated, whereas an LQ less than 1.0 signifies a relative underrepresentation. An LQ greater than 1.20 denotes employment concentration significantly above the national average. Throughout this report, LQs are used to report regional industry concentrations relative to the United States as a whole. The minimum concentration threshold for declaring a regional specialization is a matter of judgment and varies somewhat in the relevant literature. In this analysis, regional specializations are defined by LQs of 1.20 or greater.
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When the LQ is significantly above average, 1.20 or greater, the state is said to have a specialization in the industry. The level of employment growth or loss during the 2001 to 2004 period provides a measure of recent progress in growing a states bioscience base. While many states experienced overall employment losses during this period, others managed to add jobs and grow one or more subsectors. In this analysis, job growth or loss is measured by absolute employment gains or losses, as percentage changes appear to overstate gains or losses in states with smaller subsector employment bases.
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AGRICULTURAL FEEDSTOCK AND CHEMICALS

The agricultural feedstock and chemicals subsector applies life sciences knowledge and biotechnologies to the processing of agricultural goods and production of organic and agricultural chemicals.

Principal Components Organic and agricultural chemicals Agricultural feedstock and processing Examples of Products Ethanol and biodiesel fuels Biodegradable materials synthesized from plant-based feedstock Fertilizers and pesticides Sustainable oils and lubricants Biocatalysts Food and feed additives and ingredients Examples of Companies Archer Daniels Midland Co. Bayer CropScience, Inc. Cargill, Inc. Dow AgroSciences, LLC DuPont Corporation Genencor International, Inc. Monsanto Company The Scotts Company States that are Both Large and Specialized* Texas Illinois Ohio Iowa Metro Areas with the Largest Employment Levels Houston-Baytown-Sugar Land, TX Decatur, IL New York-Northern New Jersey-Long Island, NY-NJ-PA Lakeland, FL Baton Rouge, LA
Substantial Increase, (1,000+)


*States are listed in descending order by subsector employment levels.
Moderate Increase, (1 to 999) Unchanged or Small Loss, (0 to -999) Substantial Loss, (-1,000 or more)
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Agricultural feedstock and chemicals

Overview
In 2004, 2,111 U.S. establishments combined to form the agricultural feedstock and chemicals subsector. National employment in the subsector totaled 104,893, down 6.9 percent since 2001. The overall manufacturing sector, however, experienced greater job lossesdeclining by 13.0 percent over the same 3-year period. Agricultural feedstock and chemicals workers earned $63,383, on average, in 2004. Their earnings were just below the total bioscience average wage of $65,775, but significantly greater than the average total private sector wage of $39,003. The subsector consists of two major components, agricultural feedstock and organic and agricultural chemicals. Organic and agricultural chemicals is the larger of the two, employing 83,277 workers. National agricultural feedstock employment was 21,616 in 2004. Both subsector components experienced employment declines during the 2001 to 2004 period. The chemicals component fell by 7.6 percent, while the feedstock component decreased by 4.2 percent.
States Employment Size. The 10 states with the largest employment levels in agricultural feedstock and
chemicals comprise 60.0 percent of total national subsector employment. This share is similar to that for other bioscience subsectors, indicating a relatively widespread employment distribution across states. Large states: Texas, Illinois, Florida, Ohio, and Iowa 7 Sizable states: North Carolina, California, Indiana, Louisiana, New Jersey, and Missouri
Employment Growth. Total employment in the agricultural feedstock and chemicals subsector
decreased by nearly 8,000 jobs during the 2001 to 2004 period. Though the subsector experienced overall job losses, many states added jobs. Eighteen states and Puerto Rico experienced moderate employment gains (fewer than 1,000 jobs) in the early 2000s. New Jersey is the only state to experience a substantial employment increase in the subsector, adding more than 1,000 jobs within the organic and agricultural chemicals component of the subsector.
Employment Concentration. Agricultural feedstock and chemicals has more states with employment
specializations than any other bioscience subsector, mostly found in the Midwest and in the South. The organic and agricultural chemicals component of the subsector is much larger than the agricultural feedstock component. Southern states with subsector specialties tend to be much more engaged in the production of chemicals; while the Midwestern states are more likely to be involved in the processing of corn, soybeans, and other oilseeds such as cottonseeds, peanuts, and sunflower seeds, in addition to the manufacturing of ethanol. Specialized states: Iowa, West Virginia, Louisiana, Nebraska, Wyoming, Indiana, Alabama, Illinois, Idaho, Arkansas, South Dakota, Missouri, Kansas, North Carolina, North Dakota, Texas, Ohio, Mississippi, Tennessee, Alaska, and New Jersey Concentrated states: Florida and South Carolina
Large and Specialized States. Four states have both a large employment base and a specialization
in agricultural feedstock and chemicals (Table 3).
7
All state listings by employment size and concentration in this section are in descending order. 16
Table 3. States with Large and Specialized Employment Bases in the Agricultural Feedstock and Chemicals Subsector Establishments, Employment, 2004 2004 222 11,082 96 9,687 73 6,493 97 5,744 Share of U.S. Employment 10.6% 9.2% 6.2% 5.5% Principal Key Component Organic & Ag Chemicals Agricultural Feedstock Organic & Ag Chemicals Agricultural Feedstock
State Texas Illinois Ohio Iowa
LQ 1.50 2.06 1.49 5.01
Metropolitan Statistical Areas Employment Size. The five MSAs with the highest employment levels are Houston-Baytown-Sugar
Land, TX; Decatur, IL; New York-Northern New Jersey-Long Island, NY-NJ-PA; Lakeland, FL; and Baton Rouge, LA (Table 4). In 2004, these five MSAs accounted for 20 percent of total national agricultural feedstock and chemicals employment.
Employment Concentration. Several metropolitan areas have a very high degree of specialization in
the agricultural feedstock and chemicals subsector. Among the large MSAs, Baton Rouge, LA, has an LQ of 11.46. Among the medium-sized MSAs, Lakeland, FL; Mobile, AL; and Charleston, WV, all have double-digit LQs. Of the smaller MSAs, Decatur, IL; Victoria, TX; Blacksburg-Christiansburg-Radford, VA; Danville, IL; Pocatello, ID; and Morristown, TN, all have a locally high degree of specialization in agricultural feedstock and chemicals (Table 5).
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Table 4. Metropolitan Statistical Areas with the Largest Employment Levels in Agricultural Feedstock and Chemicals Metropolitan Statistical Area Employment Houston-Baytown-Sugar Land, TX 5,989 Decatur, IL 4,311 New York-Northern New Jersey-Long Island, NY-NJ-PA 4,137 Lakeland, FL 3,236 Baton Rouge, LA 3,092 Chicago-Naperville-Joliet, IL-IN-WI 2,997 Cleveland-Elyria-Mentor, OH 1,984 Mobile, AL 1,946 Victoria, TX 1,787 Indianapolis, IN 1,773 Charleston, WV 1,570 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 1,362 Cincinnati-Middletown, OH-KY-IN 1,333 Tampa-St. Petersburg-Clearwater, FL 1,211 Milwaukee-Waukesha-West Allis, WI 1,121 Riverside-San Bernardino-Ontario, CA 1,084 Cedar Rapids, IA 1,005 Charlotte-Gastonia-Concord, NC-SC 996 Peoria, IL 969 Blacksburg-Christiansburg-Radford, VA 935 Beaumont-Port Arthur, TX 930 Wichita, KS 916 Los Angeles-Long Beach-Santa Ana, CA 910 Columbus, OH 858 Richmond, VA 831 Source: Battelle calculationsbased on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group
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Table 5. Metropolitan Statistical Areas with the Highest Location Quotients in Agricultural Feedstock and Chemicals Metropolitan Statistical Area Location Quotient Large MSAs (Total Private Employment Greater than 250,000): Baton Rouge, LA 11.46 Houston-Baytown-Sugar Land, TX 3.07 Allentown-Bethlehem-Easton, PA-NJ 2.77 Indianapolis, IN 2.42 Greensboro-High Point, NC 2.27 Cleveland-Elyria-Mentor, OH 2.14 Richmond, VA 1.74 Oxnard-Thousand Oaks-Ventura, CA 1.70 Toledo, OH 1.57 Omaha-Council Bluffs, NE-IA 1.56 Milwaukee-Waukesha-West Allis, WI 1.52 Cincinnati-Middletown, OH-KY-IN 1.50 New Orleans-Metairie-Kenner, LA 1.49 Charlotte-Gastonia-Concord, NC-SC 1.48 Memphis, TN-MS-AR 1.43 Medium MSAs (Total Private Employment Between 75,000 and 250,000): Lakeland, FL 19.27 Mobile, AL 14.10 Charleston, WV 13.73 Cedar Rapids, IA 8.72 Beaumont-Port Arthur, TX 7.32 Peoria, IL 6.30 Wilmington, NC 3.78 Wichita, KS 3.74 Lincoln, NE 3.22 Augusta-Richmond County, GA-SC 3.00 Fayetteville, NC 2.77 Stockton, CA 2.46 Charleston-North Charleston, SC 2.28 Winston-Salem, NC 2.19 Kennewick-Richland-Pasco, WA 1.94 Small MSAs (Total Private Employment Less Than 75,000): Decatur, IL 90.84 Victoria, TX 45.57 Blacksburg-Christiansburg-Radford, VA 19.13 Danville, IL 14.79 Pocatello, ID 14.54 Morristown, TN 13.94 Lafayette, IN 9.96 Valdosta, GA 9.14 Decatur, AL 8.06 Sioux City, IA-NE-SD 7.28 Champaign-Urbana, IL 6.85 St. Joseph, MO-KS 5.53 Kankakee-Bradley, IL 5.05 Pascagoula, MS 4.83 Janesville, WI 4.35 Source: Battelle calculationsbased on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group
2004 Employment 3,092 5,989 790 1,773 708 1,984 831 455 441 587 1,121 1,333 751 996 744 3,236 1,946 1,570 1,005 930 969 395 916 413 511 241 451 479 402 153 4,311 1,787 935 374 401 600 640 378 375 458 508 237 181 199 256
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DRUGS AND PHARMACEUTICALS

The drugs and pharmaceuticals subsector produces commercially available medicinal and diagnostic substances. The subsector is generally characterized by large multinational firms heavily engaged in R&D activities to bring drugs to market.

Principal Components Therapeutics Diagnostic substances Examples of Products Vaccines Oncology, neurology, and cardiology treatments Herbal supplements and vitamins Tissue and cell culture media Dermatological/topical treatments Diagnostic substances Examples of Companies Abbott Laboratories, Inc. Amgen Biogen Idec, Inc. Genentech, Inc. MedImmune, Inc. Merck & Co., Inc. Novartis Pfizer, Inc. Roche Diagnostics Sanofi-Aventis/Sanofi Pasteur States that are Both Large and Specialized New Jersey Puerto Rico Pennsylvania North Carolina Illinois Indiana Metro Areas with the Largest Employment Levels New York-Northern New Jersey-Long Island, NY-NJ-PA Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Chicago-Naperville-Joliet, IL-IN-WI Indianapolis, IN LA-Long Beach-Santa Ana, CA


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Drugs and pharmaceuticals

Overview
The drugs and pharmaceuticals subsector accounts for one-quarter of national bioscience employment. The sector employed 313,207 U.S. workers in 2004 across 2,589 business establishments. Drugs and pharmaceuticals added jobs during the 2001 to 2004 period, boosting employment by 2.7 percent despite overall employment declines in U.S. manufacturing. The industry is one of two of the major subsectors to experience job growth over these 3 years. Drug and pharmaceutical manufacturers employ 121 workers per establishment. These firms are much larger, on average, than their counterparts in other bioscience subsectors. Average annual wages for workers in drugs and pharmaceuticals were $79,303 in 2004, highest among the major subsectors. The drugs and pharmaceuticals subsector includes two componentstherapeutics and diagnostic substances. A vast majority of the subsector is involved in the production of therapeutics95 percent of the 2004 total. Both components have increased employment since 2001. Therapeutics employment is up 2.8 percent, and diagnostic substances rose by 1.3 percent.
States Employment Size. The 10 states with the largest employment levels in drugs and pharmaceuticals
account for 74.2 percent of total national employment. This ratio is highest among the bioscience subsectors, indicating a lesser degree of dispersion across the states. The largest state employers, California and New Jersey, together make up one-quarter of total national subsector employment. Large states: California, New Jersey, Puerto Rico, Pennsylvania, New York, North Carolina, Illinois, and Indiana Sizable states: Michigan and Connecticut
Employment Growth. Employment in drugs and pharmaceuticals increased by more than 8,000 since
2001. Job gains were widespread, as 27 states experienced moderate employment gains. Five states and Puerto Rico experienced substantial increases in drug and pharmaceutical employment. Puerto Rico leads all job gainers with an increase of more than 2,200.
Employment Concentration. The drugs and pharmaceuticals subsector has the fewest number of
states with a specializationPuerto Rico and eight states. In addition, only three states are considered to be concentrated. Specialized states: Puerto Rico, New Jersey, Indiana, Connecticut, North Carolina, Utah, Pennsylvania, Illinois, and Rhode Island Concentrated states: California, New York, and West Virginia
Large and Specialized States. Five states and Puerto Rico have both a large and specialized drug and pharmaceutical employment base. This is the most among the bioscience subsectors and reflects the high degree of geographic concentration in the industry. New Jersey, Puerto Rico, Pennsylvania, North Carolina, Illinois, and Indiana are all large and specialized; and each has therapeutics as its major component (Table 6).
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Table 6. States with Large and Specialized Employment Bases in the Drugs and Pharmaceuticals Subsector Establishments, Employment, 2004 2004 218 39,683 74 26,014 112 23,307 70 20,646 114 20,597 39 20,057 Share of U.S. Employment Principal Key Component 12.7% Therapeutics 8.3% Therapeutics 7.4% Therapeutics 6.6% Therapeutics 6.6% Therapeutics 6.4% Therapeutics
State New Jersey Puerto Rico Pennsylvania North Carolina Illinois Indiana
LQ 4.22 12.20 1.70 2.29 1.47 2.85
Metropolitan Statistical Areas Employment Size. The five MSAs with the highest level of drug and pharmaceutical employment are New York-Northern New Jersey-Long Island, NY-NJ-PA; Philadelphia-Camden-Wilmington, PA-NJDE-MD; Chicago-Naperville-Joliet, IL-IN-WI; Indianapolis, IN; and Los Angeles-Long Beach-Santa Ana, CA (Table 7). These five metro areas account for 38 percent of total drug and pharmaceutical employment.
Table 7. Metropolitan Statistical Areas with the Largest Employment Levels in Drugs and Pharmaceuticals Metropolitan Statistical Area Employment New York-Northern New Jersey-Long Island, NY-NJ-PA 51,978 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 20,819 Chicago-Naperville-Joliet, IL-IN-WI 18,480 Indianapolis, IN 14,523 Los Angeles-Long Beach-Santa Ana, CA 12,058 San Francisco-Oakland-Fremont, CA 9,775 Durham, NC 8,226 Oxnard-Thousand Oaks-Ventura, CA 6,131 Boston-Cambridge-Quincy, MA-NH 5,984 Kalamazoo-Portage, MI 5,387 Norwich-New London, CT 5,137 San Diego-Carlsbad-San Marcos, CA 4,353 Raleigh-Cary, NC 3,837 Dallas-Fort Worth-Arlington, TX 3,777 St. Louis, MO-IL 3,391 Baltimore-Towson, MD 3,382 New Haven-Milford, CT 2,591 Miami-Fort Lauderdale-Miami Beach, FL 2,446 San Jose-Sunnyvale-Santa Clara, CA 2,181 Kansas City, MO-KS 2,169 Washington-Arlington-Alexandria, DC-VA-MD-WV 2,165 Greenville, SC 2,043 Bridgeport-Stamford-Norwalk, CT 1,956 Riverside-San Bernardino-Ontario, CA 1,900 Austin-Round Rock, TX 1,851 Source: Battelle calculationsbased on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group
Employment Concentration. Oxnard-Thousand Oaks-Ventura, CA, and Indianapolis, IN, top the list
of large MSAs with a specialization in drug and pharmaceutical production. Medium-sized MSAs with the highest degree of specialization include Norwich-New London, CT; Kalamazoo-Portage, MI; and
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Durham, NC. Among the small MSAs, Morgantown, WV; Kankakee-Bradley, IL; and Rocky Mount, NC, have the highest employment concentration in drugs and pharmaceuticals (Table 8).
Table 8. Metropolitan Statistical Areas with the Highest Location Quotients
in Drugs and Pharmaceuticals Metropolitan Statistical Area Location Quotient Large MSAs (Total Private Employment Greater than 250,000): Oxnard-Thousand Oaks-Ventura, CA 8.84 Indianapolis, IN 7.66 Raleigh-Cary, NC 4.08 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 3.44 New Haven-Milford, CT 3.13 New York-Northern New Jersey-Long Island, NY-NJ-PA 2.92 2.20 San Francisco-Oakland-Fremont, CA Bridgeport-Stamford-Norwalk, CT 2.02 Chicago-Naperville-Joliet, IL-IN-WI 1.89 1.70 Worcester, MA Rochester, NY 1.56 San Diego-Carlsbad-San Marcos, CA 1.56 Austin-Round Rock, TX 1.36 Buffalo-Niagara Falls, NY 1.34 Baltimore-Towson, MD 1.27 Medium MSAs (Total Private Employment Between 75,000 and 250,000): Norwich-New London, CT 21.84 Kalamazoo-Portage, MI 17.12 Durham, NC 15.34 Vallejo-Fairfield, CA 6.76 Lincoln, NE 5.01 Provo-Orem, UT 4.73 Boulder, CO 4.58 Evansville, IN-KY 3.70 3.40 Kingsport-Bristol-Bristol, TN-VA Holland-Grand Haven, MI 3.34 Greenville, SC 3.25 Lynchburg, VA 2.91 Elkhart-Goshen, IN 2.49 Santa Cruz-Watsonville, CA 2.38 Trenton-Ewing, NJ 2.22 Small MSAs (Total Private Employment Less Than 75,000): Morgantown, WV 15.26 Kankakee-Bradley, IL 10.97 Rocky Mount, NC 10.61 Harrisonburg, VA 9.28 Greenville, NC 9.03 Terre Haute, IN 7.87 Athens-Clarke County, GA 7.00 Lafayette, IN 6.68 St. Joseph, MO-KS 6.36 Logan, UT-ID 5.12 Albany, GA 4.94 4.92 Lebanon, PA Napa, CA 4.82 Gainesville, GA 3.84 St. George, UT 2.85 Source: Battelle calculationsbased on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group 2004 Employment 6,131 14,523 3,837 20,819 2,591 51,978 9,775 1,956 18,480 1,218 1,703 4,353 1,851 1,544 3,382 5,137 5,387 8,226 1,820 1,661 1,621 1,553 1,494 909 870 2,043 636 758 499 915 1,553 1,013 1,462 1,205 1,190 1,191 987 1,110 705 499 640 494 703 581 280
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MEDICAL DEVICES AND EQUIPMENT

Medical device and equipment firms produce a variety of biomedical instruments and other health care products and supplies for diagnostics, surgery, patient care, and laboratories.

Principal Components Equipment and supplies Devices Examples of Products Bioimaging equipment Orthopedic and prosthetic implants and devices Dental instruments and orthodontics Laser eye surgery instruments Automated external defibrillators (AEDs) Vascular stents and other implantable devices Examples of Companies Bausch & Lomb Boston Scientific Corp. Ethicon, Inc. GE Healthcare Medtronic, Inc. Siemens Medical Solutions Stryker 3M Health Care States that are Both Large and Specialized California Minnesota Massachusetts Metro Areas with the Largest Subsector Employment Levels Los Angeles-Long Beach-Santa Ana, CA Minneapolis-St. Paul-Bloomington, MN-WI New York-Northern New Jersey-Long Island, NY-NJ-PA Boston-Cambridge-Quincy, MA-NH San Jose-Sunnyvale-Santa Clara, CA


Substantial Increase, (1,000+) Moderate Increase, (1 to 999) Unchanged or Small Loss, ( 0 to -999) Substantial Loss, (-1,000 or more)
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Medical devices and equipment

Overview
The medical devices and equipment subsector employs 411,460 workers or about one-third of all U.S. bioscience jobs. This is about the same share as the research, testing, and medical laboratories subsector, which employs about 2,000 more workers nationally. Medical device and equipment producers have 15,190 establishments, with establishments in every state, Puerto Rico, and the District of Columbia. National medical device and equipment employment declined by 3.6 percent during the 2001 to 2004 period and was overtaken by the growing research, testing, and medical laboratories subsector as the largest bioscience component. This employment decline in medical devices and equipment reflects overall labor market weaknesses in manufacturing during the 3-year period. The subsector, however, faired much better than the overall manufacturing sector, which shed 13 percent of its jobs since 2001. Average annual earnings in medical device and equipment production were $56,449 in 2004. While significantly higher than many major industries and the national private sector average, this subsector has the lowest average wage in the biosciences. The two major components of the medical devices and equipment subsector are (1) devices and (2) equipment and supplies. The subsector is divided nearly equally between the two components. The devices component makes up 54 percent of total subsector employment, and equipment and supplies contributes the other 46 percent. Both components experienced similar employment declines since 2001, dropping by 4.0 and 3.2 percent, respectively.
States Employment Size. Sixty percent of national medical devices and equipment employment can be
attributed to the top 10 states. This distribution is similar to the other bioscience subsectors. Five states, led by California, have large employment bases in medical device manufacturing. Large states: California, Minnesota, Florida, Massachusetts, and New York Sizable states: Pennsylvania, Indiana, Texas, New Jersey, Puerto Rico, Illinois, and Wisconsin
Employment Growth. Overall, medical devices and equipment shed more than 15,000 jobs in the
early 2000s, or 3.6 percent of its total employment. Fourteen states and Puerto Rico, however, saw moderate job gains in medical devices. Three statesMinnesota, Indiana, and Tennesseeexperienced substantial subsector employment increases (more than 1,000 jobs) during the 2001 to 2004 period.
Employment Concentration. Twelve states and Puerto Rico have employment specializations in
medical devices and equipment. Puerto Rico again has the highest subsector LQ (as it also does in drugs and pharmaceuticals). Specialized states: Puerto Rico, Minnesota, Utah, Delaware, Massachusetts, Indiana, Connecticut, New Hampshire, California, Wisconsin, Nebraska, New Jersey, and Colorado Concentrated states: South Dakota, Pennsylvania, and Tennessee
Large and Specialized States. Three states have both a large and specialized employment base in
the medical devices and equipment subsector. California, Minnesota, and Massachusetts each have an LQ that exceeds 1.20 and a share of national employment at or above 5 percent (Table 9).
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Table 9. States with Large and Specialized Employment Bases in the Medical Devices and Equipment Subsector Establishments, 2004 2,381 392 459 Employment, 2004 73,115 25,583 21,755 Share of U.S. Principal Key Employment Component 17.8% Devices 6.2% Devices 5.3% Devices
State California Minnesota Massachusetts
LQ 1.54 3.05 2.11
Metropolitan Statistical Areas Employment Size. The five MSAs with the most employment in medical devices and equipment account for nearly one-quarter of national employment. These top metro areas include Los Angeles-Long Beach-Santa Ana, CA; Minneapolis-St. Paul-Bloomington, MN-WI; New York-Northern New JerseyLong Island, NY-NJ-PA; Boston-Cambridge-Quincy, MA-NH; and San Jose-Sunnyvale-Santa Clara, CA (Table 10). Employment Concentration. The top three most specialized metro areas within the large MSA
division are Salt Lake City, UT; San Jose-Sunnyvale-Santa Clara, CA; and Minneapolis-St. PaulBloomington, MN-WI. The medium-sized MSAs are led by Boulder, CO; Santa Rosa-Petaluma, CA; and Santa Barbara-Santa Maria-Goleta, CA. Among the small MSA division, Glens Falls, NY; Bloomington, IN; and Flagstaff, AZ, have the greatest degree of local employment concentration (Table 11).
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Table 10. Metropolitan Statistical Areas with the Largest Employment Levels in Medical Devices and Equipment Metropolitan Statistical Area Employment Los Angeles-Long Beach-Santa Ana, CA 28,304 Minneapolis-St. Paul-Bloomington, MN-WI 23,148 New York-Northern New Jersey-Long Island, NY-NJ-PA 19,252 Boston-Cambridge-Quincy, MA-NH 15,874 San Jose-Sunnyvale-Santa Clara, CA 12,485 Chicago-Naperville-Joliet, IL-IN-WI 12,337 San Francisco-Oakland-Fremont, CA 11,832 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 10,277 Salt Lake City, UT 8,208 Miami-Fort Lauderdale-Miami Beach, FL 7,639 Dallas-Fort Worth-Arlington, TX 6,648 Milwaukee-Waukesha-West Allis, WI 6,360 Tampa-St. Petersburg-Clearwater, FL 6,083 Seattle-Tacoma-Bellevue, WA 5,798 San Diego-Carlsbad-San Marcos, CA 5,559 Pittsburgh, PA 5,065 Indianapolis, IN 4,808 Atlanta-Sandy Springs-Marietta, GA 4,744 Providence-New Bedford-Fall River, RI-MA 4,579 Cleveland-Elyria-Mentor, OH 4,452 Riverside-San Bernardino-Ontario, CA 4,430 Rochester, NY 4,293 Denver-Aurora, CO 3,890 New Haven-Milford, CT 3,636 Portland-Vancouver-Beaverton, OR-WA 3,568 Source: Battelle calculationsbased on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group
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Table 11. Metropolitan Statistical Areas with the Highest Location Quotients in Medical Devices and Equipment Metropolitan Statistical Area Location Quotient 2004 Employment Large MSAs (Total Private Employment Greater than 250,000): Salt Lake City, UT 4.79 8,208 San Jose-Sunnyvale-Santa Clara, CA 4.41 12,485 Minneapolis-St. Paul-Bloomington, MN-WI 4.27 23,148 New Haven-Milford, CT 3.16 3,636 Rochester, NY 2.83 4,293 Worcester, MA 2.73 2,722 Milwaukee-Waukesha-West Allis, WI 2.40 6,360 Boston-Cambridge-Quincy, MA-NH 2.14 15,874 Knoxville, TN 2.11 2,039 Providence-New Bedford-Fall River, RI-MA 2.06 4,579 Bridgeport-Stamford-Norwalk, CT 2.04 2,743 Jacksonville, FL 1.98 3,448 San Francisco-Oakland-Fremont, CA 1.92 11,832 Memphis, TN-MS-AR 1.86 3,477 Indianapolis, IN 1.83 4,808 Medium MSAs (Total Private Employment Between 75,000 and 250,000): Boulder, CO 5.83 2,748 Santa Rosa-Petaluma, CA 4.57 2,712 Santa Barbara-Santa Maria-Goleta, CA 4.22 2,312 Kalamazoo-Portage, MI 4.06 1,773 Utica-Rome, NY 3.52 1,233 Reading, PA 3.20 1,669 St. Cloud, MN 3.05 902 Madison, WI 3.00 2,752 Scranton--Wilkes-Barre, PA 2.91 2,319 Fort Collins-Loveland, CO 2.41 889 Charleston-North Charleston, SC 2.40 1,816 York-Hanover, PA 2.13 1,170 Deltona-Daytona Beach-Ormond Beach, FL 2.12 1,034 Lincoln, NE 2.08 957 Saginaw-Saginaw Township North, MI 2.05 589 Small MSAs (Total Private Employment Less Than 75,000): Glens Falls, NY 15.77 2,431 Bloomington, IN 13.96 2,778 Flagstaff, AZ 7.36 1,101 Pocatello, ID 4.00 396 State College, PA 3.26 503 Jackson, MI 3.07 548 Dubuque, IA 2.82 485 Niles-Benton Harbor, MI 2.72 545 Michigan City-La Porte, IN 2.33 319 Anniston-Oxford, AL 2.33 313 Racine, WI 2.16 527 Parkersburg-Marietta, WV-OH 2.06 448 Cleveland, TN 2.03 256 Bremerton-Silverdale, WA 1.58 304 San Angelo, TX 1.52 194 Source: Battelle calculationsbased on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group
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RESEARCH, TESTING, AND MEDICAL LABORATORIES

The research, testing, and medical laboratories subsector includes a range of activities; from highly research-oriented companies working to develop and commercialize new drug discovery/delivery systems, to more service-oriented firms engaged in medical and other testing services.

Principal Components Research laboratories Medical/diagnostic laboratories Testing laboratories

Large, (5% +)
Examples of Products Functional genomics and drug discovery techniques Diagnostic testing Preclinical drug therapeutics Protein receptors Drug delivery technology Research models and laboratory support services Examples of Companies Cellomics, Inc. Charles River Laboratories, Inc. Diversa Corp. Invitrogen Corp. Laboratory Corp. of America Pharmacopeia Drug Discovery, Inc. Quest Diagnostics ViaCell, Inc. States that are Both Large and Specialized
California Pennsylvania Massachusetts New Jersey
Sizable, (3% to 4.9%) Small, (1% to 2.9%) Undersized, (0% to 0.9%)


Metro Areas with the Largest Subsector Employment Levels NY-N. NJ-Long Island, NY-NJ-PA LA-Long Beach-Santa Ana, CA Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Boston-Cambridge-Quincy, MA-NH Washington-Arlington-Alexandria, DC-VA-MD-WV
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Research, testing, and medical laboratories

Overview
The research, testing, and medical laboratories subsector is the largest, employing 413,550 U.S. workers in 2004, or 33 percent of total national bioscience employment. This robust subsector experienced strong employment growth during the 2001 to 2004 period, boosting the number of jobs by more than 31,000, or 8.2 percent. The research, testing, and medical laboratories subsector has the largest number of business establishments, 20,565 in 2004. The subsector accounts for one of every two U.S. bioscience establishments. Since 2001, the number of subsector establishments has increased by 19 percent. The subsector is unique in that it is the only one not based on manufacturing specific products. Workers in this subsector are engaged in a variety of research, development, and service activities in a laboratory setting. The subsector is divided into three distinct components: research laboratories (52 percent of the total), medical/diagnostic laboratories (47 percent of the total), and a small testing laboratories component (1 percent of the total). Despite the 2001 recession and subsequent labor market weakness, the research, testing, and medical laboratories subsector managed to add jobs. Decomposing overall subsector job growth by major components reveals that medical/diagnostic laboratories employment grew by 11.5 percent, research laboratories grew by 5.7 percent, and testing laboratories growth was essentially flat. The research, testing, and medical laboratories subsector has the second-highest average annual earnings, $65,414 in 2004. Average wages in this subsector are about equal to the average for the entire bioscience sector.
States Employment Size. The top 10 state employers in research, testing, and medical laboratories account
for 61.4 percent of total subsector employment, similar to other major bioscience subsectors. Large states: California, Pennsylvania, New York, Massachusetts, and New Jersey Sizable states: Florida, Texas, Maryland, North Carolina, Illinois, and Michigan
Employment Growth. The research, testing, and medical laboratories subsector has added more jobs
since 2001 than any other bioscience subsector, boosting employment by more than 31,000. This growth was widespread, with 37 states and Puerto Rico reporting gains. Among those states, 12 experienced substantial employment increases (more than 1,000 jobs). Pennsylvania and California led the job-gaining states, each adding more than 4,200 jobs in research, testing, and medical laboratories since 2001.
Employment Concentration. Twelve states, the District of Columbia, and Puerto Rico are
specialized in research, testing, and medical laboratory employment. Specialized states: District of Columbia, Massachusetts, Idaho, Maryland, New Mexico, New Jersey, Delaware, Puerto Rico, Pennsylvania, California, Washington, Maine, Connecticut, and Hawaii Concentrated states: North Carolina, Utah, Missouri, Kansas, and New York
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Large and Specialized States. Four states have a research, testing, and medical laboratory
employment base that is both large and specialized (Table 12). Given the recent growth of the subsector, it is likely that more states will develop a substantial large and specialized research and testing economic base.
Table 12. States with Large and Specialized Employment Bases in the Research, Testing, and Medical Laboratories Subsector Establishments, Employment, 2004 2004 2,901 70,872 945 27,488 801 23,315 824 23,093 Share of U.S. Employment 17.1% 6.6% 5.6% 5.6% Principal Key Component Research Labs Research Labs Research Labs Research Labs
State California Pennsylvania Massachusetts New Jersey
LQ 1.48 1.52 2.25 1.86
Metropolitan Statistical Areas Employment Size. The five largest research, testing, and medical laboratory MSAs account for 29 percent of total national subsector employment. These five metro areas are New York-Northern New Jersey-Long Island, NY-NJ-PA; Los Angeles-Long Beach-Santa Ana, CA; Philadelphia-CamdenWilmington, PA-NJ-DE-MD; Boston-Cambridge-Quincy, MA-NH; and Washington-ArlingtonAlexandria, DC-VA-MD-WV (Table 13). Employment Concentration. The three most specialized large metro areas in research, testing, and
medical laboratories are San Jose-Sunnyvale-Santa Clara, CA; San Diego-Carlsbad-San Marcos, CA; and Albuquerque, NM. Among mid-sized metro areas, Durham, NC; Kennewick-Richland-Pasco, WA; and Wilmington, NC, are the most specialized. Of the small metro areas, Idaho Falls, ID; Burlington, NC; and Johnstown, PA, have the highest degree of specialization in the subsector (Table 14).
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Table 13. Metropolitan Statistical Areas with the Largest Employment Levels in Research, Testing, and Medical Laboratories Metropolitan Statistical Area Employment New York-Northern New Jersey-Long Island, NY-NJ-PA 35,228 Los Angeles-Long Beach-Santa Ana, CA 24,886 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 20,578 Boston-Cambridge-Quincy, MA-NH 20,051 Washington-Arlington-Alexandria, DC-VA-MD-WV 17,168 San Diego-Carlsbad-San Marcos, CA 13,927 San Francisco-Oakland-Fremont, CA 12,831 Chicago-Naperville-Joliet, IL-IN-WI 12,187 San Jose-Sunnyvale-Santa Clara, CA 10,356 Detroit-Warren-Livonia, MI 9,412 Baltimore-Towson, MD 7,714 Miami-Fort Lauderdale-Miami Beach, FL 6,894 Seattle-Tacoma-Bellevue, WA 6,585 St. Louis, MO-IL 6,559 Kansas City, MO-KS 5,810 Dallas-Fort Worth-Arlington, TX 5,727 Pittsburgh, PA 5,488 Durham, NC 5,273 Houston-Baytown-Sugar Land, TX 5,217 Phoenix-Mesa-Scottsdale, AZ 4,672 Atlanta-Sandy Springs-Marietta, GA 4,362 Tampa-St. Petersburg-Clearwater, FL 4,190 Albany-Schenectady-Troy, NY 3,634 Albuquerque, NM 3,570 Minneapolis-St. Paul-Bloomington, MN-WI 3,301 Source: Battelle calculationsbased on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group
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Table 14. Metropolitan Statistical Areas with the Highest Location Quotients in Research, Testing, and Medical Laboratories Metropolitan Statistical Area Location Quotient Large MSAs (Total Private Employment Greater than 250,000): 3.60 San Jose-Sunnyvale-Santa Clara, CA 3.54 San Diego-Carlsbad-San Marcos, CA Albuquerque, NM 3.33 Albany-Schenectady-Troy, NY 3.05 Boston-Cambridge-Quincy, MA-NH 2.66 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2.41 New Haven-Milford, CT 2.18 Washington-Arlington-Alexandria, DC-VA-MD-WV 2.14 Baltimore-Towson, MD 2.06 2.05 San Francisco-Oakland-Fremont, CA Kansas City, MO-KS 1.95 Knoxville, TN 1.84 Salt Lake City, UT 1.82 Raleigh-Cary, NC 1.80 St. Louis, MO-IL 1.57 Medium MSAs (Total Private Employment Between 75,000 and 250,000): Durham, NC 6.98 6.72 Kennewick-Richland-Pasco, WA Wilmington, NC 4.06 Trenton-Ewing, NJ 3.98 Norwich-New London, CT 3.48 3.47 Barnstable Town, MA Ann Arbor, MI 3.08 Boulder, CO 2.49 Oshkosh-Neenah, WI 2.42 South Bend-Mishawaka, IN-MI 2.22 1.97 Spokane, WA Palm Bay-Melbourne-Titusville, FL 1.93 Lincoln, NE 1.67 1.64 Kingsport-Bristol-Bristol, TN-VA 1.64 Santa Barbara-Santa Maria-Goleta, CA Small MSAs (Total Private Employment Less Than 75,000): Idaho Falls, ID 15.64 Burlington, NC 4.91 Johnstown, PA 3.22 Muncie, IN 2.79 2.73 Hinesville-Fort Stewart, GA Santa Fe, NM 2.36 2.31 Warner Robins, GA Bangor, ME 2.13 Columbia, MO 2.11 1.91 Valdosta, GA Cheyenne, WY 1.73 1.67 Redding, CA Coeur d'Alene, ID 1.63 Ames, IA 1.55 Logan, UT-ID 1.49 Source: Battelle calculationsbased on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group
2004 Employment 10,356 13,927 3,570 3,634 20,051 20,578 2,548 17,168 7,714 12,831 5,810 1,805 3,169 2,379 6,559 5,273 1,928 1,542 2,316 1,152 1,032 1,498 1,188 683 975 1,177 1,198 783 620 910 2,499 966 565 417 101 386 254 452 435 288 177 329 241 158 205
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Summary and Conclusion

The national bioscience industry cluster is large and growing. In 2004, the sector employed more than 1.2 million U.S. workers and has grown by more than 1 percent since 2001 despite sluggish job growth in the national economy during this period. More than 40,000 business establishments across all 50 states, the District of Columbia, and Puerto Rico are involved in activities ranging from agricultural and chemical production, to drug and pharmaceutical manufacturing, and research and testing activities in a laboratory setting. Biosciences in the U.S. are relatively widespread across four major subsectors. The two largest each account for one-third of total bioscience employmentresearch, testing, and medical laboratories; and medical devices and equipment. The research, testing, and medical laboratories subsector has experienced strong employment growth during the early 2000s and has overtaken the medical devices and equipment subsector as the largest component of the biosciences. Drug and pharmaceutical production accounts for 25 percent of total bioscience employment, and agricultural feedstock and chemicals makes up the remaining 8 percent. The major subsectors vary in their employment distribution across different states; and while many states are heavily involved in a number of subsectors, no one state has a large employment base in every one. Nineteen states and Puerto Rico have a sizable employment base (3 percent or more of total U.S. employment) in at least one of the subsectors. Seven states have a large employment base (5 percent or more of total U.S. employment) in at least two of the bioscience subsectorsCalifornia, Florida, Illinois, Massachusetts, New Jersey, New York, and Pennsylvania. Only two of those states are considered to have a large employment base in three of the four subsectorsCalifornia and New York. Thirty-seven states and Puerto Rico are considered to be specialized in at least one of the bioscience subsectors. Nine states are specialized in two industry subsectors; and Connecticut, Indiana, and Puerto Rico have a specialization in three of the bioscience subsectors. New Jersey is the only state to specialize in all four subsectors. Eleven states and Puerto Rico have both large and specialized employment bases in at least one of the four bioscience subsectors. That is, they have an employment level that represents at least 5 percent of the U.S. total, and they possess an LQ greater than or equal to 1.20. Five statesCalifornia, Illinois, Massachusetts, New Jersey, and Pennsylvaniaare both large and specialized in two of the major subsectors (Table 15). Bioscience workers earn higher wages than their counterparts in most major U.S. industries. The average salary in the biosciences is $65,775 in 2004, significantly more than the average national private sector salary, $39,003. These wages reflect a demand for workers with more education and skills, across a variety of occupations. Metropolitan areas of all sizes are heavily engaged in bioscience activities. While the five largest bioscience metro areas account for anywhere from 20 percent to nearly 40 percent of total national employment in one particular subsector, these bioscience activities are widespread; with hundreds of metropolitan areas throughout the United States having some commercial or research involvement in the biosciences.
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Table 15. States with Large and Specialized Bioscience Subsectors Agricultural Medical Feedstock Devices and Drugs and and Pharmaceuticals Equipment States Chemicals California X Illinois X X Indiana X Iowa X Massachusetts X Minnesota X New Jersey X North Carolina X Ohio X Pennsylvania X Puerto Rico X Texas X
Research, Testing, and Medical Laboratories X
X X
In fact, 193 of the nations 361 MSAs have a specialization in at least one of the four bioscience subsectors. Among these, 13 MSAs have an employment specialization in three subsectors; and two metro areas have a specialization in all four subsectorsLincoln, NE, and Madison, WI. Lincoln is listed among the top 15 mid-sized metro areas in terms of its location quotient in all four subsectors. Though it has a specialization in every subsector, Madison appears in only one list of the 15 most concentrated metro areas (in medical devices and equipment). The states and many metropolitan areas have made an important investment in the bioscience industry. Bioscience activities are diverse, and a regions level of adoption and technological sophistication can vary considerably. While each state is unique in these respects, those that have invested in the biosciences realize a significant return in the form of new, high-paying jobs in a growing and sustainable cluster of industries. The next section of the report focuses on specific state bioscience initiatives.
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Across the nation, states and communities are striving to create robust local innovation economies in order to benefit from the high-paying jobs and positive quality of life associated with them. This effort, known as technology-based economic development (TBED), is characterized by approaches that encourage creation and growth of knowledge-based companies and development of the elements necessary for technology clusters to form and become self-sustaining. In large part, states are using TBED programs to support the development of their bioscience sectors; but, in some cases, states have developed programs to meet unique needs of the bioscience sector, such as the need for wet-lab space and help in developing expensive facilities. Strategies states pursue to develop their technology economies in general, and to develop the biosciences in particular, include the following: Building R&D capacity by investing in R&D facilities, investing in research, and providing funding for faculty and researchers. Encouraging academic/industrial interaction by helping to link companies with expertise within the universities, providing funding for collaborative projects, and supporting facilities and equipment that can be used by academic and industrial researchers. Moving technology into the marketplace by providing commercialization assistance to entrepreneurs and researchers and funding for proof-of-concept activities. Making capital available by offering direct investment programs or providing incentives for others to invest in venture capital funds. Providing space for start-up and emerging companies by creating incubators and multitenant buildings, developing research parks, and assisting companies with their facility financing needs. Addressing talent needs through workforce development programs, postsecondary education programs, and initiatives designed to strengthen K-12 science and math education. Table 16 provides an overview of the types of initiatives that states are supporting to pursue these strategies.
A Note About Classifying State Initiatives Developing an accurate list of the number of states undertaking specific bioscience initiatives is a challenge. Categorizing state technology-related economic development programs is inherently difficult because programs with the same name may have different objectives and operate in different ways from state to state. Also, no single set of definitions exists for terms such as pre-seed capital or commercialization funding. A good faith effort was made to categorize the states bioscience initiatives using standard criteria. For example, to be considered a bioscience incubator, an incubator must include wet-lab space. Table 16 contains best estimates of the number of states undertaking each bioscience initiative as of March 15, 2006. Please note that these numbers are constantly changing as additional states undertake new initiatives and new legislation is enacted. The purpose of the table is to indicate the areas of significant activity.
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Table 16. State Bioscience Initiatives, 2006 Number of States 8 2004 2006
33 23 9 17 4 19 22 44 27 14 15 6 17 5 23 46 8 NA 21 8 21
State Strategies
Building bioscience R&D capacity
State Bioscience Initiatives

Investing in bioscience R&D buildings Research programs that support bioscience R&D o Bioscience-specific R&D programs Faculty development programs Bioscience-specific faculty development programs University/industry matching grant programs Bioscience facilities to serve academic researchers and industry, e.g., bioprocessing facility Commercialization funds Supporting bioscience entrepreneurs and emerging bioscience firms o Bioscience specific programs 9 Pre-seed and seed capital o Bioscience seed funds o Tax credits to encourage investment in technology companies and/or venture capital funds o Small Business Innovation Research (SBIR) grants Venture capital o Direct state investment in firms o Fund of Funds backed by contingent tax credits o Direct state investment in venture capital funds Bioscience facilities programs Bioscience incubators Bioscience research parks Talent recruitment Postsecondary bioscience programs K -12 outreach
Encouraging academic/ industrial interaction Moving technology into the marketplace
Making capital available
13 NA 27 5 8 16 3 43 19
10
Providing space for bioscience companies
NA 37 12
Addressing talent needs
The 2006 data on state bioscience initiatives clearly shows that states are continuing to invest in the biosciences, with activities underway in all 50 states and Puerto Rico. The area of greatest activity is in investing to build the R&D capacity of the state. Twenty-seven states report programs that fund bioscience research, and 44 states reported investments in major bioscience R&D facilities that were either completed or under construction during the 20042006 time period. Another area that is receiving increased attention is initiatives that provide funds to attract world-class researchers. Fifteen states report having faculty development programs that provide funding to do this, up from nine programs in 2004. States are not only investing in the bioscience R&D base, but they are supporting programs aimed at ensuring that research discoveries will lead to commercial opportunities. Forty-six states reported programs that provide support to bioscience entrepreneurs; and, while the majority of these are not specific to the biosciences, eight states reported entrepreneurial support programs that are exclusively
8
10
The 2006 data are out of a total of 51, including the 50 states and Puerto Rico, the 2004 data include only the 50 states. This figure does not include the many bioscience incubators that provide in-depth assistance to client companies and, in some cases, to nonclient companies as well. Comprehensive data on workforce and education programs were not collected. 38
targeted to meeting the needs of bioscience companies. Twenty-two states reported commercialization funds, sometimes funded by state government and sometimes by universities, that provide funding to address the gap between the point at which research is completed and a discovery made and the point at which a commercial opportunity has been identified. Another gap that states continue to try to address is the availability of pre-seed and seed capital as well as local venture capital for bioscience companies. Twenty-one states report that they provide pre-seed or seed capital, defined here as being up to $2 million. Seven states report bioscience pre-seed or seed funds. Two ways in which states are encouraging the development of local venture capital markets is by offering tax credits to individuals (angel investors) who invest in start-up companies or local seed or venture capital companies. Twenty-one states offer angel investor or venture capital tax credits. States have also sought to attract established venture funds to locate an office in their state or agree to make a good faith effort to invest in companies in their state by investing state dollars in privately managed funds. Sixteen states report that they have invested state funds in private venture capital funds. States have also been active in helping to meet the space needs of bioscience companies. Forty-three states report that they have developed wet-lab incubators for start-up companies, and 19 states report that they have developed at least one bioscience research park. While the need for financing construction and fit-out space for growing bioscience companies is recognized, only three states report programs to help companies with these costs. A number of other states, however, use traditional economic development programs to provide financing for facilities development. In terms of programs to encourage university/industry interaction, there was no change between 2004 and 2006 in the number of university/industry matching grant programs and there are still few states that have developed bioscience facilities to serve both academic and industrial users. The initiatives associated with each strategy are discussed below. The examples of state programs that are included in this section are meant to be illustrative. For a comprehensive look at what each state is supporting, please see the individual state profiles.
Building Bioscience R&D Capacity

States seek to build their bioscience R&D capacity by investing in bioscience R&D, investing in the facilities and equipment needed to support bioscience researchers, and providing funding to enable universities to attract high-caliber researchers.
Recent state investments in facilities

A trend noted in the 2004 report was that states were investing in facilities and equipment in order to build bioscience research capacity at their universities under the assumption that state-of-the-art research facilities affect an institutions ability to recruit and retain outstanding research talent. The rationale is that sufficient and modern research facilities attract bioscience talent, and that talent, in turn, attracts federal and industry research dollars. This is a much different paradigm than that of the past, but one that the data show many regions and states are embracing. The states, in the aggregate, reported that billions of dollars are being spent to construct, expand, and modernize their academic and medical research facilities, with funding for these facilities coming from state, federal, and private sources. Forty-four states and Puerto Rico reported that major new bioscience research buildings had been constructed since 2004 or are currently under construction. Arizona passed
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legislation in 2003 authorizing $440 million for construction of university research facilities, primarily in the biosciences. South Carolina passed the Research University Infrastructure Act loosening a cap on state borrowing to accommodate $220 million in general obligation bonds for university facilities. Between 2000 and 2005, the Minnesota Legislature approved $240 million in bond funding for bioscience-related science laboratories throughout the state. Proposals for an additional $160 million have been introduced in the 2006 legislative session, and a bill is expected to be introduced in the 2006 Legislature that would authorize the state to create a $330 million bond fund for a newly created Minnesota Biomedical Sciences Research Facilities Authority. The proposal is part of a plan of the University of Minnesota to hire 500 new researchers and build one new laboratory building every 2 years over the next decade. In Utah, legislation has been introduced (SB 75 of 2006) to authorize $111 million in bonding authority to fund construction. New York has made significant investments in bioscience facilities through the Governors $250 million Centers of Excellence program, which funded the 150,000-square-foot Center of Excellence in Bioinformatics and Life Sciences at the State University of New York (SUNY) at Buffalo, and through Gen*NY*sis and capital programs of the New York State Office of Academic Research and Technology (NYSTAR). Gen*NY*sis is a separate capital program that has contributed to bioscience facilities and programs across the state, including projects co-funded with SUNY such as a 194,000-square-foot, $78 million life science building at the East Campus of the University at Albany that houses the universitys Center for Functional Genomics and related programs. NYSTARs capital program operates at two levels: the Strategically Targeted Academic Research Centers, large-scale funded at $15 million to serve as a significant funding source for major building programs; and Academic Research Centers, funded at up to $4 million each, representing construction and fit-out of new laboratory suites for targeted projects. Puerto Rico allocated $14 million this year for a Puerto Rico Science, Technology and Research Trust, a separately governed entity that will be capable of making grants, loans, or other investments supporting research and infrastructure projects across three fields, including the life sciences and healthcare.
Research programs
States have taken four approaches in terms of their bioscience research investments. In some cases, they make competitive R&D awards. Some of these direct grant programs are targeted to the biosciences; others are available across a range of technology areas. States also provide seed funding to help position young researchers to obtain federal funds and funding to enable their universities or other research institutions to attract major funding for research centers. Other states fund research centers or centers of excellence directly. Twenty-seven states reported that they provide support for bioscience R&D (Table 17).
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Table 17. State Support for Bioscience R&D Programs State Arizona Arkansas Bioscience R&D Programs Arizona Biomedical Research Commission Arkansas Biotechnology Institute Arkansas Science and Technology Authority (ASTA) Research Matching Fund California Institute of Regenerative Medicine Stem Cell Research Funding Georgia Cancer Research Fund Description Advances biotechnology by funding translational research projects Tobacco settlement funds Provides matching funds for federal awards Annual Funding $12 million $12 million to $13 million $1 million
California Connecticut Georgia
$3 billion in bond funding over 10 years Supports advancement of embryonic and human adult stem cell research Supports research on the prevention, treatments, and cures for breast, ovarian, and prostate cancer
Florida
Kansas
James and Esther King Biomedical Research Program Higuchi Bioscience Center Kansas Technology Enterprise Corporations Strategic Technology and Research Fund and Experimental Program to Stimulate Competitive Research (EPSCoR) support Research Challenge Trust Fund
New Investigator Research Grants Team Science Program Grants Small BusinessTechTransfer Grants One of 5 Centers of Excellence (CoEs) that receive annual state funding Support applied R&D
$20 million through 2007 Funded through tax check-off program, $1.4 million contributed since 2000 $8 million
$6.5 million supports 5 CoEs $2.4 million
Kentucky
Uses state funds to match private donations supporting research in strategically defined areas
Regional University Excellence Trust Fund Kentucky Science and Engineering Foundation R&D Excellence Program
Supports new teaching and research opportunities for faculty Awards funding to university faculty in states research priority areas, which includes the biosciences
$6 million a year for 4 years transferred to the base budgets of the university to create a perpetual source of funding $120 million bond issue in 20022004
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Table 17. State Support for Bioscience R&D (continued) State Louisiana Bioscience R&D Programs Louisiana Cancer Research Consortium (LCRC) Louisiana Board of Regents Support Fund Description Louisiana dedicated 3 cents of a 12-cent tax on cigarettes to provide ongoing funding to the LCRC Awards funds to improve the competitiveness of LA researchers in competing for non-state support for basic research Annual funding to support 5 centers of excellence Provides up to $500,000 to programs that build research capacity Institute also funds smaller regional projects in the range of $25,000 to $500,000 Provides seed funding to help position campuses to develop and compete for major new S&T initiatives Provides funding for basic and applied research and commercialization Collaboration of Mayo Clinic and University of Minnesota (U of M), state is providing matching support for collaborative research projects Funding research on biohydrogen and other renewable energy sources Awards competitive seed grants for research in the life sciences and biotech Academic seed fund initiative funded by the Board of Regents New Jersey Commission on Science and Technology (NJCST) awarded $5 million in grants and a Stem Cell Institute is being created Maintains a pool to match federal R&D awards The North Carolina Biotechnology Center (NCBC) awards grants of up to $250,000 for up to 2 years for projects involving 3 or more scientists from different disciplines Grants to support large-scale worldclass research and technology development platforms Awards grants to support biomedical and biotechnology research Seed funds for research projects related to human health Annual Funding $10.5 million
$20 million to $25 million $15 million $20 million
Maryland Massachusetts
University Maryland Biotechnology Institute Research Center Matching Fund of the Adams Innovation Institute
Michigan Minnesota
University of Massachusetts (UMass) Science and Technology (S&T) Initiatives Fund 21st Century Jobs Fund Minnesota Partnership for Biotechnology and Medical Genomics
$1 million
$100 million $15 million from state to be matched by Mayo and U of M $2 million
Mississippi
Nebraska New Jersey
U of M Initiative for Renewable Energy and the Environment Mississippi State Universitys (MSUs) Life Sciences and Biotechnology Institute Nebraska Research Initiative Stem Cell Research
--
-TBD
New York North Carolina
Centers for Advanced Technology Multidisciplinary Research Grants
Varies
Ohio
Wright Centers of Innovation Biomedical Research and Commercialization Program Oklahoma Health Research Program
$50 million to $60 million over 5 years
Oklahoma
$3.6 million
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Table 17. State Support for Bioscience R&D (continued) State Pennsylvania Bioscience R&D Programs Commonwealth Universal Research Enhancement Fund Science Technology and Research Trust Research Centers Program Research Seed Grants Description Awards grants to universities, research institutes, and hospitals Funding to support research and infrastructure in 3 fields including the life sciences and healthcare Created 4 Centers of Excellence, 3 of which are bioscience related Grants pay for 25% of a faculty members salary for 1 academic year plus 1 summer months salary Supports geographically distributed projects Competitive grant program open to researchers at public universities Assists institutions in leveraging federal or private resources Annual Funding $72 million
Puerto Rico
$14 million
South Dakota
Initial awards of $2.8 million $445,000
Tennessee Texas
Tennessee Mouse Genome Consortium Advanced Research Program Research Grant Matching Program
Washington
Life Science Discovery Fund Consortium on Biobased Industry
Support for life science R&D, requires 2:1 match Funds new product development
Wisconsin
$3 million for the biosciences Part of Emerging Technologies Fund $35 million starting in 2008 $5 million
The State of Washington is one of the states that has earmarked a portion of its tobacco settlement dollars to fund bioscience R&D. Its $350 million Life Sciences Discovery Fund (SB 5581) will begin allocating $35 million annually to research projects with economic-development potential, possibly including recruitments and facility enhancements. The state projects that it will leverage $1 billion in additional external research funding over its 10-year lifetime and create 20,000 jobs within about 15 years. The fund adopts a broad definition of the life sciences, encompassing biotech, pharmaceuticals, biomedical technologies, life system technologies, nutraceuticals, cosmeceuticals, food processing, environmental, and biomedical devices. It is governed by an 11-member board of trustees that will evaluate grants for their potential health-care impact, future employment impact, and geographic diversity. A 2:1 match from external sources will be required. An example of another program that makes competitive awards for bioscience R&D is Ohios Biomedical Research and Commercialization Program. It awards grants to support biomedical and biotechnology research leading to Ohio commercialization and long-term improvements to the health of Ohioans. Projects are required to be collaborations among Ohio higher education institutions, nonprofit research organizations, and Ohio companies in the areas of human genetics and genomics, structural biology, biomedical engineering, computational biology, plant biology, and environmental biology. Many states provide funding for health-related research. The Arizona Biomedical Research Commission, for example, advances medical research by contracting with individuals, organizations, corporations, and institutions to carry out peer-reviewed scientific projects within Arizona. With
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$12 million in annual funding, the commission advances biotechnology by funding translational research projects and assisting in the removal of impediments to interinstitutional biomedical research collaborations. Louisiana and Georgia are two states that have created an ongoing source of funding for cancer research. In 2002, the Legislature approved a 12-cent-a-pack tax increase on cigarettes, 3 cents of which are being used to provide ongoing funding to the Louisiana Cancer Research Consortium, a joint venture of the Louisiana State University Health Sciences Centers in New Orleans and Shreveport and the Tulane University Health Sciences Center. Approximately $10.5 million is being generated annually from this tax. In addition, the Louisiana Board of Regents has created a Competitive Advantage Fund that can provide up to $50,000 to LCRC investigators. The Georgia Cancer Research Fund, administered by the Georgia Cancer Coalition (GCC), provides grants to support research on the prevention, treatments, and cures of breast, ovarian, and prostate cancer. Funding for the program comes from the Georgia Department of Revenue, through a tax check-off on Georgias income tax return form. Approximately $1.4 million has been contributed by Georgians on their state tax returns since the start of the program in 2000. States are also providing seed grants to help position younger faculty to compete for federal bioscience funding. Florida is using a portion of its tobacco settlement to provide support for young faculty through its James and Esther King Biomedical Research Program. Grants are made in three categories: New Investigator Research Grants, up to $150,000 a year for 3 years Team Science Program Grants intended to prepare Florida institutions for NIH program/project and research center awards Small Business Technology Transfer (STTR) Grants to explore feasibility of joint commercialization of technology, up to $100,000 over a year. In the most recent year, this program allocated $8 million to 16 projects. MSUs Life Sciences and Biotechnology Institute (LSBI) was established to promote economic development and to create high-quality employment opportunities in Mississippi. LSBI awards competitive seed grants for research in the life sciences and biotechnology. The program seeks to fund projects that will position researchers to compete successfully for federal R&D funding in the future. Louisiana, Massachusetts, Nebraska, and South Dakota are among the states that also provide seed funding for young investigators. Another way in which states seek to build bioscience R&D strengths in targeted areas is by creating and supporting research centers or centers of excellence. Massachusetts has created a Research Center Matching Fund that provides support up to $500,000 to programs that build research capacity. Recent investments include a Center of Excellence in Apoptosis Research at the Pioneer Valley Institute and investigation of biomedical applications at a joint nanotechnology initiative among several institutions. Smaller Development Grants have been made to the Massachusetts Institute of Technology (MIT) Center for Biomedical Innovation, an industry/university partnership; and the Massachusetts Biomanufacturing Center, a joint initiative of UMass Lowell, Worcester Polytechnic Institute, Tufts University, and UMass Dartmouth. In New York, NYSTAR funds a series of 15 Centers for Advanced Technology (CATs) charged to conduct applied research in close partnership with New York State companies. Each center is funded at $1 million per year, and several will make grants available to faculty outside the home university
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provided they bring a matching partner. Several CATs with bioscience focus were renewed for 10 years after a recent program review: Center for Biotechnology, a biomedically oriented program at Stony Brook University Center for Life Science Enterprise at Cornell, which integrates this originally agbiotech-oriented program into a larger Institute for Biotechnology and Life Sciences Center for Advanced Biomedical and Bioengineering Technologies, a medical-deviceoriented center at the University at Buffalo Center for Photonic Applications, which is exploring multiple medical applications of photonic sensing in laboratories at the City University of New York Center for Advanced Information Management at Columbia University, which has medical informatics as one of three focus areas. Most states also routinely provide matching support to help their research institutions compete for large, federally funded centers. Many do so through appropriations and existing programs, rather than through specific programs created for that purpose.
Faculty development programs

As noted above, states are investing in bioscience research facilities in order to attract talent to their universities. States are also providing funding to recruit such faculty. Fifteen states reported faculty development programs, most of which provide endowments to attract Eminent Scholars. Arkansas, Indiana, New York, North Carolina, Oklahoma, and Pennsylvania have programs that are specifically targeted to the biosciences (Table 18).
Table 18. State Faculty Development Programs State Arkansas Georgia Faculty Development Programs Arkansas Biotechnology Institute recruited 12 faculty last year, bringing the total to 25 Georgia Eminent Scholars Cancer Coalition Distinguished Cancer Clinicians and Scientists Program Georgia Research Alliance (GRA) Distinguished Investigator Award Lilly endowment provided Indiana University (IU) with $155 million for the INGEN, the Indiana Genomics Network; these funds have been used for facilities and recruitment Endowment Match Program Endowed Chair for Eminent Scholars Program Endowed Chairs and Professorships Program Proposed Lewis and Clark Discovery Initiative would include $20 million for endowed professorships Faculty Development Program James D. Watson Young Investigator Awards University of North Carolina system has a trust fund for faculty recruitment NCBC provides $150,000 to recruit bioscience faculty Eminent Scholars Program Health Research Scientist Recruitment and Retention Program Keystone Innovation Zone Starter Kits Pittsburgh Life Sciences Greenhouse (PLSG) Opportunity Fund 45
Indiana
Kentucky Louisiana Missouri
New York North Carolina
Ohio Oklahoma Pennsylvania
Table 18. State Faculty Development Programs (continued) State South Carolina Tennessee Faculty Development Programs Centers of Excellence Faculty Recruitment Program, $96 million for bioscience recruitments in the past 3 years Governors Chairs Program Chairs of Excellence Program of the Tennessee Higher Education Commission Research Capacity Program Research Development Fund $500 million Higher Education Endowment, of which $70 million will be used to endow faculty chairs
Texas Wyoming
The attraction of Eminent Scholars has been at the core of Georgias efforts to build its technology sector. Under the Georgia Research Alliance Eminent Scholars program, Georgia recruits renowned scientists to Georgia from many parts of the world to lead R&D programs with high potential economic development impact for the state. To date, more than 50 Georgia Research Alliance Eminent Scholars have been recruited to the University of Georgia, Medical College of Georgia, Emory University, Clark Atlanta University, Georgia Institute of Technology, and Georgia State University. The majority of these Georgia Research Alliance Eminent Scholars are in the biosciences. In an effort to retain talented researchers and reward them for their success, GRA has just awarded its first Georgia Research Alliance Distinguished Investigator Award. These awards will be made to researchers at GRA-affiliated institutes who have demonstrated outstanding work in the biosciences or advanced communications and computing. Each one will receive an endowment funded by GRA and his or her home institution. The first award went to a professor of plant biology and genetics at the University of Georgia. The goal of the program is to retain Georgias How the Recruitment of an Eminent best and brightest scholars.
Scholar Results in TBED
Goergia also has a program aimed at attracting clinicans and scientists. The GCCs Distinguished Cancer Clinicians and Scientists Program is designed to assist Georgias research universities, medical schools, and nursing programs in recruiting top cancer researchers. The GCC provides funding to help recruit these clinicians and scientists ranging from $50,000 to $150,000 per year for 5 years. In FY 2005, GCC allocated $4.8 million from the states tobacco settlement dollars to this program.
Wake Forest University recruited a researcher and his 20-person research team from Harvard to build both human organs and related companies in WinstonSalem. During his first year at Wake Forest, he tripled the size of his research team, attracted two companies from the Northeast to Winston-Salem, and filed 15 patent applications. Business Journal of the Greater Triad Area, April 4, 2005.
Pennsylvanias Ben Franklin Technology Development Authority recently announced Keystone Innovation Zone Starter Kits to be used in conjunction with KIZ grants to attract faculty across multiple fields. These awards will average about $200,000 per institution. If the Jonas Salk Legacy Fund proposed by the Governor is enacted, an additional $100 million would be used to enhance the Keystone Innovation Zone Starter Kit program. In addition, the Pittsburgh Life Sciences Greenhouse offers an Opportunity Fund to help universities attract faculty members in the four areas it has targeted. Wyoming created a $550 million Higher Education Endowment (Chapter 190 of 2005 Session Laws, Senate File 122), to be financed by federal mineral royalties. Of the total, about $70 million will be available for Eminent-Scholar endowments in multiple fields including the biosciences.
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Oklahoma has taken a somewhat different approach. The states Health Research Scientist Recruitment and Retention Program, a subprogram within the Oklahoma Center for the Advancement of Science and Technologys (OCASTs) Oklahoma Health Research Program, supports the research projects of health research scientists who are new to Oklahoma for 1 to 3 years at a maximum of $100,000 per year. The awards are specifically designed to increase the pool of health research talent in the state.
Encouraging Academic/Industrial Interaction

Key shifts are taking place in how R&D is conducted, demanding new types of strategic alliances to gain competitive advantages from research capabilities. With the decline of major corporate research laboratories and a focus by corporations on diversifying the sources of innovation upon which they draw, there is a rising need for strategic alliances across universities and industry to fill the demand for innovation. Surprisingly, there has not been an increase in state programs to encourage academic/industrial interaction. The most common, and thought by many in the field to be the most effective, means of fostering greater university and industry interaction is to provide matching grants for research partnerships. Other mechanisms states have used to facilitate university and industry partnerships are to create centers that conduct industrially driven research or that offer facilities that can be used by academic researchers and industry users. Nineteen states reported having programs that support university and industry collaborative research programs; however, only three of these are targeted exclusively to the biosciences (Table 19). The Pittsburgh Life Sciences Greenhouse offers a Collaborative Research Fund that funds projects matched by in-state companies. The matching requirement scales from 0.5 to 1 for the smallest companies to 1 to 1 for companies over 100 employees. The North Carolina Biotechnology Center and the Kenan Institute for Engineering, Technology and Science at North Carolina State University jointly offer Collaborative Funding Grants of up to $50,000 a year for 3years, to match university and industry contributions to joint research projects. California State Universitys (CSUs) Program for Education and Research in Biotechnology offers challenge grants of up to $30,000 for faculty conducting work in partnership with a California company. The rest of the programs reported are available across a number of technology areas, one of which is the biosciences.
Table 19. State Initiatives to Encourage University/Industry Research Partnerships State Arkansas Program Provides tax credits to companies that support research at Arkansas universities University of California (UC) Discovery Grant Grant Size Annual Budget Matching Requirement
California
Up to $25,000 annually for up to 4 years
$30 million
1 to 1
Connecticut
CSU Program for Up to $30,000 Education and Research in Biotechnology Yankee Ingenuity Up to $300,000 Technology Competition
1 to 1
$3 million
Royalty-based
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Table 19. State Initiatives to Encourage University/Industry Research Partnerships (continued) State Florida Program Industry Matching Research Grant Program Grant Size $20,000 to $100,000 Annual Budget -Matching Requirement 3 to 1 for fieldspecific competition, 2 to 1 for open competition 1 to 1
Georgia Hawaii
Indiana
GRA Innovation Fund Accelerated Research Commercialization Grants 21st Century Fund
Up to $75,000
$2.2 million
Up to $2 million
Kansas Kentucky Maryland
Applied Research Fund R&D Voucher Program Maryland Industrial Partnerships Board of Research and Commercialization Applied Research Initiative New Hampshire Industrial Research Center Innovation Investment Awards Collaborative Funding Grants North Carolina Small Business and Technology Development Center Strategic Applied Research Program Applied Research Support Program OCAST STTR Program Keystone Innovation Zones PLSG Collaborative Research Fund
$5,000 to $125,000 Up to $200,000 over 2 years Up to $100,000
$75 million for the biennium -$3 million $1.35 million
Makes loans and grants 1.5 to 1 1 to 1 Depends on size of company 1 to 4 1 to 1
Montana Nevada New Hampshire
Typically $100,000 a year for 2 years Up to $50,000 Up to $25,000
$2.6 million
$500,000
1 to1
North Carolina
Up to $50,000 Up to $20,000
--
1 to 1
Oklahoma
Up to $300,000
1 to 1
Pennsylvania
0.5 to 1 for small companies, 1 to 1 for large companies
Texas
Washington
Wisconsin
Commercialization Grant 50% of Emerging Technology Program Fund, which is currently funded at $100 million Research and Up to $100,000 for 2 years Technology Development Grant Industrial and Economic Up to $35,000 for 12 months Development Research Program
1 to 1
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Given the desire on the part of industry to partner with academic researchers and to access specialized equipment, it is surprising that only seven states reported that they have provided support for the development of bioscience facilities that are available to both the academic and industrial communities. They include the following: In Georgia, the Bioexpression and Fermentation Facility (BFF) at the University of Georgia is a molecular biology, protein, and biomass production core facility offering services and training to the University of Georgia research community, to all units of the University System, and to private industry. The BFF provides state-of-the-art instrumentation and expertise to accelerate the process from gene identification through recombinant protein production and purification to process development, scale-up, and manufacturing. The Complex Carbohydrate Research Center (CCRC) at the University of Georgia offers custom synthesis and analysis of complex carbohydrates as a service to industrial and government laboratories. The CCRC is one of the first institutions in the nation to house a 900-MHz NMR spectrometer, funded jointly by NIH/National Institute of General Medical Sciences and the GRA. Iowa has several such facilities. They include the Center for Biocatalysis and Bioprocessing (CBB) at the University of Iowa (UI) , whose state-of-the-art, pilot-scale facilities provide fermentation purification services to companies on a global basis. Recently, the State of Iowa awarded the CBB $3 million for construction of a cGMP facility to ferment and purify materials suitable for Phase I/Phase II clinical trials. The Division of Pharmaceutical Service, part of UIs College of Pharmacy, an FDA-approved pharmaceutical manufacturing facility, maintains cGMP operations and offers a wide range of services, from the manufacturing of sterile injectables to solids manufacturing and dosage formulation. The Center for Advanced Drug Development (CADD) at UI works with industry by performing a wide range of assays to obtain data for preapproved active pharmaceutical ingredients, new molecular entities, drug products, and excipients. Iowa State Universitys (ISUs) Plant Sciences Institute comprises research centers encouraging academic/industrial interaction. The institute receives $5 million annually through the general university appropriation. The Center for Nanoscale Science and Engineering at the University of Kentucky is a university/industry user research facility for the study and development of materials and devices at the nanoscale. An initial investment of $2 million in specialty fabrication techniques for thin-film deposition, lithographic pattern definition, and etching has recently been augmented by a National Science Foundation (NSF) infrastructural grant (EPSCoR) of $2.7 million. University of Marylands Technology Enterprise Institute links biotechnology businesses with University of Maryland researchers and provides ongoing technical assistance to these companies in their ongoing R&D efforts for product scale-up. The program includes a Bioprocess Scale-up Facility that offers services in fermentation, separation, purification, and product analysis to companies, academic researchers, and federal laboratories. Biodale is a suite of facilities located at the U of M St. Paul campus that provides university departments and outside companies with access to sophisticated services and equipment, such as laser scanning microscopes. More than $40 million in university, state, federal, and private funding was spent equipping Biodale member facilities. Member facilities include Bioinformatics and Research Computing Facility; Biomedical Genomics Center; Biotechnology Resource Center Fermentation Process Development and Scale-up Laboratory; High-Throughput Screening and Analysis Facility; Imaging Center; and Center for Mass Spectrometry and Proteomics.
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The Ohio MicroMD Laboratory is a technologically integrated microfabrication facility for developing biomedical microelectromechanical system (bioMEMS) devices and therapeutic applications. The combination of multiple microfabrication process lines with a complete biochemical wet-lab facility provides capabilities for the research, development, testing, and characterization of new devices. North Dakotas Center of Excellence in Life Sciences and Advanced Technologies will co-fund a 60,000-square-foot, secured, academic/industrial BSL-3 laboratory at the University of North Dakota (UND) Technology Park. The facility will house the UND Center for Infectious Disease, Proteomics, Genomics, and Bioinformatics as well as companies partnering with the center and associated emergency-preparedness training programs. It is co-funded by local government, private donors, and the U.S. Economic Development Administration. In addition to these, there are likely numerous university research centers that make equipment available to industry; but, this report has tried to capture shared-use facilities.
Moving Technology into the Marketplace

Once research yields a new discovery, a great deal of work is still to be done before the technology can be incorporated into a new product or process and introduced into the marketplace. States and universities are increasingly focusing their efforts on creating mechanisms to assist faculty, entrepreneurs, and companies through the commercialization process and providing in-depth support to start-up and emerging companies.
Massachusetts Commercialization Funds Massachusetts has multiple public and private sources to support precommercailziation research. They include the following: The Massachusetts Technology Transfer Center, funded at UMass for $1.9 million in the Economic Stimulus bill, makes Technology Assessment awards up to $5,000 and Technology Investigation awards up to $25,000 to all research institutions, both public and private. Internal to UMass, the office for Commercial Ventures and Intellectual Property has a $100,000 fund from which it makes precommercialization development grants up to $20,000. At MIT, the Deshpande Center has targeted $15 million of its $20 million endowment to support development of promising research into commercial enterprises. The center makes Ignition Awards up to $50,000 to research teams and somewhat larger Innovation Awards to help determine whether to start a company or execute a license with an existing firm. At Boston University, the Office for Technology Development, now embedded in a larger Institute for Technology Entrepreneurship, maintains resources for similar technology-development awards and to initially capitalize start-up entities. 50
Commercializing university technology

There has been a great deal of activity within the states to encourage and support the commercialization of discoveries coming out of universities, national laboratories, and other research institutions. States are providing funding to universities to build technology transfer and commercialization capacity and supporting freestanding commercialization centers that provide indepth assistance to create and grow companies, and commercialization funds that provide small amounts for proof-of-concept activities are becoming increasingly common. Iowa, New Jersey, New York, and Pennsylvania are among the states that have provided funding to universities to further build their technology transfer and commercialization activities. The Grow Iowa Values Fund is providing $5 million to the three universities under the control of the Board of Regents to expand infrastructure in the areas of technology
commercialization, entrepreneurship, and business development. During 2005, the NJCST made pools of funding available to each of the five major research universities (ranging from $100,000 to $300,000) to mount their own internal competitions for pre-commercialization research funding. The NJCST has announced its intention to provide Entrepreneurial Partnering grants up to $500,000 directly to companies partnering with New Jersey universities to commercialize intellectual property. NYSTAR offers regular rounds of a Technology Transfer Incentive Program, which makes grants up to $750,000 over 2 years to support commercialization of a university-owned technology by a New York State company, which must match the award 1:1. The program has also been used to build university infrastructure for technology transfer, including the start-up of university-affiliated business incubators. Institutions participating in one of Pennsylvanias Keystone Innovation Zones are eligible to compete for a $10 million pool of Keystone Innovation Grants, which provide up to $250,000 to build infrastructure for collaboration and technology transfer. To date, 13 institutions have received these grants. States and universities are devoting additional resources to support programs that provide in-depth, comprehensive commercialization services. These programs help entrepreneurs and companies transform ideas or innovations into products ready for manufacture, marketing, and distribution. Some states and regions, including Florida, Kansas, Oklahoma, St. Louis, and Pittsburgh, have created dedicated centers that offer a full range of commercialization support services. But, only a few states have developed programs specifically aimed at commercializing bioscience discoveries. Examples of bioscience commercialization programs include the following: The University of California at San Francisco has created and stationed at the Mission Bay campus a Bioentrepreneurship Center, which offers mentoring and training for faculty members whose discoveries might form the basis of a spin-off, as well as funding for translational drug development. The center is supported by the QB3 Institute. Vanderbilt University in Nashville partnered with Cumberland Pharmaceuticals and Tennessee Technology Development Corp. to create Cumberland Emerging Technologies (CET), a commercialization company intended to access federal SBIR funding and other sources to commercialize intellectual property licensed from Vanderbilt. Management is provided by staff from the pharmaceutical company. CET also has an agreement with the University of Mississippi School of Pharmacy to develop and commercialize new pharmaceutical products. The two groups will take innovative, early-stage University of Mississippi research through the critical phases of development and work together to pursue grant funding for these projects, with CET providing program management. It is also becoming increasingly common for universities, university alumni, and state governments to support commercialization funds that provide financing for early-stage, proof-of-concept activities. Many of these funds provide small amounts of support, generally up to about $50,000; but, some, particularly those focused on the biosciences, now provide as much as $200,000 to $500,000 (Table 20). Examples include efforts at Arizona State University (ASU) and University of Arizona, using state and private funds; the Deshpande Center at MIT and the Stevens Institute for Technology Commercialization at the University of Southern California, both funded by alumni; the St. Louis BioGenerator, supported by a combination of philanthropic and other support; Oklahomas i2E and Pittsburghs Idea Foundry and Innovation Works, one of Pennsylvanias four Ben Franklin Technology Partners. i2E, the Idea Foundry, and Innovation Works receive state funding.
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Table 20. State Commercialization Funds, Levels of Investment, and Sizes State Arizona Arkansas California Colorado Commercialization Funds 11 ASU Catalyst Fund ASTA Tech Dev. Program CalTech Grub Stake Commercial Opportunity Fund at CSU Proof-of-Concept Fund at University of Colorado Emtech Bio competitive grant fund GRA Patent Accelerator Fund (proposed) Hawaii Technology Development Venture Technology Innovation Award ISU proof-of-concept fund UI commercialization projects Kentucky Commercialization Fund University Technology Development Fund Technology Assessment Awards Technology Investigation Awards Level of Investment $25,000 to $50,000 Up to $50,000 Up to $50,000 Up to $20,000 $10,000 to $25,000 $75,000 to $100,000 $200,000 for FY 2007 $3 million Size $425,000 $1.6 million
Georgia
Hawaii Indiana Iowa Kentucky Maryland Massachusetts
Up to $400,000 Up to $100,000 $25,000 to $200,000 Up to $225,000 Up to $50,000 Up to $5,000 Up to $25,000
$825,000 $1.4 million
$450,000 Part of statewide Technology Transfer Center, funded at $1.9 million
Michigan
Minnesota
Missouri
Nebraska
New Jersey
Commercial Ventures and Intellectual Property (IP) at UMass Deshpande Center Ignition Awards and Innovation Awards Universities Commercialization Initiative University of Michigan Translational Research Initiative MSU IP Ventures Minnesota Research Fund U of M University Innovation grants Washington University Bear Cub Fund St. Louis University University of Nebraska Medical Center Technology Advancement Group funds precommercialization research Entrepreneurship Partnering Grants
Up to $20,000 $15 million for both
Up to $50,000 Up to $150,000 Up to $75,000
--
$20,000 to $50,000 $15,000 to $20,000
Up to $500,000
11
Includes both state-funded programs and university-funded programs. 52
Table 20. State Commercialization Funds, Levels of Investment, and Sizes (continued) State New York Commercialization Funds 12 Tech Transfer Incentive Program New York University Applied Research Support Fund BioAdvance Tech Commercialization Alliance in Pittsburgh Technology Development FundLSG of Central Pennsylvania Slater Technology Fund BCM Technologies Centers of Excellence Program Washington Research Foundation Gap Fund University of Washington Technology Gap Innovation Fund Robert Draper Technology Innovation Fund Level of Investment Up to $750,000 over 2 years Up to $50,000 Up to $200,000 $900,000 $900,000 Size
Pennsylvania
Up to $250,000
Rhode Island Texas Utah Washington
Up to $100,000 Up to $25,000 $20 million $500,000 $500,000 $500,000
Wisconsin
Up to $35,000
Supporting bioscience entrepreneurs and emerging companies

To ensure the greatest chance of success, entrepreneurs must have access to a comprehensive continuum of programs as they progress through the stages necessary to establish a thriving enterprise. 13 The services do not necessarily have to be provided by a single entity, but they need to be readily accessible to entrepreneurs. Support services that technology entrepreneurs value include business mentoring by successful serial entrepreneurial managers who have been involved in similar businesses and business models; in-depth counseling and advice to make the entrepreneur ready to present plans before angel and other informal investors; access to capital sources at the pre-seed/seed to later stages; and help in forming a business team of managers with commercial vision. Specific services that commercialization programs provide to client companies include the following: Forging partnerships among firms and between firms and universities Identifying commercialization opportunities and resources Assessing client opportunities and needs Developing business plans Consulting on a full range of management issues Advising on human resource planning
12 13
Includes both state-funded programs and university-funded programs. Guide to Entrepreneurship Programs. Columbus, OH: SSTI, forthcoming. 53
Conducting market research Conducting technical evaluations Providing information on market, industry, and economic trends Assisting with regulatory issues Linking companies to sources of financing Providing pre-seed financing Evaluating commercial potential of patented technologies for firms, individuals, faculty, and universities Identifying businesses interested in licensing or commercializing technologies from the states or regions research institutions. Forty-six states reported that they have programs to assist entrepreneurs and emerging companies, but only eight reported programs that are specifically geared to meeting the needs of bioscience companies. These are listed in Table 21.
Table 21. State-Supported Bioscience Entrepreneurial Support Programs State Georgia Program Life Science Innovation Center MdBio Description Offers entrepreneurial assistance on a statewide basis, with an emphasis on entrepreneurs and companies in rural areas. Awards matching grants for translational research Provides up to 2 days of consulting services for any aspect of business development with assistance provided by consultants on contract with MdBio Helps entrepreneurs build bioscience businesses Provides contract development services, gap funding, and start-up assistance Assistance to emerging bioscience companies Assistance to emerging bioscience companies Designed to bridge gap between research universities and venture capital investors, thereby assuring the transfer of new technologies to the marketplace Commercialization support programs located in four regions of the state
Maryland
Michigan
Missouri
BioTech Connect Biosciences Research and Commercialization Center Frontline Accelerator Spark Accelerator Biogenerator
New York
Ohio Pennsylvania South Carolina
Bioconnex Bufflink CNY Med Tech Long Island Life Sciences Initiative Omeris Life Science Greenhouses SCBio
A nonprofit organization designed to build and accelerate bioscience industry, research, and education in Ohio. Three comprehensive centers for commercialization of bioscience research A collaborative of the states 3 research universities and the Greenwood Genetics Center, it operates as a full-service commercialization center for the bioscience sector.
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Ohio and Pennsylvania have each created organizations to specifically serve bioscience firms. Omeris, founded in 1986 as the Edison BioTechnology Center, is a nonprofit organization designed to build and accelerate bioscience industry, research, and education in Ohio. It accomplishes these goals by both directly providing business services and by promoting the growth of the bioscience sector in the state. Ohio established and provides ongoing funding to Omeris, which is both the states bioscience accelerator and its industry organization. Originally located in Cleveland, the entity underwent a reorganization process in 2002; today, the statewide Omeris office is located in Columbus, with regional affiliates around the state. Each regional operation seeks to nurture and commercialize bioscience technologies through the formation of new companies and the attraction of companies from out of state. The regional offices include the following: BioEnterprise Corporation, a business formation and acceleration company committed to helping early-stage bioscience companies grow. Based in Cleveland, its founding and equal partners are the Cleveland Clinic, University Hospitals Health Systems, and Case Western Reserve University. BIO/START, a bioscience incubator in Cincinnati. The Edison Biotechnology Institute, a biomedical and genetics research institute of Ohio University in Athens. Its dual mission is basic discovery research and the transfer of new technology to the private sector for Ohios economic benefit. The Central Ohio Regional Office of Omeris, a collaborative, early-stage technology commercialization catalyst that partners to create and/or grow bioscience-based businesses. With Columbus, Dayton, and Toledo as focus areas, it provides networking and business development services to emerging and established science companies. Pennsylvanias Life Sciences Greenhouses provide both funding and support to bioscinece entrepreneurs and emerging companies. The BioAdvance Greenhouse offers up to $50,000 to assist entrepreneurs in the commercialization process, not necessarily in collaboration with universities; and the PLSG provides incubation space and in-depth mentoring and support to client companies. In addition to providing funding to bioscience start-ups, the Life Sciences Greenhouse of Central Pennsylvania provides patent protection funding, relocation assistance, business services, and workforce development. It should be noted that many bioscience incubators, as well as incubators in general, provide similar indepth business assistance services to not only the firms that are physically located in the incubator, but often to clients not housed within the incubator. These initiatives are described in the section on Providing Space for Bioscience Companies.
Making Capital Available

Entrepreneurs require access to capital at each stage of their development from early-stage, proof-ofconcept and prototype development to venture financing. Figure 5 depicts the funding cycle, the types of capital needed, and the usual sources of capital at each stage.
Pre-seed and seed capital

Programs to fund the proof-of-concept stage were discussed previously in the section on Moving Technology into the Marketplace. Pre-seed and seed capital, defined here as up to $2 million, is an existing capital gap that states and regions are trying to address. As private venture funds have grown in
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Figure 5. Capital Funding Cycle and the Types Needed and Sources at Each Stage
Specialized National funds based locally and their syndicate Investment funds partners elsewhere and/or angels Specialized Funds with side programs, agreements to source friends/family locally 2nd round venture capital
Sources
Grants
Cumulative cash flow
Deal stage
PreR&D seed Venture formation
Early/seedstage venture capital
Mezzanine Venture capital pre-IPO or sale
Typical functions
Discovery Proof of principle Engineering prototypes Production prototypes Late trials/product introduction/ramp up
size (the average venture fund in the United States last year closed at more than $200 million), it is extremely difficult for them to invest in very early-stage deals. Regions and states are experimenting with ways to encourage angel investors and locally developed seed funds to fill this critical funding gap. Nineteen states report that they have some form of tax credit available to encourage angel investors to invest in early-stage companies and/or venture capital funds (Table 22). New Jersey has created an Angel Capital Guarantee that guarantees up to one-third of the investments made by the Jumpstart NJ Angel Investor Network in early-stage companies across all fields, including the biosciences.
Table 22. State Seed Capital Tax Credits State Arizona Arkansas Hawaii Indiana Iowa Kansas Louisiana Maine Maryland Missouri New York North Carolina North Dakota Ohio Oklahoma Vermont Virginia West Virginia Wisconsin Tax Credit Credit for investments in bioscience enterprises Credit for investing in Arkansas Institutional Fund Credit for investing in high-technology businesses Credit for investment in a qualified Indiana business Credit for investing in a qualified business or community-based seed fund Credit for investing in a qualified business Credit for investing in a Louisiana Entrepreneurial Business Credit for investing in eligible businesses Credit for investing in biotechnology companies Credit for investing in local seed funds Credit for investing in qualified emerging technology companies Credit for investing in qualified business Credit for investing in a certified business Credit for investing in technology-based companies Credit for investing in qualified businesses Angel Investor tax carryoverallow capital gain to be deferred when gain used to invest in an eligible business Credit for investing in technology companies Credits for investing in a qualified R&D company Credits for angel investors and angel investor networks investing in qualified new business ventures 56
Two states, Arizona and Maryland, have tax credits targeted specifically for investment in bioscience firms. Arizona offers a tax credit for investing in bioscience enterprises, and the Maryland Biotechnology Investment Incentive Tax Credit provides a tax credit to investors, Maryland venture capital firms, and other corporations that invest in Maryland biotechnology companies. Seven states have created statewide or regional bioscience seed funds. The Connecticut BioSeed Fund was capitalized with $5 million and makes investments of up to $500,000. The Georgia Bioscience Seed Fund has invested $3.6 million. Oklahoma created a $5.1 million Life Sciences Fund, but these funds have largely been invested. Both Iowa and South Dakota have Value Added Agricultural Funds. South Dakotas program is a $3 million fund that provides loans for feasibility and marketing studies for value-added agricultural projects. The subfund has made loans to bioscience companies; one such company received funding to conduct a marketing research survey to provide information on the marketability of a biofungicide that it is developing. MdBio in Maryland makes Project Accelerator Awards to bioscience companies that need an infusion of cash to accelerate the near-term commercialization of a product or service. The typical award is in the range of $100,000 to $200,000. Pre-seed and seed-stage investments targeted at the bioscience sector are also available from each of Pennsylvanias Life Sciences Greenhouses: In Philadelphia, the BioAdvance Greenhouse Fund can invest up to $500,000. In Pittsburgh, the Life Sciences Greenhouse Pre-Seed Fund invests up to $100,000. In Central Pennsylvania, the Life Sciences Greenhouse Gap Fund invests up to $500,000. The four regional centers of the statewide Ben Franklin Technology Partners program also make direct investments in start-ups from all sectors, including the biosciences. The size of the investment varies from region to region, but usually ranges from $100,000 up to $500,000. Above that level, some of the centers may co-invest with other parties. Several of the centers such as the one in Philadelphia maintain a separate Technology Commercialization fund that invests up to $350,000, but only in companies formed around a discovery licensed from a university in the region. In addition, in Massachusetts with support from the John Adams Innovation Institute, the Boston Redevelopment Authoritys Life Sciences Initiative provides seed grants and low interest loans. As shown in Table 23, most state and regionally funded pre-seed and seed funds make investments in the range of $100,000 to $500,000. There are very few programs to meet firms needs in the $500,000 to $2 million range.
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Table 23. State and Regionally Supported Pre-seed/Seed Funds State Arkansas Connecticut Delaware Pre-seed/Seed Funds 14 ASTF Seed Capital Investment Fund BioSeed Fund Eli Whitney fund Delaware Economic Development Office Technology-Based Seed Fund Delaware Innovation Fund Demonstration funds Commercialization funds Bioscience Seed Fund Illinois Finance Authoritys Technology Development Bridge investments Illinois Emerging Technology Fund Indiana Seed Fund I Entrepreneurial Ventures Assistance Program Value-added Agricultural Products and Processes Financial Assistance Rural Innovation Fund Louisiana Technology Fund Louisiana Ventures Level of Investment Up to $500,000 Up to $500,000 $500,000 to $2 million Up to 50,000 $25,000 to $50,000 $50,000 to $500,000 $5 million $150,000 to $300,000 Size $4.8 million $5 million $1.5 million $10 million
Georgia Illinois
Indiana Iowa
Has invested $4 million in 6 companies $50,000 to $500,000 Up to $250,000
$20 million 15 $4 million
Kentucky Louisiana
Up to $100,000 over 2 years $250,000 to $3 million $2.4 million $24 million fund, $5 million invested by state $35 million
Maine
Maryland
Massachusetts
Louisiana Fund 1 Seed grants Development Awards Accelerated Commercialization Fund Small Enterprise Growth Fund Maryland Tech Transfer Fund Challenge investment Program Enterprise Investment Fund Fort Detrick Technology Transfer Initiative MdBio Project Accelerator Awards Montgomery County Technology Growth Program Massachusetts Technology Development Corporation Boston Redevelopment Authoritys Life Science Initiative Prolog Ventures Techniuum Seed/Early Stage loans Emergent Growth Stage Camden Technology Fund Biotechnology Center
$10,000 $10,000 to $500,000 Varies Up to $75,000 Up to $150,000 $150,000 to $500,000 Up to $50,000 $100,000 to $200,000 $50,000 to $150,000 Up to $500,000
$1 million $9 million $1.5 million
Recapitalized with $5 million appropriation
Missouri New Jersey
$100 million Up to $100,000 Up to $1 million Up to $100,000 Up to $150,000
$1 million
North Carolina
14 15
Includes both state-funded programs and university-funded programs. To date, the money invested in this fund has come from individuals, but the State Treasurers office will be investing $7.5 million in the fund. 58
Table 23. State and Regionally Supported Pre-seed/Seed Funds (continued) State Ohio Oklahoma Pre-seed/Seed Funds 16 Pre-seed Fund initiative 17 OCAST Technology Business Finance Program Oklahoma Life Science Fund Ben Franklin Technology Partners BioAdvance PLSG Pre-Seed Fund LSG in Central Pennsylvania Gap Fund Entrepreneur Agricultural Fund Product Development Fund and Small Business Incubator Fund Center for Innovative Technology Growth Acceleration Program Level of Investment $100,000 to $200,000 Size $10 million $900,000 $5.1 million $200,000 to $500,000 Up to $500,000 Up to $100,000 Up to $500,000 $30,000 to $50,000 $5 million $45 million in bond funding Up to $100,000
Pennsylvania
South Dakota Texas Virginia
Another way in which states and regions help firms obtain early-stage financing is by helping them to compete successfully for SBIR and STTR awards. Florida, Kentucky, Maine, Mississippi, North Carolina, Oklahoma, Vermont, and Wyoming provide Phase 0 SBIR grants. These are small grants, typically in the $2,500 to $5,000 range to help offset the costs of preparing a competitive proposal. Five states provide matching funds to SBIR recipients. Hawaii will match SBIR funding up to $25,000; Indiana up to $100,000; Michigan 15 percent up to $15,000; North Carolina up to $50,000; and Wisconsin will match up to 20 percent with a maximum of $250,000. Lastly, four states provide bridge funding, which is funding to sustain a project between Phase I and Phase II. Delaware provides bridge funding from its Delaware Strategic Fund. New Jersey provides bridge grants of up to $50,000. Oklahoma provides bridge grant of $25,000. Wisconsin also States that have invested in provides bridge grants.
Private Venture Capital Funds
Venture capital
States use a variety of mechanisms to increase the availability of risk capital for technology firms. They can create funds that make investments directly in companies, invest in privately managed funds that agree to invest in state companies, or create a fund that in turn invests in private venture capital funds, which is referred to as a fund of funds. Of these options, the most popular one is to invest state funds in private venture funds that agree either to make a good faith effort to invest within the state or to open an office in the state and actively look for companies in which to invest. Sixteen states reported that they had invested in private venture capital funds. It is rare that these funds exclusively invest in only the biosciences; in fact, most invest substantial shares of their funds in information technology and services, including health care services.
16 17
Alaska Arkansas Colorado Delaware Hawaii Illinois Maine Maryland Michigan New Jersey New York North Carolina Oregon Pennsylvania New Mexico West Virginia
Includes both state-funded programs and university-funded programs. Under this initiative, the State of Ohio has invested more than $10 million in 10 angel and early-stage investment funds. 59
New Mexico is an example of a state that has invested in private venture capital funds in an effort to improve the availability of risk capital in the state. The New Mexico Venture Capital Investment Program at the New Mexico State Investment Council (NMSIC) allows the NMSIC to be a limited investor in venture capital funds provided the fund has an office in the state and that the funds assist emerging New Mexico companies. Each New Mexico venture capital fund must be a limited partnership or corporation organized and operating in the United States and maintaining its principal active office in New Mexico. Not more than $15 million may be invested in any one New Mexico venture capital fund, and such investments cannot exceed 50 percent of the committed capital of that fund. The total capital under investment in 23 venture capital funds as of 2005 is $235 million, with the total amounts available now for investment at $135+ million. The total amount committed in a typical year is $20 million to $40 million. Six of the 23 funds in which NMSIC has invested have a bioscience focus. In 2003, the New Mexico State Legislature amended the programs statutory language to allow the NMSIC to make direct equity investments in New Mexico companies as well. The funds may be invested in entrepreneurial businesses with the following conditions: the company must have an experienced management team, a rapidly growing and potentially large market, and a convincing proprietary or competitive advantage where there are barriers to entry for other businesses and opportunity for significant capital appreciation for investors over a 5- to 7-year period. This program has committed nearly $200 million to New Mexico companies and funds in the past 3 years. Notably in 2005 alone, more than $140 million in venture capital was invested in New Mexico technology companies. As noted in the 2004 report, another approach states are taking to increase the availability of risk capital is to invest in a fund of funds that is backed by contingent tax credits. Nine states have authorized such funds. Utah created a state authority to back a Utah Fund of Funds with $100 million in contingent tax credits. The first investments are expected in April. The board of the nonprofit that serves as general partner has announced that it will give preference to out-of-state and newly created venture funds that plan to domicile in Utah, followed by pre-existing venture funds in Utah. It will also give priority to venture funds that have demonstrated commitment to States that have created investment in Utah-based entities. The fund of funds will Funds of Funds invest in venture funds at all stages from seed through late and mezzanine. Investee funds will work across multiple Arkansas Indiana fields including the life sciences.
Iowa Michigan Seven venture capital firms with offices in Indiana and an Montana (not yet funded) interest in bioscience deals have received investments from Ohio the $73 million Indiana Future Fund, a fund of funds Oklahoma managed by CS First Boston. Investors in the Future Fund South Carolina (authorized) Utah include the state pension fund; Lilly; Guidant; Anthem; American United Life Insurance; IU; Purdue; and the endowment foundations of IU, Ball State, and Indiana State. The Future Fund requires that 60 percent of its money be placed in Indiana-focused or -based venture funds and 70 percent in funds that intend to invest in early- or seed-stage companies. It targets that 60 percent of these venture funds ultimate investments be in the life sciences and in Indiana-based companies.
Five states, Alabama, Florida, Missouri, New York, and Texas, have created certified capital companies (CAPCOs) by providing tax incentives to insurance companies to invest in them. The Missouri CAPCO, for example, has led to investments in six funds. Since 1997, these funds have invested more than $95 million in 33 Missouri small businesses in a variety of industries, including biotechnology and the life sciences. These investments have attracted at least $2.1 billion in syndicated co-investment or follow-on investment.
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A number of states manage public investment funds. The West Virginia Jobs Investment Trust, for example, is a public venture capital fund that invests in early-stage, later-stage, and mature small companies that wish to expand in the state. Pennsylvania has a new $250 million New PA Venture Guarantee Program that is about to be launched. The program will guarantee portfolio investments in Pennsylvania companies by top-quartile venture firms that agree to commit at least $15 million to Pennsylvania companies.
Providing Space for Bioscience Companies

Like capital markets, commercial real estate markets tend not to supply, of their own accord, what startup bioscience firms need: namely, inexpensive, wet-labequipped space situated very close to the research institutions and their key faculty who may serve as consultants or advisors. Given the high capital costs involved in constructing permitted laboratory space, candidate parcels are often considered to have some other higher and better use, judging by risk-adjusted expected returns. Ensuring that the private marketplace offers the right amount and type of spaceincluding both incubator and multitenant spacecan be a major challenge for a region seeking to grow a bioscience cluster. Growing firms that are ready to move into production also often need assistance with financing given the cost of constructing bioscience manufacturing facilities. States have been very active in providing financing for bioscience incubators that are equipped with wetlab space. They have been much less active in helping to develop multitenant space and providing financing to help growing bioscience companies. Indeed, it is a national issue of adequate wet-lab equipped, multitenant space across most states and regions of the United States.
Incubators
Wet-labequipped incubators are now found in 43 states, with many states having multiple facilities. A total of 114 bioscience incubators 18 are identified and described in the individual state profiles. While individual incubators differ in size and the services they offer both tenant and nontenant companies, there appears to be a trend toward incubators serving as full-scale comprehensive commercialization centers, which also provide space, rather than real estate projects that include the provision of some services. Indeed, many of the incubator programs could rightfully have been included under commercializing university technology and supporting bioscience entrepreneurs. Some incubators even have their own investment funds. Some examples of incubators that also play the role of bioscience commercialization center include the following: The University of Alabama at Birmingham (UAB) houses the Office for the Advancement of Developing Industries (OADI) Technology Center, a technology incubator facility with wet-lab facilities for bioscience companies. Located in the UAB Research Park at Oxmoor, OADI has 20,000 square feet of laboratory space within the 67,000-square-foot building. OADI provides a wide range of professional services to tenants, including help developing business plans, formulating marketing strategies, and discussing intellectual property rights issues. Since the program was established in 1986, 46 companies have graduated. OADI currently houses 17 tenant companies. Additional incubator and wet-lab space will become available when UAB completes a renovation of a 140,000-square-foot building. The new building, which will contain extensive wetlab space, will replace the existing incubator space at OADI.
18
To be considered a bioscience incubator, the facility must contain wet-lab space. 61
The Fitzsimons BioBusiness Incubator (FBBi) in Colorado is dedicated to promoting the growth and success of bioscience businesses in Colorado, with a special emphasis on forming a bioscience cluster at Fitzsimons. Services include business planning, strategy assessment, management, intellectual property protection, scientific and technical resources, access to laboratory space, regulatory issues, and capital formation. FBBi has eight current clients. The Center for Emerging Technology in St. Louis, an incubator servicing primarily bioscience and medical-related start-up companies, is also a Missouri Innovation Center. The Missouri Innovation Centers provide a range of management and technical assistance during the early stages of development for new technology-based business ventures. Services include market research and strategies, technology assessment, business planning, financial packaging, research and development, business management, patent and licensing consulting, preliminary patent searches, and prototype development. Cumberland Emerging Technologies is both an incubator and a commercialization company. CET is a joint initiative of Cumberland Pharmaceuticals, Tennessee Technology Development Corporation, and Vanderbilt University. It was created to bridge the development gap and bring biomedical technologies conceived at research laboratories to the marketplace. CET works with universities, hospitals, other research organizations, and entrepreneurs to identify innovative projects and prepare proposals for funding their development. Upon successful grant funding or private sector investment, CET will provide program management to support the research investigators. The research and the associated intellectual property remain owned by the research organization, but CET is usually granted an option on the technology and intellectual property for the subsequent commercial phase. In 2005, it completed an expansion of its Life Sciences Center located in downtown Nashville.
Facilities financing
Connecticut, Georgia, and Massachusetts are the only three states that have created dedicated bioscience facilities funds. The Connecticut BioScience Facilities Fund provides funding to qualified biotechnology companies for the construction of wet-lab and related space. The financing can take a variety of forms, and terms are consistent with the level of risk associated with the transaction and the specialized needs of the companies. Companies already in Connecticut, or those wishing to move to the state, may apply for this funding. Since it was launched, the fund has invested and/or committed more than $33 million to finance more than 300,000 square feet of laboratory and related space for 12 biotechnology companies. Georgias Life Sciences Facilities Fund (LSFF) was created in 2003 to provide funding to bioscience companies for the development of their research laboratories. The fund provides loans of up to $2.5 million. The first company to receive funding was the biotech company Inhibitex Inc., which received a $2.5 million loan to build research laboratories. In 2006, Altea Therapeutics received a loan to locate its headquarters at the Technology Enterprise Park that is being developed in proximity to the Georgia Tech campus. The Governor has recommended an additional $5 million for LSFF in his FY 2007 budget request. The Advanced Technology Development Center is responsible for oversight of the fund. MassDevelopment, the Massachusetts development finance agency, has created a $25 million Emerging Technology Fund that can make loans up to $2.5 million for biotechnology facilities financing, including in biomanufacturing, and with some flexibility to help leverage federal grants. At the regional level, $500,000 loans for biomanufacturing are available from the Greater Fall River Development Corp.
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Examples of instances in which general economic development programs have been used to assist bioscience companies with facilities financing include the following: A portion of the Iowa Values Fund has been dedicated to direct business development and assistance financing. Specifically, $220.5 million over the next 7 years has been allocated for funding to be utilized for current and new programs administered by the Iowa Department of Economic Development, with a focus on business start-ups, expansions, modernization, attraction, retention, and marketing. The fund has provided funding to several bioscience companies. The Rhode Island Economic Development Corporation has financed two large biomanufacturing facilitiesone operated by Dow in Smithfield and another by Immunex/Amgen in West Greenwich. Missouri is using tax incentives to assist Pfizer in building a $200 million research facility in St. Louis. Vermont has used its low-interest loan program to assist bioscience companies like PBM Nutritionals and Mylan Technologies. Table 24 summarizes bioscience funds and economic development funds for bioscience facilities.
Table 24. Bioscience Company Facilities Financing General Economic-Development Funds Available for Bioscience Facilities Delaware Competitiveness Fund Life Science Facilities Fund Iowa Values Fund High Tech Investment Pool R&D Facilities Tax Credit Economic Opportunity Fund Maryland Industrial Financing Authority Mass Tech Development Minnesota Investment Fund Using tax incentives authorized by Missouri Quality Jobs Act New Jersey Economic Development Authority Empire Zone incentives Facilities financing through regional organizations (proposed) Life Science Industrial Revenue Bonding Authority (has not been funded) Rhode Island Economic Development Corporation Discretionary Incentives for bioscience companies $100 million bond issue to fund biotechnology facilities (proposed) Tax credits and low interest loans have been used to assist bioscience companies with facilities WV Development Authority 63
State Connecticut Delaware Georgia Iowa Kentucky Maryland Massachusetts Minnesota Missouri New Jersey New York
Exclusively Bioscience Bioscience Facilities Fund
North Carolina
Rhode Island South Carolina Virginia Vermont
West Virginia
Bioscience research parks

The increased interest in university- and institution-affiliated research parks in general and bioscience parks in particular was noted in the last report and has continued during the 20042006 time period. Sixteen states are home to 28 bioscience research parks, and two additional states have bioscience parks that are under development. In all, the states identified 20 bioscience parks that are under development. The number of parks increases greatly when research parks that house some bioscience companies (even though they are not exclusively for bioscience tenancy) are included. Thirty-five states reported such research parks. A trend that was noted, however, is an increased focus on the development of strategically planned mixed-use campus expansions. States and regions across the nation are focusing on how to leverage their growing base of academic and medical research facilities to create a physical environment that can be supportive of, and a magnet for, bioscience companies. States and regions are developing districts around universities and medical complexes that contain incubator and multitenant space and providing incentives for start-up companies. Examples of this type of development include the following: Innovation Campus at Utah State University in Logan has 22 tenants and six university affiliates in 10 privately developed buildings. It recently expanded to 38 acres and will be building out in seven neighborhoods including one each for genomics and pharmaceutical R&D, with the ultimate target of 135 acres. In 2005, the University of Hawaii John A. Burns School of Medicine completed the first research building on its new, 10-acre campus at Honolulus Kakaako waterfront district, which is being redeveloped by a state-chartered authority. The new campus has spurred strong interest in commercial bioscience development, not only in the redevelopment district, but in nearby industrial and commercial properties as well. The university campus relocation was financed by $150 million in revenue bonds backed by 28 percent of the states tobacco settlement and matched by private donations. On an adjoining 5-acre site, a newly designated comprehensive cancer center is constructing 360,000 square feet of research and clinical space. Several research parks with bioscience components are at various stages of development. The farthest advanced is Mission Bay, a 303-acre development district surrounding the new 43-acre University of California San Francisco campus of the same name. The first phase of campus construction is now nearly complete, and the surrounding commercial district saw its first commitment to speculative wet-lab space by Alexandria Real Estate Equities. Mission Bay is also home to the administrative headquarters of the California Institute of Regenerative Medicine. The City of San Francisco donated a 10-year lease to an office building in the residential/commercial segment of Mission Bay. The Center of Research, Technology, and Entrepreneurial Exchange (CORTEX) in mid-town St. Louis will enable collaboration between all the area research institutions. The institutions involved have collectively committed $29 million over 5 years, and the State of Missouri has awarded $12 million in tax credits (50 percent contribution credits over 5 years) for land acquisition. CORTEX is intended to house companies graduating from CET and companies attracted to the region because of the proximity to the research institutions. To date, CORTEX has purchased several properties and, in December 2005, completed CORTEX I, a 170,000-squarefoot office/wet-lab facility. In 2006, the St. Louis Board of Aldermen approved CORTEXs
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175-acre redevelopment plan. In January 2006, Stereotaxis graduated from CETs incubation program and located in the new facility. Since the last BIO report, private developers continued to build the de facto research park that is emerging in South Lake Union, across the lake from the main University of Washington (UW) campus. Spurred by anchors such as the Fred Hutchinson Cancer Center, UWs presence in space rented from Paul Allens Vulcan Ventures, and the Seattle Biomedical Research Institute, more than 500,000 square feet of bioscience space is on-line, and additional space is planned. UWs commitment will triple its presence in the district, which is a priority development area for the City of Seattle, which eased zoning restrictions and is putting in place infrastructure improvements. Another vehicle that states are using to encourage development around research and academic institutions is the designation of zones around universities and medical complexes that contain incubator and multitenant space and provide incentives for start-up companies. New Jersey and Pennsylvania have created Innovation Zones, Michigan similarly has SmartZones, and Wisconsin has Technology Zones. New York has proposed creating Tech Zones around the states Centers of Excellence. Indiana has a Certified Technology Parks program that provides similar development incentives. These programs are described below: Michigans SmartZone program was set up to encourage the creation of incubators in proximity to research institutions in communities where they did not yet exist. Bioscience incubators that have been developed include the following: a. Product Development Center, a 10,000-square-foot section of the Cook-DeVos Center for Health Sciences at Grand Valley State University in the Muskegon SmartZone b. TechOne, a 100,000-square-foot, multitenant building in TechTown, the research park at Wayne State University in the Woodward Technology Corridor SmartZone in Detroit c. Southwest Michigan Innovation Center, a 58,000-square-foot, wet-lab incubator in the Business Technology and Research Park in the Kalamazoo SmartZone d. BioBusiness Incubator of Michigan, managed by a subsidiary of MBI International, a nonprofit bioscience research institute in the Lansing SmartZone e. Center for Applied Research and Technology, a 12,000-square-foot incubator at the Mt. Pleasant/Central Michigan University SmartZone, which is adding 17,000 square feet of wet-lab space. Indianas Certified Technology Park (CTP) program allows research parks certified by the Indiana Economic Development Corporation (IEDC) (which seeks evidence of university involvement and a commitment to business incubation) to capture up to $5 million in incremental tax collections for reinvestment in business incubators or similar facilities. The CTP law also authorizes IEDC to make grants up to $2 million to each park for similar purposes, financed in part by tobacco funds. As of 2005, 14 CTPs had been approved. Among those with some bioscience orientation are the following: (1) the district in which the Indiana University Emerging Technologies Center was developed, which has plans for several additional buildings and will invest local TIF revenue in debt retirement at the incubator; (2) Purdue Research Park, a 150-acre park on a much larger site that will invest its TIF revenue in preparing an additional 40 acres for development; (3) Northeast Indiana Innovation Center, an incubator that is
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leveraging an orthopedic materials institute; and (4) Intelliplex in Shelbyville, which is pursuing health-related information technology. The New Jersey Economic Development Authority inaugurated a series of programs aimed at technology-based companies under the Techniuum brand, with preferred access for companies in three Innovation Zones surrounding the states public research universities. Pernnsylvanias Keystone Innovation Zones are intended to help regions surrounding colleges and universities better link their economic-development strategies to these institutions. Each KIZ receives $250,000 in planning funds, and participating institutions are eligible for $250,000 grants to develop infrastructure for technology transfer. Companies locating in KIZs qualify for $25 million in tax credits targeted at very early-stage businesses with rapid revenue growth. These credits can be sold, along the model of the states R&D tax credit for which the statewide pool was expanded from $15 million to $30 million. Wisconsin has granted $5 million in corporate income-tax credits to each of eight Technology Zones created around the state
Addressing Talent Needs

Like any knowledge-based industry, bioscience companies need a supply of qualified, educated workers. One of the most difficult challenges for a state or region seeking to grow a bioscience cluster is to attract talent. First, there is a critical need for entrepreneurial management talent experienced in the biosciences. Second, these states and regions need a supply of qualified technical workers and management, sales, marketing, and regulatory personnel experienced in the biosciences. Third, they need to develop an educational pipeline with students whose skills will be relevant to the bioscience sector. While it was beyond the scope of this project to collect data on the full range of bioscience education and workforce development programs across the United States, identified below are some initiatives that states and regions are experimenting with to address bioscience talent needs.
Recruiting management talent

The most common way that states and regions are addressing the need for management talent is by creating programs that link bioscience entrepreneurs and researchers with experienced mentors. This is often done informally and is a role played by many state bioscience associations, but some states and regions have set up formal programs to do this. The Nidus Center and the CET in St. Louis; the Pittsburgh Life Sciences Greenhouse; and Innovation Philadelphia, a commercialization assistance center, each have created CEO-in-residence programs in which seasoned serial entrepreneurs provide advice and guidance to young start-up companies. The CEOs are given the opportunity to look for ventures they might be interested in leading, and the entrepreneurs have access to a wealth of information. The GRA VentureLab Program connects faculty researchers with experienced entrepreneurs and professional managers (VentureLab Fellows) who serve as coaches and drive the commercialization process forward. The Georgia Biomedical Partnership (GBP) and the GRA jointly host the Corporate Research Leaders Forum, which brings together chief scientific officers of life science companies to address common issues, including recruitment and retention of talent. GBP has a similar CEO Roundtable, Emerging Companies Committee, and Emerging Leaders Networkall aimed at networking and retention.
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In Alabama, the incubator BizTech offers a Venture Catalyst program that links experienced entrepreneurs to serve as mentors to BizTech clients. Venture Catalysts commit to spending a certain number of hours each week at the facility to provide one-on-one counseling on the day-to-day issues that arise in getting a new enterprise launched. There have been cases in which a Venture Catalyst has joined a BizTech company as a CEO or a principal of the company. States and regions are also trying to grow entrepreneurial talent by providing entrepreneurial education programs and supporting internship and fellowship programs that place students with entrepreneurial companies. In Indiana, for example, Purdue and Indiana Universities received a joint $525,000 grant from the Guidant Foundation to establish a Biomedical Entrepreneurship Program. The program will link students from Purdues Weldon School of Biomedical Engineering with medical fellows at IU School of Medicine and MBAs at Purdues Krannert School of Management. In addition, IUs Kelley School of Business and its Johnson Center for Entrepreneurship have established a staffed satellite office at the IUs incubator where MBAs can become involved in early-stage bioscience companies. The NJCST offers a $55,000 Technology Fellowship that allows postdocs to spend time with early-stage companies. In 2005, 14 were funded. Few initiatives were identified to try to attract management talent to relocate to a state, although Rhode Island is considering creating a tax credit designed to attract serial entrepreneurs who can implement the states innovation strategy. The Technology Entrepreneur Tax Credit would be modeled on an existing film and television credit that offers investors in certain Rhode Islandbased productions a refundable credit of up to 25 percent against their share of in-state production costs.
Specialized postsecondary programs

Educational institutions in every state and at every levelK-12, college and postgraduate, and workforce trainingare developing new curricula and undertaking initiatives designed to encourage students to pursue careers in the biosciences and to meet the needs of bioscience companies for skilled workers. The trends identified in the 2004 reportthe creation of 2-year associates degree programs, changes in curricula at colleges and universities to better reflect workforce needs, outreach to bioscience companies to understand their workforce needs, and outreach to inform students and teachers at the middle-school and high-school levels about career opportunities in the biosciencesare continuing and have become more widespread. New programs that were developed since 2004 include the following: A masters degree in Genomics law at Arizona State University An Institute for BioEnergetics at the University of Colorado Establishment of a Graduate School of Biomedical Science at the University of Maine Vagelos Program in Life Sciences and Management through which undergraduates receive special exposure to life science research and may receive either a bachelor of arts degree from the School of Arts and Sciences or a bachelor of science degree from the Wharton School at the University of Pennsylvania Biomedical Engineering Program at the University of Memphis Masters degree in Biotechnology Management at the Pontifical Catholic University of Puerto Rico
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A Center for Biotechnology Education and Training opened by Rochester Institute of Technology A certificate program in biotechnology fundamentals added by the Biotechnology Center of Excellence at the University of Stony Brook in New York A new Pharmacy School approved at East Tennessee State University A new School of Pharmacy opened at the University of Charleston in West Virginia. A number of states, including New Hampshire and North Carolina, reported establishing and expanding programs to train workers for careers in biomanufacturing. The Golden LEAF Foundation, which is financed by a portion of North Carolinas tobacco settlement funds, has financed the nations largest biotech/biomanufacturing training programs, a Biomanufacturing and Pharmaceutical Training Consortium comprising the following two major facilities and curricula delivered through a $7.1 million BioNetwork funded at the North Carolina Community College System: Biomanufacturing Training and Education Center (BTEC), a 91,000-square-foot, $35 million commercial-scale biomanufacturing and packaging facility being built at North Carolina State Universitys Centennial Campus. The BTEC will provide hands-on experience in a commercial environment and will train as many as 3,000 students a year through both on-site programs and distance learning. Biomanufacturing Research Institute and Training Enterprise, a $19 million facility at North Carolina Central University in Durham, which will offer laboratory experiences in underlying science and analytical instrumentation to students from multiple universities. Operational funding for the consortium totaled $12 million in 2005 and will increase this year to $15 million. The New Hampshire Community Technical Colleges (NHCTCs) Industrial Biotechnology Education and Training program, located at NHCTC at Stratham/Pease, offers an entry-level biotechnology education and training program to support the biomanufacturing industry. With financial support from an NSF Advanced Technology Program grant, matching funds from the state, and a federal earmark through a Veterans Affairs/U.S. Department of Housing and Urban Development 2002 appropriation, a fully equipped, bench-top biotechnology research, development, and manufacturing laboratory was built at the NHCTC-Stratham/Pease Center. This laboratory provides students, college and high school faculty, and business professionals experiential instruction in a state-of-the-art biotechnology laboratory. At NHCTCs Biotechnology Program, students can receive a 2-year biotechnology associate in science degree, a biotechnology diploma, or a biotechnology certificate. The New Hampshire Biotechnology Education and Training (NH BET) Center at NHCTC was recently awarded three federal grants to build the education and training infrastructure for biotechnology and biomanufacturing education and training locally, statewide, and throughout the Northeast region. The first grant was a High Growth Job Initiative Department of Labor grant of $775,000 to create the Center of Expertise in Biomanufacturing, one of five Centers of Expertise forming the National Center for the Biotechnology Workforce. This grant is helping build capacity by facilitating hiring of staff and purchase of biomanufacturing equipment. The grant also supports an apprenticeship program for high
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school students entering the associate of science in biotechnology program and the development of short courses for incumbent workers. Another Department of Labor grant, a Community Based grant entitled, bioCONNECTnh, was awarded to NHCTCs Biotechnology enterprise in November 2005. This 3-year grant supports the development of the states biotechnology infrastructure, adding a focus on discovery research with outreach to New Hampshires high schools and including $750,000 for companies to access for incumbent worker training. Finally, an NSF Advanced Technological Education regional center grant was awarded in August 2005. This $3 million, 4-year renewable grant entitled, The Northeast Biomanufacturing Center and Collaborative: Building a Sustainable Infrastructure for Biomanufacturing Jobs and Education, provides funding to six Hubs in Northeast region states to work with industry to develop curricula, instructional materials, and other resources to support education and training for biomanufacturing jobs and provides funding for faculty and teacher development workshops at the Hubs and an annual Biomanufacturing Conference at the NH BET Center in the summer. In late 2005, the U.S. Department of Labor launched a new programWorkforce Innovation in Regional Economic Development (WIRED)which is providing $195 million to 123 regions over a 5-year period to undertake initiatives designed to develop talent that is needed in todays knowledge economy. The program seeks to support innovative approaches to education and workforce development that go beyond traditional strategies. Two of the regions that have received WIRED grants, Denver and Kansas City, will be using them to support initiatives aimed at creating a pipeline of bioscience workers. The Denver Metro region received a 5-year, $15 million WIRED grant from the U.S. Department of Labor for workforce development. The biosciences are one of the four targeted industry clusters. A bioscience coordinator will be hired to match up industry, university, K-12, and career/technical institutions in order to provide the best bioscience workforce needed to grow the industry in Colorado. The Kansas City region also was awarded a $15 million WIRED grant. The grant, OneKC WIRED, will focus on meeting the needs of the health care, biotechnology, and advanced manufacturing industries. WIRED funds will be used to support A systemic science reform initiative aimed at elementary schools; Biotechnology workforce development initiatives across the educational continuum, including elementary, secondary, and continuing adult education; Student internships and teacher externships in biotechnology, health care, and manufacturing; and Partnerships between biotechnology, health care, and manufacturing.
K-12 outreach programs

States and regions continue to support outreach to students and teachers at the K-12 level to expose them to the biosciences and encourage them to consider pursuing bioscience careers. Specialized high schools focused on the biosciences are being established. They include the following: Phoenix Union Bioscience High School, a magnet school, will launch in 2006 near the Phoenix Biomedical Campus in downtown Phoenix. Programming will be provided for students within the Phoenix Union High School District. Total enrollment will eventually reach 400.
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Seminole Ridge High School operates Floridas first biotechnology academy in Palm Beach County. The county plans additional academies and a biotech-themed charter school. Louisianas Biomedical Research Foundation and the Caddo Parish School System are launching the Biotech Academy, a high school academic magnet program in 2006 to train gifted students interested in biotechnology careers. The Memphis Bioworks Foundation established the first charter school in Tennessee. The Memphis Academy of Sciences and Engineering, a school for grades 7 through 12 with a strong outreach to minority students, has been operating for 2 years. Memphis Bioworks has been assisting a Nashville-based group with plans to start a similar program in Nashville in the fall of 2006. Utah created Itineris, a magnet school dedicated to teaching biotechnology skills to qualified 11th and 12th graders with preference to nontraditional students who can succeed in the sciences. Arizona is a state that has been active in K-12 education. Several Arizona high school districts are introducing or expanding bioscience-related programs to their science curricula, most notably Chandler Unified, Gilbert Unified, Mesa Unified, and Tempe Unified. Individual high schools within other districts are also strengthening their bioscience-related curricula. Arizonas community colleges and public universities are providing their expertise to teachers and students interested in the biosciences: Job Paths Biotechnology Summer Institute is being offered at Pima Community College to introduce high school students to the basics of biotechnology. It is funded by a grant from the U.S. Department of Labor. ASUs BIOREACH project provides materials and equipment to middle school and high school teachers who want to teach biotechnology to their students. Northern Arizona Universitys biological sciences department focuses its summer science workshop for K-12 teachers on biotechnology. Based on the success of the workshop, there are plans for similar bioscience workshops in the future. The University of Arizonas (UAs) BIOTECH Project provides technical support for Arizona middle school and high school teachers to conduct genetics experiments with their students. The project is run through UAs molecular and cellular biology department. The Scientific Enrichment Program at Barrow Neurological Institute of St. Josephs Hospital and Medical Center in Phoenix offers three programs: (1) a cancer biology seminar that introduces students from 60 area high schools to a variety of topics pertaining to cancer biology and the process of scientific discovery; (2) a hands-on laboratory experience for a limited number of highly motivated students; and (3) a workshop program for local high school teachers, providing an opportunity to learn the latest scientific technology and assistance in introducing such techniques in the classroom. The Arizona Bioengineering Collaboration of the Arizona Science Center has trained more than 260 Phoenix-area middle-school and high-school teachers in state-of-the-art bioengineering and biotechnology practices. The program involves workshops developed by center education staff in collaboration with industry experts, university scientists, and science and technology teachers from local middle schools and high schools.
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States and regions are also creating programs aimed at attracting minority and other underrepresented student to careers in the biosciences: The Bridges to Biotech Collaborative, for example, is a joint undertaking of multiple organizations in Jefferson County, including University of Alabama Birmingham, two community colleges, a vocational high school, city and county government, and the Biotechnology Association of Alabama in addition to the Heritage Center, a community-based organization that is leading the effort. The program is designed both to meet the immediate needs of companies for bioscience workers and to create a pipeline of future skilled bioscience workers. The model includes outreach activities and educational and training from grades K through college. It also provides matriculation between secondary and postsecondary institutions; a unique feature of the program once it is fully implemented is that the postsecondary institutions will accept the hours of informal training provided by the Heritage Center toward advanced certifications or degrees. The collaborative will deliver internships, apprenticeships, and employment opportunities though a single coordinated source for participants and students. The University of California at Berkeley received a 5-year, $5.6 million grant from the Gordon and Betty Moore Foundation for a Biology Scholars Program that helps undergraduates from underserved communities become competitively qualified for admission to medical and graduate schools. Stony Brook University offers a 10-week Summer Research Institute for minority students interested in the sciences, including the biosciences, with support from NYSTAR.
Summary
A majority of the states are undertaking initiatives aimed at addressing the issues of technology, talent, and capital in order to support the growth of the biosciences. States, in the aggregate, are spending billions of dollars to support bioscience research and the research facilities and equipment needed to support it. These investments are being made, in part, to attract talented scientists and researchers. States also are trying to accelerate the movement of technology, particularly technology developed in universities, into the marketplace. Regions are moving aggressively to provide support for commercialization by creating centers within or outside of universities that provide a range of support from in-depth support to entrepreneurs to providing funding for proof-of-concept activities. Two areas acknowledged by most states as particularly difficult for bioscience firms are pre-seed/seed financing and facilities financing. States and regions have taken some steps to make seed capital available, in large part by offering tax credits to individuals that invest in small technology companies, but the amount of pre-seed and seed capital available is still very limited in almost every state. Few states have been able to tackle the need for facilities financing. Only three states have programs that specifically address this need, but others have been able to use traditional economic development programs to assist companies with facilities financing. States and regions are increasingly focusing on how to leverage their growing base of academic and medical research facilities to create a physical environment that can be supportive of, and serve as a magnet for, bioscience companies. Such efforts are contributing to the redevelopment of a number of inner city neighborhoods that house universities and hospitals as well as emerging and established bioscience firms.
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States and regions recognize the important role that talent plays in determining whether they will be successful in developing their bioscience sector; but, few states have taken a comprehensive approach to addressing bioscience education and workforce needs, although individual initiatives are underway at all levels of education. This is an area that will require continued attention in the future.
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The biosciencesbroadly definedare a growing and vibrant sector of the U.S. economy, employing 1.2 million people in all 50 states, Puerto Rico, and the District of Columbia. When multiplier effects are taken into account, the biosciences impact another 5.8 million jobs, for a total impact of 7.1 million jobs on the U.S. economy. More than 40,000 business establishments are involved in activities ranging from agricultural and chemical production, to drug and pharmaceutical manufacturing, and research and testing activities in a laboratory setting. The bioscience industry provides high-skilled, high-wage jobs, with an average annual wage that is $26,000 higher than the average annual private sector wage. Not surprisingly, states and regions across the country are working to develop and promote the growth of their bioscience bases with some level of activity in all 50 states and Puerto Rico. But, they recognize that not all states have the same bioscience assets; it is only by focusing on each states or regions strengths that they will succeed in capturing the economic benefits of bioscience discoveries. In Iowa, this means focusing on bio-fuels. In St. Louis, it means focusing on plant and life sciences. In Maine, it means focusing on marine aquaculture. The investments that states and regions are making are long-term investments in their universities in terms of R&D dollars and state-of-the-art facilities and in their citizens in terms of education and workforce development. In most states, their investments in the biosciences are part of a larger strategy that involves investing to build other technology sectors as well. An additional benefit of state investments in the biosciences is that it can help lead to new treatments and disease prevention contributing to improved health care for all its citizenrymeaning that the biosciences support both a healthy economy and a healthy citizenry. A challenge for states and regions in the coming years will be the leveling off of federal bioscience R&D dollars. Many of the initiatives described in this report were begun at the time in which the federal government was doubling the NIHs research budget. Competition for funding is likely to increase, making state investments even more important. Another challenge for states will be responding to the national mandate to advance translational research, often referred to as going from bench to bedside. Few states have developed strategies to link basic and clinical research, although some are beginning to do so. Meeting the bioscience industrys need for skilled, well-educated workers across a range of occupations is another area that will need to be addressed. Doing so will require industry, educators, and public officials to work together to build a pipeline of students interested in science, technology, and mathematics.
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The State Profiles section includes profiles of bioscience initiatives, including both those that are specifically targeted to the biosciences and those that are targeted to technology firms that are used to assist bioscience companies. The profiles were developed with input from SSTI state contacts, state bioscience industry associations, and other managers of state TBED programs in the 50 states and Puerto Rico.
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The state profiles were developed with the support of SSTI state contacts and state bioscience industry organizations. Battelle thanks everyone who provided guidance and feedback on early drafts, but affirms that it alone has editorial responsibility. Every attempt has been made to ensure the accuracy and completeness of the profiles. However, despite best efforts, initiatives may have not been captured or may have been described inadequately or miscategorized. State policy and programs change rapidly, making it difficult to maintain up-to-date information. Moreover, many initiatives could have been listed in more than one category since programs often have multiple objectives. Battelle used its judgment regarding the primary purpose of a program when deciding under which heading to list it. If a state does not have a program listed under a particular heading, it may still have relevant initiatives listed under a different heading. It also is likely that additional technology-based economic-development programs are used to assist bioscience companies. For this reason, Battelle has included contacts in each state who can provide updated information. Readers who note discrepancies or omissions are invited to send corrections for use in future editions to clarkem@battelle.org. Table 25 contains the sources for the statistical data provided in each state profile. State ranks were calculated based on data for the 50 states, Puerto Rico, and the District of Columbia.
Table 25. Statistical Data Sources and Notes for the State Profiles Category Employment, Establishment, and Wage Data Biological Scientists in the Workforce Data Sources and Notes Battelle calculations based on U.S. Bureau of Labor Statistics QCEW (ES-202) data from the Minnesota IMPLAN Groups, Inc. U.S. Bureau of Labor Statistics Occupational and Employment Statistics and Battelle calculations, 2004 National Center for Educational Statistics, IPED Survey, and Battelle calculations, Academic Year (AY) 2004 National Science Foundation, Survey of Research and Development Expenditures at Universities and Colleges, and Battelle calculations, FY 2003
Bioscience Degrees Awarded Bioscience R&D Expenditures
STATE PROFILES
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Overview and Summary of Recent Initiatives

Efforts in Alabama to build the states life science sector in the past were primarily driven by the University of Alabama at Birmingham (UAB), which has focused its efforts on building its bioscience R&D base. UAB is developing a 7,800-acre planned development that includes a research park that includes a 67,000-square-foot technology incubator with facilities for bioscience companies. Since the last BIO report, Governor Bob Riley has announced his intention to invest in developing the bioscience sector in Alabama. The state has committed $50 million, which is being matched by $80 million in private resources, to construct a facility to house the newly established, not-for-profit Hudson-Alpha Institute for Biotechnology (HAIB) in Hunstville. HAIB, which recently broke ground for its facility in Cummings Research Park (CRP), is an initiative being led by a Huntsville biotechnology pioneer that aims to combine research and product development. The three-fold mission of the institute is to foster biotechnology-based research into why disease occurs and cost-effective ways to treat it, to commercialize biotechnology discoveries to stimulate economic development in Alabama, and to inspire Alabamas youth to seek careers in science by offering them access to cutting-edge biotechnology courses through distance learning. In addition, the Governor has proposed investing $50 million to support bioscience research at UAB. Investments in growing the biosciences are also being made in Mobile and Auburn. In Mobile, the University of Southern Alabama (USA) is moving forward with the development of the USA Cancer Research Institute, which is funded, in part, with state tobacco settlement dollars. In Auburn, Auburn University is launching an initiative to build a research park and has broken ground on the first building in the park, which will include wet- and dry-lab space and an incubator. Each of these projects has received state support.

Construction of the Richard C. and Annette N. Shelby Interdisciplinary Biomedical Research Building at UAB is scheduled to be completed in 2006. Funding for the $90 million facility was provided by state government, the federal government, the City of Birmingham, and Jefferson County. The 12-story, 340,000-square-foot building will house four research programs: (1) autoimmunity and immunobiology, (2) the brain initiative, (3) biomedical engineering and bone matrix research, and (4) UAB Diabetes Center.
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A 100,000-square-foot research and clinical outpatient facility is under construction at USA to house the USA Cancer Research Institute. The building is scheduled to be completed in 2008. Construction began in early 2006 on a facility to house the HAIB. Construction is expected to take 2 years.

The Alabama Technology Network (ATN) provides technical assistance, workforce training, and technology transfer services to Alabamas manufacturers. ATN assists companies that produce medical components and supplies, pharmaceutical companies, hospitals, and medical clinics with manufacturing and quality systems, workforce training, and environmental/health and safety and management systems. ATN is composed of 10 centers that link the University of Alabama System, Auburn University, the Economic Development Partnership of Alabama, and selected 2-year colleges throughout the state. Both the Office for the Advancement of Developing Industries (OADI) Technology Center and the Business Technology Development Center (BizTech) provide commercialization support to client companies. See below under Incubators.

A $20 million fund is being raised to invest in UAB-developed technologies in Birmingham. An angel network is active in Huntsville.
Venture capital
In 2002, Alabama passed legislation providing $100 million in tax credits to insurance companies that invest in certified capital companies or CAPCOs. Six venture capital funds have received investments through this program. They include Greer Capital Advisors LLC, Hickory Venture Group, Merchant Capital LLC, New Capital Partners, Redmont Venture Partners Inc., and Southeastern Technology Fund.

Incubators
The UAB houses the Office for the Advancement of Developing Industries Technology Center, a technology incubator facility with wet-lab facilities for bioscience companies. Located in the UAB Research Park at Oxmoor, OADI has 20,000 square feet of laboratory space within the 67,000-squarefoot building. OADI provides a wide range of professional services to tenants, including help developing business plans, formulating marketing strategies, and discussing intellectual property rights issues. Since the program was established in 1986, 46 companies have graduated. OADI currently houses 17 tenant companies. Additional incubator and wet-lab space will become available when UAB completes a
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renovation of a 140,000-square foot building. The new building, which will contain extensive wet-lab space, will replace the existing incubator space at OADI. SourceCF, Open Biosystems, and Applied Genomics, three local biotechnology start-up companies, have combined to open the Huntsville Biotechnology Center. The center, located on Odyssey Drive in CRP, is housed in a 24,000-square-foot building and is designed to encourage and foster the growth of new jobs and advancements in the biotech industry in the Huntsville community. BizTech is a 15,000-square-foot incubator located in Huntsville that focuses on companies offering technology, energy, or life science products and/or services. BizTech was funded by the State of Alabama, NASA/Marshall Space Flight Center, the Tennessee Valley Authority, and the City of Huntsville. BizTech provides business and management advice to both resident and nonresident clients.

Cummings Research Park, Huntsville, the second largest research park in the United States, was created in 1962. The park, which today includes 3,800 acres, is home to 225 companies, including bioscience companies. It also houses University of Alabama and federal laboratory facilities. In January 2006, CRP announced the creation of a 120-acre CRP Biotech Campus. The first tenant of the campus will be the HAIB. Ground was broken in January 2006 for the first building that will house the institute and some associated biotech companies. The institute expects an employment level of 500 to 600 by 2008. Within 10 years, employment on the CRP Biotech Campus is projected to be close to 1,600 workers. The park also contains a 40,000-square-foot NASA-affiliated incubator. The UAB Research Park at Oxmoor is a joint initiative of the City of Birmingham and the University of Alabama Research Foundation. The park targets tenants that are substantially technology oriented, especially in the pharmaceutical and life sciences. The park, which is still in an early stage of development, includes an incubator, a single-tenant headquarters building occupied by a health-care business, a large pharmaceuticals distribution company, and a 60,000-square-foot multitenant building. The University of South Alabama is developing a 35-acre USA Research and Technology Park that is targeting medicine and biotechnology, engineering and environmental sciences, and software and information technology. A 76,000-square-foot complex opened in 2003 and is fully occupied. Additional plans include a Class A speculative multitenant office building, two Class A single-tenant or multitenant office buildings, and a hotel and conference center. Auburn University has announced its development of a 156-acre Auburn University Research Park adjacent to the university campus. The first phase includes the construction of two buildings of 70,000 and 60,000 square feet. The groundbreaking for the first building occurred in November 2005. The building will include wet- and dry-lab space, an incubator, and office space for tenant companies. The State of Alabama has pledged $10 million for the project, with the City of Auburn contributing another $5 million. The first building is expected to be completed in late 2006.

The incubator BizTech offers a Venture Catalyst program that links experienced entrepreneurs to serve as mentors to BizTech clients. Venture Catalysts commit to spending a certain number of hours each week at the facility to provide one-on-one counseling on the day-to-day issues that arise in getting a new
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enterprise launched. There have been cases in which a Venture Catalyst has joined a BizTech company as a CEO or a principal of the company.

The Bridges to Biotech Collaborative is a joint undertaking of multiple organizations in Jefferson County, including UAB, two community colleges, a vocational high school, city and county government, and the Biotechnology Association of Alabama in addition to the Heritage Center, a community-based organization that is leading the effort. The program is designed both to meet the immediate needs of companies for bioscience workers and to create a pipeline of future skilled bioscience workers. The model includes outreach activities and educational and training from grades K through college. It also provides matriculation between secondary and postsecondary institutions; a unique feature of the program once it is fully implemented is that the postsecondary institutions will accept the hours of informal training provided by the Heritage Center toward advanced certifications or degrees. The collaborative will deliver internships, apprenticeships, and employment opportunities though a single coordinated source for participants and students.

One of the missions of the HAIB is to interest Alabama students in science and technology. Space will be allocated in the building that is under construction for high-schoollevel and college-level outreach and training programs. In addition, the institute is working with Columbia High School to develop a biotechnology curriculum that will be made available via the Internet to students from across the state. Huntsville Partnership for Biotechnology Resources is a grass roots effort that conducts outreach to students and teachers.
Proposals Pending
The Governor has proposed providing $50 million to fund R&D at UAB.
Contacts
Ms. Terri Adams, Science and Technology Division Director Alabama Department of Economic and Community Affairs 401 Adams Avenue P.O. Box 5690 Montgomery, AL 36103-5690 (334) 242-5292 terria@mail.state.al.us
The Biotechnology Association of Alabama (BAA) is a statewide organization representing Alabamas bio-related industries, research scientists, clinicians, and business professionals who are working together to foster, develop, and support the life sciences in Alabama. BAAs events, programs, and member benefits are designed to enhance the progress of its industry and members.
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Michael Alder, Executive Director Biotechnology Association of Alabama 500 Beacon Parkway West Birmingham, AL 35209 (205) 943-5124 malder@redmontvp.com
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Industry Subsector Agricultural Feedstock & Chemicals Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004 Direct-Effect Employment Multiplier Total Employment Impact Drugs & Pharmaceuticals Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004 Direct-Effect Employment Multiplier Total Employment Impact Medical Devices & Equipment Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004 Direct-Effect Employment Multiplier Total Employment Impact Research, Testing, & Medical Laboratories Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004 Direct-Effect Employment Multiplier Total Employment Impact TOTAL PRIVATE SECTOR Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004
Alabama 41 0.7% 2,994 -25.8% 2.9% 2.07 $64,250 6.16 18,455 17 30.8% 445 55.1% 0.1% 0.10 $40,606 3.18 1,414 176 -12.7% 2,754 -9.3% 0.7% 0.48 $30,781 2.30 6,323 245 16.2% 2,885 -19.6% 0.7% 0.50 $45,393 2.17 6,267 108,041 1.5% 1,509,288 -0.7% 1.4% n.a. $32,816
United States 2,111 0.4% 104,893 -6.9% 100.0% n.a. $63,383 10.91 1,212,094 2,589 -0.6% 313,207 2.7% 100.0% n.a. $79,303 9.51 2,731,321 15,190 0.2% 411,460 -3.6% 100.0% n.a. $56,449 4.56 1,817,705 20,565 19.4% 413,550 8.2% 100.0% n.a. $65,414 3.15 1,272,936 8,156,137 4.8% 109,249,195 -0.7% 100.0% n.a. $39,003
Source: Battelle calculations -- based on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group, RIMS II Employment Multipliers from the Bureau of Economic Analysis, and the Census Bureau's Economic Census. Note: n.a. = metric is not applicable.
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Bioscience Occupations in the Alabama Workforce, 2004
6,000 5,570 5,000 Number of Workers in Occupation
4,000
3,000
2,000
1,000
940
90 820
Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians
Bioscience-Related Degrees from Alabama Institutions, AY 2004
Agricultural, Food, and Nutrition Science
Biological Sciences
Biomedical Sciences and Engineering
Associate's (AA/AAS) Bachelor's (BS/BA) Master's (MS/MA) Doctorate (PhD)
Medical and Veterinary Sciences
Other Life Science Clinical/Technical Fields 100 200 300 400 500 600 700 800 900
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in Alabama, FY 2003
Medical Sciences
$194,033
Biological Sciences
$112,812
Agricultural Sciences
$76,504
Other Life Sciences
$5,789
$-
$20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000
Thousands of Dollars
Alabama University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $557,859 $395,825 71.0% $87.95 34.2% $323,113 $71.79 59.6% 1,738 7,420
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 23 18
21
23 25
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In 2004, Alaska created an Office of Economic Development (OED), which is responsible for facilitating economic development and employment opportunities throughout Alaska, particularly rural Alaska. OEDs efforts focus on three industrial sectors: tourism, fisheries, and minerals development. The bioscience sector has not been targeted for development, but the state has appropriated funding to support the development of new biological and biomedical facilities on the various campuses of the University of Alaska (UA).

The Biological Research and Diagnostics facility, the animal component of the Biological and Computational Sciences (BiCS) facility, is under construction on the UA Fairbanks (UAF) campus. This 42,000-square-foot facility will house UAFs science and research activities. It includes facilities for laboratory animal holding and care, procedure rooms, animal care administrative space, on-site biological waste handling, and building support space. Diagnostic laboratories and a surgical suite are planned in the future. The Governors proposed FY 2007 budget includes $55 million for an Integrated Science Facility at UA Anchorage (UAA). It is proposed that funding Phase III of the development be raised by refinancing the states tobacco settlement funds. Previously funded facilities include Ecosystem and Biomedical Health facility at UAA$4.75 million (this facility will include instructional research space), BiCS facility at UAF$21.5 million, and School of Fisheries and Ocean Sciences at the University of Alaska Juneau$9 million.
Research programs
The Governors FY 2007 budget proposes that $4 million be provided to the Alaska Board of Regents for university research investments.
ALASKA

Venture capital
Alaska Growth Capital is a commercial lending institution, originally capitalized by the state, that provides high-risk loans to companies. Alaska Growth Capital targets rural, minority-owned and technology companies. Investments in early-stage companies range from $100,000 to $10 million. Financing can be used for lines of credit, permanent working capital, equipment, and leasehold improvements. In 2005, the trustees of the Alaska Permanent Fund approved investing 8 percent of the Funds value into alternative assets, such as venture capital funds and hedge funds. The Alaska Permanent Fund was created in 1976 to invest proceeds from the sale of minerals, primarily oil transported through the Trans-Alaska pipeline system, for the benefit of current and future Alaskans. It was reported at the time that this level of investment could result in investing $2.5 billion in equity capital.
Contact
Bill Noll Commissioner Department of Commerce, Community, and Economic Development P.O. Box 110800 Juneau, AL 99811-0801 (907) 465-2500 bill_noll@commerce.state.ak.us
ALASKA
Alaska 2 -81.5% 285 17.1% 0.3% 1.34 $75,164 5.74 1,635 1 -8.8% 2 -24.8% 0.0% 0.00 $24,603 2.27 5 20 19.4% 70 0.0% 0.0% 0.08 $37,541 1.47 103 48 54.7% 365 21.0% 0.1% 0.44 $41,452 1.80 656 18,379 4.7% 220,932 5.4% 0.2% n.a. $37,692
Source: Battelle calculations based on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group, RIMS II Employment Multipliers from the Bureau of Economic Analysis, and the Census Bureaus Economic Census. Note: n.a. = metric is not applicable.
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Bioscience Occupations in the Alaska Workforce, 2004
1,000 900 Number of Workers in Occupation 800 700 600 500 400 300 200 40 100 -
990
410
Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians
Biomedical and Biochemical Scientists and Engineers
Medical and Clinical Laboratory Technicians
Bioscience-Related Degrees from Alaska Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields

20 40 60 Number of Degrees 80 100 120
ALASKA
Total Bioscience R&D Expenditures at Academic Institutions in Alaska, FY 2003
Medical Sciences
$18
Biological Sciences
$13,993
$11,772
Other Life Sciences
$17
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Alaska University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $140,641 $25,800 18.3% $39.76 47.5% $10,770 $16.60 201.0% 116 1,440
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 43 52
51
52 47
ALASKA

Over the last 2 years, Arizona has concentrated investment and efforts in building its research infrastructure and supporting the development of the states emerging bioscience industry sector. The state continues to implement its Arizona Bioscience Roadmap developed in 2002 with support from the Flinn Foundation. Arizonas strategy focuses on strengthening the states bioscience research base in the areas of neurological sciences, cancer therapeutics, bioengineering, and bioimaging and developing a critical mass of bioscience companies by encouraging the commercialization of bioscience discoveries and providing a supportive environment for start-up, emerging, and expanding bioscience companies. The state has developed comprehensive business plans for each of the targeted scientific platform areas. Recent developments to implement the Bioscience Roadmap include the following: The passage of legislation in 2003 to authorize $440 million for construction of university research facilities, primarily in the biosciences, has resulted in a dozen buildings that are either completed or under construction. A one-of-a-kind institute has debuted in Tucson with the promise of reshaping the way prescription drugs and medical devices get from concept to market. The Critical Path Institute (C-Path), an independent, nonprofit organization founded by the University of Arizona (UA), the U.S. Food and Drug Administration, and SRI International, aims to improve the drug-development system to produce therapeutics using methods that are faster, safer, and smarter. The University of Arizona and Arizona State University (ASU) have agreed to work jointly to launch an extension of the UA medical school in downtown Phoenix. The unique arrangement involves the UA Colleges of Medicine and Pharmacy and ASU programs including its College of Nursing. A Governor-appointed commission is guiding its formation. Northern Arizona University (NAU) received approval from the Arizona Board of Regents to launch a new bioscience institute focusing on translational researchthe Strategic Alliance for Bioscience Research and Education (SABRE). The Maricopa County Community Colleges system successfully passed a $950 million bond issue that includes more than $100 million for bioscience and healthcare training. The Legislature passed an angel investor tax credit.
ARIZONA
The Scottsdale Clinical Research Institute was established, providing a clinical research site for institutions including the Translational Genomics Research Institute (TGen) and the Arizona Cancer Center. The network of committees implementing the Bioscience Roadmap has expanded to 16, comprising more than 250 individuals. The Steering Committee has broadened to represent more than 60 statewide institutions involved in the biosciences. In addition, a virtual coalition of key institutions was formed to help fully implement the Roadmap, pulling in the strengths of the states bioscience trade associations and regional business leadership groups. In a recent development, Arizonas business leadership groups have formed Science Foundation Arizona, a nonprofit entity that would build and strengthen the states medical, scientific, and engineering programs and infrastructure. The organization would be supported financially by the business community. Arizona philanthropist Jerry Bisgrove, chairman of the Stardust Charitable Group, has pledged to donate $100 million over the next 4 years to the foundation contingent upon the State of Arizona providing $150 million over the next 5 years. In March 2006, the Arizona House of Representatives passed legislation to create a $150 million Arizona 21st Century Fund. The foundation and the 21st Century Fund would support research, attraction of internationally recognized scientists, creation of earlystage tech firms, and related activities. The legislation is now under consideration in the Arizona Senate.

The Biodesign Institute at ASU was established in 2002 to improve human health and quality of life through biosystems research, especially via understanding molecular assembly and how its design rules can inspire new applications in medicine, agriculture, environmental management, and national security. The multidisciplinary research institute has 12 research centers across the fields of biology, chemistry, physics, medicine, agriculture, environmental science, electronics, materials science, engineering, and computing. Two of four planned facilities have opened, accounting for nearly 350,000 square feet of advanced research space. Eventually, 800,000 square feet will be completed. BIO5 is the UAs collaborative bioresearch institute bringing together scientists from five disciplines agriculture, medicine, pharmacy, basic science, and engineeringto solve complex biological problems. BIO5 creates science, education, and industry partnerships to disseminate knowledge and apply the knowledge gained to treat disease, feed humanity, and preserve livable environments. BIO5s future home, the Thomas W. Keating Bioresearch Building, provides 177,000 square feet of space for researchers and students to interact, discover, analyze, and invent. The $25 million, 110,000-square-foot Mayo Clinic Collaborative Research Building in Scottsdale opened in 2005 to house Mayo research operations as well as collaborative efforts currently involving TGen Drug Development Services (TD2) and the new U.S. headquarters of InNexus, a Canadian drugdevelopment firm.
ARIZONA
Research programs
The Arizona Biomedical Research Commission advances medical research by contracting with individuals, organizations, corporations, and institutions to carry out peer-reviewed scientific projects within Arizona. With $12 million in annual funding, the program awards contracts for projects researching the causes, epidemiology and diagnosis, formulation of cures, medically accepted treatment and prevention of diseases, including drug discovery and development; and oversees the projects to assure contract compliance. The commission advances biotechnology by funding translational research projects and assisting in the removal of impediments to inter-institutional biomedical research collaborations. A combination of public and private sources pledged $120 million in 2002 to support the development of TGen, a nonprofit biomedical research institute focused on developing earlier diagnostics and smarter treatments. Today, TGen has more than 25 active research teams focused on many common diseases and disorders and has created two spin-off entities to help accelerate its research. The first, TD2, uses in vivo and in vitro models and genomic analyses to provide services to evaluate the safety and efficacy of pre-clinical compounds. The for-profit Molecular Profiling Institute Inc., co-developed with the International Genomics Consortium, is a specialty reference laboratory that helps cancer patients worldwide by profiling patients tumors or other biologic materials utilizing the latest discoveries from genomic and proteomic research. TGen currently employs 200 people and has established numerous collaborative relationships statewide, nationally, and internationally.

Arizona Technology Enterprises LLC (AzTE) is the technology venturing arm of ASU and NAU. AzTE actively assesses, licenses, and launches spin-out companies based on ASU and NAU inventions. AzTE also manages the ASU Catalyst Fund, which provides investments in the range of $25,000 to $50,000 to fund proof-of-concept activities surrounding industry/academia collaborations. The fund was initially seeded with $425,000 in FY 2004. The UA Office of Technology Transfer assists faculty and staff in matters related to intellectual property and bringing the inventions and discoveries developed within the university to market. UA Foundation Technologies and Research LLC manages the development of medical-treatment patents donated by Procter & Gamble.

ASU Technopolis, an initiative of the Office of Vice President for Research and Economic Affairs, offers programs to educate, coach, mentor, and connect innovators and entrepreneurs. The program offers oneon-one coaching for entrepreneurs, a 6-week Launch Prep Entrepreneurship Course, The Mentoring Program, workshops on accessing federal funding programs such as SBIR and STTR, individualized Investor Connections, and other specialized programs throughout the year. See description below for the Arizona Center for Innovation at UA. Phoenix Biotechnology Accelerator provides affordable, flexible leases and access to equipment for start-up biotechnology companies in downtown Phoenix.
ARIZONA
The Arizona Business Accelerator in Phoenix encourages innovation and development of knowledgebased products and resources. It provides business-development resources and hands-on assistance to convert technology and life-sciences ideas into commercially viable business.

In 2005, the Legislature passed a bill to stimulate investment in early-stage technology firms, enabling angel investors to secure tax credits of 30 percent for investment in technology firms and 35 percent for investments in biotech firms or firms located in rural areas.

Incubators
Arizona Center for Innovation is a 12,500-square-foot, nonprofit, high-technology incubator located in the UA Science and Technology Park in Tucson. The center, which provides a full array of business development services, focuses on companies in six areas, one of which is the life sciences. The incubator includes 8,000 square feet of chemistry/wet-lab and laser-lab space.
Under development
A three-story, 35,000-square-foot, multitenant wet-lab facility is planned at Papago Park Center in Tempe. Up to 80,000 square feet of additional wet-lab space may be added to the plan. The project is set for completion in early 2008.

The 320-acre ASU Research Park is home to 35 business and high-technology companies with more than 3,000 employees and 1.7 million square feet of existing facilities. The park was recently chosen to house the Flexible Display Center, an ASU-led research consortium developing portable electronic devices for a U.S. Army initiative. The center will be housed in the ASU MacroTechnology Works Building, a 275,000-square-foot facility that is a public/private partnership focusing on commercializing technologies in the flexible arena, including medical sensing and diagnostics. The ASU Research Park has 42 acres of undeveloped land, and plans are underway to develop a hotel and convention center. The UA Science and Technology Park is home to 30 high-technology companies and organizations with more than 6,000 employees. Its facilities include 2 million square feet of developed space, located on a 1,345-acre site. Plans are underway to develop considerable new spaceincluding multitenant office buildings, laboratory science buildings, residential housing, and retail and hotel spaceover the next 5 to 8 years. Expansion plans include wet-lab space.
Under development
Under development in downtown Phoenix is the Phoenix Biomedical Campus, a 15-acre academic and research park. When fully developed, the campus is proposed to contain 1 million square feet of laboratories, offices, classrooms, and other facilities. The six-story headquarters of TGen anchors the development. The $29.4 million first building of the Arizona Biomedical Collaborative, a joint venture
ARIZONA 4
of ASU and UA, is under construction. Also underway is the UA College of Medicine Phoenix campus to be housed within three historic buildings that are under renovation. The Arizona Bioscience Park in Tucson will encompass more than 65 acres with an estimated 3.1 million square feet of space, 2.4 million of which is laboratory/office space. The park will provide an important link in the development of life sciences in the southwestern United States to other significant advances in global biomedical research. SkySong, a research and office park supported by ASU and the City of Scottsdale, is under construction and expected to open in spring 2007. The 1.2-million-square-foot, $320 million facility will house private companies as well as ASU entrepreneurial support programs. The Applied Research and Development Building being planned at NAU will provide 70,000 square feet for high-tech research. The facility will consolidate much of the university and Flagstaff community research activities and provide wet- and dry-lab space for commercial use. It will house the Northern Arizona Technology and Business Incubator. The projected cost is $18 million, and the facility is expected to be completed in 2006.

The Virginia G. Piper Charitable Trust has pledged an investment of $50 million over 5 years to attract to the Phoenix area 10 of the worlds most distinguished leaders in the development of personalized medicine. The Piper Chairs will be leading scientists, engineers, and clinicians in the fields of bioscience, nanotechnology, and advanced information technology.

The Maricopa Community Colleges District, the nations largest community college system, has introduced several new bioscience programs at various colleges in response to the recommendations of a 2003 comprehensive study of bioscience workforce needs in the greater Phoenix area. Efforts are underway to enhance linkages and facilitate transitions between K-12 and postsecondary bioscience programs. The College of Law at ASU launched in 2005 a masters program in genomics law, the first of its kind in the nation.

Several Arizona high school districts are introducing or expanding bioscience-related programs to their science curriculum, most notably Chandler Unified, Gilbert Unified, Mesa Unified, and Tempe Unified. Individual high schools within other districts are also strengthening their bioscience-related curriculum. Arizonas community colleges and public universities are providing their expertise to teachers and students interested in the biosciences: Job Paths Biotechnology Summer Institute is being offered at Pima Community College to introduce high school students to the basics of biotechnology. It is funded by a grant from the U.S. Department of Labor.
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ASUs BIOREACH project provides materials and equipment to middle school and high school teachers who want to teach biotechnology to their students. NAUs biological sciences department focuses its summer science workshop for K-12 teachers on biotechnology. Based on the success of the workshop, there are plans for similar bioscience workshops in the future. The UAs BIOTECH Project provides technical support for Arizona middle school and high school teachers to conduct genetics experiments with their students. The project is run through UAs molecular and cellular biology department. The Scientific Enrichment Program at Barrow Neurological Institute of St. Joseph's Hospital and Medical Center in Phoenix offers three programs: (1) a cancer biology seminar that introduces students from 60 area high schools to a variety of topics pertaining to cancer biology and the process of scientific discovery; (2) a hands-on laboratory experience for a limited number of highly motivated students; (3) a workshop program for local high school teachers, providing an opportunity to learn the latest scientific technology and assistance in introducing such techniques in the classroom. The Arizona Bioengineering Collaboration of the Arizona Science Center has trained more than 260 Phoenix-area middle school and high school teachers in state-of-the-art bioengineering and biotechnology practices. The program involves workshops developed by center education staff in collaboration with industry experts, university scientists, and science and technology teachers from local middle schools and high schools. Phoenix Union Bioscience High School, a magnet school, will launch in 2006 near the Phoenix Biomedical Campus in downtown Phoenix. Programming will be provided for students within the Phoenix Union High School District. Total enrollment will eventually reach 400.
Pending Proposals
The House of Representatives is considering legislation (HB 2477) to create a public/private fund to strengthen scientific research. The bill would establish the Arizona 21st Century Fund by providing $150 million over 5 years, to be matched by private funds. Legislation is pending that would boost by 10 percent the size of the state tax credit for research and development done by Arizona companies through Arizona universities. (HB 2677, SB 1065) Arizona will unveil in 2006 a translational research model that will focus on collaborations with special populations, streamlining IRB and HIPAA processes, and harmonizing key business practices.
ARIZONA
Contacts
Sandra Watson Executive Director, Governors Council on Innovation and Technology Arizona Department of Commerce 1700 West Washington Street, Suite 220 Phoenix, AZ 85007 (602) 771-1215 sandraw@azcommerce.com
Micah Miranda Biosciences Manager Arizona Department of Commerce 1700 West Washington Street, Suite 220 Phoenix, AZ 85007 (602) 771-1122 micahm@azcommerce.com
The Arizona BioIndustry Association is the statewide organization that promotes the growth of the bioindustry through partnering and collaborative relationships among education, business, private, and public sectors. It serves as the networking, advocacy, education, and communications group for Arizonas bioindustry. Jon McGarity President and CEO Arizona BioIndustry Association 9940 North 78th Place Scottsdale, AZ 85258-1389 (480) 483-6380 jmcgarity@cox.net
ARIZONA
Arizona 20 -19.3% 585 -17.9% 0.6% 0.31 $40,352 4.20 2,456 26 -7.1% 952 -15.4% 0.3% 0.17 $56,147 4.41 4,201 254 3.2% 4,263 6.4% 1.0% 0.57 $45,428 2.59 11,027 279 9.1% 6,122 22.3% 1.5% 0.82 $52,330 2.17 13,291 125,782 7.5% 1,979,283 4.6% 1.8% n.a. $36,211
ARIZONA
Bioscience Occupations in the Arizona Workforce, 2004
7,000 6,220
6,000 Number of Workers in Occupation
5,000
4,000
3,000
2,000 60 1,270 140
1,000
Bioscience-Related Degrees from Arizona Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 100 200 300 400 500 600 700
Number of Degrees
ARIZONA
Total Bioscience R&D Expenditures at Academic Institutions in Arizona, FY 2003
Medical Sciences
$110,557
Biological Sciences
$110,157
$67,731
Other Life Sciences
$6,055
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Arizona University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $617,978 $306,392 49.6% $54.90 68.5% $160,870 $28.83 47.5% 1,499 7,690
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 20 26
27
29 24
ARIZONA
10

The life sciences are among the six sectors specially targeted by the Arkansas Consolidated Incentives Act of 2003, administered by the Department of Economic Development together with the Arkansas Science and Technology Authority (ASTA). The consolidated act integrates several previously standalone tax credits for research and bioscience training within a comprehensive initiative for discretionary incentives. The states bioscience R&D strategy is defined by the Arkansas Bioscience Institute (ABI), a collaborative of five public and private institutions working on agricultural, bioengineering, and biomedical topics. The ABI research program is funded by 22.8 percent of payments made to the states Tobacco Settlement Trust. Since the last BIO report, the Arkansas Tobacco Settlement Commission rejected an outside evaluators recommendation to cut the ABI allocation by 20 percent. The Arkansas Development Finance Authority (ADFA) also brought on line state investments in an in-state pre-seed fund and several laterstage venture funds that agreed to open operations in Arkansas and consider in-state deals.

Under the tobacco-settlement allocation approved by voters in 2000, the first $5 million of funding allocated to ABI is used to retire $60 million in bonds that were used to establish the Boozman College of Public Health and to create two major research facilities. In 2004, Arkansas State University (ASU) in Jonesboro opened a $20 million, 88,000-square-foot laboratory facility dedicated to work funded by ABI. This joins an earlier $25 million, 140,000-squarefoot Biomedical Research Center at the University of Arkansas for Medical Sciences in Little Rock (UAMS). ABI program funds have also been used to build or improve core research laboratories at several of the participating institutions (UAMS, ASU, University of Arkansas at Fayetteville, and University of Arkansas Division of Agriculture). The public universities are exploring revenue-bond alternatives to a $150 million general obligation bond for higher-education upgrades that was narrowly defeated by voters in the 2005 election.
ARKANSAS
Research programs
The tobacco allocation to ABI generally brings in $12 million to $13 million a year. In the most recently reported year, ABI supported 115 research projects, of which 30 percent were collaborations among more than one of the participating institutions, such as collaborations in agricultural medicine. Separately, ASTA operates a $1 million Research Matching Fund designed to assist institutions in attracting major federal awards that carry matching requirements.

ABI funds have also been used as part of 12 faculty recruitments in the most recent year, bringing the cumulative total of such uses to 25.

Under the states Consolidated Incentive Act, tax credits are available for companies that perform university-based research in areas targeted by ASTA or funded through its applied-research grant.

ASTA offers repayable grants up to $50,000 through a Technology Development Program, funded at $1.6 million in 2005. These awards are intended for researchers at universities or federal laboratories or small businesses commercializing technology. They are repayable by a 5 percent royalty on net sales for a maximum of 10 years. ASTA also offers a smaller (up to $3,250) outright grant program for similar technology transfer purposes.

Based at the Arkansas Research and Technology Park at Fayetteville (otherwise not bioscience targeted) is the Virtual Incubation Company, a nonprofit technology accelerator that charges accredited investors $25,000 to $100,000 to connect them to start-upstage enterprise including in the biosciences. The intent is to provide the companies with advice and the accredited investors with access to pre-screened companies in which they may separately invest.

Pre-seed investments are available from ASTAs internal Seed Capital Investment Fund, which can provide up to $500,000 in working capital from a revolving fund of $4.8 million. Pre-seed investments are also made by the Fund for Arkansas Future, a $5.25 million formal angelinvestor fund that includes $100,000 in investment from the ADFA under its Arkansas Institutional Fund program, a $70 million tax-credit-backed fund of funds created in 2001. Investors in the Fund for Arkansas Future are eligible for a discretionary 33 percent tax credit on certain investments administered by the Commerce Capital Development Company, one of the subsidiaries of the
ARKANSAS 2
Arkansas Capital Corporation Group, a nonprofit development financing affiliate of ADFA linked by board membership to ASTA. This credit may offset up to half income-tax liability, can be carried forward 8 years, and is transferable even by nonprofit organizations.
Venture capital
Early-stage venture investments are available from Diamond State Ventures, a $56 million Small Business Investment Company (SBIC) capitalized by another affiliate of the Arkansas Capital Corporation Group. Additionally, the Arkansas Institutional Fund, a fund of funds created in 2001 (see above), has invested $4.5 million in Prolog II, a $51 million early-stage bioscience venture fund based in St. Louis. Prolog agreed to open an Arkansas office and set up an in-state advisory structure.

Incubators
The ABI-funded UAMS building that houses the universitys Arkansas BioVentures business accelerator also includes 12 wet-lab suites over 16,500 square feet housing 11 currently incubating spinoffs or licensees and a cGMP laboratory open to academic and start-up use.

The Little Rock Chamber of Commerce has created a Biotechnology Task Force that is designing a program to recruit and retain bioscience management.
Contacts
Brad Greenway Arkansas Department of Economic Development One Capitol Mall Little Rock, AR 72201 (501) 682-1121 bgreenway@1800arkansas.com The planned statewide Arkansas Biotechnology Association is currently inactive. The state BIO affiliate is the Little Rock Regional Chamber of Commerce, which staffs a Biotechnology Task Force. Kim Pruitt Vice President, Economic Development Little Rock Regional Chamber of Commerce One Chamber Plaza Little Rock, AR 72201 (501) 377-6005 kpruitt@littlerockchamber.com
ARKANSAS 3
Arkansas 34 -22.4% 1,676 -14.8% 1.6% 1.85 $48,454 6.23 10,441 13 85.7% 128 20.8% 0.0% 0.05 $33,279 3.32 425 94 3.1% 2,641 -9.9% 0.6% 0.74 $31,922 2.27 5,994 120 22.8% 1,251 9.0% 0.3% 0.35 $43,363 1.89 2,363 71,693 4.2% 942,399 -0.4% 0.9% n.a. $29,791
ARKANSAS
Bioscience Occupations in the Arkansas Workforce, 2004
3,000 2,880 Number of Workers in Occupation 2,500
2,000
1,500
1,000 670 500 250 Agricultural, Food, Biological Scientists and Technicians and Nutrition Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 40
Bioscience-Related Degrees from Arkansas Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 50 100 150 200 250 300 350 400 450 500
Number of Degrees
ARKANSAS
Total Bioscience R&D Expenditures at Academic Institutions in Arkansas, FY 2003
Medical Sciences
$54,833
Biological Sciences
$13,661
$55,741
Other Life Sciences
$1,767
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Arkansas University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $183,183 $126,974 69.3% $46.58 37.4% $56,185 $20.61 44.8% 1,082 3,840
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 40 37
41
34 36
ARKANSAS

Since the last BIO report, California voters approved Proposition 71 in 2004 with 59 percent of the vote, creating the California Institute of Regenerative Medicine (CIRM). The referendum authorized $3 billion in bond funding that would finance an annual competitive grant program over 10 years. During 2005, CIRM mounted a competition for its headquarters site, won by San Francisco, which contributed a rent-free office building at the Mission Bay development district (see below). Implementation of the CIRM grant program is currently delayed by litigation. The University of California (UC) system continued to roll out its Institutes for Science and Innovation, two of which have bioscience components. The Cal Institutes, each financed by $100 million in bonds backed by incremental indirect cost recovery, are expected to focus interdisciplinary research on topics of interest to the states industrial community with potential of creating the next generation of highgrowth companies. The state financing must be matched 2:1 by industry and 5 percent may be used to seed operations. Leaders of the states several BIO affiliates now hold a biannual life science industry summit with California cabinet secretaries, following up their collaboration in 2004 on a California Life Sciences Strategic Action Plan.

The most bioscience oriented of the Cal Institutes is the Institute for Quantitative Biomedical Research (QB3), a collaborative of UC San Francisco (UCSF), UC Berkeley, and UC Santa Cruz. Since the last BIO report, QB3 opened its 152,000-square-foot headquarters at the UCSF Mission Bay campus. QB3 joins several other major bioscience facilities at Mission Bay, including two new buildings for programs in biology, genetics, and neuroscience and a new cancer institute. Overall, UCSF is raising $1.5 billion to support development of the new campus. The California NanoSystems Institute (CNSI), a second Cal Institute that is a collaborative of UC Los Angeles (UCLA) and UC Santa Barbara, has programs in bionanotechnology. Its new building at UCLA was under construction at the time of this profile.
CALIFORNIA
San Diego State University (SDSU) has added a 33,000-square-foot BioScience Center hosting its heart institute, center for microbial sciences, and other programs. SDSU is also adding a 50,000-square-foot Coastal Waters Laboratory with associated aquaria and greenhouses.
Research programs
The CIRM has been raising $30 million to $50 million in private funds to allow it to commence a minigrant program while litigation advances concerning its governance structure.

The UC Discovery Grant (also known as the Industry/University Cooperative Research Program) offers challenge grants up to $250,000 annually for up to 4 years to UC faculty conducting research in partnership with a California company, which must match 1:1. Of the seven program areas, two are in the biosciences: biotechnology and information technology for the life sciences. The program is funded at $30 million annually for all fields. California State Universitys Program for Education and Research in Biotechnology (CSUPERB) offers a similar grant up to $30,000.

Several universities, both public and private, have created programs to assist in the transfer of bioscience technology to entrepreneurial start-ups: UCSF has created and stationed at the Mission Bay campus a Bioentrepreneurship Center, which offers mentoring and training for faculty members whose discoveries might form the basis of a spin-off, as well as funding for translational drug development. The center is supported by the QB3 Institute. The University of Southern California (USC) raised $22 million to create the Mark and Mary Stevens Institute for Technology Commercialization (SITeC) that has both an academic mission and a mandate to assist with the universitys own technology portfolio. Although it is based at the engineering school, it is expected to have impact on the life sciences campus as well. The $1 million annual income from the Stevens endowment supports SITeC. Also based at USC, but not part of the university, is the $160 million Mann Institute for Biomedical Engineering, a program focused on commercialization. This is part of a larger national initiative by the Alfred E. Mann Foundation, based in Valencia. Caltech operates a privately endowed Grubstake program that makes grants for precommercialization research up to $50,000. City of Hope cancer institute is initiating an Enterprise Grants program to assist researchers interested in spinning off companies.
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BayBio has spun off a 501(c)(3) BayBio Institute that, among other activities, will conduct entrepreneurial training and mentoring. Several of the formerly state-supported Regional Technology Alliances have evolved to become multisector commercialization centers: The former San Diego Regional Technology Alliance has merged with the CONNECT program that spun off from UC San Diego (UCSD) to become RTA@Connect. In this format, the successful Springboard program to prepare entrepreneurs will be continued, but in a context that involves multiple institutions in the San Diego region. The Los Angeles Regional Technology Alliance received designation and funding from the NIH to operate its Commercialization Assistance Program, providing guidance to SBIR Phase II recipients nationwide. The Sacramento Area Regional Technology Alliance also maintains an alliance with CONNECT to support technology entrepreneurs.

Life Science Angels, which performs due diligence for members of an informal angel network, is active in northern California. It does both biotechnology and medical-device deals.

Incubators
Since the last BIO report, the San Jose Redevelopment Agency opened BioCenter 1, the first bioscience incubator among the four that it operates. The $6.5 million project upgraded a 37,000-square-foot building in the Edenvale Technology Park in South San Jose. The incubator is operated for the agency by San Jose State University. Additional bioscience incubators include the following: Photonic Incubator, an 11,230-square-foot suite within the Beckman Laser Institute at UC Irvine. Center for Training and Technology Incubation, a 30,000-square-foot wet/dry incubator at the Innovation Village Research Park being developed by Cal State Polytechnic University at Pomona (below). Informal bioscience incubation capacity may also be available at the following: Two of the Cal Institutes: QB3 at Mission Bay (see below) and CNSI at UCLA Los Angeles BioMedical Research Institute (LA BioMed) at the Harbor-UCLA Medical Center campus, in collaboration with Southern California Biomedical Council.
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Under development
Several research parks with bioscience components are at various stages of development. The farthest advanced is Mission Bay, a 303-acre development district surrounding the new 43-acre UCSF campus of the same name. The first phase of campus construction is now nearly complete, and the surrounding commercial district saw its first commitment to speculative wet-lab space by Alexandria Real Estate Equities. Mission Bay is also home to the administrative headquarters of the CIRM. The City of San Francisco donated a 10-year lease to an office building in the residential/commercial segment of Mission Bay. Other bioscience parks in early stages of planning and development are as follows: University Research Park is a collaboration among the county, city, and UC Riverside to develop 39 acres and 17 more acres in Phase II. Early tenants include bioscience start-ups from UC Riverside and other institutions. Biomedical Research Park sits on 110 acres adjacent to the Health Science Center of USC in East Los Angeles. UC Davis Research Park is a 38-acre park adjacent to the UC agricultural campus, with 400,000 square feet of mixed-use space being developed on contract by a master developer, Carr America. NASA Research Park, a 213-acre site, is part of the planned redevelopment of Moffett Field at Ames Research Center. A building of 130,000 square feet is now open. California State Polytechnic at Pomona is developing a 65-acre Innovation Village Research Park, anchored by Red Cross Biomedical Services and currently developing a 120,000-square-foot multitenant office/laboratory facility. City of Hope cancer institute in Duarte is developing a 29-acre research park. USC is investigating feasibility of a research park at its Health Sciences Campus.

The USC SITeC program offers educational programs in commercialization for USC students. Both USC and California State University at San Diego offer masters degrees in regulatory affairs. The UCSD Rady School of Management is collaborating with BIOCOM and CONNECT on half-day skill-development courses for managers from biotechnology organizations in southern California.

The California Community Colleges maintain a system-wide Applied Biological Technologies Initiative headquartered at Ventura College. The initiative supports six centers organized geographically with the mission of servicing the needs of the biotechnology workforce in California.
CALIFORNIA
Many of Californias institutions of higher education offer a variety of bioscience courses and degree programs. Examples of recent offerings include the following: CSUPERB is collaborating with Southern California Biomedical Council (SCBC) to organize special workforce training programs for companies in the LA Basin (C-LAB) and may replicate the model in northern California as C-BAY. CSUPERB holds an annual faculty-student symposium on biotechnology and continues to offer grants of up to $15,000 for curricular and short-course development across the CSU system. UC Berkeley received a 5-year, $5.6 million grant from the Gordon and Betty Moore Foundation for a Biology Scholars Program that helps undergraduates from underserved communities become competitively qualified for admission to medical and graduate schools. USCs Center of Excellence in Genomic Science offers a summer institute in genomics and bioinformatics for undergraduates. UCs Biotechnology Research and Education Program offers Graduate Research and Education in Adaptive Bio-Technology (GREAT) training grants. The program makes10 to 15 two-year training grants at $50,000 a year for graduate students in the UC system for training at the interface of life sciences and other disciplines. Amgen Foundation donated $2 million to the Keck Graduate Institute for a Bioprocessing Center used in various graduate programs including professional masters degrees in bioscience. With support from the U.S. Department of Labor, Biogen Idec, and Genentech, Mira Costa Community College in North San Diego County has opened a new biotechnology and bioprocessing training laboratory. BIOCOM offers five $1,000 college scholarships annually to college-bound students with a commitment to the San Diego life science community, not including premedical students.

BIOCOM and the Southern California Biotechnology Center at Miramar College collaborate on a Life Sciences Summer Institute internship/boot-camp training for high school teachers and students.
Contacts
Jeff Newman Technology and Commerce Partnership Manager California Business, Transportation and Housing Agency California Economic Development Program 7080 Hollywood Boulevard, Suite 900 Hollywood, CA 90028 (626) 422-5581 jnewman@commerce.ca.gov
CALIFORNIA
BayBio is an independent, nonprofit 501(c)(6) trade association serving the life science industry in northern California. Its mission is to support the regional bioscience community through advocacy, enterprise support, and the enhancement of research collaboration. Matthew M. Gardner President BayBio 395 Oyster Point Boulevard, Suite 117 South San Francisco, CA 94080 (650) 871-7101 mgardner@baybio.org
Representing the Greater San Diego and Southern California life sciences communities, BIOCOM focuses on initiatives that positively influence the growth of the life science industry, including capital formation, public policy, workforce development, and scientific discovery and development. Joseph D. Panetta President and CEO BIOCOM 4510 Executive Drive, Plaza One San Diego, CA 92121-3021 (858) 455-0300 jpanetta@biocom.org
The California Healthcare Institute (CHI) is an independent organization devoted to researching and advocating policy to forward the interests of Californias biomedical community. Its mission is to research, develop, and advocate policies and actions that promote biomedical science, biotechnology, pharmaceutical and medical device innovation in California. Todd E. Gillenwater VP, Public Policy California Healthcare Institute 1020 Prospect Street, Suite 310 La Jolla, CA 92037 (858) 551-6677 gillenwater@chi.org
The Southern California Biomedical Council (SCBC) is the trade association of the Greater Los Angeles Life Sciences industry. The mission of the SCBC is to promote and support the life sciences industry in the region for job creation and economic growth. Ahmed A. Enany President and CEO Southern California Biomedical Council 444 South Flower Street, 34th floor Los Angeles, CA 90071 (213) 236-4890 enany@socalbio.org
CALIFORNIA 6
California 193 -10.2% 5,104 7.1% 4.9% 0.42 $47,937 5.18 26,434 438 1.4% 40,503 3.4% 12.9% 1.12 $100,843 7.33 296,895 2,381 0.6% 73,115 -5.5% 17.8% 1.54 $73,193 3.47 253,985 2,901 18.7% 70,872 6.3% 17.1% 1.48 $76,427 2.65 187,711 1,166,460 12.6% 12,618,530 -0.4% 11.6% n.a. $44,021
CALIFORNIA
Bioscience Occupations in the California Workforce, 2004
30,000
29,480
29,570
20,000
15,000
10,000
5,000
4,940
5,540
Bioscience-Related Degrees from California Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
Number of Degrees
CALIFORNIA
Total Bioscience R&D Expenditures at Academic Institutions in California, FY 2003
Medical Sciences
$2,282,592
Biological Sciences
$542,914
$261,160
Other Life Sciences
$18,458
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
California University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $5,362,683 $3,137,202 58.5% $88.41 53.9% $3,619,590 $102.00 61.0% 11,274 69,530
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 1 1
1 1
CALIFORNIA

In 2003, the Colorado Office of Innovation and Technology, working with a management team that included industry, university, and government representatives, developed An Action Plan to Grow Colorados Bioscience Cluster. The plan proposed that Colorado grow its bioscience sector by nurturing homegrown businesses, creating excellence in selected bioscience research areas, and addressing the complexity of the research and industry enterprise through cooperative endeavors. The Action Plan is updated yearly to recognize activities that have been accomplished and to add new action steps to move the industry forward even more. In addition, the Larimer County/Fort Collins community created their own Action Plan that was based on the state plan. They have met several of their goals already and are seeing bioscience energy in the northern Colorado area.

Recent state Investments in facilities
The University of Colorado Health Science Center (UCHSC), the University of Colorado Hospital (UCH), and The Childrens Hospital are being relocated to a state-of-the-art medical campus at Fitzsimons. In addition, Congress recently appropriated $53 million for the relocation of Denvers Veterans Affairs Hospital to the site; negotiations are ongoing. The initial phase of the full campus move is estimated to cost $1.3 billion, which will result in an increase from 2.7 million gross square feet on 46 acres to 3.4 million square feet on 210 acres at the new location. Another 1.5 million gross square feet of space, mostly for research, is slated for construction following the initial transition period. Completion of the entire Fitzsimons building program will require a total capital investment of nearly $4 billion. Examples of projects that have been completed since 2004 or are under construction at the Fitzsimons campus include Research Complex 1, 600,640 gross square feet, $216 million, completed June 2004; Barbara Davis Center for Childhood Diabetes, 109,000 gross square feet, $20.8 million; completed 2005; The Childrens Hospital, 1.2 million gross square feet; $462 million; construction began in 2004; Research Complex II, 400,000 gross square feet; $205.8 million; under construction;
COLORADO 1
Denison Library at Fitzsimons; 116,000 square feet; $35 million; ground-breaking April 2006;
Education Facility II/Academic East/Education Bridge, 250,000 gross square feet;

$75.7 million; ground-breaking April 2006; Education Facilities IA and IB, 94,669 gross square feet, $28.4 million; ground-breaking April 2006; Academic Office West, 208,000 gross square feet, $42 million; ground-breaking April 2006; and Fitzsimons Commons, the first phase of a new urban-centered residential/ commercial complex scheduled to open in 2006. The $57 million project, developed by The Pauls Corporation, will emulate a traditional village center.
Research programs
See Pending Proposals.

See Pending Proposals.

Colorado State University has created the Commercial Opportunity Fund (COF), a fund to support early commercialization feasibility studies and analyses of promising technologies that emerge from the work of its faculty. The purpose of COF is to provide monetary support to increase the probability for commercial success of promising and commercially viable technologies. Due to the limited funds available, the typical budget for each project should be less than $20,000 per year. Evaluation criteria to be used by the Colorado State University Research Foundation (CSURF) in making awards are commercial viability, proximity to completion/improvement, positioning/market research, and adequacy. The University of Colorado has created a Proof of Concept (POC) fund to provide grants to enable the further development and validation of promising CU technologies that are, or will become, suitable for commercialization. POC awards can be either $10,000 or $25,000, and the technologies are selected by a competitive application process. Applications for POC awards are submitted to the Technology Transfer Office, which reviews the proposals, makes the final selections, and manages the awards.

The Fitzsimons BioBusiness Incubator (FBBi) is dedicated to promoting the growth and success of bioscience businesses in Colorado, with a special emphasis on forming a bioscience cluster at Fitzsimons. Services include business planning, strategy assessment, management, intellectual property protection, scientific and technical resources, access to laboratory space, regulatory issues, and capital formation. Funders include the Colorado Economic Development Commission, Aurora Economic Development Council, Fitzsimons Redevelopment Authority, University of Colorado, and the Metro Denver Economic Development Corporation. The incubator has eight current clients.
COLORADO 2
CTEK is a statewide partnership that provides assistance to emerging technology companies through four venture centers. CTEK offers a variety of programs, ranging from a full-client relationship that examines all aspects of launching or growing a business, a limited-duration engagement focused on specific objectives, as well as one-shot business plan or investor presentation reviews. CTEK, with Venture Centers in Boulder, Longmont, Stapleton, and Denver, works with all technology companies including bioscience companies.

Venture capital
In March 2004, the Legislature passed and the Governor signed legislation creating a Colorado Venture Capital Authority (VCA) and transferring $50 million in tax credits from the states CAPCO program to the VCA for investment in venture capital funds. The legislation requires that the funds be used to provide seed and early-stage capital. In 2005, the VCA selected High Country Ventures as the fund manager and invested $25 million in Colorado Fund 1. It is anticipated that a second fund will be created in 2010. The first investment by High Country Ventures was in Taligen Therapeutics, a new biotech company spun out of the University of Colorado.

Incubators
See CTEK and FBBi in Supporting bioscience entrepreneurs and emerging companies.

The Colorado Bioscience Park Aurora is being developed as part of the Fitzsimons Redevelopment Project. The 160-acre park, which is affiliated with the University of Colorado, is expected to accommodate 3 million square feet of space and 4,000 employees when fully developed. The park can accommodate research-oriented biomedical, biotechnology, and pharmaceutical operations in multitenant buildings and in single-tenant buildings to suit facilities. The Fitzsimons Redevelopment Authority, master developer of Fitzsimons, has entered into exclusive negotiations with Forest City Enterprises to be Fitzsimons long term development partner. This partnership will accelerate the build-out of the Colorado Bioscience Park Aurora campus. The first building built in the park is the Bioscience Park Center, a 60,000-square-foot facility designed to house emerging bioscience companies. The center provides support services as well as specialized equipment and facilities. The center, which opened in 2000, currently houses 18 bioscience companies. Bioscience East, a 25,000-square-foot facility undergoing renovation to accommodate bioscience companies, will be ready for occupancy in spring 2006. DMI Biosciences is its first tenant. CSURF, in conjunction with Everitt Enterprises of Fort Collins, has developed a multiuse technology park, known as the Centre for Advanced Technology, which houses several bioscience companies. The
COLORADO 3
centre is home to the Natural Resources Research Center, which is a campus of five buildings that house between 800 and 1,000 federal employees.
Under development
Forest City Enterprises is developing the Denver Bioscience Center at Stapleton, a Bio City on the site of the former Stapleton Airport, which will consist of a 200-acre bioscience manufacturing park. The planned development will take advantage of the proximity to the Colorado Bioscience Park at Fitzsimons and the smaller start-up companies doing clinical trials and research. It is expected that the Stapleton development will provide space for the small spin-offs to expand their manufacturing operations at a location just across the street.

The Community College of Aurora offers biotechnician training. Students can emphasize R&D or biotechnology manufacturing. University of Colorado-Colorado Springs has created an Institute for Bio-Energetics. The purpose of the institute is to build a multidisciplinary approach to understanding cellular metabolism and cellular communication with the intention of treating or curing serious diseases.

The Denver Metro region recently received a 5-year, $15 million WIRED grant from the U.S. Department of Labor for workforce development. The biosciences are one of the four targeted industry clusters. A bioscience coordinator will be hired to match up industry, university, K-12, and career/technical institutions in order to provide the best bioscience workforce needed to grow the industry in Colorado.
Pending Proposals
Four bills that will benefit Colorados bioscience industry been introduced in the 2006 legislative session. Bioscience Net Operating Loss Bill: As part of the Governors economic development package, this bill would permit the Colorado economic development commission to purchase the right to make a deduction for a net operating loss from a bioscience company (future tax benefit). It will require the general assembly to appropriate at least $2.5 million for each of the next five state fiscal years to purchase these future tax benefits. The bill also establishes criteria for a bioscience company to be eligible to sell the future tax benefit to the commission. Concerning the advancement of new bioscience discoveries at Colorado research institutions through evaluation: This bill provides for matching funds up to $150,000 per project to support the development of life science technologies that come from new discoveries within Colorados research institutions. This investment occurs before the technologies are licensed or sold to a commercial company; and the investment will result in a better valuation of the technology, a greater understanding of its value to health care, greater interest by investors in Colorados private companies that develop the technology, and an earlier weeding out of technologies that should not compete for scarce development and investment funds.
COLORADO 4
Concerning an incentive to help Colorado bioscience companies offset the indirect costs associated with research services performed by Colorado research institutions: The bill provides for a subsidy up to $25,000 of the indirect cost portion of a contract for core laboratory services at a Colorado research institution by a Colorado bioscience company. Many Colorado bioscience companies are engaged in the research and development of new products and need to access the unique, high-end technologies that exist in core laboratories that were developed to provide services to internal research projects. The subsidy will incent Colorado companies to contract for services with Colorado research institutions and will incent Colorado research institutions to identify excess capacity and provide business-friendly services to the bioscience industry. Concerning the creation of a performance-based incentive for employers that create high-quality new jobs in the state: This legislation would provide a performance-based incentive to any employer that creates a certain number of new full-time jobs in the state as a result of opening a new business or relocating or expanding an existing business. It differentiates between job creation in rural and urban areas
Contacts
Ms. Christine Shapard Colorado Office of Economic Development and International Trade 1625 Broadway, Suite 1700 Denver, CO 80202 (303) 892-3850 christine.shapard@state.co.us The Colorado BioScience Association is a not-for-profit corporation providing services and support for Colorados growing bioscience industry. Colorado is embarking on an aggressive plan to grow the states bioscience industry into one of the countrys premier bioscience clusters. Ms. Denise Brown Executive Director Colorado BioScience Association Colorado Advance Center 1625 Broadway, Suite 950 Denver, CO 80202 dbrown@colobio.com
COLORADO
Colorado 22 -1.0% 263 -38.5% 0.3% 0.15 $37,008 4.23 1,113 49 -9.3% 2,794 -5.1% 0.9% 0.54 $67,633 5.23 14,613 338 2.7% 8,492 -3.6% 2.1% 1.25 $51,792 2.97 25,183 416 32.7% 5,079 7.2% 1.2% 0.75 $63,100 2.55 12,933 160,065 5.9% 1,800,773 -3.8% 1.6% n.a. $40,217
COLORADO
Bioscience Occupations in the Colorado Workforce, 2004
5,000 4,500 Number of Workers in Occupation 4,000 3,500 3,250 3,000 2,500 2,000 1,500 1,000 200 500 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 330 4,640
Bioscience-Related Degrees from Colorado Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 100 200 300 400 500 600 700 800 900 1,000
Number of Degrees
COLORADO
Total Bioscience R&D Expenditures at Academic Institutions in Colorado, FY 2003
Medical Sciences
$189,262
Biological Sciences
$121,149
$19,875
Other Life Sciences
$16,815
$-
$20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000
Colorado University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $694,862 $347,333 50.0% $76.33 39.2% $333,750 $73.34 36.8% 2,255 8,420
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 19 23
20
18 22
COLORADO

In 1997, the State of Connecticut adopted a philosophy of industry clustering to support the growth of emerging segments of the economy. Legislation in 1998 launched Connecticuts Industry Cluster Initiative under the Department of Economic and Community Development (DECD). In addition, the Governors Council on Economic Competitiveness and Technology, composed of CEOs from a crosssection of industries, legislative leaders, heads of key educational institutions, labor representatives, officials of industry associations, and several state commissioners, was established. The council meets quarterly to monitor cluster progress and find ways to enhance and support it, an initiative now known as The Next Generation Competitiveness Strategy. The BioScience Cluster was the first to be formally launched. Overseen by Connecticut United for Research Excellence (CURE), the cluster was established with $300,000 in state seed money and $700,000 from industry contributions. The state, through DECD, has supported the BioScience Cluster with direct financial support for the past 9 years. Connecticut Innovations (CI), created by the state in 1989, is the states leading investor in high technology. CI provides funding through several initiatives, including early-stage financing to companies focused on research and development in bioscience, information technology, photonics, and energy and environmental systems; seed-stage financing to bioscience companies; and bioscience facilities funding. Funded originally by state bonding, since 1995, CI has financed its equity investments solely through its own investment returns. In 2002, the Connecticut Office of BioScience was created in response to recommendations from leaders of the states BioScience Cluster. It operates within DECD and offers business facilitation and recruitment activities. It is designed to ensure that the states programs, services, and general business environment continue to be bioscience friendly. In 2005, Connecticut Governor M. Jodi Rell included a request of $20 million over 2 years for stem cell research in her 2006 budget request. The state Senate agreed with the proposal, but extended the commitment to $10 million per year for 10 years. The $100 million proposal endorses and funds embryonic and adult stem cell research. Some state tobacco settlement money will also go to stem cell research. A new advisory board and peer review council have been created to administer the grants. The initiative is staffed by CI.
CONNECTICUT

Research programs
Public Act 05-149, passed in 2005, supports the advancement of human embryonic and adult stem cell research in Connecticut. Connecticut is one of three states to permit and publicly fund this research. The law bans the cloning of human beings and prohibits direct and indirect payment for donations of embryos, embryonic stem cells, unfertilized eggs, or human sperm for stem cell research. It appropriates $20 million through 2007 and provides an additional $10 million annually through 2015. The Connecticut Stem Cell Research Advisory Committee is charged with developing the grant application process; developing a donated funds program to encourage alternative funding sources; advancing embryonic and adult stem cell research in the state via business development; monitoring ongoing research; and reporting annually to the General Assembly, with the first report due by the end of June 2007. The programs proposed timeline called for the proposal process to begin February 1, 2006, with funding to institutions by June 30, 2006. The Stem Cell Research Peer Review Committee evaluates the ethical and scientific merit of each proposal and recommends funding to the Stem Cell Research Advisory Committee. The Stem Cell Research Advisory Committee then consults with the Commissioner of Public Health and makes funding decisions.

CIs Yankee Ingenuity Technology Competition provides royalty-based, market-driven funding for applied high-technology research and development projects that lead to marketable products or processes. This initiative seeks to encourage collaboration between Connecticut colleges and universities and Connecticut business and industry for the development and commercialization of products or processes. The program funds up to $300,000 per project and provides up to $3 million annually. In the past, all technology projects, including bioscience projects, were eligible for the funding. In 2004, renewable energy projects were the sole focus of the competition; but, the competition is expected to reopen to other technologies, including biotechnology, in the future.

The Connecticut Venture Group is organizing the angels in Connecticut and plans to provide them training and create a database of entrepreneurs to match with angels. Since 1995, CI has invested more than $100 million in 60 Connecticut companies through its Eli Whitney Fund. The Eli Whitney Fund is aimed at strengthening the states high-technology environment by providing entrepreneurs with the capital and strategic guidance they need to start and build successful businesses. The fund focuses primarily on bioscience, information technology, photonics (applied optics), and energy and environmental systems. Investments, which typically range from $500,000 to $2 million on the initial round, are made in early-stage Connecticut companies that meet established criteria. The Connecticut BioSeed Fund is CIs $5 million fund designed to address a gap in financing resources for very early-stage biotechnology enterprises in Connecticut. Initial investments range up to $500,000.
CONNECTICUT 2

Incubators
CI maintains laboratory and office suites in Science Park at Yale for temporary use to accommodate start-up and early-stage bioscience companies. In 2003, 10,600 square feet of newly constructed, transitional wet-lab space was made available. This space consists of two separate suites and provides a turnkey laboratory solution for emerging biotech companies. The University of Connecticut has established a Small Business Incubation Program to assist and accelerate the successful establishment and development of entrepreneurial companies. Currently, incubators exist at the University of Connecticuts Storrs Bioscience Complex and Farmington (Health Center) and Avery Point campuses.
CI also manages the BioScience Facilities Fund. Through this fund, CI provides funding to qualified biotechnology companies for the construction of wet-lab and related space. The financing can take a variety of forms, and terms are consistent with the level of risk associated with the transaction and the specialized needs of the companies. Companies already in Connecticut, or those wishing to move to the state, may apply for this funding. Since it was launched, the fund has invested and/or committed more than $33 million to finance more than 300,000 square feet of laboratory and related space for 12 biotechnology companies.

Connecticut has invested $14 million in the Science Park at Yale, a cluster of rehabilitated buildings in New Haven near Yale University, which houses a number of biomedical laboratories. The park encompasses several million square feet of former industrial space that eventually could be renovated. Currently, space is being leased in a 250,000-square-foot building that has been renovated.

Connecticuts BioBus represents a 5-year, $3.6 million partnership among 27 members of CURE and CI. The BioBus is a permanent, mobile learning laboratory with the latest in bioscience equipment and stateof-the-art computers that travels to schools, community events, and other locations throughout Connecticut. Since its inception in 2001, Connecticuts BioBus has provided more than 16,000 students throughout Connecticut with laboratory experience in the life sciences. In 2004, under the umbrella of BioBus, two additional programmatic elements were launched: Connecticuts BioBus Honors Program at Yale University introduces high school students interested in science to research applications of bioscience as they tour a range of Yale research laboratories. In the 1-day program, students participate in research activities including analysis of magnetic resonance images, the physiology of taste and the role of genetics in taste, the role of radiology in medicine, neurological research, immunology research, and other current topics in bioscience research.
CONNECTICUT 3
Connecticuts BioConnection Program is a pilot laboratory-equipment loan program delivering real-world research techniques, advanced investigational exercises, and bioscience career information to middle- and high-school science classrooms. The BioConnection Program is free of charge to schools and is structured to enrich the scientific curriculum at middle and high schools with advanced investigational exercises using research tools and techniques beyond the scope of most classrooms. During the pilot year through December 2004, the BioConnection Program was introduced to at least six schools within the five urban school districts in Connecticut. At the conclusion of the pilot year, CURE sought contributions from its members to support the BioConnection Program on an ongoing basis. The pilot period was funded by an earmark grant under the fund for the Improvement of Education from the U.S. Department of Education. CURE also hosts a Web site entitled BioRap. This educational resource provides middle-school students and teachers with information and featured stories connecting bioscience topics to everyday life. More recently, through the Connecticut Office for Workforce Competitiveness, the state in its workforce development efforts for incumbent workers has advanced a career ladders program for allied health care. As part of its technology-related career development efforts for advancing science, technology, engineering, and math skills, the state is piloting a statewide K-12 biotech/health care track to enable these students to pursue postsecondary education seamlessly in technology fields and emerge with the skills required to work effectively in the states Knowledge Economy. A key component is providing experiences for high school students interested in pursuing a career in health care.
Contacts
Stepheni Harpin Investment Analyst Connecticut Innovations 200 Corporate Place, 3rd Floor Rocky Hill, CT 06067 (860) 563-5851 Stepheni.harpin@ctinnovations.com www.ctinnovations.com
In 1990, CURE was formed as a not-for-profit member coalition to promote the processes and benefits of biomedical research. Today, CURE has grown to more than 110 members and has expanded its mission to create an environment of collaboration and competition in which its members can thrive. Mr. Paul Pescatello President Connecticut United for Research Excellence, Inc. 300 George Street , Suite 541 New Haven, CT 06511 (203) 777-8747 ppescatello@curenet.org
CONNECTICUT
Connecticut 18 -1.4% 510 -58.6% 0.5% 0.38 $82,342 5.33 2,720 32 10.3% 9,758 -9.7% 3.1% 2.43 $105,327 5.92 57,806 242 7.1% 8,776 -4.3% 2.1% 1.67 $54,365 2.91 25,552 327 9.5% 6,961 -0.4% 1.7% 1.31 $78,571 2.17 15,134 105,317 0.6% 1,398,623 -2.2% 1.3% n.a. $51,614
CONNECTICUT
Bioscience Occupations in the Connecticut Workforce, 2004
4,500 4,000 Number of Workers in Occupation 3,500 3,000 2,500 2,000 1,500 1,000 150 500 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 1,090 3,470 4,140
Bioscience-Related Degrees from Connecticut Institutions, AY 2004
Biological Sciences
Number of Degrees
CONNECTICUT
Total Bioscience R&D Expenditures at Academic Institutions in Connecticut, FY 2003
Medical Sciences
$290,250
Biological Sciences
$163,781
$10,441
Other Life Sciences
$4,295
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Connecticut University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $594,541 $469,290 78.9% $134.72 45.8% $444,847 $127.71 38.1% 1,343 8,850
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 22 16
15
32 21
CONNECTICUT

The biosciences are among several sectors targeted by the Delaware Economic Development Office (DEDO), which is in the second year of administering the Minner administrations New Economy Initiative. This initiative emerged in turn from a Strategic Economic Council with heavy participation by the states pharmaceutical and specialty-chemical companies. Since the last BIO report, DEDO has created a new commercialization center operating in partnership with the states larger firms and unveiled several new financing programs operated in conjunction with local financial institutions.

State investments are now complete in two recent facilities: the 72,000-square-foot, $22.5 million Delaware Biotechnology Institute (DBI), a unit of the University of Delaware (UD); and the 26,000 square-foot Fraunhofer Center for Molecular Biotechnology, a. U.S. affiliate of the Fraunhofer network of Germany. Both are anchors of the Delaware Technology Park (see below) adjacent to the university campus in Newark. The states FY2006 budget authorized a loan of $2 million being held in accounts for future construction at the DBI to the university for renovation of a biological sciences research building. In the private sector, DuPont announced it would invest $80 million over 5 years (including $5 million in state support) in an Innovation Center at its Experimental Station in Wilmington, the first new facilities investment of this magnitude in many years. The Innovation Center is intended to help incubate new businesses based on DuPont and other technology donated to the state-supported commercialization center (see below).
Research programs
The second year of the New Economy Initiative included $1.5 million in additional funding (added to $3 million in the first year) to match a $9 million EPSCoR award from NSF intended to link bioscience research at UD to parallel programs at Delaware State University and the Delaware Technical and Community College.
DELAWARE

Under terms of earlier state support, both DBI and the Fraunhofer are expected to match state support with programs sponsored by bioscience industry. The state has also committed $5 million over 5 years to Fraunhofer to continue plant-based research and begin development of a pilot GMP facility with excess contracting capacity.

The second year of support for the New Economy Initiative included $3 million for a multisector commercialization program known as the Emerging Technology Center. The center will assist both university spin-offs and independent entrepreneurs and will work to commercialize technologies donated by DuPont, Hercules, and others. The center expects to receive 250 technology packages for commercialization. DuPont has agreed to provide access to the lead researchers for each package. In addition, Delaware Technical Community College is using state support to create a Web-based portal to link potential mentors and service providers to independent entrepreneurs.

Pre-seed funds for entrepreneurs in multiple sectors including the biosciences are available through a $1.5 million Technology-based Seed Fund administered by DEDO. These equity investments, which range up to $50,000, may be matched by low-interest loans from a pool of equal size committed by Citizens Bank. In making these investments, DEDO relies on advice from a panel of entrepreneurs and financial and legal experts. The Delaware Innovation Fund, an independent nonprofit started with state support, also offers seedstage investment in fields related to the biosciences such as analytical instruments or chemicals. The fund has invested in turn in the Mid-Atlantic Angel Group Fund I, LP, created by Innovation Philadelphia to close the gap between angel funding and institutional venture capital in the entire mid-Atlantic region. The MAG fund does explicitly target the biosciences. The Delaware Strategic Fund, a general loan and grant program operated by DEDO, has the flexibility to provide SBIR/STTR bridge funding.
Venture capital
The New Economy Initiative set aside $3 million for investment in venture capital funds to encourage them to source Delaware deals. Following a competitive process, $1.5 million was approved for investment in Innovation Venture and $750,000 each to Edison Venture Fund IV and Murex Investments.
DELAWARE

Incubators
About 20 percent of the DBI space is set aside for commercial use, functioning in many respects as a shared-laboratory incubator. The state is working with Delaware State University to identify additional incubation space in Dover.
The $12.5 million Delaware Competitiveness Fund is a discretionary incentive program that will support location of R&D related to existing manufacturing, which includes biomanufacturing. Like the Seed Fund, it is paired with a parallel pool of low-interest loan funding from Citizens Bank.

The Delaware Technology Park has five built-out structures over 40 acres including DBI, Fraunhofer, an office structure, and two wet-lab-capable multitenant buildings (27,500 and 38,000 square feet, respectively). Development of the final site (100,000 square feet) is in partnership with the Science Center in Philadelphia.

As part of the Innovation Center investment, DuPont will provide six biotechnology seminars per year aimed at high school students. The Fraunhofer Institute created the Governor Minner Biotechnology Scholarship Fund in 2005. This fund will support students studying biology or biotechnology at UD, Delaware State University, and the Delaware Technical and Community College.
Contacts
Judy McKinney-Cherry Director, Delaware Economic Development Office 99 Kings Highway Dover, DE 19901 (302) 672-6808 judy.cherry@state.de.us The Delaware BioScience Association is reorganizing. Interim contact is as follows: Michael Bowman Executive Director, Delaware Technology Park 15 Innovation Way Newark, DE 19711 (302) 452-1123 mike.bowman@deltechpark.org
DELAWARE 3
Delaware 6 -24.3% 223 -66.7% 0.2% 0.65 $67,279 6.23 1,387 6 50.0% 620 -26.0% 0.2% 0.61 $64,724 4.57 2,835 35 18.6% 2,925 -8.5% 0.7% 2.18 $74,503 2.96 8,655 86 55.9% 2,405 -35.3% 0.6% 1.78 $85,719 2.17 5,217 28,620 14.6% 356,080 0.8% 0.3% n.a. $42,351
DELAWARE
Bioscience Occupations in the Delaware Workforce, 2004
700 660 600 Number of Workers in Occupation
500 400
300 200
100 60 Agricultural, Food, Biological Scientists and Technicians and Nutrition Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians
Bioscience-Related Degrees from Delaware Institutions, AY 2004
Biological Sciences
Number of Degrees
DELAWARE
Total Bioscience R&D Expenditures at Academic Institutions in Delaware, FY 2003
Medical Sciences
Biological Sciences
$6,977
$17,245
Other Life Sciences
$2,498
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
Delaware University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $104,650 $26,720 25.5% $32.69 39.7% $29,175 $35.69 96.1% 385 720
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 49 50
46
47 51
DELAWARE

The life sciences are among six sectors targeted by Enterprise Florida, Inc. (EFI), the states public/private partnership for economic development. EFI, together with Workforce Florida and the Florida High Tech Corridor university/industry consortium, have commissioned a Life Sciences Roadmap from the Milken Institute. Since the last BIO report, Scripps Floridaa unit of the San Diego Scripps Institute attracted by a $310 million state incentive packagehired 160 scientific staff who were placed in a 40,000-square-foot, $12 million temporary space at the Jupiter campus of Florida Atlantic University (FAU). A second, 33,000-square-foot facility is under construction at FAU Jupiter, slated for completion late this year. To avoid environmental delays at the originally designated site in West Palm Beach County, county commissioners in February chose an alternative site comprising 30 acres at FAU Jupiter and 70 more acres at the border with Palm Beach Gardens. The county, Jupiter, and Palm Beach Gardens are making financial contributions. In his 2006 budget message, Governor Jeb Bush proposed a package of new research initiatives including funds for expanding the states university-based centers of excellence, recruiting eminent scholars, and establishing performance incentives for high-impact biomedical research (see below under Pending Proposals).

Aside from the facilities constructed for Scripps, major bioscience facilities projects recently constructed with state support include the following: Interdisciplinary Research Building and Business Partnerships Building, a $40 million, twobuilding wet-lab complex totaling 230,000 square feet at the University of South Florida (USF) Research Park, provides 100,000 square feet for the Tampa Bay Technology Incubator (see below), up from 60,000 square feet. Space Life Sciences Lab, a 100,000-square-foot, $26 million facility located on the grounds of the Kennedy Space Center, houses NASAs prime life science contractor, with 20 percent set aside for university researchers statewide through the Florida Space Research Institute.
FLORIDA
National High Field Magnet Laboratory at Florida State University, which is used by many bioscientists, received $10 million in equipment upgrades. State-supported projects in construction or planning are as follows: Cancer and Genetics Research Building, a 280,000-square-foot, $85 million interdisciplinary complex, and the 155,000-square-foot Biomedical Science Building including both biomedical engineering and animal care, both at the University of Florida (UF) Gainesville. Johnnie B. Byrd Sr. Alzheimers Center and Research Institute at USF Tampa, an eight-story, 1.1 million-square-foot building that will house 120 researchers and, once completed, will be the worlds largest freestanding Alzheimers research institute. Florida Biologix, a 23,500-gross-square-feet (gsf) biopharmaceutical production facility associated with the Center of Excellence for Regenerative Health Biotechnology (see below). Biologix will include 11,080 square feet of clean room for production of mammalian protein and vaccine products. The facility is adjacent to the Sid Martin Biotechnology Incubator at Progress Corporate Park near UF Gainesville. In the private sector, University of Miami Miller School of Medicine has started construction of the Interdisciplinary Wet Lab Research Facility, a 182,000-square-foot facility including a vivarium. Mayo Clinic, which in 2003 opened a 103,000-square-foot, $22 million Griffin Cancer Research Building in Jacksonville, is also adding a new hospital.
Research programs
Three university-based Centers of Excellence created 2 years ago under the Emerging Technology Commission received $30 million in one-time support that would be expanded into ongoing support under the Bush administration proposal. All three have a bioscience component: Center of Excellence for Regenerative Health Biotechnology at UF. This center focuses on prevention, cure, and rehabilitation of chronic, genetic, and degenerative diseases. Center of Excellence in Biomedical and Marine Biotechnology at FAU Boca Raton. This center is in partnership with five other institutions. Florida Photonics Center of Excellence at the University of Central Florida (UCF) in Orlando, which includes work on biophotonics and advanced imaging. The state also provides $15 million a year in dedicated funding for research operations at the Johnnie B. Byrd Sr. Alzheimers Center and Research Institute at USF Tampa. Florida allocated a portion of its tobacco settlement to the Lawton Chiles Endowment, a portion of the income from which supports the James and Esther King Biomedical Research Program in the Department of Health. In the most recent year, this program allocated $8 million to 16 projects. Grants are made in three categories: New Investigator Research Grants, up to $150,000 a year for 3 years Team Science Program Grants, intended to prepare Florida institutions for National Institutes of Health program-project and research center awards
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Small Business Technology Transfer Grants, to explore feasibility of joint commercialization of technology, up to $100,000 over the course of a year.

The Florida High Tech Corridor Council offers an Industry Matching Research Grant program, across six fields including the life sciences. The program makes between 10 and 25 awards annually of between $20,000 and $100,000 for research at one of the three public universities conducted in partnership with industry. Companies must match 3:2 if applying to a field-specific competition (including the biosciences) and 2:1 in the open competition. Additional funds are available to assist in creating Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) partnerships.

Three independent nonprofits formerly funded by the state as Innovation and Commercialization Centers now provide support services to technology entrepreneurs: Enterprise North Florida Corporation, of Gainesville and Jacksonville Enterprise Development Corporation of South Florida, of Boca Raton Central Florida Innovation Corporation, of Orlando.

EFI makes SBIR/STTR Phase 0 grants up to $2,500 for proposal development. Eligible applicants are companies resident in one of the 19 participating incubators or those with formal agreements with a participating Florida university.
Venture capital
Three venture firms are certified under a $150 million, 10-year Certified Capital Company (CAPCO) program: Advantage Capital Florida Partners Stonehenge Capital Corp. Wilshire Partners. As part of a $1 billon allocation to venture capital, the state pension fund has announced its intention to place up to $350 million with funds that will include venture partnerships operating in Florida.
FLORIDA

Incubators
Bioscience incubators include the following: Sid Martin Biotechnology Center, a new 40,000-gsf facility at Progress Corporate Park in Gainesville. It includes a pilot fermentation plant, small-animal facilities, and a greenhouse. Tampa Bay Technology Incubator, which will grow from 60,000 to 100,000 square feet as it is relocated to the new interdisciplinary building at the USF Research Park. The incubator is part of USF CONNECT, a single point of contact between the university and the entrepreneurial community. The Bennett Complex at Central Florida Research Park, a 40,000-square-foot multitenant facility designed for incubator graduates that require larger amounts of space including wet-lab space. The University of Miami is planning the Miami Bio-Science Technology Center, a 60,000-square-foot biomedical incubator.

The best established bioscience park in the state is the 204-acre Progress Corporate Park at Gainesville, which was started as an initiative of UF but is now privately owned. The park hosts the Sid Martin Biotechnology Incubator (see above). Additional parks with bioscience components include the following: USF Research Park, a 100-acre park including two buildings totaling 230,000 square feet and valued at $40 million. The Center for Biological Defense will anchor the 130,000-square-foot Interdisciplinary Research Building, and the Tampa Bay Technology Incubator will occupy the 100,000-square-foot Business Partnerships Building. Central Florida Research Park, on 1,000 acres abutting the UCF campus in Orlando. Innovation Park, a 208-acre park in Tallahassee developed by Florida State University, Florida A&M University, and Tallahassee Community College. Two additional bioscience parks are in earlier phases of development: St. Lucie Research and Education Park, a 1,800-acre facility being developed by St. Lucie County, is targeted at agbiotech and citrus research and anchored by a USDA laboratory and university facilities. Florida Gulf Coast University has announced plans to develop 20 of 80 acres recently donated by a private developer.
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Workforce Florida is now field-testing in seven counties a biotech training curriculum previously developed by the Florida Consortium for Biotechnology Workforce Development. Workforce Florida has issued a request for proposal for a cluster-based workforce education center in biotechnology. Other Workforce Florida grants have targeted bioinformatics. Recent Department of Labor grants have supported biotechnology degrees at Miami Dade Community College and training programs in Palm Beach County and the Great Northwest region.

BioFlorida is supporting the Bioscience Career and Education Expo to be held in every high school throughout the state to motivate students to consider bioscience careers by exposing them to working scientists and other bioscience professionals. Seminole Ridge High School operates the states first biotechnology academy in Palm Beach County. The county plans additional academies and a biotech-themed charter school.
Pending Proposals
Governor Bushs proposed research initiative crosses several fields including the biosciences. It would include the following: $100 million in new funding for the Centers of Excellence Program $100 million for a World Class Scholars Program to recruit academic researchers $75 million in tax credits to attract early-stage venture capital $250 million for an Innovation Incentive Program to pursue future one-time opportunities such as the Scripps recruitment, plus a $50 million quick action closing fund cash-incentive program for recruitments.
Contacts
John B. Ray Vice President, Life Sciences, Enterprise Florida, Inc. Atrium Building Suite 201 325 John Knox Road Tallahassee, FL 32303 (850) 922-8784 jray@eflorida.com
FLORIDA
BioFlorida is Floridas independent, statewide bioscience organization and serves its members by providing the infrastructure to exchange information and ideas through industry-specific programming, education, networking, and legislative initiatives. Diana Robinson CEO, BioFlorida 222 Lakeview Avenue West Palm Beach, FL 33401 (561) 653-3839 drobinson@bioflorida.com
FLORIDA
Florida 98 5.6% 6,653 7.6% 6.3% 1.08 $57,317 6.34 42,187 89 0.0% 4,160 -2.3% 1.3% 0.23 $49,329 3.93 16,362 1,055 3.5% 23,507 1.4% 5.7% 0.97 $48,240 2.77 65,157 1,514 25.4% 20,073 11.8% 4.9% 0.82 $49,797 2.19 43,956 518,042 15.4% 6,427,838 4.4% 5.9% n.a. $34,421
FLORIDA
Bioscience Occupations in the Florida Workforce, 2004
25,000
Number of Workers in Occupation
20,000
20,700
15,000
10,000
5,000
6,060 710 400
Agricultural, Food, Biological Scientists and Technicians and Nutrition Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians
Bioscience-Related Degrees from Florida Institutions, AY 2004
Biological Sciences
200
400
600
800
1,000
1,200
1,400
1,600
Number of Degrees
FLORIDA
Total Bioscience R&D Expenditures at Academic Institutions in Florida, FY 2003
Medical Sciences
$362,121
Biological Sciences
$122,585
$116,299
Other Life Sciences
$28,252
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Florida University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $1,204,592 $635,846 52.8% $37.36 52.4% $354,854 $20.85 56.9% 4,564 27,870
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 11 13
19
6 5
FLORIDA

In 1990, a consortium of Georgias business leaders conceived and founded the Georgia Research Alliance (GRA) to turn university research into economic growth for the state. Today, GRA is a wellknown model for bringing together business, research universities, and state government to create and sustain a vibrant, technology-rich economy for the state. Since its founding, the Alliance has invested more than $400 million of state funding into its affiliated research universities in Georgia Research Alliance Eminent Scholars, centers of research excellence, and research commercialization programs. The majority (more than two-thirds) of the Alliances investments are in life science areas. The Governors FY 2007 budget recommendations included substantial commitments in support of the life sciences, including the following: $5 million expansion of the states Biosciences Seed Fund $5 million expansion of the states Life Sciences Facilities Fund $2.5 million expansion of the Georgia Research Alliance VentureLab program $200,000 for a new Georgia Research Alliance Patent Accelerator Fund $2 million to seed research on developing alternative fuels $5 million for a marine bioscience building at Skidaway Institute of Oceanography. (See descriptions of these programs below.)

In 2006, the Georgia Institute of Technology dedicated a new Center for the Study of Systems Biology, which houses one of the worlds most powerful supercomputing clusters. The center will use IBM technologies to advance research into new drugs for the treatment of some of todays most lifethreatening diseases, including cancer. The supercomputing cluster, which has processors capable of performing more than 8.5 trillion calculations per second, was funded by $8.5 million in grants, the majority of which came from the State of Georgia.
GEORGIA
The University of Georgia will open its new, 135,000-square-foot Paul D. Coverdell Center for Biomedical and Health Sciences in 2006. The facility will house the Biomedical and Health Sciences Institute, which was established in 2001 to bring together researchers in molecular medicine, infectious disease and immunity, neuroscience, and public health. The center will also house the universitys Center for Tropical and Emerging Global Diseases. The state contributed $10 million to the project; the federal government provided another $10 million, and the University of Georgia contributed $20 million. The Medical College of Georgia (MCG) completed a 94,000-square-foot expansion of its Interdisciplinary Research Building in 2004. The building provides both office and laboratory space and includes a vivarium. It also includes incubator space for start-up companies. The University of Georgia will open its $40 million, 75,000-square-foot Animal Health Research Center Biocontainment Facility in 2006. The center will support basic and applied research on vaccines, diagnostics, and treatments for diseases caused by microorganisms that infect humans as well as animals. The facility can accommodate a wide range of large and small animals, including animals of agricultural importance. In addition to animal-holding space, the facility houses a variety of BSL-2, BSL-3, and BSL-3-Ag research space. The laboratories will be used to develop and test vaccines for a variety of species as part of the national effort to defend against bioterrorist attacks as well as naturally emerging diseases. Design for Georgia Techs Nanotechnology Research Center began in 2004, with the center expected to open its doors in 2008. The 160,000-square-foot center will feature both organic and nonorganic clean rooms critical to research and instruction in microelectronics, semiconductors, materials, medicine, and pharmaceuticals, offering access to nanotechnology tools to researchers from other Georgia universities as well as industry partners. Georgia Techs commitment to the center will total nearly $100 million before the center is completed, which will be matched by up to $45 million in state support. The MCG opened its $54 million, 160,000-square-foot Cancer Research Center in 2006. The State of Georgia provided $10 million for the planning, design, and construction of the building, supplemented by state funding through the GRA and by funding from private sources. The GRA and the Georgia Cancer Coalition (GCC) provide additional funding for Georgia Research Alliance Eminent Scholars and GCC Distinguished Cancer Clinicians and Scientists. The State Legislature committed $5 million last year for cancer research at MCG, and the Governor has proposed an additional $5 million this year. The University of Georgia dedicated a new 140,000-square-foot building for its Complex Carbohydrate Research Center (CCRC) in 2004. The CCRC is the home of three federally designated centers for carbohydrate research: the Department of Energyfunded Center for Plant and Microbial Complex Carbohydrates, the National Institutes of Health (NIH)/National Center for Research Resources (NCRR) Research Resource for Integrated Glycotechnology, and the NIH/NCRR Integrated Technology Resource for Biomedical Glycomics. The CCRC is also host to the Southeast Collaboratory for Biomolecular NMR (nuclear magnetic resonance) and is one of the first institutions in the nation to house a 900-MHz NMR spectrometer, funded jointly by NIH/National Institute of General Medical Sciences and the GRA.
Research programs
The Georgia Cancer Research Fund, administered by the GCC, provides grants to support research on the prevention, treatment, and cure of breast, ovarian, and prostate cancer. Funding for the program comes from the Georgia Department of Revenue, through a tax check-off on Georgias income tax return form. Approximately $1.4 million has been contributed by Georgians on their state tax returns since the start of the program in 2000.
GEORGIA 2

The hub of the GRA investment strategy is the Georgia Research Alliance Eminent Scholars program. Renowned scientists are recruited to Georgia from many parts of the world to lead research and development programs with high potential economic development impact for the state. To date, more than 50 Georgia Research Alliance Eminent Scholars have been recruited to the University of Georgia, MCG, Emory University, Clark Atlanta University, Georgia Institute of Technology, and Georgia State University. The majority of these Georgia Research Alliance Eminent Scholars are in the biosciences. The GCCs Distinguished Cancer Clinicians and Scientists Program is designed to assist Georgias research universities, medical schools, and nursing programs in recruiting top cancer researchers. The GCC provides funding to help recruit these clinicians and scientists ranging from $50,000 to $150,000 per year for 5 years. In FY 2005, GCC allocated $4.8 million from the states tobacco settlement dollars to this program. GRA has just awarded its first Georgia Research Alliance Distinguished Investigator Award. These awards will be made to researchers at GRA-affiliated institutes that have demonstrated outstanding work in the biosciences or advanced communications and computing. Each distinguished investigator will receive an endowment funded by GRA and his or her home institution. The first award went to a professor of plant biology and genetics at the University of Georgia. The goal of the program is to retain Georgias best and brightest scientists.

The goal of the Georgia Research Alliance Innovation Fund is to create long-term partnerships between Georgias companies and GRA-affiliated universities for the purpose of developing and deploying technologies that lead to growing the states economy. The program supports technology development projects in the biosciences, advanced computing and communications, and nanotechnology and advanced materials. Bioscience projects may include a broad range of biological, medical, and other life science technologies with applications in drugs/pharmaceuticals, agriculture, organic chemicals, medical device and instrument manufacturing, and bioscience research and testing. The program is open to research faculty from GRA-affiliated universities who are working in partnership with Georgia companies. In FY 2005, a total of $2.2 million in state funds was awarded to support projects in partnership with 30 participating companies across the state. These awards were matched with $3.5 million in private funding.

VentureLab, a Georgia Research Alliance Innovation Fund program developed in partnership with the Advanced Technology Development Center (ATDC), offers a suite of pre-incubator/commercialization services that helps universities identify laboratory discoveries that have commercial potential. The program guides faculty members through the various stages of technology development so their ideas advance to the stage of company formation. VentureLab programs are in place at the Georgia Institute of Technology, the University of Georgia, Georgia State University, Emory University, and the MCG. Between 2002 and 2005, VentureLab launched 28 companies that have 54 products in development.
GEORGIA
These companies have raised $34 million in private equity investments. The state invested approximately $2 million in the program during this time period. Emtech Bio, a bioscience incubator, manages a competitive grant program for Emory University and Georgia Institute of Technology faculty. This program funds academic research with realizable commercial potential. Grants are generally in the range of $75,000 to $100,000 for a 1-year period. The grant program is funded through annual equal contributions from Georgia Tech and Emory. A Georgia Research Alliance Patent Accelerator Fund has been proposed for funding in FY 2007. (See Pending Proposals.)

The ATDC has developed the Entrepreneurs Resource Center, which provides carefully selected resources on starting up and building a company, researching the market, developing a technology product, generating sales, financing and raising money, marketing, hiring the right people, and handling legal issues. Georgias Office of Innovation and Technology, a division of the Georgia Department of Economic Development, assists bioscience companies with partnering and business development needs locally, nationally, and internationally through a variety of activities, including networking opportunities, trade shows, and trade missions. The Life Science Innovation Center located at MCG is one of six innovation centers supported by the One Georgia Authority. The center offers entrepreneurial assistance on a statewide basis, with an emphasis on entrepreneurs and companies located in rural areas. It also awards matching grants when industry teams with an MCG faculty member to conduct translational research.

The Georgia Bioscience Seed Fund was created in 2000 by the Georgia State Legislature. The fund invests side by side with early-stage investors and requires an investment of $3 in private investment for every $1 of state investment. Georgia Venture Partners, a private fund that invests in seed- and early-stage life science companies in Georgia, serves as advisor to the state for its seed fund investments.

Incubators
The GRA supports a number of university-based technology incubators, many of which are joint ventures between the GRA, the host university, and the ATDC. Bioscience-related technology incubators in Georgia include CollabTech at Georgia State University, which has 8,000 square feet of office and wet-lab space and houses four tenants;
GEORGIA
Georgia BioBusiness Center at the University of Georgia, which has 20,000 square feet of office and wet-lab space and is working with seven tenants and three affiliate bioscience companies; EmTech Bio, a joint project of Emory and Georgia Tech on the Emory West campus, which has 7,000 square feet of office and laboratory space, houses three tenants, and works with several additional member companies; ATDC Biosciences Center at Georgia Tech, which was launched in 2003 and has 22,000 square feet of wet-lab and office space and houses six bioscience companies; and Life Sciences Business Development Center at the MCG, opened in 2004, which is a 12,000-square-foot incubator including five wet-lab/clean room/office suites in addition to space for shared equipment and other resources. The center, which occupies the second floor of MCGs Interdisciplinary Research Building, currently has five tenants. The Augusta Biobusiness Center provides space for medical device and medical software start-up companies. The center is a program of the Georgia Medical Center Authority.
The Life Sciences Facilities Fund (LSFF) was created in 2003 to provide funding to bioscience companies for the development of their research laboratories. The fund provides loans of up to $2.5 million. The first company to receive funding was the biotech company Inhibitex Inc., which received a $2.5 million loan to build research laboratories. In 2006, Altea Therapeutics received a loan to locate its headquarters at the Technology Enterprise Park that is being developed in proximity to the Georgia Tech campus. The Governor has recommended an additional $5 million for LSFF in his FY 2007 budget request. The ATDC is responsible for oversight of the fund.

Under development
Georgia Tech is developing an 11-acre Technology Enterprise Park to house emerging and established bioscience and technology companies. Construction will begin in 2006 on the first of four proposed buildings that will total 600.000 square feet. Building One will be a 128,000-square-foot, multitenant research and development building. The first tenant of the park will be Altea Therapeutics, which will occupy 40,000 square feet of the first building. Georgia State University is developing a University Science Park on a 3-acre site in downtown Atlanta. The complex will include a Science Teaching Lab Building, a Science Research Facility, and an economic development and industry collaboration building. The Governor has included $37.5 million in his FY 2007 budget for the Science Teaching Lab Building.

The Georgia Research Alliance VentureLab Program connects faculty researchers with experienced entrepreneurs and professional managers (VentureLab Fellows) who serve as coaches and drive the commercialization process forward. The Georgia Biomedical Partnership (GBP) and the GRA jointly host the Corporate Research Leaders Forum, which brings together chief scientific officers of life science
GEORGIA 5
companies to address common issues, including recruitment and retention of talent. GBP has a similar CEO Roundtable, Emerging Companies Committee, and Emerging Leaders Networkall aimed at networking and retention.

Georgia colleges and universities offer many specialized postsecondary programs relevant to the life sciences, including a Ph.D. in Bioinformatics (Georgia Tech, Emory), M.S. in Bioinformatics (Georgia Tech), B.S. in Biotechnology (Kennesaw State), and B.S. in Applied Biotechnology (University of Georgia). Associates degrees are also available in Biotechnology (Athens Technical College) and Biomedical Engineering Technology (Chattahoochee Technical College). In addition, the University of Georgia offers Certificates in Regulatory Affairs and Computational Biology, and Gwinnett Technical College offers Certificates in Advanced Clinical Research and Basic Clinical Research. Georgias Intellectual Capital Partnership Program (ICAPP) helps businesses tap into the resources of the University System of Georgia, providing customized, accelerated educational programs to meet the specific needs of employers. The ICAPP recently launched a new bioscience initiative, a public/private partnership at the University of Georgia focused on regulatory science. Two certificates are currently availableone offering an overview of regulatory affairs and the other focused on regulatory issues for GMP. These certificates are cumulative and targeted toward the working professional. If desired, candidates can proceed with additional courses of study to achieve an advanced degree in regulatory science. The ICAPP is also collaborating with Georgias technical schools to advance a biomanufacturing curriculum The Georgia Tech/Emory Center (GTEC) for the Engineering of Living Tissues Industrial Internship Program enables selected graduate students to perform research at bioengineering companies in 3- to 6-month internships. The Center for Behavioral Neuroscience (CBN) offers several opportunities for college and graduate students at Georgias research institutions: Behavioral Research Advancements in Neuroscience (BRAIN) is a 10-week summer research internship program for college students focused on increasing student interest in behavioral neuroscience and, ultimately, in the pursuit of research and other science careers (e.g., science policy, science education, and science journalism). CBN Graduate Scholars Program provides doctoral students who have an interest in behavioral neuroscience in participating departments at Emory University, Georgia Institute of Technology, Georgia State University, and Morehouse School of Medicine the opportunity to gain a broader breadth of experience by working in CBN laboratories. CBN Graduate Scholars receive some stipend support and are eligible to receive an additional $1,000 per year for use on supplies and travel to meetings. CBN Postdoctoral Fellows Program awards 2-year fellowships to individuals no more than 5 years after receiving their Ph.D. These fellowships are available to candidates seeking to work primarily with center faculty at either Georgia State University or Emory University. Aside from receiving salary support, postdoctoral fellows may apply for venture grant funds and have access to the center's core technologies, workshops, courses, teaching opportunities, and resources for other forms of education at the postdoctoral level.
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Georgia State Universitys Bio-Bus is a science outreach program that provides hands-on science activities and demonstrations for students in grades 4 through 12. The program has two 30-foot, selfcontained mobile laboratories (each with multiple laboratory stations) that travel to area schools. The program also offers in-class demonstrations and teacher workshops. Schools can choose from eight learning modules, covering a range of scientific concepts in the physical sciences and earth science as well as in biology. The program is supported in part by the National Science Foundation as part of its Graduate Teaching Fellows in K-12 Education program. The GTEC has several K-12 outreach programs for middle schools and high schools in Georgia, including presentations of Prosthetic Pete, an interactive display with mechanical devices for replacements and improvements in the body, plus descriptions of tissue-engineered replacements being developed. GTEC also provides a summer research program for K-12 classroom teachers. CBN has extensive educational programs, including classroom visits, teacher workshops, a Brain Bee trivia competition for high school students, a summer Brain Camp, and an 8-week Institute on Neuroscience for rising high school seniors who excel in science. The CBN also provides professional development workshops and educational resources for K-12 teachers, including classroom materials such as models and videos. The Center for Behavioral Science and Zoo Atlanta present an annual Atlanta Neuroscience Exhibition to improve the general science literacy of the public by increasing their awareness of neuroscience through demonstrations of important interconnections among basic, diagnostic, clinical, and applied neuroscience related to everyday life and function. During the exposition, 90 middle school students are invited to participate in a reverse science fair at which scientists and health professionals create exhibits and children critique the presentations for their ability to explain a basic or applied concept in neuroscience.
Pending Proposals
The Governor has recommended funding of $200,000 in FY 2007 to launch the Georgia Research Alliance Patent Accelerator Fund. This fund will improve the efficiency and throughput of the patent application process of inventions developed in GRA-affiliated laboratories. Discoveries selected for this program will demonstrate commercial feasibility and the prospect of being incorporated into a business enterprise in Georgia. The fund will provide up to 50 percent of eligible expenses to a research university to assist in valuing and assessing the commercial potential of an invention. The fund will provide up to 25 percent of eligible expenses to a research university to support the filing and prosecution of a patent. The Georgia Research Alliance Patent Accelerator Fund will run as a pilot program in its first year. The programs impact and operations will be reviewed and adjusted for continuation of the program. During the pilot phase, funding provided by GRA is non-repayable. If the program is deemed successful over time, funding provided by GRA would be repayable out of income from successful commercializations.
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Contacts
Ms. Carol Henderson, Senior Project Manager Global Commerce Georgia Department of Economic Development 75 Fifth Street, N.W., Suite 1200 Atlanta, GA 30308 404-962-4031 chenderson@georgia.org
The Georgia Biomedical Partnership (GBP), founded in 1989, is a nonprofit, membership-based organization that represents the interests of companies, universities, research institutions, government groups, and other industry associations involved in discovery and application of life science products and related services that improve the health and well-being of people throughout the world. Its mission is to foster a social, political, economic, and educational environment in which life science companies can succeed in Georgia. Charles Craig, President Georgia Biomedical Partnership, Inc. 1199 Euclid Avenue, NE Atlanta, GA 30307 (404) 221-0617 charles.craig@gabio.org
GEORGIA
Georgia 70 -3.9% 2,287 -17.6% 2.2% 0.74 $50,289 5.46 12,485 43 13.2% 3,395 7.1% 1.1% 0.37 $72,759 5.98 20,307 388 6.6% 7,071 -5.5% 1.7% 0.59 $48,057 3.14 22,177 531 42.6% 6,455 17.5% 1.6% 0.53 $48,262 2.24 14,429 239,578 6.1% 3,208,935 -2.0% 2.9% n.a. $38,234
GEORGIA
Bioscience Occupations in the Georgia Workforce, 2004
14,000
12,220
10,000
8,000
6,000
4,000 310 2,690 200
2,000
Bioscience-Related Degrees from Georgia Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 200 400 600 800 1,000 1,200 1,400 1,600
Number of Degrees
GEORGIA
10
Total Bioscience R&D Expenditures at Academic Institutions in Georgia, FY 2003
Medical Sciences
$262,025
Biological Sciences
$212,423
$99,687
Other Life Sciences
$66,673
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Georgia University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $1,175,852 $652,431 55.5% $75.12 51.4% $372,236 $42.86 58.5% 2,531 15,420
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 12 12
18
12 13
GEORGIA
11

In 2005 several organizations collaborated on a Hawaii Life Sciences Roadmap. The exercise was funded primarily by the Kamehameha Schools, a private K-12 school system endowed by the former royal family of Hawaii. The Kamehameha Schools system has extensive land holdings, some of which in Honolulu are being developed for commercial bioscience use. The schools investment endowment has also become active in venture capital, complementing capital-formation initiatives already managed by the Hawaii Strategic Development Corporation. The Life Sciences Roadmap was co-sponsored by the Hawaii Life Sciences Council, which this year merged with the Hawaii Technology Trade Association to form a new, multisector Hawaii Science and Technology Council. Additional partners included Enterprise Honolulu; the Strategic Industries Division of the Department of Business, Economic Development and Tourism (DBEDT); and the University of Hawaii system. The Roadmap builds on bioscience sectors previously targeted by Enterprise Honolulu and proposes that Hawaii exploit its geographic position and ethnic diversity to target particularly Pan-Pacific infectious diseases, chronic diseases, and health outcomes. It makes separate recommendations on digital medical arts and bioproducts including renewable biofuels, related to existing strengths in plant-based science and aquaculture. Hawaii is a leading state in the United States for plant biotechnology research. All major biotechnology seed companies maintain seed research and production facilities among the Hawaiian Islands. In March 2006, the U.S. Department of Agricultures Animal and Plant Health Information Service noted that, over the course of the past decade, Hawaii leads the country in number of permitted agricultural biotech field tests. Only major agricultural output states such as California, Iowa, and Illinois start to approach that number of experiments; but, all of those states have far greater open land for agricultural purposes. Since the last BIO report, Hawaii has also enacted Act 215 of 2004, which extended Hawaiis 100 percent venture-investment tax credits to 2010 and focuses them more tightly on Qualified High Technology Businesses (QHTBs) including biotechnology. Act 215 also extends many of the aggressive benefits provided under the predecessor Act 221, including the refundable R&D tax credit and the ability to sell up to $500,000 in unused net operating loss (NOL).
HAWAII

In 2005, the University of Hawaii John A. Burns School of Medicine completed the first research building on its new, 10-acre campus at Honolulus Kakaako waterfront district, which is being redeveloped by a state-chartered authority. The new campus has spurred strong interest in commercial bioscience development (see below under Bioscience research parks), not only in the redevelopment district, but in nearby industrial and commercial properties as well. The university campus relocation was financed by $150 million in revenue bonds backed by 28 percent of the states tobacco settlement and matched by private donations. On an adjoining 5-acre site, a newly designated comprehensive cancer center is constructing 360,000 square feet of research and clinical space. Hawaii has also been awarded one of four recent NIH regional biocontainment laboratories, a 62,000-square-foot facility to be constructed at a site to be determined in Oahu.

The University of Hawaii offers Accelerated Research Commercialization (ARC) grants to in-state companies that partner with university researchers on research with near-commercial potential. The ARC provides up to $75,000, and half the company match can be in-kind. Biotechnology is one of seven fields supported by the ARC grant program, which is managed by UH Connections, a business outreach arm of the university.

The University of Hawaii College of Business Administration hosts a $45,000 annual business plan competition, and the universitys Office of Technology Transfer and Economic Development provides a supplemental award of $20,000 for those winners that base their plans on licensable university technology and identify a source of funding. The state DBEDT is targeting EPSCoR funds to technology transfer and workforce initiatives at the University of Hawaii.

The Hawaii Business and Entrepreneurs Associated Mentors (HiBEAM) functions as a multisector commercialization center. Acts 221/215 make R&D expenditures as defined under federal law fully refundable through tax credits, provided the research is conducted by a QHTB as defined in statute.

Additional funds for commercialization of certain technologies are available from Hawaii Technology Development Venture, a project funded by the Office of Naval Research and administered by the Pacific
HAWAII 2
International Center for High Technology Research. Medical and bioinformatics technologies are among six sectors targeted by this program. The pool is $3 million and awards may be up to $400,000. The High Technology Development Corporation (HTDC) will provide up to $25,000 in state match for federal SBIR awards to Hawaii companies, across multiple fields. Pre-seed investments from $25,000 to $100,000 will be available from a formal fund being organized by the University of Hawaii Angels. The fund will match investments in which at least four members have invested and will make follow-on investments in these and other companies. It is aiming to raise $3 million to $10 million. Act 215 provides 100 percent return over 5 years of investments up to $2 million per year in QHTBs. Under the tightened standards, qualified research including biotechnology must comprise more than half company activity, and more than three-quarters must be conducted in Hawaii. Additionally, Act 215 authorizes QHTBs to sell $500,000 of unused NOLs for at least 75 percent of their value, and a refundable 20 percent tax credit on the full volume of R&D conducted in Hawaii. Capital gains for those who qualify for the QHTB investment credit are also exempt from state income tax.
Venture capital
The states Hawaii Strategic Development Corporation has committed $16 million to nine venturecapital funds investing in Hawaii companies. Currently active early-stage funds include the following: HMS Hawaii I and III International Venture Fund I (California based) PacifiCap Ventures Hawaii Technology Gateway Partnership II (California based) UPSIDE Fund (targeted to University of Hawaii spin-offs). Similarly, a $30 million fund of funds has been established by the charitable endowment supporting the Kamehameha Schools. It will invest in venture partnerships that will consider Hawaii deals, whether or not the fund is Hawaii based.

The Natural Energy Laboratory of Hawaii Authority is a state-owned facility attached to the DBEDT that consists of 870 acres with deep-ocean access near Kailua-Kona on the Island of Hawaii. NELHA hosts tenants in ocean science, aquaculture, marine biotechnology, and development of products from deep-sea water. The Kamehameha Schools endowment is also developing land it holds in the Kakaako district. Recently, it announced that it had selected KUD International and Phase 3 Properties of San Diego as co-developers of a 400,000-square-foot, $200 million Life Science Research Complex.
HAWAII

The Kamaaina come home program sponsored by the Maui Economic Development Board seeks to attract Hawaii natives back to technology-based opportunities.

The University of Hawaii College of Tropical Agriculture and Human Resources offers degrees at multiple levels in molecular biosciences and bioengineering, many developed during the course of a previous NSF-sponsored Marine Bioproducts Engineering Center.
Pending Proposals
Two elements of Governor Linda Lingles legislative program were carried forward into the 2006 legislative session: Allocation of tax credits (bill drafts have ranged up to $120 million) for a State Private Investment Fund (tax-credit-backed fund of funds) authorized by Act 215; and A 20 percent business-research institute tax credit to encourage partnership between business and the University of Hawaii, to be leveraged by EPSCoR and state funding.
Contacts
Elizabeth Corbin Manager, Science and Technology Branch Department of Business, Economic Development and Tourism P.O. Box 2359 Honolulu, HI 96804 (808) 587-2690 ecorbin@dbedt.hawaii.gov
The Hawaii Science and Technology Council is the result of the consolidation of the Hawaii Life Sciences Council with the Hawaii Technology Trade Association into a single industry association whose mission is the acceleration of Hawaiis science and technology economy. Lisa H. Gibson President, Hawaii Science and Technology Council 735 Bishop Street, 401 Honolulu, HI 96813 (808) 536-4670 lgibson@hawaiilifesciences.org
HAWAII
Hawaii 6 -47.3% 67 -80.0% 0.1% 0.15 $33,052 3.07 204 3 -40.0% 46 -42.5% 0.0% 0.03 $41,535 3.53 162 49 -0.2% 226 -55.7% 0.1% 0.13 $33,088 1.75 396 78 10.1% 2,306 25.2% 0.6% 1.30 $51,003 2.19 5,061 33,796 -0.7% 468,628 5.1% 0.4% n.a. $33,584
HAWAII
Bioscience Occupations in the Hawaii Workforce, 2004
1,400 1,200 Number of Workers in Occupation 1,000 800 600 530 400 200 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 250
1,220
Bioscience-Related Degrees from Hawaii Institutions, AY 2004
Biological Sciences

20 40 60 80 100 120 140 160 180
Number of Degrees
HAWAII
Total Bioscience R&D Expenditures at Academic Institutions in Hawaii, FY 2003
Medical Sciences
$30,398
Biological Sciences
$4,666
$10,484
Other Life Sciences
$21,060
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Hawaii University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $184,602 $66,608 36.1% $52.96 6.6% $73,056 $58.09 107.1% 324 2,000
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 39 43
38
50 42
HAWAII

In January 2004, Governor Dirk Kempthorne created the Office of Science and Technology within Idaho Commerce and Labor. This office oversees the implementation of the Idaho Science and Technology Strategy, developed by the Governors Science and Technology Advisory Council in 2000 and updated in 2004. The Governors advisory council has identified four focus areas for the states science and technology development effort, one of which is ag/biosciences. The Governors proposed 2006 budget includes funding for increased investment in research and development, support services for high-tech businesses and entrepreneurs, and centralization of the state universities technology transfer and patenting activities.

Research programs
In November 2001 the University of Idaho (UI) received a 3-year, $6 million National Institutes of Health (NIH) Biomedical Research Infrastructure Network (BRIN) award to create a statewide biomedical research network between the UI, Idaho State University (ISU), and Boise State University (BSU). BRIN funds were used to enhance research facilities at the three universities, provide seed money for new research projects, pay for graduate and undergraduate student support, allow for faculty release time from teaching, and supplement research start-up costs. NIH awarded Idaho BRIN two supplements totaling $2.3 million to continue these projects and expand the network to other colleges and universities throughout the state. In July 2004, UI received a competitively awarded 5-year grant of $16.1 million to expand the network and enhance opportunities for faculty and students at the other colleges and universities throughout Idaho. In 2005, UI received a $10.1 renewal grant from the NIH that will allow researchers to continue biomedical research focused on infectious diseases. The 5-year grant from the NIH Institutional Development Award (IDeA) program funds one of two UI Centers of Biomedical Research Excellence. This center is devoted to the study of molecular and cellular basis of hosting pathogen interactions. It also provides funds to support microscopy, cell separation and analysis, and molecular biology research infrastructure throughout the UI campus. Governor Kempthorne has requested $1 million in Idahos FY 2007 budget for creation of a centralized technology transfer and patent office that will work to unify the research and development efforts of Idahos universities, and for use as a source of matching funds to increase the universities eligibility for federal cost-sharing grant programs. The matching grant funds will allow Idaho universities to
IDAHO 1
competitively bid for federal grant opportunities that require some form of cost sharing as a condition of successful award.

As previously noted, Governor Kempthorne has requested funding for creation of a centralized technology transfer and patent office that will work to unify the research and development efforts of Idahos universities. This office will also work to develop a statewide intellectual property agreement for the universities that is consistent, is responsive to the needs of the universities and businesses, and more clearly outlines the universities policies.

The State of Idaho and Idaho National Laboratory (INL) provide support for three TechConnect offices located in eastern Idaho (Idaho Falls), western Idaho (Nampa), and northern Idaho (Post Falls). These offices conduct workshops, provide counseling, and connect entrepreneurs with resources at universities, INL, economic development agencies, state government, and the private sector. TechConnect staff provide information on access to capital, legal assistance, financial planning, and mentoring. Governor Kempthorne has requested $300,000 in the FY 2007 budget to support a statewide Idaho TechConnect organization, its three current regional offices, and a proposed fourth office in the Magic Valley.

The Idaho Science and Technology Office has helped launch a number of initiatives, including the following, to help Idaho entrepreneurs access capital: In 2004, the Idaho Science and Technology Office joined with the Boise Metro Economic Development Council to create the Boise Angel Alliance. The office continues to promote an investor-friendly environment by assisting Boise Angel Alliance through administrative, marketing, and organizational support and by connecting Idaho businesses with investment groups located in Idaho and throughout the Northwest. The Delta Angel Group has been operating for 3 years in northern Idaho. TechLaunch is a competition and mentoring experience for emerging entrepreneurs and leads companies through the process of seeking investor funds. Presenting companies are coached, and a winner receives a small cash award. KickStart is an annual educational event that walks entrepreneurs through the various steps needed to launch a new endeavor. Presenting to Investors and several other seminars cover how to seek funding. The annual Intermountain Venture Forum has prescreened companies from throughout the region who present to venture capitalists and angel investors from a multistate area.
IDAHO 2

Incubators
Idaho has a number of incubators, three of which offer facilities for bioscience companies. The UI Technology Incubator is a $1.8 million facility, with over 17,000 square feet of space, located adjacent to the UI campus in Moscow. The incubator provides space and an array of support services for young, growing companies. The incubator includes wet-lab space. The Idaho Innovation Center (IIC) and the Bonneville County Technology Center, located in Idaho Falls near INL and ISU, provide start-up businesses and entrepreneurs with shared office support, technical and business management assistance, and affordable space. The IIC is a collaboration of resources focused on increasing the potential for success and survivability of start-up enterprises. The IIC provides services through its staff, the staff of the Idaho Small Business Development Center, the Service Corp of Retired Executives, TechHelp, the UI (Ag Extension Service), and ISU (Business and Engineering Colleges). There is 1,700 square feet of wet-lab space at the Bonneville County Technology Center, with an additional 17,000 square feet of space that could be converted. Boise State University, WestTechnology and Entrepreneurial Center (TECenter), located in Nampa, has 2,700 square feet of wet-lab space and more than two dozen clients.

The UI Research Park, located in northern Idaho about 20 miles from Spokane, Washington, is a 125-acre research and technology park. The park offers resident businesses research space and the opportunity to participate in university research partnerships through next-door relationships with university faculty, academic departments, and research institutes and through specialized courses developed for the private sector. The research park has one multitenant building, with construction of a second building planned in the near future. It currently houses UIs Center for Advanced Microelectronics and Biomolecular Research, which conducts research on special-purpose computer chips and biomolecular sensors, the universitys food science laboratory, and nine private firms. The park has 1,200 square feet of wet-lab space.
Pending Proposals
The Governors FY 2007 budget proposed the following: $100,000 for SBIR financial assistance funding that will provide at least 25 eligible entrepreneurs and small businesses across Idaho with money to offset proposal development costs. $1 million to the State Board of Education for creation of a centralized technology transfer and patent office that will work to unify the research and development efforts of Idahos universities, and for use as a source of matching funds for the universities application to federal matching grant programs. $300,000 to support a statewide Idaho TechConnect organization, its three current regional offices, and a proposed fourth office in the Magic Valley.
IDAHO
In addition to the above initiatives, the Office of Science and Technology was also instrumental in gaining legislative approval establishing the Science and Technology Advisory Council as a permanent board of advisors to the Governor and Idaho Commerce and Labor.
Contacts
Karl Tueller Executive Director Office of Science and Technology, Idaho Commerce and Labor 700 West State Street Boise, ID 83720-0093 (208) 334-2650, Ext. 2104
karl.tueller@cl.idaho.gov
Julie Howard Business and Capital Development/ Marketing Office of Science and Technology, Idaho Commerce and Labor 700 West State Street Boise, ID 83720-0093 (208) 334-2470
julie.howard@cl.idaho.gov
The Idaho Bioscience Association (bioIdaho) is a nonprofit organization that brings together corporate, academic, and political leaders to educate the public and to promote bioscience activities in the state. bioIdaho works with organizations across the state to attract and retain bioscience talent, enterprise, and funding. Philip Syrdal President bioIdahothe Idaho Bioscience Association 3417 Americana Terrace Boise, ID 83706 (208) 336-8431
staff@bioidaho.org www.bioidaho.org
IDAHO
Idaho 37 31.4% 910 -14.8% 0.9% 1.96 $48,619 6.75 6,148 11 113.9% 27 -91.2% 0.0% 0.02 $77,366 4.86 131 96 17.1% 936 -6.5% 0.2% 0.51 $34,652 2.27 2,127 119 13.7% 3,804 -3.6% 0.9% 2.08 $62,190 2.45 9,307 46,402 6.3% 482,702 3.4% 0.4% n.a. $29,426
IDAHO
Bioscience Occupations in the Idaho Workforce, 2004
1,200 1,060
1,000
800
800
600 540 400
200
40
Bioscience-Related Degrees from Idaho Institutions, AY 2004
Biological Sciences

IDAHO
Total Bioscience R&D Expenditures at Academic Institutions in Idaho, FY 2003
Medical Sciences
$6,012
Biological Sciences
$15,977
$37,817
Other Life Sciences
$5
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Idaho University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $105,039 $60,916 58.0% $44.58 36.5% $10,770 $7.88 157.5% 629 2,440
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 48 45
50
39 39
IDAHO

The biosciences are targeted as a key sector by the Illinois Department of Commerce and Economic Opportunity, which funds a series of regionally based Illinois Technology Enterprise Centers (ITECs) charged to develop early-stage businesses. Since the last BIO report, Illinois added state resources to the pre-seed fund operated by an affiliate of the University of Illinois, and Governor Rod Blagojevich ordered the Department of Public Health to commit $10 million to a re-grant program for stem cell research, including embryonic. In addition, a new private sector bioscience park was announced for a former Pfizer campus in Skokie.

Construction is complete on nearly all the facilities financed under the states VentureTECH capital program of 2000. Final construction and faculty recruitment are under way for the 186,000-square-foot, $75 million Institute for Genomic Biology at the University of Illinois at Urbana-Champaign (UIUC). Projects that are now open or nearly finished include new Biomedical Research Buildings at the University of Illinois Chicago (UIC), Northwestern Medical School in Chicago, Illinois Institute of Technology (IIT), and Loyola University. Other funded facilities include a cancer institute at Southern Illinois University (SIU) in Springfield, chemistry at UIC, and nanotechnology at UIUC. Construction has not yet begun on a Regional Biocontainment Laboratory planned for the campus of Argonne National Laboratory, managed by the University of Chicago.
Research programs
Illinois Board of Higher Education annually provides Matching Grants to institutions of higher education levering federal funding. The most recent round awarded $9.6 million to 18 institutions across multiple fields.

Additional commercialization support will be available from the Illinois Technology Development Alliance, which in 2005 spun out of the Illinois Coalition and will be funded mainly by federal grants and contracts.
ILLINOIS 1

Illinois provides $3 million to support eight regionally based ITECs. These are equipped to make very early pre-seed investments (about $20,000 each) in technology-based companies for pre-commercialization activities. The Chicago ITEC is partnered with Illinois Ventures (see below), a unit of the University of Illinois. The ITECs serve start-ups whether or not affiliated with universities. Bio-Angels, of Lake Bluff, is a network of angel investors seeking to place up to $1 million in bioscience deals. The Chicago branch of Keiretsu Forum also considers bioscience deals. The Illinois Finance Authority makes Technology Development Bridge investments of between $150,000 and $300,000 in early-stage companies across multiple fields, but only when it can invest sideby-side with accredited angel investors or formal venture capital funds. Early-stage investments are available from the Illinois Emerging Technology Fund, whose general partner is Illinois Ventures, a commercialization company owned by the University of Illinois. Currently, the funds limited partners are wealthy individuals from the regions corporate community, but they will be joined by a $7.5 million investment from the state Treasurers office (see below). To date, the fund has invested $4 million in six companies, two of which are in the biosciences. Privately financed Flavin Ventures targets seed-stage investments up to $1 million in rounds under $5 million in bioscience companies emerging from Midwestern research institutions.
Venture capital
The Treasurers investment in the Illinois Emerging Technology Fund comes from a $50 million pool first created 3 years ago. The Treasurer has stated a preference for investments in venture funds that have a track record in Illinois as well as favorable return characteristics. Of the three initial investments, the venture fund that does bioscience deals is Beecken Petty OKeefe & Company, a buyout firm. The Treasurer plans to continue placing funds over the next several years. Separately from the Treasurers program, the states pension funds are authorized to invest up to 1 percent in venture capital funds with significant exposure to Illinois deals.

Incubators
Bioscience incubators include the following: Research Center, a 57,000-square-foot wet-lab incubator at Chicago Tech Park (see below), which is surrounded by several multitenant facilities including some with wet labs Technology Works at the UIUC Research Park (see below), a 53,000-square-foot incubator over two buildings, with 36 laboratory modules
ILLINOIS
Incubator at IIT University Technology Park (below), currently 6,000 square feet collocated with IITs biomedical engineering research laboratories, to be expanded by 24,000 square feet in 2006 to 2007. In Belvidere, in Boone County near Northern Illinois University, there is an early-stage effort to develop a 50,000-square-foot New Uses Ag-Tech incubator facility in partnership with the universitys New Uses Entrepreneurial Development Center.

Illinois has a number of research parks seeking bioscience tenancy. The oldest and best established is Chicago Tech Park, a 56-acre zone within the 560-acre Illinois Medical District, which is governed by a state-chartered commission involving the county, city, and several academic medical centers with assets in the district. The district has a range of facilities for incubation, graduation space, and single-tenant facilities. It has just acquired general-obligation bonding authorization that will allow it to redevelop a long-vacant site across the street from the institutional core of hospitals and medical schools. A second park with bioscience tenancy is the Research Park at the University of Illinois, which is being developed on 230 acres just south of the Champaign-Urbana campus. Currently, there are 324,000 square feet over five buildings, and of 17 tenants several are bioscience oriented. University Park at SIU Edwardsville, on 330 acres, includes a federally funded National Corn to Ethanol Research Center and is considered part of the plant and life sciences strategy of the metropolitan St. Louis region. Additional parks under earlier stages of development include the following: University Technology Park at IIT, a 15-acre park on the South Side of Chicago which is anchored by the Life Sciences Group of IIT Research Institute, an applied research laboratory and contract research organization owned by the institute. A 130,000-square-foot build-to-suit laboratory/office building is due to open this summer. The park will ultimately include nine laboratory and office buildings including an incubator (see above) and four build-to-suit commercial buildings. Illinois Medical District at Springfield (IMDS) is modeled directly on the Illinois Medical District in Chicago and will be anchored by the SIU School of Medicine and two tertiary-care teaching hospitals. Occupying one square mile immediately north of downtown Springfield, and a portion of a previously designated tax increment financing (TIF) district, IMDS received approval for its master plan but is at an earlier stage of planning than either of the parks in Chicago or Champaign-Urbana. Since the last BIO report, Illinois Science + Technology Park, owned by Forest City Enterprises, began marketing space at a 28-acre former Pfizer campus in the Chicago suburb of Skokie. The park, which will ultimately be 2 million square feet, received $10 million in TIF and $1 million in state funding. The developer is targeting both university and corporate uses.

The Center for Entrepreneurial Development at UIUC uses MBA students for consulting projects at companies in its incubator and across the ITECs for which the University of Illinois is responsible.
ILLINOIS 3

Chicago Tech Park operates BiTmaP, a tuition-free program to retrain underemployed IT workers for careers in bioinformatics. Working through instructors at UIC, the program offers three courses and an industry internship and can be completed in 1 year. It is supported by a $3 million grant from the U.S. Department of Labor.

iBIO, the states bioscience trade association, organized and provided initial funding for the Midwest Health and Life Sciences Foundation to develop bioscience curricula for K-12 and community colleges and workforce training programs. The City of Chicago and State of Illinois have provided $170,000 in grants over the past 2 years.
Contacts
Kristi LaFleur Chief of Staff, Illinois Department of Commerce and Economic Opportunity 100 West Randolph Street, Suite 3-400 Chicago, IL 60601 (312) 814-2811 klafleur@ildceo.net
iBIO is a life-sciences industry association comprising international agricultural and human-health companies, small and medium-sized companies, entrepreneurial leaders of start-ups and spinouts, scientists and technology transfer specialists, investors, economic developers, service providers, and other business professionals. Its mission is to secure for the Midwest Region recognition as one of the worlds great life sciences centers. David Miller President, Illinois Biotechnology Industry Organization (iBIO) 177 North State Street, Suite 500 Chicago, IL 60601-3611 (312) 201-4519 dmiller@ibio.org
ILLINOIS
Illinois 96 12.7% 9,687 5.7% 9.2% 2.06 $62,690 9.39 90,944 114 -8.8% 20,597 1.6% 6.6% 1.47 $81,021 7.19 148,101 704 2.6% 13,154 -5.8% 3.2% 0.71 $60,253 3.32 43,686 721 19.6% 13,413 -15.7% 3.2% 0.72 $73,433 2.50 33,577 320,092 2.7% 4,895,931 -3.6% 4.5% n.a. $42,321
ILLINOIS
Bioscience Occupations in the Illinois Workforce, 2004
20,000 18,000 Number of Workers in Occupation 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Agricultural, Food, Biological Scientists and Technicians and Nutrition Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 820 3,340 750 19,020
Bioscience-Related Degrees from Illinois Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 500 1,000 1,500 2,000 2,500
Number of Degrees
ILLINOIS
Total Bioscience R&D Expenditures at Academic Institutions in Illinois, FY 2003
Medical Sciences
$527,200
Biological Sciences
$307,329
$68,355
Other Life Sciences
$28,801
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Illinois University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $1,613,691 $944,488 58.5% $74.64 58.7% $689,659 $54.50 45.8% 4,585 23,930
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 7 7
10
5 7
ILLINOIS

Central Indiana is pursuing a bioscience strategy developed by BioCrossroads, a cluster-development initiative operated by the Central Indiana Corporate Partnership, the regions CEO leadership group. This strategy targets agbiotech, biosensors, cancer, cardiovascular disease, evidence-based medicine, neuroscience, protein analysis, sports-centered life sciences, and bioimaging/biomarkers. Through collaboration with the Indiana Health Industry Forum, strategic initiatives are also serving other regions, such as the orthopedic device cluster near Warsaw. Since the last BIO report, substantial new bioscience research capacity has opened at the states principal research institutions. In addition, the public/private Indiana Economic Development Corporation (IEDC) replaced the Indiana Department of Commerce and assumed responsibility for managing the 21st Century Research and Technology Fund, a state-backed multipurpose fund with the capability to make grants, loans, or investments in promising technology partnerships across multiple fields. In its most recent program announcement, the 21st Century Fund has sharpened its focus on projects that support commercialization by high-growth start-ups. BioCrossroads also rolled out a new pre-seed investment fund designed to feed early-stage deals to venture funds that are investees of the privately managed Indiana Future Fund. IEDC also continued to implement the Certified Technology Park program, which will result in additional incubation capacity statewide including in several bioscience research parks.

State-funded bioscience investments have been made in Indianapolis, Bloomington, West Lafayette, and South Bend. Some of these programs at Indiana University (IU) are funded in conjunction with support from the Indianapolis-based Lilly Endowment and its INGEN (Indiana Genomics Initiative). IU recently announced a 10-year, $1.3 billion fund-raising plan to add eight new buildings beyond those listed below. Projects in Indianapolis near the IU School of Medicine at Indiana UniversityPurdue University Indianapolis (IUPUI) include the following: Biotechnology Research and Training Center, a three-story, $26.9 million structure with 26,000 square feet of proteomic/genomic laboratories and 17,600 square feet for training
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Medical Information Sciences Building, a 161,000-square-foot, $42.25 million structure built near the incubator in the canal district Research III, a 254,000-square-foot, $83.3 million structure devoted to translational cancer research (in planning). Indianapolis Downtown Inc. also estimates that Eli Lilly has $880 million in construction under way including research, drug-discovery, and both pilot- and full-scale manufacturing at its corporate center south of downtown. At IU Bloomington, new bioscience construction includes the following: Simon Hall, an 80,000-square-foot building that was the first new campus building devoted to research since 1962 (due to open in 2007) Multidisciplinary Life Sciences Building II, a 65,000-square-foot, five-story, $42.4 million building (in planning). At West Lafayette, Purdue continued buildout of its Discovery Park, a 40-acre zone dedicated to interdisciplinary academic industrial collaboration. Facilities recently opened with bioscience components include the following: Bindley Bioscience Center, a 50,000-square-foot, $15 million facility that will include an Oncological Sciences Center, the Discovery Park arm of the Purdue Cancer Center Birck Nanotechnology Center, a 187,000-square-foot, $58 million facility that will include biomolecular clean rooms and is connected by enclosed walkway to the Bindley Biosciences Center Biomedical Engineering Building, a 91,000-square-foot, $25 million home for the Weldon School of Biomedical Engineering. At its separate Research Park (below), Purdue also opened a new 12,000-square-foot, $6.5 million, nonsterile cGMP manufacturing facility for its privately donated Chao Center for Industrial Pharmacy & Contract Manufacturing. The program will seek industrial contracts. It has full-time staff and will also provide experiential training for students in the School of Pharmacy. In South Bend, Notre Dame University opened a 77,000-square-foot, $23 million Research Facility that will house Notre Dames Keck Center for Transgene Research. The facility is partly financed by lease payments from IU School of Medicine, which rented 46 percent of the building for its branch campus at South Bend.
Research programs
IU and Purdue have jointly designated $250,000 for a Collaboration in Life Sciences and Informatics Research to initiate research projects with the potential to lever external federal or private funding.

Lilly Endowment has provided IU with a total of $155 million in several waves of grants under the INGEN initiative. Most of these gifts have supported faculty recruitment and establishment of core facilities necessary for the recruitments.
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The 21st Century Fund is now funded at $75 million for the current biennium. It considers awards up to $2 million. The fund emphasizes proposals that lever major federal grants or open up new sources of long-term support, encourages university/industry partnerships, and now especially emphasizes the formation of start-up businesses as vehicles for commercialization of funded research. The 21st Century Fund has the capability to make either grants or loans and has directly funded 25 start-ups. One example is the Indiana Center for Applied Protein Sciences, a for-profit provider of analysis and technology validation that was spun off by Inproteo, a joint venture owned by Lilly, IU, and Purdue.

Purdue Research Foundation maintains an internally managed Trask Venture Fund that makes Technology Innovation Awards up to $100,000 for precommercialization research on intellectual property held by Purdue and Pre-Seed Awards up to $250,000 to help create start-up companies that can enter a business-acceleration process administered by the Purdue Research Park (see below).

The Indiana Venture Center, a freestanding nonprofit with connections to the states major universities, acts as a business accelerator in several sectors including the biosciences.

Seed-stage investments ranging from $50,000 to $500,000 are available from the Indiana Seed Fund I, a $4 million rate-of-return-oriented fund set up by BioCrossroads with additional investment from the states Indiana Finance Authority. Indianas Venture Capital Investment Tax Credit provides an income-tax credit of the lesser of $500,000 or 20 percent on investments in qualifying early-stage businesses that are certified by IEDC. Finally, the 21st Century Fund continues to match Phase I SBIR/STTR awards up to $100,000 as a way of capitalizing early-stage companies.
Venture capital
Seven venture capital firms with offices in Indiana and an interest in bioscience deals have received investments from the $73 million Indiana Future Fund, a fund of funds managed by CS First Boston. Investors in the Future Fund include the state pension fund; Lilly; Guidant; Anthem; American United Life Insurance; IU; Purdue; and the endowment foundations of IU, Ball State, and Indiana State. The Future Fund requires that 60 percent of its money be placed in Indiana-focused or -based venture funds and 70 percent in funds that intend to invest in early- or seed-stage companies. It targets that 60 percent of these venture funds ultimate investments be in the life sciences and in Indiana-based companies. Investee venture capital funds are as follows:
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A.M. Pappas & Associates, based in North Carolina Burrill & Company, of San Francisco Pearl Street Venture Funds REI Ventures Spring Mill Venture Partners Triathlon Medical Ventures Fund. Two state agencies recently announced that they will support creation of a new $30 million MidPoint Food & Ag Fund, managed by the author of the BioCrossroads strategic plan for the states agricultural economy. The state Department of Agriculture will loan the fund $500,000 for operating expenses during the fund-raising period, and the Indiana Finance Authority has agreed to invest $3 million as a limited partner provided that the general partner can raise a minimum of $27 million.

Incubators
Bioscience incubators include the following: Indiana University Emerging Technologies Center (IUETC), a 62,500-square-foot building with 28,000 square feet of wet-lab space, in the Canal District of Indianapolis Purdue Technology Center, which recently doubled in size to 120,000 square feet, and two associated multitenant wet-lab buildings at Purdue Research Park in West Lafayette Northeast Indiana Innovation Center, a 42,000-square-foot facility in Fort Wayne Rose-Hulman Ventures, a 35,000-square-foot incubator in Terre Haute established with a major grant from the Lilly Endowment (the bioscience focus is limited to devices and instrumentation).

The states Certified Technology Park (CTP) program allows research parks certified by IEDC (which seeks evidence of university involvement and a commitment to business incubation) to capture up to $5 million in incremental tax collections for reinvestment in business incubators or similar facilities. The CTP law also authorizes IEDC to make grants up to $2 million to each park for similar purposes, financed in part by tobacco funds. As of 2005, 14 CTPs had been approved. Among those with some bioscience orientation are the following: The district in which the IUETC was developed, which has plans for several additional buildings and will invest local TIF revenue in debt retirement at the incubator Purdue Research Park, a 150-acre park on a much larger site that will invest its TIF revenue in preparing an additional 40 acres for development
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Northeast Indiana Innovation Center (see above under Incubators), which is levering an orthopedic materials institute, and Intelliplex in Shelbyville, which is pursuing health-related information technology.

Several of the states business schools have established specializations in bioscience. For example, Purdue and Indiana Universities received a joint $525,000 grant form the Guidant Foundation to establish a Biomedical Entrepreneurship Program. The program will link students from Purdues Weldon School of Biomedical Engineering with medical fellows at IU School of Medicine and MBAs at Purdues Krannert School of Management. In addition, IUs Kelley School of Business and its Johnson Center for Entrepreneurship have established a staffed satellite office at the IUETC incubator where MBAs can become involved in early-stage bioscience companies.

An industrially oriented Biotech Degree is now available from Ivy Tech, the states equivalent of a community college system, through an initiative of the Indiana Health Industry Forum, the regional industry, and IUPUI.

Biotech Bound is a pilot program to help at-risk young adults get into degree tracks at Ivy Tech Community College.
Contacts
Todd Pedersen Director of Life Sciences Initiatives, Indiana Economic Development Corporation One North Capitol, Suite 700 Indianapolis, IN 46204 (317) 233-5391 tpedersen@iedc.in.gov The Indiana Health Industry Forum (IHIF) is a not-for-profit, private sector organization; and its members represent a private/public alliance of manufacturers, suppliers, educational institutions, health care providers, service providers, and government. Its purpose is to position Indiana as a premier state for the creation and growth of health industry enterprises. J. Mike Brooks President and CEO, Indiana Health Industry Forum 351 West 10th Street, Suite 216 Indianapolis, IN 46202-4118 (317) 278-9972 mbrooks@ihif.org
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Indiana 37 10.5% 4,867 -8.1% 4.6% 2.07 $74,138 5.98 29,084 39 -4.9% 20,057 8.2% 6.4% 2.85 $88,364 6.31 126,658 281 -2.4% 16,688 13.7% 4.1% 1.81 $58,931 3.19 53,181 310 15.5% 6,423 -2.5% 1.6% 0.69 $53,427 2.24 14,369 147,829 1.1% 2,451,640 -1.4% 2.2% n.a. $34,724
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Bioscience Occupations in the Indiana Workforce, 2004
9,000 8,810 8,000 Number of Workers in Occupation 7,000 6,000 5,000 4,000 3,000 2,510 2,000 520 1,000 Agricultural, Food, and Nutrition Scientists and Technicians Biological Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 1,040
Bioscience-Related Degrees from Indiana Institutions, AY 2004
Biological Sciences
200
400
600
800
1,000
1,200
1,400
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in Indiana, FY 2003
Medical Sciences
$154,349
Biological Sciences
$113,857
$88,440
Other Life Sciences
$13,033
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Indiana University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $725,752 $378,368 52.1% $61.07 61.7% $202,775 $32.73 43.6% 2,332 12,880
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 18 20
25
15 16
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In 2004, the Iowa Department of Economic Development (IDED) commissioned the development of a strategy for growing the states bioscience economy. Bioscience Pathways for Development proposed the following four strategies: Building Iowas bioscience research capacity around selected technology platforms focusing on investments in talent, facilities and equipment Encouraging and facilitating the commercialization of bioscience research and development (R&D) to enhance opportunities for start-up, emerging, and existing Iowa firms Fostering a business environment that supports, sustains, and encourages the growth and sustainability of bioscience firms in Iowa Investing in and branding Iowas bioscience talent pool. IDED has created an advisory committee, the Biosciences Alliance of Iowa (BAI), to oversee implementation of the strategy and to advise the department on investments in key bioscience areas. BAI members represent the states universities and colleges, bioscience companies, the agricultural community, local economic development, and government. A proposal has been made to create a statewide commercialization entity that would be funded at the level of approximately $3 million. A separate $5 million seed fund that would be managed by the commercialization entity is also under consideration. Funding to implement the actions proposed in the strategy is coming, in part, from the Grow Iowa Values Fund, which was created in 2005. (Legislation was initially passed in 2003, but legislation had to be passed in 2005 to re-establish the fund after a legal challenge.) The Grow Iowa Values Fund will provide $500 million over a 10-year period to support technology-based economic development and other economic development initiatives. The fund is being tapped to make investments in building the states R&D base and in creating an infrastructure to ensure that university research discoveries make it into the market, leading to new firm formation and high-wage jobs for Iowa citizens. In addition to the biosciences, Iowa has developed strategies for growing its advanced manufacturing and information technology sectors.
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The Iowa Board of Regents has requested $20 million in 2006 and a total of $50 million over the next 3 years to fund research infrastructure, including facilities, faculty, and commercialization activities. The Governor has included this amount in his FY 2007 budget request.

The BAI has invested in the following projects: The creation of a Human Nutrition Wellness Center at Iowa State University (ISU) will allow existing Iowa companies, commodity groups, and university researchers the opportunity to collaborate on projects to evaluate foods and nutritional supplements on human health. All three Regent institutions will collaborate in the research conducted by the center. A new High-Throughput Animal Model Facility at the University of Iowa (UI) will provide both large- and small-animal researchers at UI and ISU the opportunity to create and characterize animal models of human diseases. This facility will provide companies with cost-effective disease-related animal research. The third investment by BAI is in equipment for the UI proteomics capabilities. A noted leader in the field, the UI has an opportunity to bring new companies to Iowa based on a U.S. Department of Defense contract requiring the research made possible only through the purchase of needed equipment and supporting software.
Research programs
Another project approved for funding, in conjunction with BIOWA and Genencor International, is a feasibility study on the launching of a corn-based biorefinery in Iowa. (BIOWA is a nonprofit organization that facilitates collaboration between agricultural producers, scientists, entrepreneurs, and government that leads to the production and manufacturing of bio-based products in Iowa that satisfy market demands.) The objective of this project is to build the nations first fully integrated, corn-based biorefinery in Iowa. Such a biorefinery will turn corn starch, corn fiber, distillers dried grains, and corn stover into ethanol and other bio-based products.

The Center for Biocatalysis and Bioprocessing (CBB) at UI supports biotechnology-related academic and industrial research development, training, and technology transfer. State-of-the-art, pilot-scale facilities provide fermentation purification services to companies on a global basis. Recently, the State of Iowa awarded the CBB $3 million for construction of a cGMP facility to ferment and purify materials suitable for Phase I/Phase II clinical trials. This new operation compliments the existing GLP Fermentation/Bioprocessing laboratories. The CBB is actively working with more than 50 clients to help reshape the agricultural, chemical, nutritional, and pharmaceutical industries by combining the intellectual talents of top scientific faculty with the practical delivery of new technologies. Approximately 60 faculty members and 300 researchers, representing eight university departments, work with the CBB.
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The Division of Pharmaceutical Service is part of UIs College of Pharmacy. This FDA-approved pharmaceutical manufacturing facility maintains cGMP operations and offers a wide range of services, from the manufacturing of sterile injectables to solids manufacturing and dosage formulation. The Center for Advanced Drug Development (CADD) at UI works with industry by performing a wide range of assays to obtain data for preapproved active pharmaceutical ingredients, new molecular entities, drug products, and excipients. Stability testing is conducted according to client-approved protocols and International Conference for Harmonisation guidelines. Stability studies are performed for active ingredients, early development formulations, and clinical trial materials. ISUs Plant Sciences Institute comprises research centers encouraging academic/industrial interaction. The institute receives $5 million annually through the general university appropriation. The centers that comprise the Plant Sciences Institute include the following: Center for Bioinformatics and Biological Statistics Center for Plant Genomics Center for Plant Transformation and Gene Expression Center for Plant Breeding Center for Designer Crops Center for Plant Responses to Environmental Stresses Center for Designing Foods to Improve Nutrition Seed Science Center. The Center for Crops Utilization Research (CCUR) at ISU has made pilot plants available to industry to test new products and processes. Services include equipment rental, technical assistance with equipment usage, cooperative research contracts, and proprietary agreements. Equipment rental and support staff payment can take a number of forms, including equipment donation and in-kind services. Firms have contracted with CCUR for technical services that include grain quality analysis, starch and protein separation and analysis, oil extraction, spray or tray drying, centrifugation, extrusion, test kitchen food preparation, sensory analysis, and a host of related activities. The Iowa Biologics Facility at ISU will be a dedicated manufacturing facility for non-animalsourced proteins suitable for clinical trials or industrial applications. The facility will have tissue processing, extraction, and separate purification suites. In addition, there will be support facilities including a quality control laboratory. GLP and GMP certifications are planned. The facility will break ground in summer 2006. The Ag-Based Industrial Lubricants (ABIL) Research Program at the University of Northern Iowa (UNI) works with industrial clients throughout the state providing testing services for developers and users of bio-based lubricants. Specifically, the program brings together research and testing to identify soybean oil characteristics and match them to appropriate industrial uses. ABIL develops soy products, like grease and hydraulic fluids, and works to commercialize technology through the introduction of these new products into the marketplace.
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The Grow Iowa Values Fund is providing $5 million to the three universities under the control of the Board of Regents to expand infrastructure in the areas of technology commercialization, entrepreneurship, and business development. In FY 2006, UI and ISU will receive $1.9 million and UNI will receive $950,000. These funds will be used to support the following activities: ISU has created a grant program to provide funding for proof-of-concept activities. The fund, capitalized with $825,000 this year, will make awards in the range of $25,000 to $200,000. Projects are expected to be completed in 12 to 18 months and require a 1:1 match, which can be cash or inkind contributions. In February, ISU announced its first nine awards. ISU will use $600,000 of its funds to strengthen its existing commercialization infrastructure, which includes the John Pappajohn Entrepreneurial Center (JPEC), the ISU Research Park, and the Institute for Physical Research and Technology. ISU will use its remaining funds to support projects to develop new products and new companies. UI will use $1.4 million of its funding to support competitively selected commercialization projects based on the universitys or partnership companies IP. The remaining funds will be used to promote entrepreneurship and build new networks among people with technical, financial, and business expertise. UNI will use its funds to support its technology transfer and business incubation efforts; continue support for the MyEntreNet program (a rural accelerator program); provide market research for Iowa companies; build the capacity of regional economic development organizations; and expand the technical capabilities and staff resources of the National Ag-Based Lubricants (NALC), a national leader in the development of bio-based lubricants. Technology Commercialization Acceleration (TCA) was originally established by IDED and ISU to focus on commercializing university technology. This program is continuing through the ongoing efforts of ISU. TCAs goal is to increase technology transfer and to help entrepreneurial business projects that will lead to the creation and growth of start-up companies. As part of its role, ISU assists with the testing, marketing, and development of commercially viable products. TCA is administered by the Institute for Physical Research and Technology, which helps Iowa companies solve technical problems, create new products, increase productivity and quality, and launch start-up companies. The University-Based Research Utilization Program has been established by IDED to encourage the utilization of university-based research in new or existing businesses. Under the program, a business that utilizes a technology developed and patented after July 1, 2003, by an employee at one of the states three public research universities may apply for a tax credit. If approved, the business as well as the university employee responsible for the development of the technology is eligible for a tax credit. For the business, the value of the tax credit is equal to 30 percent of its tax liability, with the total value not to exceed $225,000 in 1 year and $600,000 over 5 years. For the university employee, the value of the tax credit is equal to 10 percent of the tax liability of the business, with the total value not to exceed $75,000 in 1 year and $200,000 over 5 years. Ten million dollars in tax credits are available annually.
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The John Pappajohn Entrepreneurship Centers seek both to encourage entrepreneurship and to provide support to entrepreneurs and start-up companies. The JPECs are located at Drake University in Des Moines, at ISU in Ames, at Northern Iowa Area Community College in Mason City, at UNI in Cedar Falls, and at UI in Iowa City. Each center offers entrepreneurial educational programs and provides business assistance services. In 2005, Iowa initiated a program to provide state support to a network of accelerators, three of which are operational and four of which are funded but have not begun operations. The accelerators are expected to propel Iowas entrepreneurial efforts into successful businesses by leveraging the expertise of experienced professionals. The three operational accelerators are the Economic Development Council in Cedar Rapids, NewVentures in Davenport, and one operated by the Northern Iowa Area Community College in Mason City. The accelerators are nonprofit corporations and can take equity in companies and/or charge management fees to cover some of the cost of the services they provide. The BAI also supports entrepreneurs and start-ups. For example, BAI has provided funding for a project to aid in tracking animal movement across the country, a topic that has taken on national significance for both economic and biosecurity reasons. The BAI, with assistance from the Iowa Veterinary Medical Association and ISU, is funding research necessary for a small Iowa company to develop the software programs and interactive equipment necessary to enhance their current product line and capture this new market.

IDED administers the Entrepreneurial Ventures Assistance (EVA) Program, which provides financial and technical assistance to early-stage technology companies. The program provides technical assistance and financing to entrepreneurs for start-up and early-stage companies and existing companies that are developing a new product or new technology. The EVA Program encourages the development of entrepreneurial venture planning and managerial skills in conjunction with the delivery of a financial assistance program for business start-ups and expansions. EVA funds may be used to finance up to 50 percent of the total project costs, not to exceed $250,000 maximum. Bioscience businesses are a prime example of this. Also authorized in 2002 are several tax credits designed to encourage investment in entrepreneurial startup companies. Individuals who invest directly in a qualified business or in a community-based seed capital fund are eligible for a tax credit equal to 20 percent of his or her investment. Investors are limited to five credits per year, and the maximum amount of one investment cannot exceed $50,000. For companies to qualify, they must have (1) operations in Iowa; (2) been in business for 6 years or less; (3) successfully completed an entrepreneurial training program, such as those offered by the JPECs, or demonstrated experience, training, or education; (4) not exceeded $10 million in net worth; and (5) secured, within 24 months, total equity or near equity of $250,000. Taxpayers who invest in venture capital funds can receive a credit equal to 6 percent of the individuals equity investment. The Value-Added Agricultural Products and Processes Financial Assistance Program seeks to increase the innovative utilization of Iowas agricultural commodities. It accomplishes this by investing in the development of new agricultural products and new processing technologies. Many of its projects are based on commercialization of biotechnology-based products.
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Venture capital
In 2002, the Iowa Legislature enacted legislation creating a Fund of Funds that includes a provision for continent tax credits of up to $100 million to be available to investors if their investment fails to achieve a designated ROI. The Fund of Funds will invest in privately managed venture capital funds that agree to have a physical presence in Iowa and commit to making a good faith effort to find and make equity investments in Iowa businesses. In June 2005, the Fund of Funds received its first commitment through a $10 million revolving loan fund provided by West Bank of West Des Moines to provide working and investment capital to the Fund of Funds program. Wells Fargo of Des Moines has committed to financing an additional $5 million to support the investment program. The Fund of Funds plans to raise $95 million and to invest $2 million to $5 million in as many as 15 funds over the life of the Fund. To date the Fund of Funds has invested in funds managed by the following: Prolog Ventures, an early-stage venture-capital firm focused on life science investments that is based out of St. Louis Richland Ventures, based out of Nashville, Tennessee, that provides expansion capital for healthcare service companies, medical devices and technology, and other diversified service companies Tonka Bay Equity Partners, based out of Minnetonka, Minnesota, that provides capital to small and medium-sized businesses for growth, acquisition, and management buyouts. The Fund of Funds will seek to invest in funds focused on areas of technology of interest to Iowa such as alternative energy and agbiotechnology and will include in its portfolio funds that invest at varying levels, including at least one fund that would invest at the $250,000 to $500,000 level. To facilitate private investment in the Fund of Funds and minimize the need for public appropriations, the Legislature authorized the issuance of contingent tax credits to guarantee, at least partially, investments in the Fund of Funds. Redemption of the tax credits will be contingent on certain criteria developed by the Iowa Capital Investment Board and is limited to $100 million in the aggregate and $20 million in any fiscal year. The tax credits are transferable, but can be used as a credit against taxes owing to the State of Iowa only if the investor does not receive the specific return on its investment, to the extent of the guarantee. If not depleted, the tax credits may be carried forward for a maximum of 7 years after the date of maturity of the investment. The Iowa Agricultural Finance Corporation (IAFC) is a farmer-owned investor in Iowa-based, valueadded agricultural businesses, especially ventures involving agricultural producers in ownership or other benefits of growth. IAFC was started with a $25 million loan from the State of Iowa and created the tecTERRA Food Capital Fund to invest in value-added processing and biotechnology businesses.

Incubators
Three incubators affiliated with ISU service biotechnology companies:
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The Iowa State Innovation System is a technology incubator operated by the ISU Research Park. In affiliation with the incubator, a multitenant building has been constructed that houses an 8,000-square-foot wet-lab incubator facility. The Roy J. Carver Co-Laboratory Business Incubator, affiliated with the Plant Science Institute, is a new, 45,000-square-foot, $13 million center for biotechnological research. Housed within the facility is 1,600 square feet of business incubator space. The CCUR assists small businesses through its small business incubator program. Resident businesses are accommodated as space becomes available for relatively short periods (up to 2 years) to network with faculty and access expertise and other services. The Technology Innovation Center (TIC), the UI business incubator, fosters the development of new business ventures that make use of advanced technology. The Technology Innovation Center is located on the 500-acre UI Oakdale Campus in Coralville, about 10 minutes from the main campus in Iowa City. The center occupies much of the 20,000-square-foot TIC building, and office and laboratory space in other buildings. NewVentures Initiative is an 18,000-square-foot incubator located in Davenport. The facility includes Class A office space as well as areas that can be built out to meet laboratory needs. NewVentures, a nonprofit organization that manages the incubator, provides a comprehensive array of commercialization services to entrepreneurs and start-up companies.
Under development
The Cedar Valley TechWorks project is a plan to reuse the buildings and land that John Deere has donated as part of its $127 million redevelopment of the Waterloo Works manufacturing facilities. The TechWorks project is expected to include four programs, including a BioProducts Merchandise Mart, a TechWorks Manufacturing Mall, a TechWorks Education Center, and an Ag-Tourism Exhibit Center. The TechWorks Manufacturing Mall will focus on facilitating the commercialization of new products and the development of new businesses. The program will include a bio-based incubator and commercialization center.
A portion of the Iowa Values Fund has been dedicated to direct business development and assistance financing. Specifically, $220.5 million over the next 7 years has been allocated for funding to be utilized for current and new programs administered by IDED, with a focus on business start-ups, expansions, modernization, attraction, retention, and marketing. Some of the bioscience projects approved by the Board include Trans Ova Genetics, which was approved for a $9 million award to create 315 jobs; Integrated DNA Technologies, which was approved for a $5 million award to create 207 jobs; New Link Genetics, Inc., a start-up company, which was approved for a $6 million award to create 350 jobs; and Fort Dodge Animal Health, which was approved for a $3.5 million award to create and retain 1,041 jobs.

Although no research parks are dedicated exclusively to the biosciences in Iowa, multipurpose research parks at the states research universities are hosts to a wide array of biotechnology companies: The Iowa State University Research Park is a 230-acre development with more than 270,000 square feet of building space located south of the ISU campus. Established in 1987, ISU
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Research Park plays a key role in the economic development activities of ISU as it relates to technology transfer, business formation, and development assistance with established technology firms. The park has been in existence for 15 years and currently hosts 42 tenant companies and university centers that employ more than 800 people. The Oakdale Research Park at UI occupies the northern one-third of the universitys 500-acre Oakdale campus. The 189-acre park offers leased building sites and a private multibuilding complex, the Myriad Technology Plaza, which serves clients who prefer to lease existing office and laboratory space. Located on the campus are the University Hygienic Laboratory, Institute for Agricultural Medicine and Occupational Health, Technology Innovation Center, Obermann Center for Advanced Studies, and the CADD, as well as other university research laboratories. The complex is approximately 200,000 square feet, with more than 20,000 square feet of wet-lab space.

Iowa Bioprocessing Training Center and Fermentation Facility is a state-of-the-art educational facility operated by Indian Hills Community College and designed specifically to serve the bioprocessing industries of Iowa. . Indian Hills Community College, through its Iowa BioDevelopment Center,
operates training courses on ethanol fermentation, bio-diesel, genetic engineering and fermentation, and advanced fermentation. New graduate-credit courses available the summer of
2006 in cooperation with Morningside College will include Forensics, Genetic Engineering, Biotechnology and Bioethics, Renewable Fuels, and Fermentation. Special features of the center include a large, dividable, multipurpose classroom/meeting room; separate training laboratories for bioprocess technology and process control; and a fermentation pilot plant. The fermentation pilot plant provides companies access to equipment for developing or scaling up new products, on-site expertise, and personnel for consultation. AgrowKnowledge, the National Center for Agriscience and Technology Education, is funded by the National Science Foundation and headquartered at Kirkwood Community College. The goal of the center is to strengthen the nations agriculture technology curriculum and instruction by working with business, industry, education, government, and professional associations to improve the math, science, and technical competencies of agriculture technology students across the country.

The following education providers are working to enhance K-12 science education: The Iowa State University Office of Biotechnology has been assisting K-12 educators since 1988. Opportunities to update biotechnology content and laboratory skills are offered through summer training courses. Teachers who attend one or more courses are supported by free equipment and supplies. In 2005, Heartland Area 11 Education Agency, in cooperation with several life science companies, developed an 800-square-foot mobile laboratory. This expandable unit is equipped with state-of-the-art laboratory equipment and modern-day experiments. Science teachers must be certified in the use of the laboratory and curriculum before the mobile laboratory is scheduled into their respective school districts.
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Contacts
Jeff Rossate, Division Administrator, Business Development Iowa Department of Economic Development 200 East Grand Avenue Des Moines, IA 50309-1819 (515) 242-4707 jeff.rossate@iowalifechanging.com
The Iowa Biotechnology Association (IBA) was formed in 1994 to advance opportunities in Iowa for the improvement of the human environmental and economic well-being through the development and application of value-added technologies in the life sciences. Doug Getter, Executive Director Iowa Biotechnology Association 4536 NW 114th Street, Suite A Urbandale, IA 50322 (515) 327-9156 dgetter@netins.net
IOWA
Iowa 97 -3.4% 5,744 -0.4% 5.5% 5.01 $57,380 7.51 43,133 41 -2.4% 2,589 8.1% 0.8% 0.76 $48,417 3.73 9,669 142 3.3% 1,853 -3.7% 0.5% 0.41 $34,068 2.05 3,797 186 11.7% 1,870 34.5% 0.5% 0.41 $46,848 1.95 3,643 86,041 0.8% 1,194,950 -0.6% 1.1% n.a. $31,670
IOWA
10
Bioscience Occupations in the Iowa Workforce, 2004
4,000 3,500 Number of Workers in Occupation 3,000 2,500 2,000 1,880 1,500 1,000 500 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers 1,070 100
3,980
Bioscience-Related Degrees from Iowa Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 100 200 300 400 500 600 700 800
Number of Degrees
IOWA
11
Total Bioscience R&D Expenditures at Academic Institutions in Iowa, FY 2003
Medical Sciences
$162,141
Biological Sciences
$99,639
$44,779
Other Life Sciences
$26,689
$-
$20,000
$40,000
$60,000
$80,000
$100,000 $120,000 $140,000 $160,000 $180,000
Iowa University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $498,669 $334,640 67.1% $113.67 39.9% $196,495 $66.74 44.1% 1,731 7,030
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 26 25
26
24 26
IOWA
12

In 2005 the Kansas Bioscience Authority, created by the Kansas Economic Growth Act of 2004, was rolled out. The Authority is charged to develop a range of programs including programs for faculty recruitment, matching of major federal awards, facilities construction, bioscience development districts, and workforce programs. The states ultimate goal is to provide appropriations to the Authority based on incremental tax revenue available from growing the bioscience sector, projected to be $580 million over a decade. An initial appropriation of $7.5 million supports creation of a cluster/commercialization function with pre-seed funding capability. With staff support from the Kansas Technology Enterprise Corporation (KTEC), the Authority commissioned a roadmap that narrowed the Acts broad identification of bioscience sectors and identified four key targets of opportunity: human and animal health, animal health and food safety, biologically inspired materials, and bioproducts. The state planning process was mirrored in Kansas City, where the Kansas City Area Life Sciences Institutea steering collaborative of eight bioscience institutions on both sides of the border with Missouriidentified its own more precise targets and reached about halfway toward its goal of stimulating $500 million in annual external grant support to area institutions. The Kansas City region has identified its own sectoral targets, with a particular focus on animal health. Since the last BIO report, Kansas also enriched an existing tax credit for venture investment; focused it on high-value angel investments; and rolled out KansasBio, the state BIO affiliate.

The 2001 University Research and Development Act authorized the Board of Regents to float $130 million in revenue bonds for new R&D capacity in several fields. These bonds are serviced by appropriations for the first 5 years and then from incremental indirect-cost recovery. Bioscience buildings recently finished include the new $55 million Biomedical Research Building at the University of Kansas Medical Center (KUMC) in Kansas City and a $54 million Bio-Security Research Facility at Kansas State University in Manhattan. The University of Kansas at Lawrence completed a $40 million Multidisciplinary Research Building and received approval for a 45,000-square-foot, $20 million addition to its existing Structural Biology Center.
KANSAS
Research programs
KTEC receives $6.5 million annually to support five university-based centers of excellence. The bioscience center is the Higuchi Biosciences Center, an umbrella life-science institute at the University of Kansas at Lawrence. KTEC allocates $2.4 million annually to a combination of the states EPSCoR program and the Strategic Technology and Research Fund, which supports applied R&D. An example is a recent award to Wichita State University, to support adapting its expertise in aviation materials to biomedical devices.

KTEC offers grants of between $5,000 and $125,000 through an Applied Research Fund for projects matched 1.5:1 by Kansas companies. Biosciences are eligible. Grants are repaid through royalties on any resulting commercialization.

As noted above, one of the Authoritys first funded programs is a commercialization initiative that is not yet fully developed.

In the 1990s, KTEC set up what it called Business Assistance Incubators at several university campuses and in other regions around the state. These are essentially multisector commercialization centers. For example, Enterprise Center of Johnson County serves as a multisector commercialization center for the greater Kansas City metropolitan area. The Lawrence Regional Technology Center, which is linked to the Higuchi Center, offers similar services in the Lawrence area.

Each of the regional incubators is equipped with a pre-seed capital fund. Those that have done bioscience deals include the following: Precede Fund, associated with the center at KUMC in Kansas City Kaw Holdings, associated with the University of Kansas at Lawrence Manhattan Holdings, associated with Kansas State University in Manhattan. Mid-America Angels is an informal network that considers bioscience deals, based at the Enterprise Center of Johnson County. Kansas Angel Investor Tax Credit offers a credit of 50 percent up to $50,000 on investments in qualified companies certified by KTEC. The program offers $2 million in credits a year up to a maximum
KANSAS 2
of $20 million, and demand was so strong in the first year that KTEC has shifted from first come first served to making judgments about the likely impact of an investment and authorizing partial credits.
Venture capital
In the Kansas City region, both the Midwest Research Institute (MRI) and the Stowers Institute for Medical Research maintain captive venture funds. The MRI fund ($12 million) is targeted at MRIs own commercialization partners, while the Biomed Valley Discovery Fund at Stowers ($50 million) sources deals broadly, not just in the region.

Incubators
The following incubators have a significant bioscience component: Biotechnology Development Center of Greater Kansas City is a 6,000-square-foot facility adjacent to the KUMC. Bioprocessing and Industrial Value Added Programs facility at Kansas State contains 6,600 square feet of pilot facilities and 2,900 square feet of laboratories for incubator clients. The University of Kansas, which acquired a former industrial facility and converted it to the Lawrence Life Sciences Center, is considering adding incubation capacity there.

Johnson County Community College is constructing a $67 million laboratory building to offer enhanced life-science programming.
Pending Proposals
Governor Kathleen Sebelius has proposed funding the KU Cancer Center at $5 million annually to support its goal for designation as an NCI comprehensive cancer center.
Contacts
Tracy Taylor President and CEO, Kansas Technology Enterprise Corporation 214 SW Sixth Street, 1st Floor Topeka, KS 66603-3719 (785) 296-5272 ttaylor@ktec.com
KANSAS
The Kansas Bioscience Organization is a not-for-profit organization that serves as the voice of the bioscience industry and research institutions in Kansas. Angela Kreps President, Kansas Bioscience Organization (KansasBio) 8527 Bluejacket Street Lenexa, KS 66214 (913) 495-4334 akreps@kansasbio.org
KANSAS
Kansas 39 0.1% 1,750 -2.2% 1.7% 1.72 $47,091 6.59 11,524 18 -21.7% 1,352 32.9% 0.4% 0.45 $60,780 4.02 5,429 117 -17.6% 2,110 -16.9% 0.5% 0.53 $35,285 2.30 4,846 188 14.4% 4,408 10.5% 1.1% 1.10 $44,917 2.07 9,144 76,920 1.5% 1,059,128 -2.3% 1.0% n.a. $33,011
KANSAS
Bioscience Occupations in the Kansas Workforce, 2004
6,000
5,040
4,000
3,000
2,000
1,000
880
910
100
Bioscience-Related Degrees from Kansas Institutions, AY 2004
Biological Sciences
100
200
300
400
500
600
700
800
900
Number of Degrees
KANSAS
Total Bioscience R&D Expenditures at Academic Institutions in Kansas, FY 2003
Medical Sciences
$40,254
Biological Sciences
$82,322
$48,479
Other Life Sciences
$22,868
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Kansas University R&D Expenditures, FY 2003 Total ($thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $310,052 $194,007 62.6% $71.23 38.3% $75,386 $27.68 41.7% 1,593 6,930
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 32 32
36
26 28
KANSAS

In 2000, the Commonwealth of Kentucky enacted the Kentucky Innovation Act (KIA), an initiative to enhance the entrepreneurial economy in the Commonwealth. KIA involves a range of integrated efforts aimed at improving research and development (R&D), technological innovation, commercialization, and the start-up and growth of technology-driven and knowledge-driven Kentucky companies. The statewide strategic plan for developing a technology-centered economy in the Commonwealth is being coordinated by the Cabinet for Economic Development, led by the Department of Commercialization and Innovation (DCI) in partnership with the Council on Postsecondary Education (CPE) and other statewide organizations. The statewide strategic plan focuses on five priority research areas, of which the biosciences and human health and development are prominent. Funding priority for R&D will be given to critical technologies in the following areas as identified in the strategic plan: Biosciences Human health and development Environmental and energy technologies Information technologies and communication Materials science and advanced manufacturing. The Kentucky Life Sciences Commercialization Program addresses one of the key recommendations from the Governors Life Sciences/Biosciences Consortium Report in 2005. That recommendation called for enhancing Kentuckys current statewide biotechnology commercialization program to more adequately address the needs of the life sciences disciplines. Consequently, existing biotechnology commercialization efforts will be expanded under the direction of DCI.

The Cardiovascular Innovation Institute is a partnership between the University of Louisville and Jewish Hospital, with support from DCI. DCI has provided more than $5 million to help fund the new facility and has supported the development of its programs through both the Research Challenge Trust Fund initiative (see below for additional details on the fund) and the commercialization of the resulting
KENTUCKY 1
technologies by an Innovation and Commercialization Center at the facility (see below for further discussion on ICCs.) The institute focuses on the testing, clinical evaluation, and development of bioadaptive heart innovations, including heart assist devices, biofeedback sensors, and related technologies. The institute is also working to develop commercial enterprises related to its core competencies. Center for Pharmaceutical Science and Technology (CPST)The University of Kentucky (UK), with more than $1.5 million in support from DCI, will open the pharmaceutical manufacturing factory of the future at the UK Coldstream Research Campus. The $17 million, 20,000-square-foot CPST manufacturing facility will provide state-of-the art capabilities for new pharmaceutical analysis, formulation, and FDA/DEA-approved sterile product manufacturing. A Regional BioSafety Laboratory will be constructed at the University of Louisvilles (U of Ls) Shelby campus; occupation is anticipated by the end of 2008. The stand-alone BSL-3 facility will serve the Ohio River Valley region, supporting not only U of Ls research activities on biothreats and emerging infectious diseases, but also those of other members of the Ohio Valley Affiliates for Life Sciences, also known as OVALS, including the UK, University of Cincinnati, Indiana University, and Wright State University. A new Nutrigenomics Laboratory is being constructed by Alltech Inc. at its Jasmine County headquarters. Kentucky is providing up to $1 million in funding to support the R&D work that will focus on genomics and nutrigenomics in animal production systems. The research promises to provide new tools for using basic dietary manipulations and customized dietary formulations to address health and longevity issues.
Research programs
Research Challenge Trust Fund (Bucks for Brains). The Research Challenge Program initiative provides funding for prospective programs of national excellence at UK and U of L. Commonly known as Bucks for Brains, the program uses state funds to match private donations supporting research in strategically defined areas. The program received $6.0 million in 19971998 and $6.0 million in each year of the 19982000 biennium. These funds were matched dollar-for-dollar by the institutions with external funds or through internal reallocation. The 19992000 funds were transferred to the base budgets of the institutions to provide a perpetual source of funding for Research Challenge programs. Endowment Match Program. The Endowment Match Program matches state funds dollar-for-dollar with private gifts to grow endowments and encourage research at Kentuckys public universities. Endowment proceeds are used to fund endowed chairs, professorships, research scholars, research staff, graduate fellowships, undergraduate scholarships, research infrastructure, and mission support at these institutions. The program received General Fund appropriations of $110 million in 19982000 and $120 million in 20002002. The 2003 Budget Bill (HB 269) appropriated $11,856,000 to pay debt service on a bond issue that provided another $120 million for the program in 20022004. The Regional University Excellence Trust Fund is designed to help each regional, comprehensive university to become nationally recognized in at least one academic program of distinction or one applied research program. The funds have created new teaching and research opportunities for faculty statewide and purchased equipment that meets industry standards. Kentucky Science and Engineering Foundation (KSEF) R&D Excellence Program makes awards to Kentucky university faculty in the states five research priority areas. A total of 179 projects for more than $9.5 million have been awarded to date. KSEF is an initiative of the Kentucky Science and
KENTUCKY 2
Technology Corporation (KSTC), managed in partnership with CPE and DCI. KSTC is a private, nonprofit organization committed to the advancement of science, technology, entrepreneurship, and innovative economic development in Kentucky.

The R&D Voucher Program is a $3 million investment fund that enables small and medium-sized Kentucky-based firms to undertake research and development in partnership with Kentucky university researchers. Investments are made in technology refinement, prototype development, and commercial product development. Kentucky-based companies with fewer than 150 employees may seek a maximum funding of up to $200,000 over 2 years, not to exceed $100,000 per year. Companies must contract with an accredited postsecondary institution and match the fund's investment on a one-to-one basis. At least 25 percent of the match must be in cash. The R&D Voucher Fund is administered by the KSTC and managed in partnership with CPE. The Center for Nanoscale Science and Engineering (CeNSE) at UK is a university/industry user research facility for the study and development of materials and devices at the nanoscale. An initial investment of $2 million in specialty fabrication techniques for thin-film deposition, lithographic pattern definition, and etching has recently been augmented by a National Science Foundation (NSF) infrastructural grant (EPSCoR) of $2.7 million. Participants include 15 UK faculty members from the Departments of Electrical and Computer Engineering, Chemical and Materials Engineering, Physics, Mechanical Engineering, and Chemistry and the Colleges of Medicine and Pharmacy. CeNSE also serves as a resource for the realization of emerging commercial opportunities. The center is located in the Advanced Science and Technology Commercialization Center (ASTeCC) on the UK campus near downtown Lexington.

The Kentucky Commercialization Fund invests in university-based technology commercialization, with awards of up to $225,000 over 3 years. Proposals must come from universities for university-based research projects.

Regional Innovation and Commercialization Centers (ICCs) and local Innovation Centers (ICs) are funded through DCI and administered by KSTC. The ICCs and ICs are public/private partnerships that assist entrepreneurs and scientists in commercializing technologies that demonstrate significant market potential. The ICCs serve two groups of clients: the entrepreneur who wants to create a technology-based company and the scientist who wants to commercialize a technology. The six ICC offices help scientists and entrepreneurs understand the start-up process and investment practices, with the ultimate goal of significantly increasing quality deal flow. The ICCs work to coordinate local efforts to aggregate investors, employees, mentors, service providers, and other resources throughout the Commonwealth. MetaCyte Business Lab LLC is the venture development subsidiary of Louisville Medical Center Development Corporation (LMCDC) and is focused on helping life science companies grow. MetaCyte was incorporated by Jewish Hospital HealthCare Services, Inc.; Norton Healthcare, Inc.; U of L Health
KENTUCKY 3
Care, and the U of L. MetaCyte benefits scientists, physicians, inventors, and entrepreneurs who are inexperienced at starting and growing a life science or healthcare technology business. MetaCyte Business Lab studies, tests, and analyzes business concepts and helps to move these concepts from the mind to the marketplace. The lab provides access to professional and technical service providers and offers facilities to clients, including a 48,000-square-foot, state-of-the-art incubator building containing wet labs, private office suites, and shared conference and office amenities.

The SBIR/STTR Phase 0 Program is managed by KSEF and is a grant program available to Kentuckys small businesses, university-affiliated small businesses, and college and university faculty entrepreneurs. These funds are earmarked for developing Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) proposals for submission to any of 11 participating federal agencies. A total of 29 awards amounting to $91,441 have been made to date. DCI plans to match all Phase I and Phase II federal awards received by Kentucky businesses. This would include matching awards of up to $100,000 to support Phase I exploration of the technical merit or feasibility of an idea or technology. Phase II federal awards, which support full-scale research and development, can be up to $750,000, and would be matched by the Commonwealth up to the first $500,000. The Kentucky Enterprise Fund is a series of pre-seed and seed-stage capital funds that focus on the early-stage commercialization of a product, technology, or process. The funds are made available through an annual appropriation from the Commonwealth of Kentucky through CPE as part of the New Economy initiatives. There are three funds within the Kentucky Enterprise Fund: The Rural Innovation Fund, the R&D Voucher Fund, and the Kentucky Commercialization Fund. In each case, the program funds the biosciences as a technology area. Funding from the Rural Innovation Fund is available for proof-of-concept development or early-stage prototypes. Level 1 of the program offers a one-time investment of up to $25,000. Level 2 offers up to $100,000 over 2 years. Eligible applicants are rural Kentucky-based companies with fewer than 150 employees. The R&D Voucher Fund and Commercialization Fund are described above.
Venture capital
Commonwealth Seed Capital, LLC (CSC), initially capitalized with $10 million, was organized by the Kentucky Economic Development Partnership in 2001 to invest state funds in private start-up companies and in venture capital funds committed to investing in Kentucky technology companies. CSC investments focus on many types of technology companies, including those in the biosciences and natural products areas. CSC also manages the Kentucky Natural Products Fund (KNPF), a $5 million seed fund to encourage continued economic development efforts in the natural products arena. The natural products industry encompasses a portion of the pharmaceutical industry; the biotechnology industry; and the entire nutraceutical, functional food, and agbiotech industries. All KNPF funds are to be invested in companies for an equity position.
KENTUCKY 4
Kentucky Investment Fund Act (KIFA) provides tax credits to individuals and companies that invest in approved venture capital funds. Investors in KIFA-approved funds are entitled to a 40 percent credit against Kentucky individual or corporate income tax or Kentucky corporate license tax.

Incubators
Kentucky supports a network of technology business incubators to provide start-ups and small firms with critical business assistance, in addition to low-cost office space, light manufacturing, and/or laboratory facilities. The Advanced Science and Technology Commercialization Center is UKs incubator for multidisciplinary collaborations and start-up ventures. ASTeCC provides research space, as well as a suite of modern research instruments, to UK faculty; their students, staff, and postdoctoral associates; and scientists and engineers from new, for-profit, high-technology businesses. The 80,000-square-foot ASTeCC building, located on the UK campus, features faculty laboratories and laboratories for high-tech business start-ups that have a connection to UK faculty or staff, or that have licensed UK intellectual property. ASTeCC currently houses six start-up companies, and 23 businesses have graduated from the facility. The Agricultural Technologies Commercialization Center (AgTeCC) is housed in the Kentucky Tobacco Research and Development Center (KTRDC) building on the UK campus. AgTeCC offers a laboratory environment for start-up and emerging companies conducting research on crop-based agriculture. AgTeCC provides access to plant-growth and tissue-culture resources and services within the KTRDC. The facility is designed for the immediate-start-up phase of a new companys operation such as grant-supported (e.g., SBIR) spin-off activity initiated by UK faculty. Kentucky Technology Inc. (KTI), founded in 1988, is a for-profit company owned by the University of Kentucky Research Foundation Inc. to enhance UKs mission to promote commercialization of research by providing private research laboratory and office space in several separate, unique areas of operation on campus and at Coldstream. In addition to campus locations at the ASTeCC and AgTeCC, Coldstream facilities include the Kentucky Technology Center and the Coldstream Center. MetaCyte Business Lab provides access to a number of professional and technical service providers, such as regulatory consulting and legal assistance. Facilities available to MetaCyte clients include a 48,000-square-foot incubator building containing wet labs, private office suites, and shared conference and office amenities. Multitenant and incubation facilities are also available at Coldstream Campus (see below).
The R&D Facilities Tax Credit encourages investment in facilities that are used to pursue research. The credit is a portion of the cost of constructing or purchasing research facilities, i.e., bricks and mortar. It is available to both new businesses coming into the Commonwealth and to existing businesses that undertake construction of new facilities for research. The credit is 5 percent of the costs incurred and is allowed if the facility houses R&D activities.
KENTUCKY
The Kentucky High-Tech Investment and Construction Pools provide grants and loans for building and promoting networks or clusters of technology-driven and research-intensive industries.

The UK Coldstream Research Campus is located close to UKs main campus in Lexington. It has 500 acres for development; and land leases range from 5 to 31 acres for customized, single-tenant buildings. The UK Coldstream Research Campus includes 11 buildings and more than 20 companies with approximately 800 employees. In addition, a multilaboratory facility for start-up and emerging biotechnology companies is available, as well as several multiuse facilities that can accommodate companies in different stages of development. This development is called Coldstreams Kentucky Technology Center, or the mini-campus. This portion of Coldstream, consisting of 27 acres, was established as a nexus for new technology-based companies that also require limited space, such as start-ups from UK. Currently, the mini-campus is a complex of six multitenant buildings on 13.5 acres. When completed, the Kentucky Technology Center will be seven multitenant buildings with a total of nearly 110,000 square feet of laboratory and office space. The Louisville Health Science Research and Business Park is located within downtown Louisville and is operated by the LMCDC. The park houses three facilities providing more than 230,000 square feet of wet-lab, office, light manufacturing, and conference room space for life science and information technology companies.

The Biotechnology Center at Western Kentucky University was established to facilitate hands-on educational opportunities for students in the Department of Biologys Recombinant Genetics Program and to provide technical and educational services to the State of Kentucky, the biotechnology industry, and the general public. The Biotechnology Center is a part of Western Kentucky Universitys Applied Research and Technology Program, which provides multidisciplinary scientific and technical assistance to help solve industrial and environmental problems.
Contacts
Kentucky is planning a statewide assessment of its bioscience and biotechnology assets in 2006 and, based on the findings, will initiate a new state-level BIO organization. Interim contact: Deborah L. Clayton Commissioner Department of Commercialization and Innovation Kentucky Cabinet for Economic Development (502) 564-7670 Deborah.Clayton@ky.gov
KENTUCKY
The University of Kentucky Natural Products Alliance began in December 2002 with support from the National Science Foundation Partnerships for Innovation Program and the Kentucky Department for Commercialization and Innovation. The Natural Products Alliance is a loose partnership of private natural-product companies, research institutions, business service providers, and state and local governments designed to encourage the development of the natural products sector in Kentucky. The Natural Products Alliance programs include early-stage grants to faculty, internship opportunities for students, mentoring for start-ups, educational and networking events, and courses to aid workforce development. Gabriel Wilmoth Project Coordinator KTRDC Building, Room 203 University of Kentucky Cooper and University Drives Lexington, KY 40546-0236 (859) 608-1421 gcwilm2@uky.edu
KENTUCKY
Kentucky 27 9.6% 1,191 -6.3% 1.1% 0.86 $67,983 6.74 8,030 16 14.3% 1,205 24.2% 0.4% 0.29 $60,456 4.55 5,477 127 -3.8% 1,977 -21.8% 0.5% 0.36 $38,403 2.40 4,740 242 40.9% 2,910 17.8% 0.7% 0.53 $45,491 2.01 5,849 101,151 -1.2% 1,439,207 -0.6% 1.3% n.a. $32,902
KENTUCKY
Bioscience Occupations in the Kentucky Workforce, 2004
5,000 4,500 Number of Workers in Occupation 4,000 3,500 3,000 2,500 2,000 1,500 1,000 210 500 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 230 4,540
50
Bioscience-Related Degrees from Kentucky Institutions, AY 2004
Biological Sciences
Number of Degrees
KENTUCKY
Total Bioscience R&D Expenditures at Academic Institutions in Kentucky, FY 2003
Medical Sciences
$129,580
Biological Sciences
$70,888
$56,903
Other Life Sciences
$11,148
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Kentucky University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $377,635 $272,227 72.1% $66.11 49.1% $140,407 $34.10 68.2% 1,615 5,030
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 30 28
30
25 34
KENTUCKY
10

The State of Louisiana adopted a strategic plan, Vision 2020, in 2000, which it has continued to implement. The strategy has three goals, one of which is to build an economy driven by a diverse set of technology industries. The life sciences/biotechnology/biomedical industry is one of the sectors that the state has targeted for investment. In the past several years, the state has continued to support efforts to develop bioscience clusters in New Orleans, Shreveport, and Baton Rouge. In 2005, the Louisiana Legislature enacted and the Governor signed a bill creating the Greater New Orleans Biosciences Economic Development District. The district, which is designed to create a geographic concentration of academic and private bioscience research and commercialization, includes the Louisiana State University (LSU) Health Sciences Center, Tulane Health Sciences Center, the Louisiana Cancer Research Consortium (LCRC), the Louisiana Gene Therapy Research Consortium, Delgado School of Nursing, the Veterans Affairs Medical Center, Charity Hospital, and Xavier University. The act grants the district broad development powers to undertake any project or program beneficial to the district whether within or outside the boundaries of the district. Efforts to develop Shreveports bioscience cluster are led by the Biomedical Research Foundation of Northwest Louisiana. In 2005, BioSpace1, the first of three wet-lab incubators funded by the Louisiana Higher Education Bioscience Initiative, opened in InterTech Science Park, the foundations 800-acre research park that is located adjacent to the LSU Health Science Center. The 60,000-square-foot facility has wet-lab suites and build-to-suit space, all sharing common core laboratory equipment. In addition, a 33,000-square-foot biomanufacturing facility that is available for sale or lease has been constructed in the park. The foundation is very involved in creating an educated life science workforce in north Louisiana, with initiatives at the K-12 through university graduate levels. InterTech also provides access to angel and venture capital for life science start-up companies. In Baton Rouge, the Louisiana Emerging Technology Center (LETC), a 60,000-square-foot incubator, was opened in 2005 and is already full. Planning has begun for a second building. In addition to addressing companies needs for space, Louisiana has continued to work to address companies needs for early-stage capital by catalyzing the creation of a $35 million early-stage venture fund, Louisiana Fund 1, and the $24 million Louisiana Ventures Fund, which are described below.
LOUISIANA
In 2005, the State Legislature revised the states corporate income tax structure to a Single Factor Sales Tax, effective in 2006. This was done to make Louisiana attractive for life science biomanufacturing facility development.

A new 140,000-square-foot building, supported by a $40 million bond issue, was completed to house the Louisiana Cancer Research Consortium. Construction of an FDA-compliant clinical manufacturing facility by the Louisiana Gene Therapy Research Consortium is scheduled to begin in 2006. (See below.)
Research programs
In FY 2002, the Legislature appropriated $2.5 million in funding to support the Neurobiotechnology Program of Louisiana, a joint venture of the LSU Health Sciences Center and Tulane University Health Sciences Center to study Alzheimers disease, stroke, and head injury. An additional $3 million was provided in FY 2003. In 2002, the Legislature approved a 12-cent-a-pack tax increase on cigarettes, 3 cents of which is being used to provide ongoing funding to the Louisiana Cancer Research Consortium, a joint venture of the LSU Health Sciences Centers in New Orleans and Shreveport and the Tulane University Health Sciences Center. Approximately $10.5 million is being generated annually from this tax. In addition, the Louisiana Board of Regents has created a Competitive Advantage Fund that can provide up to $50,000 to LCRC investigators. The Louisiana Gene Therapy Research Consortium, which includes LSU Health Sciences Centers in New Orleans and Shreveport and the Tulane University Health Sciences Center, was created in 2000 with a $45 million commitment from the state. The consortium receives $5 million to $10 million annually from state government to support the recruitment of leading researchers in the field of gene therapy, establish core technology laboratories at all three institutions, and develop gene therapy technologies for clinical applications. A portion of these funds is being used to construct a 22,000-square-foot FDAcompliant clinical manufacturing facility. Construction of the facility, which will be made available to both academic researchers and companies, is scheduled to begin in 2006. Another program that has been used to build bioscience R&D capacity is the Louisiana Board of Regents Support Fund (BORSF). Each fiscal year, 75 percent of interest earned on an educational trust fund that was established with monies received from the settlement of disputed oil and gas revenues and 75 percent of recurring oil and gas revenues are placed in the BORSF. This amounts to approximately $20 million to $25 million annually. These funds are awarded on a competitive basis to build the research infrastructure at Louisianas universities. Bioscience projects have received priority because of the states focus on this sector. The BORSF supports the following research programs: The Research Competitiveness Program awards funds to improve the competitiveness of Louisianas scientists and engineers in competing for nonstate support for basic research. The Industrial Ties Research Program supports projects that promote new linkages between Louisiana universities and industry in areas with potential for immediate economic returns.
LOUISIANA 2

The BORSF seeks to attract and retain talent in Louisiana by offering funding for the following: Endowed Chairs for Eminent Scholars Program provides up to $400,000 toward $2 million endowed chairs to attract high-quality researchers to Louisiana. Graduate Fellows Program awards stipends and fellowships to retain and attract top-quality students. Undergraduate Enhancement Program supports the development of high-quality, contentfocused educational programs.

Under the Technology Commercialization Tax Credit, companies partnering with Louisiana universities can claim an annual 15 percent credit against the costs of investment in machinery, equipment, and expenditures associated with obtaining rights for the use of technology, including patents, copyrights, licenses, and the leasing of equipment for an initial 4-year program time. In 2005, the State Legislature increased state R&D Tax Credits to 20 percent.

Louisianas incubators provide mentoring and other forms of commercialization assistance to incubator clients.

The Louisiana Angel Network (LAN) is a registered Louisiana Nonprofit Corporation headquartered in Baton Rouge. LAN is a select network of accredited investors across Louisiana that provides early-stage investment capital to viable start-up companies ready for angel-round funding, typically defined by a companys need for anywhere from $50,000 to $2 million of capital in order to get to the next level that next level being anything from finishing product development to entering the marketplace. The LAN Web site is Louisiana's only Web-based forum for entrepreneurs and angel investors. The LAN provides a secure Web site where entrepreneurs can post their businesses executive summaries and angel investors can browse those submissions to see what fits their investment interest profile. The Louisiana Technology Fund is a $2.4 million fund that comes from Louisianas CAPCOs. When the CAPCO program was re-enacted several years ago, the Legislature included a provision that the firms must invest 10 percent of their earnings in Louisiana start-up technology companies. One way CAPCOs can satisfy this requirement is by investing in the Louisiana Technology Fund, which is operated jointly by Louisianas four research parks.
LOUISIANA
The state played a role in founding Louisiana Ventures LP by investing $5 million in the $24 million seed and early-stage technology fund. The fund is focusing on making investments in the $250,000 to $3 million range. The $35 million Louisiana Fund I was created as a partnership of LSU System Research and Technology Foundation and Louisiana Economic Development to provide capital to companies developing and commercializing promising technologies, with an emphasis on those originating from Louisiana universities.

Incubators
The Louisiana Business and Technology Center (LBTC), a 47,000-square-foot business incubator on the LSU campus in Baton Rouge, has 27 tenants, of which seven are biotech related. The LBTC provides business planning, management assistance, market research, capital acquisition, and general business support. BioSpace1 is a 60,000-square-foot, multitenant life sciences building located in the InterTech Science Park. The first floor of the facility is reserved for more established life science tenants and contains buildout space with a $70-square-foot tenant fit-out allowance. The second floor is a business incubator for start-up companies and has 16 wet-lab suites; tenants also have use of a core laboratory facility. It is one of three wet-lab incubators that received funding from the state. The Louisiana Emerging Technologies Center is a 60,000-square-foot wet-lab incubator located in Baton Rouge that opened in 2005. The incubator, which is located on the LSU campus, is full; and planning is underway for a second building. InterTech Business Innovation Center is an 8,000-square-foot, wet-lab, multitenant business center with two laboratory and office suites, one of which contains a BSL-3 laboratory. The space has recently been renovated. The Center for Biomedical Technology Innovation (CBTI) is a 7,700-square-foot multitenant incubator that includes predominantly dry labs, but does have one wet-lab suite. CBTI is located in the InterTech Science Park. The University of New Orleans Research and Technology Parks Center for Energy Research Management includes a 15,000-square-foot biotechnology incubator.
Under development
Construction began on the New Orleans BioInnovation Center in 2005 and is scheduled to be completed in late 2007. The facility will house the Louisiana Gene Therapy Research Consortium.

InterTech Science Park is a triangular parcel of 800 acres in central Shreveport anchored by three major medical centersLSU Health Sciences Center in Shreveport to the south, Schumpert Medical Center to the east, and Willis-Knighton Medical Center to the west. In addition to the three medical centers, the site encompasses a medical school; a nursing school; the Virginia K. Shehee Biomedical Research Institute; a
LOUISIANA 4
Positron Emission Tomography Imaging Center; an emergency trauma center; a specialized orthopedic hospital; and an incubator facility for new, technology-based businesses. In 2003, InterTech received $1.25 million in federal funding and $10 million in state funding for construction of BioSpace1, a multitenant life sciences building.

Developed by the Biomedical Research Foundation, The Consortium for Education, Research and Technology (CERT) is a nonprofit, 501(c)3 organization that brings together colleges in northern Louisiana to collaborate in curricula development and joint programs, to coordinate technology transfer projects, to promote technology-related economic development, and to provide workforce training. CERT works to make sure that curricula reflect industry needs, including those of the regions bioscience companies.

The Biomedical Research Foundation sponsors a number of K-12 education programs to create a life science ready workforce. They include Science and Medicine Academic Research Training (SMART) Program, a collaboration with LSU Health Sciences Center for gifted high school seniors; the Math Science Technology K-12 Partnership Program (MST), a research and problem-based curriculum designed to improve educational outcomes for the average student, done in collaboration with the Caddo Parish School System; and the Biotech Academy, a high school academic magnet program being launched in 2006 to train gifted students interested in biotechnology careers, done in collaboration with the Caddo Parish School System. The Louisiana Gene Therapy Research Consortium conducts outreach to encourage students to consider careers in gene therapy and works with universities and community colleges to ensure that curricula meet industry needs. The consortium holds summer workshops for teachers and supports undergraduate internships.
Contact
Robert E. Fudickar Technology Industry Director Louisiana Department of Economic Development P.O. Box 94185 Baton Rouge, LA 70804-9185 (225) 342- 6816 fudickar@la.gov
LOUISIANA
Louisiana 52 5.1% 4,276 -3.9% 4.1% 2.97 $79,207 8.01 34,260 17 -29.2% 265 -8.3% 0.1% 0.06 $41,870 3.29 873 165 0.3% 1,107 -1.1% 0.3% 0.20 $26,986 2.07 2,291 278 17.9% 2,363 -12.0% 0.6% 0.42 $37,336 2.10 4,970 110,536 0.5% 1,501,722 -0.8% 1.4% n.a. $31,671
LOUISIANA
Bioscience Occupations in the Louisiana Workforce, 2004
5,000
4,000
3,000
2,000 250 930
1,000
190
Bioscience-Related Degrees from Louisiana Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 200 400 600 800 1,000 1,200 1,400
Number of Degrees
LOUISIANA
Total Bioscience R&D Expenditures at Academic Institutions in Louisiana, FY 2003
Medical Sciences
$113,041
Biological Sciences
$105,198
$64,656
Other Life Sciences
$49,292
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Louisiana University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $524,262 $336,726 64.2% $74.89 48.3% $153,408 $34.12 95.7% 2,161 8,060
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 24 24
28
20 23
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In November 2005, Maine voters passed a bond issue of $20 million for jobs and economic growth. Among the components of the $20 million economic stimulus bond were the following: $12 million to the Department of Economic and Community Development to be divided between two funds: $8 million for the Maine Biomedical Research Fund to support capital infrastructure and equipment and $4 million to the Marine Infrastructure and Technology Fund to match federal and private funding for capital infrastructure grants to nonprofit marine research laboratories, institutions, and state governmental and quasi-governmental agencies $5 million to the University of Maine system for the laboratory for surface science technology at the University of Maine, the graduate school for biomedical sciences at the UM Bangor campus, and the Educational Change Center within the UM system $1 million to the Small Enterprise Growth Board to provide funding for the Small Enterprise Growth Fund to make equity investments in small Maine companies with the potential for high growth. These funding initiatives build upon the infrastructure previously established in Maine. In 2003, Governor John Baldacci created by Executive Order the Maine Science and Technology Advisory Council to coordinate the states R&D activities and to foster collaboration among its higher educational and nonprofit research institutions and business community. In 2005, Maines first Science Advisor was announced to lead the newly formed Office of Innovation within the Maine Department of Economic and Community Development (DECD). In the spring of 2004, Governor Baldacci also released an Economic Development Strategy that identified the biotech and biomedical research cluster as an emerging area of opportunity on which to focus. The Office of Innovation recently released A Science and Technology Action Plan for Maine, 2005 wherein it reinforced the states commitment to the bioscience sector by its recommendation to Support and advocate for focused state R&D investments at levels that keep Maine competitive, nationally and internationally, in Maines targeted technology areas: Biotechnology Composite Environmental
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Marine and Aquaculture Information Precision Manufacturing Agriculture and Forestry. The plan calls for Maines annual investment in research and development, including both private and public funding, to reach $1 billion, or approximately 3 percent of the states GSP, by 2010. The Maine Technology Institute (MTI) promotes and supports R&D leading to the commercialization of new products and services in the states seven targeted technology sectors, including biotechnology. It was established by the Maine State Legislature in 1999 as a private, nonprofit organization and is funded through an appropriation to the DECD. The President of MTI is appointed by the Governor and reports to the Science and Technology Advisor. MTI supports the development of early-stage R&D activities for which other forms of capital are difficult to secure. MTI accomplishes its purpose by cost-sharing R&D and cluster enhancement projects with private companies through several competitive award programs and by helping firms access federal funds for their R&D projects. MTIs budget was approximately $5.5 million per year in 2004, 2005, and 2006.

The Maine Biomedical Research Fund (MBRF) was created in 2001 and provides state funding through both General Revenue Funds as well as bond financing for bioscience R&D facilities. Of the $20 million bond issue approved in 2005, $8 million will go to the MBRF to support capital infrastructure, bringing the total investment in the MBRF to $50 million since 2001. The MBRF is administrated by the Maine Biomedical Research Board through MTI. Since 2001, approximately $42 million has been invested in the following facilities: The Jackson Laboratory has received approximately $17 million for the design, construction, and fit-out of the Functional Genomics Building, East Research Building, renovations to support the Institute for Molecular Biophysics, renovations of the Computational Sciences floor, and renovations of the wet-lab research space. The Mount Desert Island Biological Laboratory has received approximately $2.3 million for the establishment of the Center for Marine Functional Genomic Studies, including recruitment of full-time research scientists, purchase of equipment, renovation of laboratory space, and construction of a new research building. The Maine Medical Center has received approximately $2.3 million for the recruitment of peerreviewed researchers and for construction and equipment associated with expansion of the Scarborough facility, including a new Animal Facility with small-animal magnetic resonance imaging facility.
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The Foundation for Blood Research has received approximately $1.1 million for the development of the Maine Center for Clinical Epidemiology, including construction, equipment purchase, and recruitment of researchers. The University of New England has received approximately $687,000 for the construction of a new biomedical research facility. The University of Southern Maine (USM) established the Biosciences Research Institute where it has developed increased capacity focused on environmental toxicology, among other topics, that has allowed it to (1) attract external funding for R&D in the biosciences through small group collaborations as well as individual research and by assembling inter-institutional teams of researchers for large-scale projects and (2) facilitate the participation of USM and affiliated faculty in delivering the University of Maines collaborative Ph.D. program with emphasis in carcinogenesis and environmental toxicology. The State of Maine has provided approximately $5 million in bond funding for a facility that is under construction to house the institute. The Marine Research Fund (MRF) (formerly known as the Marine Infrastructure and Technology Fund) also is administered by MTI. In 2002 and 2003, the State of Maine approved $1 million bonds to support marine research. These were followed by an additional $4 million of the $20 million bond issue of 2005. The MRF provides funding for capital infrastructure and equipment that enable competitive marine research and enhance research capacity and productivity. Recipients include the Downeast Institute for Applied Marine Research and Education, Bates College, Maine Geological Survey (Maine Department of Conservation), Mount Desert Island Biological Laboratory, University of New England, Bigelow Laboratory for Ocean Sciences, Wells National Estuarine Research Reserve, Maine Department of Marine Resources, Gulf of Maine Ocean Observing System, and Maine Aquaculture Innovation Center.

The Institute for Molecular Biophysics (IMB) was created to develop an interdisciplinary center for biomedical imaging. The program brings together expertise in biophysics and engineering at the University of Maine, cell biology at the Maine Medical Center Research Institute, and genetics and genomics at The Jackson Laboratory. IMB was established through a $6 million NSF grant matched by university and state funds. The equipment of IMB will be augmented by an additional NSF and Keck Foundation award that allowed the purchase of a 4Pi laser scanning confocal microscope, the first in the United States, in addition to other equipment, that resides at The Jackson Laboratory.

MTIs Commercialization Assistance Program (CAP), helping companies efforts to advance their products toward the market, includes the following: A technical assistance and information program to increase the amount of funding that Maine companies receive from the federal SBIR and the related STTR award programs. In addition, MTI is the SBAs FAST designee.
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Tech Tracker workshops and mentoring to guide commercialization activity. In addition to CAP, MTI manages three other commercialization financing programs, which are described in the section on capital, below.

Phase 0 Awards for SBIR preparation are available from MTI. Twelve awards for more than $50,000 were approved in FY 2005, matched by more than $80,000 in investment by the companies themselves. One project for $5,000 was in the biotechnology sector. Seed Grants are awarded on a competitive basis to support very early activities for product development, business planning, or development leading to commercialization. Grants of up to $10,000 per project help fund small, specific R&D projects leading to commercialization, or technical or consulting assistance for proposal preparation, market analysis, intellectual property filing, or other activity leading to commercialization. Through 2005, MTI has approved funding for more than 500 Seed Grants totaling more than $4.5 million, matched by more than $7.5 million in investments by the grant recipients. Development Awards are granted on a competitive basis to provide R&D funding to companies and nonprofit research organizations within the states seven identified technology clusters to support commercialization of new technology-related products and services that will create and support sustainable, high-quality jobs. The funding supports proof-of-concept work, prototype development, alpha or beta testing, product development, and designs for manufacturing. Grants range from $10,000 to $500,000 per project. Repayment of up to two times the amount of the award is required when the new product or service is commercialized. Through 2005, 107 projects have been funded for more than $18 million, matched by more than $24 million in commitments from recipients. The Accelerated Commercialization Fund (ACF) provides capital to bridge the financing gap between R&D and sales. This program helps MTI-funded companies move toward the market by providing additional capital to match other investors capital. The MTI investment will replicate other investors terms, generally in the form of equity, and either convert existing MTI debt and/or provide additional capital to help advance the companys new products toward the market. MTI has reserved $1 million to seed this fund. Investment decisions are made on a case-by-case basis and include consideration of funding available and reserve requirements. It is expected that MTI will make two to three investments from this fund each year. In FY 2005, MTI made its first ACF investment of $100,000, matched 1.5:1 from additional outside investment to the company. Cluster Enhancement Awards are made on a competitive basis to seed collaborative efforts that will stimulate and support the formation and growth of technology businesses and increase Maines capacity for R&D leading to commercialization in its technology-intensive sectors. While up to $500,000 per project may be awarded for projects that support and develop technology-based industry clusters, most awards are in the range of $50,000 to $300,000. Through 2005, 31 Cluster Enhancement Awards have been made, totaling $3.3 million and matched by more than $8 million. Since program initiation in 2000, the biotechnology cluster has captured approximately $5.4 million of the funding. The Small Enterprise Growth Fund (SEGF), an independent body corporate and politic and an instrumentality of the State of Maine, invests equity capital directly in companies that demonstrate a
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potential for high growth and public benefit. It was capitalized by $8 million from both bond proceeds and direct appropriation. SEGF will receive another $1 million of capital from the proceeds of the 2005 economic development bond. In order to qualify for funding, small businesses must be engaged in or involved in at least one of the following: Marine sciences Biotechnology Manufacturing Software development Out-of-state exporters Environmental services Financial/insurance services Natural resources. Through 2005, SEGF has invested $8.4 million in 27 companies. Four of those are within the biotechnology sector.
Venture capital
The Maine Economic Development Venture Capital Revolving Investment Program enables the state to invest as an equal partner with others in eligible, private venture capital funds to support emerging and early-growth businesses. It is intended to utilize experienced, professional fund managers to increase the probability of successful investments and the success of recipient companies. A typical investment in any one fund does not exceed $1 million. It is administered by the Finance Authority of Main (FAME). This program currently has investments in five private venture-capital firms that are actively seeking and have made investments in Maine. FAME administers the Maine Seed Capital Tax Credit Program, which is designed to encourage equity investment in young business ventures, directly and through private venture-capital funds. FAME authorizes state income tax credits to investors for up to 60 percent of the cash equity they provide to eligible Maine businesses. Investments may be used for fixed assets, research, or working capital. Through 2005, approximately $12.2 million in state tax credits have been provided to more than 911 investments in Maine totaling nearly $34.7 million.

Incubators
Each of Maines seven targeted technology sectors has its own incubator; these are known as the Technology Centers, a state-supported network of self-managed incubators. These centers provide critical early-stage technical, business, administrative, and financial resources and training for participating firms. The Thomas M. Teague Technology Center in Fairfield is specifically geared to biotechnology and related industries.
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Kennebec Valley Technical College Bioscience Training Program, which operates in collaboration with The Jackson Laboratory, offers curriculum designed to provide students with a sound theoretical base in the life sciences and to include the skills necessary for a variety of employment opportunities. National biotechnology skill standards are incorporated into the coursework. In 2005, the Governor announced the creation of a Graduate School of Biomedical Sciences, and the University of Maine Board of Trustees approved the program in 2006. The University of Maine, in collaboration with The Jackson Laboratory, Mount Desert Island Biological Laboratory, University of Southern Maine, and The Maine Medical Research Institute, will offer a Ph.D. in Biomedical Sciences. The program is expected to accept students beginning in fall 2006.
Contacts
Janet Yancey-Wrona, Ph.D. Director Office of Innovation Maine Department of Economic and Community Development 59 State House Station Augusta, ME 4333 (207) 624-7499 janet.yancey-wrona@maine.gov
The Biotechnology Association of Maine (BAM) is a trade association that promotes the growth of the industry in the state, represents the industry to government, and influences public policy accordingly. In addition, BAM provides a forum for companies to exchange ideas and information, collects and prepares information relevant to the industry, and provides this information to its members. The Center for Innovation in Biotechnology (CIB) is an industry-driven, nonprofit corporation established to catalyze the growth of Maines biotechnology and biomedical sector by promoting the interaction of scientific excellence, commercial innovation, and business development. To fulfill their similar missions, BAM and CIB, collectively known as Maine Biotech, work collaboratively to achieve their common goals. Ms. Cheryl Timberlake Executive Director Biotechnology Association of Maine P.O. Box 615 150 Capitol Street Augusta, ME 04332-0615 (207) 623-3790 ctimberlake@capitolinsights.com
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Maine 12 15.0% 195 11.9% 0.2% 0.41 $39,423 3.43 671 20 -9.1% 968 3.4% 0.3% 0.68 $64,273 5.63 5,453 53 23.7% 958 -2.0% 0.2% 0.51 $34,716 2.19 2,096 103 15.8% 2,508 10.3% 0.6% 1.33 $43,200 1.92 4,802 46,380 7.3% 497,613 0.2% 0.5% n.a. $31,402
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Bioscience Occupations in the Maine Workforce, 2004
1,600 1,400 Number of Workers in Occupation 1,200 1,000 800 600 400 80 200 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers 50 60
1,590
Bioscience-Related Degrees from Maine Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 50 100 150 200 250
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in Maine, FY 2003
Medical Sciences
$138
Biological Sciences
$13,054
$10,771
Other Life Sciences
$1,873
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Maine University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $75,092 $25,836 34.4% $19.79 43.3% $72,868 $55.81 62.5% 473 1,780
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 50 51
39
44 45
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Maryland continues to offer a comprehensive set of efforts that address R&D, research facilities, commercialization, financing, tax policy, and workforce as the state continues to seek to create a business climate that nurtures the growth of its bioscience sector. In his proposed FY 2007 budget, Governor Robert Ehrlich proposed a number of new science and technology initiatives, many of which are targeted to the biosciences. They include $66 million for infrastructure and research funding, of which $12 million is proposed in new capital funds for the Center for Regenerative Research and University of MarylandBaltimores (UMBs) BioPark; $2.3 million in capital funds for a new Biological Sciences Research Building at the University of Maryland, College Park; and $28.1 million in operating funds for the Cigarette Restitution Fund for Cancer Research. A number of tax policy changes were made since 2004, and additional proposals are under consideration by the Legislature. The states R&D tax credit was reauthorized in 2004, and a Biotechnology Investment Incentive Act was enacted in 2005. This bill created a tax credit against state income tax for individuals, corporations, and venture capital firms that invest in qualified biotechnology firms. Legislation is pending that would appropriate $6 million in operating funds to implement the Biotechnology Tax Credit. (See description under Pre-seed and seed capital.) Lastly, development of new bioscience research parks in Baltimore continues to move forward. UMB completed the first of seven buildings and has a second building underway at its 8-acre BioPark; and planning continues for the East Baltimore Life Science and Technology Park, which is being developed in proximity to Johns Hopkins University.

CARB II: With funding approved in 2003 and construction begun in 2004, the State of Maryland approved a $50 million expansion of the University of Maryland Biotechnology Institutes (UMBI) Center for Advanced Research in Biotechnology (CARB). CARB conducts research and provides interdisciplinary training on fundamental problems in biotechnology. The new expansion, referred to as CARB II, will comprise 140,000 square feet and contain state-of-the-art laboratories, key core facilities such as BSL-3 containment, and plant and insect transformation capabilities, as well as specialized infrastructure for industry workforce training programs in areas of critical need such as production of small molecules and biologics under good manufacturing practices (GMP) to support sustained commercialization of biotechnology. CARB II will be operational in fall 2006.
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UMB College of Life Sciences Bioscience Research Building: In October 2004, the groundbreaking ceremony was held for the University of Maryland, College Parks new Bioscience Research Building of the College of Life Sciences, which received $50 million in state funding. The new facility will promote interaction and collaboration of researchers across disciplines. By example, the college is a partner, with the Clark School of Engineering and the College of Computer, Mathematical and Physical Sciences, in the universitys initiative in nanoscience and bionanotechnology in particular.
Research programs
The University of Maryland Biotechnology Institute was created in 1985 to conduct research and training and provide expertise and facilities to advance the development of the states biotechnology sector. UMBI received $15 million in state general funds for operation in FY 2005 and approximately $35 million in sponsored research. UMBI includes five centers: CARB: A cooperative venture of UMBI, the National Institute of Standards and Technology, and Montgomery County, CARB is UMBIs premier center of excellence in protein structure and engineering, and other molecular studies. Center for Biosystems Research (CBNR): CBNR promotes research and training in the application of multiple scientific disciplines to study complex biological systems. Facilities include the University System of Marylands primary DNA Sequencing Facility and a microarray production and analysis core facility, both of which provide a variety of services to UMBI and the research community at large. Center for Marine Biotechnology (COMB): COMBs unique, state-of-the-art facilities include DNA synthesis, sequencing, and quantifying equipment; fermentation systems for growth of extremophilic microorganisms; biological safety level 3 (BSL-3) suites; a core facility for transgenic work; and a fully contained aquaculture facility that is designed for conducting cuttingedge research to develop and improve finfish/shellfish production and hatchery technologies. Medical Biotechnology Center (MBC): MBC focuses on molecular medicine and aims to provide intellectual property to companies for development and commercialization of new products and technologies. The center houses the National Center for Fluorescence Spectroscopy of the University of Maryland School of Medicine. Institute of Human Virology (IHV): IHV focuses on the discovery of diagnostics and therapeutics for human viral diseases and cancer. Its facilities include a viral immunology core laboratory, a clinical trials unit, a state-of-the-art flow cytometry facility, the mQuant core services laboratory, and the Evelyn Jordan outpatient facility.

The Maryland Industrial Partnerships (MIPS) program provides matching funds for university-based research projects that help companies develop new products. The funds are awarded on a competitive basis with the maximum annual award of $100,000 for small, medium, and large companies and $70,000 for start-up companies. Projects can be funded for 1 or 2 years. Both cash and in-kind match are required. The amount of match depends on the size of the company. The annual MIPS budget is $1.35 million; however, the Governor has proposed a $1 million increase in funding for FY 2007. Examples of successful bioscience products that received MIPS funding are MedImmunes $1.6 billion Synagis, which
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prevents a respiratory disease in infants, and Martek Biosciences additive for infant formulas, which helped the company generate $114 million in revenue

The mission of the state-sponsored Maryland Technology Development Corporation (TEDCO) is to create and sustain businesses throughout the State of Maryland through the development, commercialization, and deployment of technology. The organizations University Technology Development Fund (UTDF) helps universities conduct precommercial feasibility research on very early-stage technologies. The objective is to enhance the value of university technologies so they are more likely to be licensed. UTDF can provide up to $50,000 to cover the cost of feasibility demonstration projects. The programs FY 2006 budget is $450,000.

The Biotechnology Program of the University of Marylands Technology Enterprise Institute links biotechnology businesses with University of Maryland researchers and provides ongoing technical assistance to these companies in their ongoing R&D efforts for product scale-up. The program includes a Bioprocess Scale-up Facility that offers services in fermentation, separation, purification, and product analysis to companies, academic researchers, and federal laboratories. The State of Maryland, through its Department of Business and Economic Development (DBED), has both formal and informal business development services available for Maryland-based companies, but these services are not restricted to bioscience companies. The International Division of DBED has the PATHFINDER program that provides overseas tradeshow representation, where trade specialists will attend a trade show for a Maryland company and execute on the elements of the strategy developed by the company. MdBio, a nonprofit organization that is now part of the Tech Council of Maryland and has been renamed MdBio Foundation, provides up to 2 days of consulting services for any aspect of business developmentthis assistance is provided by consultants on contract with MdBio.

TEDCOs Maryland Technology Transfer Fund (MTTF) program provides seed funding of up to $75,000 for companies that engage in technology development and transfer collaborations with universities and/or federal laboratories in Maryland. The funds are awarded on a competitive basis with a 60-day review cycle that begins the first of every month. Projects are typically 6 months, depending on the nature of the development proposed. Companies are required to provide a 50 percent match to TEDCO funds. Match funds may be cash or in kind. MTTF awards have a repayment obligation based on gross revenues that is time-limited and capped at a maximum of twice the award amount. TEDCOs budget for FY 2006 for the MTTF is $1.5 million. DBED administers several programs that provide funding for early-stage companies. The Challenge Investment Program (CIP) makes small, high-risk investments in start-up firms. A company can receive
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up to $150,000, with a typical initial investment averaging $50,000. Incremental investments are awarded based upon the companys performance and ability to achieve milestones set by DBED. CIP funds can be used to help offset the costs of final testing and market development. In return for its investment, the state receives a royalty payment tied to the achievement of certain thresholds or revenues and capital structure. The states funds must be matched on a 1:1 basis. DBEDs Enterprise Investment Fund (EIF) Program makes direct equity investments in emerging high-technology companies. EIF investments, which range from $150,000 to $500,000, can be used for start-up costs including recruiting and hiring staff, operating costs, capital equipment, and R&D. The states funds must be matched on a 3:1 basis by private-sector venture-capital funds. Based on the minimum matching requirements, the states investments have leveraged at least $54 million; but, in reality, the companies the state has invested in have raised in excess of $300 million in private capital. A large percentage of both CIP and EIF investments have been in bioscience companies. TEDCOs Fort Detrick Technology Transfer Initiative (FDTTI) provides seed funding for companies to develop and/or demonstrate medical technologies that meet the medical technology needs of the Army as defined by the U. S. Army Research and Materiel Acquisition Activity. FDTTI can award grants of up to $50,000 to for-profit companies in support of technology development projects. MdBio Foundation has provided more than $4 million in project-based awards to 32 bioscience companies in Maryland since 1998. These Project Accelerator Awards are provided to companies who need an infusion of cash to accelerate the near-term commercialization of a product or service. The typical award is in the range of $100,000 to $200,000, and MdBio receives a royalty on the companys revenue and/or equity in the company. The Montgomery County Technology Growth Program (TGP) provides gap financing for emerging technology-based companies with innovative products or services. Disbursements from the fund typically range between $50,000 to $150,000, and qualified technology businesses can choose to receive the funding in one of the following two ways: Term Loan5-year term loan at a 10 percent fixed interest rate with a flexible repayment schedule. Grant Convertible to a LoanA no-risk grant that converts to a loan if at any time within 5 years from the grant disbursement date the applicant generates prenegotiated annual net revenues or obtains a prenegotiated level of aggregate equity financing. Maryland offers a tax credit against the state income tax for individuals, corporations, and venture capital firms that invest in qualified biotechnology firms. The value of the credit is 50 percent of an eligible investment made in a qualified biotechnology company during the taxable year. The maximum amount of the credit cannot exceed $50,000 for individuals and $250,000 for corporations and venture capital firms. The 2006 Legislature is considering a bill to authorize funding of $6 million to implement the tax credit program in FY 2007.
Venture capital
The State of Maryland through its Enterprise Venture Fund has invested in seven private venturecapital limited partnerships, with the understanding that each partnership will make its best efforts to invest in Maryland high-technology start-ups. A total of $16.5 million in state monies has been invested in funds representing more than $420 million. Five of the venture-capital partnerships invest in the bioscience sector. They include the following:
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Anthem Capital, an early-stage venture-capital firm that invests in IT/telecommunications and health care and life science companies in the mid-Atlantic region. Boulder Venture Limited, a venture-capital partnership with offices in the mid-Atlantic, California, and Colorado, which invests in IT and life science sectors. CIP Capital LP, which provides expansion and later-stage investments in life science, communications, and financial service companies. Toucan Capital, a $120 million venture fund in which the State of Maryland invested $4 million, which invests in early-stage technology companies. Approximately 60 percent of its investments, which range from $100,000 to $5 million, are in bioscience companies. Since 2001, the company has made eight investments, four of which were in Maryland. New Markets Growth Fund (NMGF), a $20 million venture-capital fund that makes equity investments and provides operational assistance to both early-stage ventures and small to mid-sized high-growth companies located in Maryland, Washington DC, and northern Virginia. NMGF will invest in all sectors, including the life sciences.

Incubators
Maryland is home to a network of 20 business incubators, several of which are focused on bioscience companies. In total, these bio-ready incubators have approximately 108,500 square feet of laboratory space. They include the following: The Alpha Center, a nonprofit, private, biotechnology-focused incubator, is owned by Johns Hopkins University and the Hopkins Health System, which includes 18,000 square feet of wet-lab space. The Association for Entrepreneurial Science is a privately operated incubator that includes 20,000 square feet of wet-lab space. It is operated by the nonprofit Biomedical Research Institute. The Technology Advancement Program at the University of Maryland College Park, the states oldest incubator, has approximately 10,000 square feet of wet-lab space. The Maryland Technology Development Center in Montgomery County has 18,000 square feet of wet-lab space. The techcenter@UMBC, University of Maryland, Baltimore County, includes 40,000 square feet of wet-lab space. The Frederick Innovative Technology Center Inc. includes 2,500 square feet of wet-lab space.
The DBED has two existing economic development programs, the Economic Development Opportunities Fund and the Maryland Industrial Development Finance Authority (MIDFA), that have been used to assist biotechnology and life science companies in obtaining financing for facility
MARYLAND 5
development. Although neither program is specific to biotechnology, these programs have been used by bioscience companies to help acquire land, construct laboratory facilities, purchase and install equipment, and meet the large investment capital needs of Maryland biotechnology companies as they scale up to manufacturing. The Economic Development Opportunities Fund promotes Marylands participation in extraordinary economic development opportunities that provide significant returns to the state through creating and retaining employment as well as creating significant capital investments. Participants must provide a minimum capital investment of at least five times the amount of the states assistance. Significant companies that have been assisted by the fund include BioReliance, Qiagen, Human Genome Sciences, MedImmune, and Digene. MIDFA encourages private sector financing in economic development projects through the use of insurance, the issuance of tax-exempt and taxable revenue bonds, and linked deposits. The use of insurance reduces the lenders risk in the project to an acceptable level. The project must be in a Priority Funding Area. MIDFA has supported some of Marylands oldest and most significant companies including Guilford Pharmaceuticals, MedImmune, Human Genome Sciences, Avalon Pharmaceuticals, and Chesapeake Biological Laboratories.

The Shady Grove Life Sciences Center is a 288-acre research park located on Marylands I-270 technology corridor. The center, which was developed in 1983, is zoned exclusively for biotechnology and life science companies. In addition to more than 200 corporate tenants, the center houses the UMBIs Center for Applied Research in Biotechnology; the University of Maryland Shady Grove Center, a facility in which 11 different universities and colleges offer graduate and undergraduate courses; a campus of Johns Hopkins University; The Institute for Genomics Research; and a bioscience incubator. The UMB is developing a BioPark on 8 acres of land adjacent to its campus in West Baltimore. The first of seven proposed buildings is completed and full, with construction of Building 2 underway and expected to be completed by mid 2007. The first building is 120,000 square feet of flexible laboratory and office space.
Under development
The East Baltimore Life Science and Technology Park is being developed by a nonprofit organization formed to redevelop 80 acres surrounding Johns Hopkins University. The project will include retail and residential development in addition to the park. The research park will be developed on 22 acres of the site and is expected to include 2 million square feet of space at build-out, which is expected to take place over the next 10 years. The East County Center for Science and Technology is a proposed public/private partnership between Montgomery County, the Washington Suburban Sanitary Commission (WSSC), and Republic Properties Corporation. Under the proposed arrangement, a 115-acre site owned by WSSC located off Route 29 in eastern Montgomery County will be conveyed to the county with the idea of developing and constructing a science and technology park modeled after the county-owned Shady Grove Life Sciences Center in Rockville. Republics preliminary plan calls for 800,000 square feet of development, including laboratory and biotech manufacturing facilities, a technology business incubator, a higher education facility, a telecommuter building, build-to-suit sites, and a daycare center. The county is currently negotiating the land transfer and development agreements with both WSSC and Republic. Once these agreements are in
MARYLAND 6
place, planning, entitlement, and site plan work will continue throughout 2006 with the goal of initial groundbreaking in 2007. The entire project is likely to take 10 years to reach full build-out.

The BioTechnical Institute of Maryland, Inc. (BTI) trains post-high-school graduates for entry-level positions in biotechnology. These candidates have training in Good Manufacturing Practices (GMP), Good Laboratory Practices, ISO 9000, metric system calculations of weights and measures, solution formulations, aseptic techniques, cell culture, basic molecular biology, and clean room and gowning techniques. In addition, all workers have certification in cardiopulmonary resuscitation and first aid. BTI is also a source for customized training programs to upgrade and validate employees skills. UMBI is a hub of intensive study into the basic science of biotechnology and its application to human health, the marine environment, agriculture, and protein engineering/structural biology. UMBI provides state-of-the-science laboratories, key core facilities, and training programs for the biotech workforce in areas of critical needs, such as production of small molecules and proteins under GMP to support sustained commercialization of biotechnology. MdBioLab, a cooperative effort of MdBio, UMBI, and The Institute for Genomic Research, is a fully equipped, state-of-the-art mobile laboratory designed to expose high school students and their teachers to the biosciences. The laboratory provides hands-on experiences for students and informs them about career opportunities in the biosciences. It also is a resource for up-to-date bioscience curricula and ongoing professional development for high school teachers. The laboratory has been in operation since February 2003. To date, more than 35,000 students and 600 teachers have participated in programs in the MdBioLab.
Pending Proposals
Governor Ehrlichs proposed FY 2007 budget includes $66 million in funding for research and research facilities and more than $74 million for science and technology education. Proposed projects include the following: $12 million in new capital funds for the Center for Regenerative Research and the UMB BioPark. $28.1 million in operating funds for the Cigarette Restitution Fund for cancer research. $2.3 million in new capital funds for the new Biological Sciences Research Building at the University of Maryland, College Park. $49 million in new capital funds for the new Teacher Education and Technology Complex at Salisbury University. $18.8 million in new capital funds for eight projects at community colleges for classrooms to teach science.
MARYLAND
$2 million in net operating funds for bioengineering flagship initiative at the University of Maryland, College Park. This is a public/private partnership to create top-tier bioengineering academic programs to move forward in the knowledge economy. $2 million in new operating funds to create a Science, Technology, and Mathematics Academy to focus children in these subject areas to prepare for college. An Economic Development Stimulus package also is under consideration in the Legislature that includes the following: $6 million in new operating funds to implement the Biotechnology Tax Credit passed in 2005 (see above). $2.5 million in new operating funds for the University System of Maryland Nanotechnology Research Initiative to encourage joint nano-biotechnology business development in Maryland and to develop bioscience-specific medical areas such as drug delivery, gene therapy, medical devices, and coatings where nanotechnology has a direct application. $1 million additional increase in funding for MIPS. $550,000 additional increase in operating funds for MTTF to provide follow-on funding to a select number of projects, which have demonstrated significant commercial potential. In March 2006, the Maryland Legislature passed a Stem Cell Research Bill that will provide support for stem cell research without any restrictions on the source of the cells, that is, it allows the support of research using embryonic stem cells. The bill allows the Governor to determine the spending on an annual basis. The Governor has indicated that he plans to sign the legislation. Legislation to create a Maryland Biotechnology Tax Benefit Certificate Program is also pending. This net operating loss (NOL) legislation allows biotechnology companies to sell unused research and development tax credits or NOLs carryover to another corporation. The legislation mandates that the seller receives at least 75 percent of the value of the tax credits. The total transfer of tax benefits is to no more than $20 million in 1 year. The maximum lifetime value of tax benefits that a corporation may surrender under the program is $4 million and is available only for companies with fewer than 225 employees, with 75 percent of its employees based in Maryland. Similar versions of the bill were introduced in both the House and the Senate.
Contacts
Lawrence Mahan, Ph.D. Maryland Department of Business and Economic Development 217 East Redwood Street Baltimore MD 21202-3316 (410) 767-6371 lmahan@chooseMaryland.org
MARYLAND
Renee Winsky Maryland TEDCO 5575 Sterrett Place, Suite 240 Columbia, MD 21044 (410) 740-9442 rwinsky@Marylandtedco.org
In 2006, the Tech Council of Maryland (TCM) and MdBio merged to form a new trade association that supports both life science and advanced technology companies throughout Maryland with advocacy, networking activities, and educational initiatives. The combined organization, called the Tech Council of Maryland, will have two operating divisionsMdBio and Tech Alliance. MdBio will serve the bioscience membership, and the Tech Alliance will work on behalf of the advanced technology community. The nonprofit organization formerly known as MdBio has been renamed the MdBio Foundation and will serve as a support organization to the new MdBio. C. Robert Eaton President MdBio 1003 West 7th Street, Suite 202 Frederick, MD 21701 (301) 228-2445 eaton@MdBio.org
Julie Coons CEO Technology Council of Maryland 9700 Great Seneca Highway Rockville, MD 20850 (240) 453-6213 jcoons@mdhitech.org
MARYLAND
Maryland 22 4.0% 437 -25.0% 0.4% 0.23 $60,631 4.37 1,908 62 -8.8% 5,240 9.1% 1.7% 0.91 $69,849 4.55 23,865 244 -3.4% 2,961 -1.3% 0.7% 0.39 $49,010 2.79 8,266 643 18.2% 15,244 10.1% 3.7% 2.00 $69,984 2.31 35,281 152,726 5.3% 2,014,206 1.7% 1.8% n.a. $41,021
MARYLAND
10
Bioscience Occupations in the Maryland Workforce, 2004
12,000
10,020
8,000
8,310
6,000
4,000
2,000
480
380
Bioscience-Related Degrees from Maryland Institutions, AY 2004
Biological Sciences
Number of Degrees
MARYLAND
11
Total Bioscience R&D Expenditures at Academic Institutions in Maryland, FY 2003
Medical Sciences
$641,974
Biological Sciences
$237,475
$40,558
Other Life Sciences
$58,209
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Maryland University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $2,030,544 $992,585 48.9% $180.18 67.6% $1,415,909 $257.02 63.0% 2,189 19,190
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 4 6
19 11
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12

During and since the last gubernatorial election cycle, several organizations and think tanks in Massachusetts have developed economic roadmaps highlighting the role of the biosciences. One such report was MassBiotech 2010 published by the Massachusetts Biotechnology Council (MBC). Another more recent study was the Technology Road Map and Strategic Alliances study commissioned by MassInsight Corporation, a CEO leadership group. The roadmap identified life sciences as among four key opportunity areas for development of partnerships between industry and academia. One response was MBCs creation of an Industry Development Program that works in close partnership with state agencies as the first point of contact for biopharmaceutical companies to assist them on issues of site selection, permitting, and financing. The Massachusetts Technology Collaborative (MTC) also received $35 million under the 2003 Economic Stimulus Act to establish the Johns Adams Innovation Institute. This Institute gives the state for the first time ever the ability to make grants for research-based initiatives, including a $20 million Research Center Matching Fund to create or expand centers that can attract federal or industrial support in three prespecified fields including biotechnology. MTC has also received support from the Boston Foundation to extend the 2003 Harvard/Massachusetts Institute of Technology (MIT) Life Science summit by working with MBC and other stakeholders on a Life Sciences Plan. Since the last BIO report, MTC began issuing program announcements for these grants and has made more than $16 million in awards and commitments. In addition, the University of Massachusetts rolled out its Massachusetts Technology Transfer Center, which provides targeted resources to technology commercialization offices at all the major institutions, both public and private.

Facilities developed recently with state funding include the 42,000-square-foot headquarters in Springfield for the Pioneer Valley Life Sciences Institute, a translational-research collaboration of Bay State Health System and UMass Amherst. Still under development is a 200,000 square foot Integrated Life Sciences Building at the University of Massachusetts (UMass) Amherst. UMass Medical School recently completed the 360,000-square-foot Aaron Lazare Medical Research Building on its Worcester campus as well as major expansion of its Massachusetts Biologic Laboratory in Jamaica Plain.
MASSACHUSETTS
In the Boston/Cambridge area, the private institutions continued to build new facilities, including a National Biocontainment Laboratory at Boston University (BU); a 410,000-square-foot McGovern Brain Institute building at MIT; a 525,000-square-foot, $260 million research building for Harvard Medical School; and a 230,000-square-foot, privately developed headquarters for the Broad Institute, a collaborative of MIT, Harvard, the Whitehead Institute, and several research hospitals.
Research programs
The Research Center Matching Fund of the Adams Innovation Institute provides support up to $500,000 to programs that build research capacity. Recent investments include a Center of Excellence in Apoptosis Research at the Pioneer Valley Institute noted above and investigation of biomedical applications at a joint nanotechnology initiative among several institutions. Smaller Development Grants have been made to the MIT Center for Biomedical Innovation, an industry/university partnership; and the Massachusetts Biomanufacturing Center, a joint initiative of UMass Lowell, Worcester Polytechnic Institute, Tufts University, and UMass Dartmouth. The regional pool at the Adams Innovation Institute can fund smaller projects in the range of $25,000 to $500,000. UMass has also applied its $1 million internal Science and Technology Initiatives Fund to seeding research projects throughout the system. Through the first 2 years of the program, roughly half the awards have been made to projects in the biosciences, including biomanufacturing.

Massachusetts has multiple public and private sources to support precommercialization research. Major programs include the following: The Massachusetts Technology Transfer Center, funded at UMass for $1.9 million in the Economic Stimulus bill, makes Technology Assessment awards up to $5,000 and Technology Investigation awards up to $25,000 to all research institutions, both public and private. Internal to UMass, the office for Commercial Ventures and Intellectual Property has a $100,000 fund from which it makes precommercialization development grants up to $20,000. At MIT, the Deshpande Center has targeted $15 million of its $20 million endowment to support development of promising research into commercial enterprises. The center makes Ignition Awards up to $50,000 to research teams and somewhat larger Innovation Awards to help determine whether to start a company or execute a license with an existing firm. At Boston University, the Office for Technology Development, now embedded in a larger Institute for Technology Entrepreneurship, maintains resources for similar technology-development awards and to initially capitalize start-up entities.

Statewide, the Massachusetts Technology Transfer Center provides commercialization assistance to earlystage companies with technology licensed from any research institution and holds an annual one-day workshop for life science researchers interested in starting a spin-off company. It also sponsors an annual venture forum showcase.
MASSACHUSETTS 2
Regional bioscience cluster organizations and other entities are involved in commercialization assistance to bioscience entrepreneurs in three major regions of the state: In western Massachusetts, the Economic Development Council of Western Massachusetts and industrial liaison staff at UMass Amherst collaborate on a Regional Technology Corporation, which includes a Bio Economic Technology Alliance. In central Massachusetts, the Massachusetts Biomedical Initiatives organization provides commercialization support in addition to incubation (see below) and has established a bioinformatics resource for joint academic/industrial use. In Boston, BUs Health Care Entrepreneurship Program provides similar support for commercialization.

Boston is one of the few communities to have a healthcare-focused angel fund, Angel Healthcare Investors ($11 million). Recently, several local hospital systems revealed plans to create angel capital networks to assist them in financing spin-out ventures at the earliest stages. Seed-stage investments (typically up to $500,000, with co-investment from outside parties) in several fields including the life sciences are also available from the Massachusetts Technology Development Corporation, another quasi-public agency. MTDC was recapitalized by $5 million in new appropriations and liquidity events since the last BIO report. With support from the John Adams Innovation Institute, the Boston Redevelopment Authoritys Life Sciences Initiative provides seed grants and low-interest loans.

Incubators
Bioscience incubators include the following: Discovery and Innovation Center, a 12,000-square-foot incubator within BUs BioSquare research park (see below). Two Innovation Centers operated by Massachusetts Biomedical Initiatives in Worcester, both situated downtown and outside the boundaries of the Massachusetts Biotechnology Research Park.
MassDevelopment, the states development finance agency, has created a $25 million Emerging Technology Fund that can make loans up to $2.5 million for biotechnology facilities financing, including in biomanufacturing, and with some flexibility to help leverage federal grants. At the regional level, $500,000 loans for biomanufacturing are available from the Greater Fall River Development Corp.
MASSACHUSETTS

Massachusetts has two essentially mature bioscience research parks: University Research Park, a 1.3-million-square-foot park of nine buildings in a 27-acre zone in Cambridge, developed by Forest City Enterprise pursuant to master agreement with MIT. It is also near additional bioscience properties owned by MIT itself (Technology Square, where Novartis opened a laboratory) and private developers (Alexandria, Lyme, and others). Massachusetts Biotechnology Research Park, a 1-million-square-foot park on 105 acres adjacent to UMass Medical Center in Worcester, anchored by Abbott Laboratories and now owned by Alexandria. Additionally, the following projects are under development: BUs BioSquare, targeted for 2 million square feet on 14 acres at the BU Medical Center Campus in the South End, recently reached 1.1 million square feet with the opening of its third wet-lab building, privately developed by Spaulding & Slye Colliers. The Longwood Medical and Academic Area in Boston for the first time includes commercial space, including a Merck laboratory on property rented from Emmanuel College, and the Black Fan Center, a privately developed, multitenant wet-lab building. Gateway Park is a 15-acre park devoted to bioengineering being developed on land adjacent to Worcester Polytechnic Institute. Tufts Biotechnology Corporation is planning a 106-acre life science park adjacent to the universitys School of Veterinary Medicine in Grafton, also in central Massachusetts.

MBC manages an internship program to link students to opportunities in the bioscience sectors.

The Biotech Learning Center of MassBioEd, the affiliated education foundation of MBC, offers adulteducation courses in clinical research and biotech project management.
K-12 outreach
Through its BioTeach program, MassBioEd also provides laboratory equipment and professional development resources to enable every public high school in the state to teach biotechnology by the year 2010.
MASSACHUSETTS
Contacts
Ranch Kimball Secretary of Economic Development 1 Ashburton Place, Room 2101 Boston, MA 02118 (617) 727-8380 ranch.kimball@state.ma.us
The Massachusetts Biotechnology Council (MBC), founded in 1985, is a not-for-profit organization that provides services and support for the Massachusetts biotechnology industry. Thomas M. Finneran President, Massachusetts Biotechnology Council One Cambridge Center, 9th floor Cambridge, MA 02142 (617) 577-8198 tom.finneran@massbio.org
MASSACHUSETTS
Massachusetts 22 -17.1% 485 -4.4% 0.5% 0.18 $60,990 4.67 2,266 87 1.2% 6,979 -10.5% 2.2% 0.89 $100,994 6.46 45,081 459 -2.5% 21,755 -19.0% 5.3% 2.11 $75,207 3.39 73,812 801 20.7% 23,315 14.1% 5.6% 2.25 $84,706 2.37 55,164 204,348 9.8% 2,739,198 -4.3% 2.5% n.a. $49,218
MASSACHUSETTS
Bioscience Occupations in the Massachusetts Workforce, 2004
10,000
9,790
8,000
6,000
4,000 2,290
2,000
170
Bioscience-Related Degrees from Massachusetts Institutions, AY 2004
Biological Sciences
Associate's (AA/AAS) Bachelor's (BS/BA) Master's (MS/MA)
Doctorate (PhD)
Number of Degrees
MASSACHUSETTS
Total Bioscience R&D Expenditures at Academic Institutions in Massachusetts, FY 2003
Medical Sciences
$476,917
Biological Sciences
$327,784
$11,674
Other Life Sciences
$52,077
$-
$50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000
Massachusetts University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $1,821,817 $909,628 49.9% $141.39 43.3% $2,265,512 $352.15 47.7% 3,538 25,930
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 6 8
10 6
MASSACHUSETTS

In 2005, the Granholm administration unveiled the 21st Century Jobs Fund (Act 225 of 2005), a $2 billion umbrella economic-development initiative targeting development of four sectors including the life sciences. The commercialization component of the program is set at $400 million and will be administered by the Michigan Economic Development Corporation (MEDC), the public/private partnership that manages Michigans tax-credit economic development programs and ran the original Life Sciences Corridor program and the successor Tri-Corridor Program. The 21st Century Jobs Fund restores the states commitment of tobacco revenues to support technology initiatives, effectively recapitalizing these functions from now through 2015. The 21st Century Jobs Fund makes bioscience initiatives eligible for research and commercialization funding that will be overseen by a separate Strategic Economic Investment and Commercialization Board. As in the previous Corridor programs, there is funding for basic research, applied research, commercialization, and commercialization support services. Commercialization funding (grants or loans) may go directly to companies or to nonprofit services such as pre-seed funds, business accelerators, wetlab facilities, and statewide support networks. The fund expects to operate two funding cycles this year. The 21st Century Fund also sets aside $100 million this year for capital-formation initiatives, including investment in venture-investment funds at multiple stages and credit-enhancement tools designed to stimulate private-sector lending to the targeted sectors. Since the last BIO report, MEDC also continued to elaborate its SmartZone program, which has resulted in the creation of new business accelerators or physical incubation space in seven of the 11 SmartZones. Several of the accelerators are bioscience-oriented, and two are located in university research parks. MichBio, the state BIO affiliate, expanded membership from 70 to 200 and began offering commercialization-support and targeted assistance to traditional manufacturers (including the automotive supplier Delphi) wishing to diversify into biomedical-device markets.

The Core Technology Initiative, funded by MEDC through the initial Life Sciences Corridor program, added the following new core facilities that are shared among the states research institutions: High-Throughput Screening Center Antibody Technology Core
MICHIGAN 1
Biological Imaging Center Center for Biological Commercialization (see below). These facilities joined the existing Center for Genomic Technology, Proteomic Consortium, Center for Structural Biology, Animal Model Consortium, and Center for Biological Information. The University of Michigan completed its 230,000-square-foot, $200 million Interdisciplinary Life Sciences Institute, part of its campus-wide Life Sciences Initiative.
Research programs
In 2005, MEDCs Tri Corridor program awarded $27.3 million to 24 life sciences projects. The 2006 cycle of the 21st Century Jobs Fund will start this year with $100 million in the research/ commercialization and infrastructure pools.

The Michigan Universities Commercialization Initiative (MUCI) was extended into its sixth year by MEDC. Through a grant stewarded by the University of Michigan, MUCI provides a commonly managed pool for precommercialization research on technologies emerging from every research university in the state and the Van Andel Institute. Awards of up to $150,000 are available, managed by the respective technology transfer office and matched by institutional resources. Supported activities include proof-ofconcept research, animal trials, prototype testing, scale-up studies, business plan preparation, and market research. Patenting expenses are not eligible, although institutions may credit their expenditure for patents as a partial match to a MUCI award. Institutions must repay three times the grant received by assigning 20 percent of any licensing income consequent to a MUCI project. In the most recent round, five of seven awards were in the biosciences. There are some similar resources at individual institutions. University of Michigan School of Medicine offers its own Translational Research Initiative, which provides up to $75,000 for 1 year in partnership with Johnson & Johnson. The universitys Biomedical Engineering Department has a parallel program funded by the Coulter Foundation. Michigan State University maintains IPVentures, a subsidiary with funds available to create start-up ventures and which may recommend follow-on investment to the MSU Foundation.

The 21st Century Jobs Fund commercialization fund will make subordinated loans directly to companies for the purpose of supporting commercialization and will also support nonprofit pre-seed funds. The SmartZone program allocates tax increment financing to encourage selected communities to add either physical business incubators (see below) or commercialization assistance programs or both. The following bioscience-oriented commercialization programs were supported through SmartZones: BioTech Connect, a program of the SmartZone in Grand Rapids, helps entrepreneurs build bioscience businesses.
MICHIGAN
Biosciences Research and Commercialization Center, part of the SmartZone in Kalamazoo at Western Michigan University (WMU), provides contract development services, gap funding, and start-up assistance. Frontline Accelerator is the accelerator component of the Woodward Technology Corridor SmartZone at the TechTown research park in Detroit. Spark is a business accelerator associated with the Ann Arbor/Ypsilanti SmartZone.

Pre-seed investments including in the biosciences may be available from Ann Arbor Angels and also from some of the SmartZone business accelerators. MEDC offers to match 15 percent of SBIR grants up to $15,000.
Venture capital
Venture Fund Michigan is a contingent-tax-credit-backed fund of funds created by the Early Stage Investment Act of 2003. Technical changes were made in 2005 including increasing the ultimate amount of contingent tax credits to $450 million, and the governing corporation chose Credit Suisse First Boston as its investment manager. Requirements for investee funds include a substantial presence in Michigan. To date there are no investee funds. Bioscience venture funds in which MEDC had earlier bought small limited-partnership interests include the following: ApJohn Group Arboretum Ventures Seneca Ventures Sloan Ventures TGap Ventures.

Incubators
The SmartZone program was set up to encourage the creation of incubators in communities where they did not yet exist. Bioscience incubators include the following: Product Development Center, a 10,000-square-foot section of the Cook-DeVos Center for Health Sciences at Grand Valley State University in the Muskegon SmartZone.
MICHIGAN
TechOne, a 100,000-square-foot, multitenant building in TechTown, the research park at Wayne State University in the Woodward Technology Corridor SmartZone in Detroit. Southwest Michigan Innovation Center, a 58,000-square-foot, wet-lab incubator in the Business Technology and Research Park in the Kalamazoo SmartZone. BioBusiness Incubator of Michigan, managed by a subsidiary of MBI International, a nonprofit bioscience research institute in the Lansing SmartZone. Center for Applied Research and Technology, a 12,000-square-foot incubator at the Mt. Pleasant/Central Michigan University SmartZone, which is adding 17,000 square feet of wetlab space.

The research park with the most significant bioscience presence is Kalamazoo Business Technology and Research Park, set on 137 acres owned by WMU. It has 16 bioscience tenants including the incubator (above).

MEDC provides funding for the Michigan Entrepreneurship Education Network, an alliance of university business schools that includes a grant program to allow start-up of new curricula. Each school has chosen a focus, with the biosciences most strongly represented at Michigans Zell-Lurie Institute of Entrepreneurial Studies, which also houses the student-run Wolverine Venture Fund.

MichBio connects companies to student interns through its BioConnections program funded by MEDC. More than 80 percent of the summer interns were offered full-time positions. MichBio now has eight university-based student chapters.

MichBio is collaborating with the schools of Oakland and Lenawee counties to develop a pilot program under which university and high-school educators would team-teach science courses.
Contacts
Tino Breithaupt Managing Director, Life Science Sector Michigan Economic Development Corporation 300 North Washington Square Lansing, MI 48913 (517) 335-7496 breithauptt@michigan.org
MICHIGAN 4
MichBio is a nonprofit organization dedicated to driving the growth of the life sciences industry in Michigan. The association serves a diverse membership, including new and established life sciences companies, academic and research institutions, as well as service providers and related organizations throughout the state. Michael D. Witt Executive Director, MichBio 330 East Liberty Street P.O. Box 7944 Ann Arbor, MI 48107 (734) 615-9670 michael@MichBio.org
MICHIGAN
Michigan 31 -13.5% 587 -25.1% 0.6% 0.17 $50,259 4.33 2,542 55 -3.5% 10,057 -10.3% 3.2% 0.96 $80,660 6.58 66,180 507 -12.7% 9,989 -22.5% 2.4% 0.72 $50,097 2.98 29,733 425 35.6% 12,922 25.4% 3.1% 0.93 $80,275 2.48 32,042 247,749 -1.8% 3,665,758 -4.5% 3.4% n.a. $40,404
MICHIGAN
Bioscience Occupations in the Michigan Workforce, 2004
8,000
6,000
4,000 3,380 2,000 300 110
Bioscience-Related Degrees from Michigan Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Number of Degrees
MICHIGAN
Total Bioscience R&D Expenditures at Academic Institutions in Michigan, FY 2003
Medical Sciences
$438,951
Biological Sciences
$224,796
$87,477
Other Life Sciences
$66,359
$-
$50,000
$100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000
Michigan University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $1,388,284 $830,792 59.8% $82.42 55.7% $552,442 $54.81 49.3% 4,162 14,860
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 9 9
11
8 15
MICHIGAN

In 2003, Governor Tim Pawlenty created the Minnesota Bioscience Council to advise the Governor on policy development and to recommend specific state strategies designed to advance the states bioscience sector. Since that time, Minnesota has implemented a Bioscience Zone program, provided funding for bioscience research and research facilities, and opened several bioscience incubators. The second phase of that effort has been initiated by BioBusiness Alliance of Minnesota, an industry-led nonprofit organization composed of representatives of bioscience companies, universities, state government, and healthcare institutions to develop BioMinnesota 2025, a 20-year plan to help shape the states bioscience policy. The BioBusiness Alliance has commissioned a statewide assessment of Minnesotas bioscience resources, the results of which are expected to be released in the spring of 2006.

The Minnesota Partnership for Biotechnology and Medical Genomics began construction in 2005 on a new research facility, which is being built on top of the existing Mayo Clinic Vincent A. Stabile Building in Rochester. The 2005 Legislature approved $21.7 million in state bonding authority to pay for construction of the facility. Between 2000 and 2005 the Minnesota Legislature approved $240 million in bond funding for bioscience-related science laboratories throughout the state. Proposals for an additional $160 million have been introduced in the 2006 legislative session.
Research programs
The Minnesota Partnership for Biotechnology and Medical Genomics is a collaboration of the Mayo Clinic and the University of Minnesota focused on enabling Minnesota to advance medical genomics applications. The state is providing support for collaborative research projects, matched by funds from both institutions, with a proposed overall commitment of $70 million beginning in 2005 to cover the next 5 years of activities. In FY 2006, the state provided $15 million to fund research projects and to provide infrastructure support in the form of equipment, software, and other infrastructure needs. The state is providing $20 million in funding support for the University of Minnesotas Initiative for Renewable Energy and the Environment. The state provided an initial investment of $10 million in FY 20032004 and has committed to investing an additional $2 million per year over the next 5 years.
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The research program is focused on biohydrogen and other renewable energy sources. In 2005, the institute awarded $8.5 million for renewable energy research.

Biodale is a suite of facilities located at the University of Minnesota St. Paul campus that provides university departments and outside companies with access to sophisticated services and equipment, such as laser scanning microscopes. More than $40 million in university, state, federal, and private funding was spent equipping Biodale member facilities. Member facilities include Bioinformatics and Research Computing Facility; Biomedical Genomics Center; Biotechnology Resource CenterFermentation Process Development and Scale-up Laboratory; High-Throughput Screening and Analysis Facility; Imaging Center; and Center for Mass Spectrometry and Proteomics.

The Minnesota Research Fund, an initiative of the Blandin Foundation and the University of Minnesota, fosters economic growth by funding the development and commercialization of technology generated by Minnesotas educational institutions. The University of Minnesota Office of Business Development has established a University Innovation Grants program that will support translational research not supported by federal or industry funding.

The BioBusiness Alliance is establishing a BioBusiness Resource Network that will help investors and companies navigate the states economic development support system and provide technical and business education support.

Investors and business leaders are currently raising money for a Minnesota Life Science Capital Fund, with a goal of raising $1 million initially. Investors are expected to include utilities, banks, and individuals.
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Incubators
University Enterprise Laboratories is a private, nonprofit life sciences incubator in St. Paul that opened in the summer of 2005. It is a key anchor facility in the St. Paul Bioscience Zone. The incubator is housed in a former Target Corporation warehouse purchased by the City of St. Paul and donated to the University Enterprise Laboratories. UEL occupies approximately 50,000 square feet of space in the overall 125,000-square-foot facility, with the remaining space leased to post-incubator and established bioscience companies. UEL offers laboratories ranging from 750 to 1,050 square-feet and currently has nine tenant companies. Elliot Park Life Science Institute is a private, for-profit, 60,000-square-foot life science incubator located in the Minneapolis Bioscience Zone, which includes three major hospitals. The institute added five new tenants in 2006. Menlo Park St. Paul is a biotechnology office and laboratory facility located less than 2 miles from the University of Minnesota. This is a private business incubator facility housed in the former State of Minnesota Bureau of Criminal Apprehension laboratory facility. Menlo Park St. Paul offers up to 50,000 square feet of office and wet-lab space and currently houses eight firms.
The Minnesota Investment Fund awards grant to local units of government that provide loans to assist expanding businesses. The fund focuses on industrial, manufacturing, and technology-related industries. Loans can be used for land, building, and infrastructure improvements. The maximum amount is $500,000 per grant. Fifty percent of project costs must be privately financed. Funding for the program is approximately $4.5 million annually. The fund made awards totaling $5.8 million in FY 2005.

A Bioscience Zone Program was enacted in 2003 to facilitate research and development activities and promote bioscience business development near the University of Minnesota Minneapolis and St. Paul campuses, within a life science corridor in southern Minneapolis, and near the Mayo Clinic in Rochester. The goal of the program is to cluster existing and start-up bioscience companies and help them gain access to University of Minnesota and Mayo researchers and to provide tax incentives to help them lower their overall costs and facilitate their growth. The Minnesota Bioscience Zone includes 515 acres in St. Paul, 497 acres in Minneapolis, and 496 acres in Rochester.

The Biotechnology Education and Training Initiative at the University of Minnesota offers universitybased short courses and workshops to industry professionals, scientists, teachers, and others interested in knowledge and research in biotechnology. It links continuing education courses and workshops, degree programs, teacher education, and community outreach to serve the Minnesota biotechnology community. Anoka-Ramsey Community College in Minnesota has one of the only existing programs for biomedical device workforce development, initiated about 2 years ago to support Medtronic and its
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suppliers in the region. It focuses on regulatory requirements, quality standards, and production aspects for medical devices. The college offers certificates or degrees in Biomedical Technology as well as continuing education courses. Minnesota West Community and Technical College, beginning in the fall of 2006, will offer a 2-year degree laboratory technician program. This program will be housed in the City of Worthington in donated space within the corporate headquarters of Newport Laboratories. The program will provide training for students seeking careers in agricultural biosciences. Minneapolis Community and Technical College, beginning in the fall of 2006, will offer a 2-year associate of science degree in biotechnology.

The Dunwoody Institute and the Minneapolis Public Schools developed a joint program in Food Science and Nutrition, aimed at teaching high school students about the science of making food and helping them become interested in careers in food development. The program was funded by a federal grant and partnership with General Mills. Minnesota West Community and Technical College and the City of Worthington Public Schools have created a science curriculum to excite students about bioscience-related careers.
Pending Proposals
Governor Pawlenty recommended a $10 million bioscience business development program, which includes funding for a bioscience incubator in Rochester and additional bioscience research funding for the University of Minnesota and the Minnesota State Colleges and Universities System in his FY 2007 budget. A bill is expected to be introduced in the 2006 Legislature that would authorize the state to create a $330 million bond fund for a newly created Minnesota Biomedical Sciences Research Facilities Authority. The proposal is part of a plan of the University of Minnesota to hire 500 new researchers and build one new laboratory building every 2 years over the next decade.
Contacts
Gene Goddard Bioscience Industry Specialist Minnesota Department of Employment and Economic Development 500 Metro Square Building 121 East 7th Street St. Paul, MN 5511-2146 (651) 296-7102 gene.goddard@state.mn.us www.positivelyminnesota.com
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Medical Alley was founded in 1984 as a 501(c)(6) nonprofit trade association to support Minnesotas health care industry. The associations goals were to focus on legislative issues, provide members with educational opportunities, and promote interest and investment in Minnesota as a major center of health care achievement, research and innovation. MNBIO was founded in 1991 as a 501(c)(6) nonprofit trade association to serve as the eyes, ears, and voice of biotechnology in Minnesota. In March 2005, Medical Alley and MNBIO merged to provide a more focused effort in supporting the human health, agricultural, and industrial biosciences in Minnesota.
Don Gerhardt Medical Alley/MNBIO President and CEO 1550 Utica Avenue South, Suite 725 St. Louis Park, MN 55416 (952) 746-3814 dgerhardt@medicalalley.org
The BioBusiness Alliance of Minnesota is devoted to positioning Minnesota as a global leader in biobusiness. Its charter is to prioritize and lead the efforts to ensure the long-term prosperity of biobusiness in the state. The BioBusiness Alliance consists of leaders representing Minnesota companies, colleges and universities, state government, and healthcare institutions.
Jeremy Lenz BioBusiness Alliance of Minnesota Travelers Express Tower 1550 Utica Avenue, S., Suite 725 St. Louis Park, MN 55416-5307 (952) 746-3812 Fax: (952) 542-3088 jlenz@biobizmn.org www.biobizmn.org
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Minnesota 57 9.6% 1,592 -5.3% 1.5% 0.74 $51,381 6.85 10,903 44 -13.7% 2,477 10.1% 0.8% 0.39 $65,266 5.06 12,535 392 4.3% 25,583 9.2% 6.2% 3.05 $75,048 3.58 91,489 200 5.6% 3,478 5.5% 0.8% 0.41 $58,387 2.30 7,992 149,625 1.0% 2,229,697 -0.5% 2.0% n.a. $40,580
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Bioscience Occupations in the Minnesota Workforce, 2004
10,000 9,000 Number of Workers in Occupation 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 1,370 730 3,880 9,340
Bioscience-Related Degrees from Minnesota Institutions, AY 2004
Biological Sciences
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in Minnesota, FY 2003
Medical Sciences
$235,478
Biological Sciences
$66,507
$62,884
Other Life Sciences
$9,193
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Minnesota University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $517,346 $375,217 72.5% $74.16 38.4% $447,048 $88.36 58.8% 2,294 15,320
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 25 21
14
17 14
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Governor Haley Barbour formed Momentum Mississippi in 2005 to move forward in implementing Blueprint Mississippi, a strategic plan that identified a number of recommendations for promoting economic growth. The primary recommendations were to Identify and pursue high-value, high-growth industry targets and to align resources around them; Increase public and private R&D funding and improve effectiveness of technology transfer and capital accessibility to help commercialize innovations; and Improve production and profitability of existing businesses through programs that support innovation, technology, and process improvement. Legislation was passed (HB 3) to provide funding for several economic development programs and to revise several tax incentive programs to make them more accessible to technology companies. The $28 million initiative includes a $7 million fund for companies to support business incubation centers and create new and expanding R&D and technology-based companies; $7 million for an equipment and public facilities fund to aid in infrastructure-related improvements and the purchase of equipment; $7 million for the Existing Industry Productivity Loan Fund, which provides loans to industries to deploy long-term fixed assets that will improve productivity and competitiveness through new technology; and $7 million in state general obligation bonds for an inducement account for extraordinary economic development opportunities. All of the programs will be administered by the Mississippi Development Authority. In addition, HB 3 made technology-intensive companies eligible for local property tax exemptions, state sales and use tax exemptions, the states Jobs Tax Credit, the Advantage Jobs program, and the Rural Economic Development Corporate Income Tax Credit. Technology-intensive companies are defined as those that employ at least 10 full-time workers, 10 percent of which must be scientists, engineers, or computer specialists who have an annual wage of 150 percent of the state average, and provide a basic health plan for employees. Mississippi has targeted the biomass industry for development. The Mississippi Technology Alliance (MTA), which is a nonprofit organization with the mission to champion innovation and technology-based economic development for the State of Mississippi, administers a Strategic Biomass Initiative that is funded primarily by the U.S. Department of Energy (DOE). (See description below.)
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The construction of the second building in the University of Mississippis Arthur C. Guyton Laboratory Research Complex will be completed in the near future, and construction has begun on a four-story addition to the original building. At completion, the $93 million project will give the School of Medicine an additional 360,000 square feet of dedicated research space.
Research programs
Mississippi State Universitys Life Sciences and Biotechnology Institute (LSBI) was established to promote economic development and to create high-quality employment opportunities in Mississippi. LSBI awards competitive seed grants for research in the life sciences and biotechnology. The program seeks to fund projects that will position researchers to compete successfully for federal R&D funding in the future. The Franklin Furniture Center at Mississippi State University (MSU) is researching and developing the use of wood fibers to make building products. For example, a new company, located at MSU, takes otherwise useless small-diameter soft wood and bonds it into structural building materials. The Mississippi Land Water and Timber Board provided the company approximately $1 million.

The mission of MTAs Strategic Biomass Initiative is to foster viable commercial enterprises based on the states natural biomass resources and develop near-term opportunities through university-based R&D. The initiative provides funding for applied research projects of up to $300,000, with the company paying 25 percent of the total cost, and commercialization projects, which can go up to $400,000 but with the company paying 60 percent of the total cost. A total of $1.55 million is available for applied research grants, $1.2 million of which comes from DOE and $350,000 of which is provided by partner companies. A total of $1 million is available for commercialization assistance, with DOE providing $400,000 and partner companies providing $600,000. LSBI provides faculty researchers and partner companies with central facilities and state-of- the-art tools, equipment, and training. The institute has full-time staff members who run equipment and provide training.

The Mississippi Technology Alliance receives approximately $1.5 million from state funds. Commercialization of technologies, especially resulting from university investment, has been a priority focus. The MTA has hosted several venture capital forums targeting various industry groups. The states universities have internal staff and programs to educate faculty, staff, and students about the commercialization process, e.g., intellectual property valuation, business start-up, and venture capital
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sources. The MTA partners with these groups to host forums where professional investors meet with companies and university faculty. MSU has established the Thad Cochran Endowment for Entrepreneurship to encourage the commercialization of MSU-developed technologies. The Institute for Technology Development, located at John C. Stennis Space Center, conducts applied research and converts the results into marketable products or services. The institutes primary technology focus is multispectral and hyperspectral imaging systems. Research areas include wound care, ophthalmology, precision agriculture, and food quality and design.

The MTA provides business development services, including business plan review, guidance on raising capital, and connections to technical or financial resources, to all technology companies, including bioscience companies.

In late 2005 the Mississippi Angel Network was formed. Since then, more than 50 high-net-worth individuals have joined. The network makes investments in the $500,000 to $5 million range in life sciences, software, and communications companies. The network is administered by the MTA and will make investments only in companies that are either headquartered in Mississippi or have substantial operations within the state. An advisory group of investors reviews candidate companies and selects ones to present at quarterly meetings. Twelve companies have given formal presentations to date, and 17 startup companies were featured at the MTA Conference on High Technology. The Mississippi Federal and State Technology Partnership Program (MS-FAST), which is also administered by MTA, provides funding of up to $3,000 to cover the costs of developing and submitting Phase I Small Business Innovation Research/Small Business Technology Transfer Program proposals.

Incubators
The Ralph E. Powe Center for Innovative Technologies is a 25,000-square-foot incubator that will include a clean room and wet-lab space. An incubator with wet-lab space is under development in the University of Mississippi Research Park.

Under development
The University of Mississippi is developing the University of Mississippi Research Park that will focus on attracting companies that are interested in tapping into the universitys R&D expertise. Initially, these efforts will focus on health care, defense/security, information management, and remote sensing. The
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research park and an incubator that is being developed will have wet-lab facilities suitable for pharmaceutical companies. The University of Southern Mississippi is developing the USM Innovation and Commercialization Park on 522 acres. It has received $20 million to construct its first building, which will focus on companies seeking access to the Mississippi Polymer Institute. MSU is developing the Thad Cochran Research Technology and Economic Development Park on 222 acres. The park currently includes the Ralph E. Powe Center for Innovative Technologies.

Planning is underway for a management recruitment network that will connect technology companies with much needed executive management and technical talent.

Base Pair, a project to expose young people to basic science and research, is hosted by the University of Mississippi Medical Center. The program pairs students with biomedical researchers for a year.
Contact
Tony Jeff Mississippi Technology Alliance 134 Market Ridge Drive Jackson, MS 39157 (601) 960-3610 tjeff@technologyalliance.ms
MISSISSIPPI
Mississippi 24 7.9% 1,216 -22.0% 1.2% 1.45 $43,856 5.60 6,804 23 76.9% 1,178 2.2% 0.4% 0.47 $33,879 3.22 3,797 90 5.7% 966 -11.2% 0.2% 0.29 $29,575 2.06 1,986 99 7.9% 819 -12.5% 0.2% 0.25 $39,132 1.96 1,603 62,371 4.5% 871,223 -1.5% 0.8% n.a. $28,027
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Bioscience Occupations in the Mississippi Workforce, 2004
2,500
2,000
1,500
1,000 700 500 310 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 30
Bioscience-Related Degrees from Mississippi Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 100 200 300 Number of Degrees 400 500 600
MISSISSIPPI
Total Bioscience R&D Expenditures at Academic Institutions in Mississippi, FY 2003
Medical Sciences
$47,705
Biological Sciences
$22,914
$77,382
Other Life Sciences
$6,449
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Mississippi University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $324,298 $154,450 47.6% $53.60 57.7% $36,265 $12.59 44.9% 1,057 4,340
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 31 34
44
35 35
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In 2005, Governor Matt Blunt formed the Advisory Council for Plant Biotechnology. The advisory council is charged with analyzing the states current life science environment to determine how the state can better capitalize on the industrys potential, serving as a recruitment committee to attract new life science companies to Missouri and determining whether a state-based regulatory structure is desirable. The council represents all facets of plant biotechnology, including agriculture, government, economics, science, and industry. Governor Blunt, under his budget recommendation for 2006, has called for $38.5 million to be allocated for the Missouri Life Sciences Trust Fund, administered by the Missouri Life Sciences Research Board. By executive order, the Governor moved the Missouri Life Sciences Research Board operation to the Missouri Department of Economic Development. This move brings the states life science initiatives together. The Missouri Life Sciences Research Board will assist in the management of the Life Sciences Trust Fund. In January 2006, Governor Blunt announced the Lewis and Clark Discovery Initiative (LCDI) to boost the life science industry across the state. The LCDI is a balanced approach to investing the one-time cash proceeds gleaned from the capitalization of a portion of the Missouri Higher Education Lending Authoritys (MOHELAs) assets. This innovative plan to capitalize on existing resources, without decreasing the level of service provided by MOHELA, would generate around $450 million in one-time money that will be used to improve educational and career opportunities for Missourians. The Governor has proposed using the funds to support university capital improvements, technology commercialization, scholarships, and endowed professorships. A complete list of proposed projects can be found under Pending Proposals. At the regional level, the St. Louis Regional Chamber and Growth Association (RCGA) and the Coalition for Plant and Life Sciences commissioned a report assessing the progress that had been achieved by implementing St. Louiss 1999 regional bioscience strategy and are actively pursuing an updated action plan. In Kansas City, the Kansas City Area Life Sciences Institute (KCALSI) continues to coordinate Kansas Citys life science R&D strategic efforts. KCALSI serves as facilitator, matchmaker, and potential funding organization for collaborative research that may lead to new discoveries to more effectively treat a wide range of diseases, develop new drugs and medical devices, and guide best medical practices. In addition, KCALSI is currently partnering with the Kansas City Area Development Council and the Greater Kansas City Chamber of Commerce on a regional animal health and nutrition initiative to provide
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significant emphasis on the animal health and nutrition business area in the future. The initiative will specifically focus on developing and marketing the Kansas City animal health and nutrition brand; developing a favorable policy environment that encourages investments in research and innovation; and enhancing research and technology transfer between universities, research institutions, and industry. Missouri is fortunate to be home to a number of private research organizations involved in the life sciences and related fields, such as the Stowers Institute for Medical Research in Kansas City and the Donald Danforth Plant Science Center in St. Louis, which work closely with higher education. The Stowers Institute, having an endowment valued at approximately $2 billion, seeks more effective means of preventing and curing disease through basic research on genes and proteins that control fundamental processes of cellular life. The Danforth Center has a global mission to improve human health by conducting research to enhance the nutritional content of plants and increase agricultural production to create a sustainable food supply. Further, Missouri is the home of leading commercial life science firms such as Monsanto and benefits from the major presence of firms such as Pfizer.

The University of Missouri-Columbia recently opened the Christopher S. Bond Life Sciences Center. The center promotes research aimed at increasing food production and quality, improving human and animal health, and enhancing environmental quality. The building, which includes 67,000 square feet of laboratory space, houses the Proteomics Center, Molecular Cytology Core, and the DNA Core. The cost of the facility was shared by the State of Missouri, which contributed $30 million; the National Aeronautics and Space Administration, which provided $30 million; the University of Missouri; and private donors. Washington University in St. Louis (WU) and its School of Medicine are continuing to implement BioMed 21, a strategic research initiative to convert new knowledge of the human genetic blueprint into effective medical treatments. The following BioMed 21 capital projects have been completed: Reconstruction of existing space next to the Genome Sequencing Center (GSC) to facilitate interactions between GSC researchers and clinicians. In addition, the Center for Genome Sciences is undergoing an expansion, increasing its laboratory facilities to accommodate additional strategic clusters of scientists with complementary expertise. Construction of a new $150 million, 250,000-square-foot research facility dedicated to bridging basic and clinical sciences. The facility is located in proximity to Barnes Jewish Hospital, St. Louis Childrens Hospital, and the Center for Advanced Medicine and Siteman Cancer Center. 40,000-square-foot facility designed to spur development of mouse models. A new Center for Clinical Imaging Research about to be opened by WU, within the Imaging component of BioMed 21, inside Barnes-Jewish Hospital. The unit will include the full spectrum of state-of-the-art imaging devices wholly dedicated to research, yet located within a hospital for more convenient access to patients and study participants. It will provide new opportunities for partnership with companies that develop imaging technology.
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St. Louis University (SLU) is constructing a multidisciplinary research center designed to conduct basic and clinical research of new vaccines and biologics. The Center for Vaccine Development is a $67 million research building, part of an $80.5 million project also including renovation of existing laboratory space that will take place after the new building opens in fall 2007. The University of Missouri-Kansas City (UMKC) is completing a new Health Sciences building on the Hospital Hill campus. This facility is the future home of the Schools of Pharmacy and Nursing. The current construction of the $50 million facility and $16 million parking structure is scheduled for completion in 2007. UMKC is also planning for a second research building to be located across from this Health Sciences building, the School of Medicine, and near Truman Medical Center and Childrens Mercy Hospital. The $15 million, 4,500-square-foot Dybedal Center for Biosciences Research of the Kansas City University of Medicine and Biosciences houses a 7,300-square-foot adult academic clinical research center. Since its opening in 2005, the Dybedal Center has hosted 10 clinical trials.

The Missouri State-Matched Endowed Chairs and Professorships Program is a faculty development program through the University of Missouri System that is supported through an annual $4 million state appropriation. Professorships are created when private donations to the university are matched by $550,000 in state appropriations. Similarly, endowed chairs are created when private donations to the university are matched by $1.1 million in state appropriations. Each campus provides a tenured faculty line and salary for the position. Since the program began in 1995, Missouri has established 121 state-matched endowed chairs and professorships. There are 23 professorships and 16 chairs on the Columbia campus, 17 professorships and 27 chairs on the Kansas City campus, nine professorships and two chairs on the Rolla campus, and 27 professorships on the St. Louis campus. Nineteen of the positions are in the life sciences. (Please see Pending Proposals and the list of projects proposed under the Governors LCDI.) The Missouri Endowed Professorship Initiative will be established as part of the LCDI. This $20 million fund will create endowed professorships for research scientists at Missouris public colleges and universities. The state would match private donations of $500,000 to create 40 endowed professorships. For their part, the public institutions would commit to paying the salaries associated with these leading professionals. The funds realized from the endowment would serve as the financing to attract top scientists to our research institutions.

The Research Alliance of Missouri (RAM) is an affiliate of the Missouri Technology Corporation (MTC) established to help expand Missouris economy through better collaboration among Missouris research institutions. RAM was created in 2003 to foster public and private collaborations to attract research funding to Missouri and speed the translation of technologies into commercial opportunities and jobs. Since that time, the members of RAM have adopted a strategic plan, built new collaborative research initiatives among the institutions; initiated a process to streamline technology transfer from inventions in member university laboratories to commercial products; and assisted Missouri businesses in addressing technological problems through collaborative research projects. Under Governor Blunts LCDI, the MTC and RAM would be merged into a new Missouri Discovery Alliance. The purpose of the
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Discovery Alliance is to mine technologies out of the states research institutions to turn research into businesses and to assist the entrepreneur in finding the right services they need to prosper. The Scientific Partnership and Resource Connection is a quarterly networking event hosted by the University of Missouri-Columbias Christopher S. Bond Life Sciences Center. It is designed to build relationships between scientists and the business community to facilitate technology transfer, foster entrepreneurship, and, provide career opportunities for students. Additionally, the University of MissouriColumbia, through the leadership of Senator Christopher S. Bond, was recently designated by the United States Congress as the site for the new National Center for Soybean Biotechnology. The UMKC Bloch School is stepping up its support of entrepreneurship through the creation of the Institute for Entrepreneurship and Innovation. The institutes vision is to become the worlds leading research and education institute that fosters discovery and learning in entrepreneurship and innovation. As part of the institute, the new Enterprise Development Laboratory provides an infrastructure that expedites the transfer and commercialization of new technologies. Multidisciplinary teams of faculty, students, and experts from the community evaluate innovations and work toward the creation and management of highgrowth new enterprises.

Both WU and SLU have made funds available to support commercialization activities. Wash Us Bear Cub Fund, which was created in 2002, provides small grants of $20,000 to $50,000 that can be used by faculty and students to move promising ideas from the drawing board to the marketplace. Between 2003 and 2005, 13 grants totaling $488,000 were awarded. Four companies have gone on to raise $6 million in investment capital. SLU has created a similar small proof-of-concept fund that makes grants of $15,000 to $20,000. Approximately $100,000 to $200,000 has been allocated for this effort annually.

The Missouri Innovation Centers provide a range of management and technical assistance during the early stages of development for new technology-based business ventures. Services include market research and strategies, technology assessment, business planning, financial packaging, research and development, business management, patent and licensing consulting, preliminary patent searches, and prototype development. Some centers also provide physical space with necessary support in their business incubators (see below). These Innovation Centers have a combined state budget of $1.106 million. The five state-supported Innovation Centers are as follows: Missouri Enterprise Center in Rolla Center for Emerging Technologies (CET) in St. Louis Missouri Innovation Center in Columbia Missouri Research Corporation in Cape Girardeau Joseph Newman Business and Technology Innovation Center in Joplin.
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The Coalition for Plant and Life Sciences brought together WU, SLU, the Nidus Center for Scientific Enterprise, and CET to form the BioGenerator, a not-for-profit entity, whose mission is to accelerate the commercialization of plant and life science technologies within the St. Louis region by providing funding and management support to precompany innovations and pre-seed and seed-stage companies. The BioGenerator is designed to bridge the gap between research universities and venture capital funds investors, thereby assuring the transfer of new technologies to the marketplace. In its first year of operation, the BioGenerator evaluated 47 technologies, initiated due diligence on 30 of them, and approved investments in three companies. Several additional investments are pending board approval. KCSourceLink, a program of the Institute for Entrepreneurship and Innovation at UMKC, connects a network of 140 nonprofit resource organizations that provide business-building services for small businesses in the Kansas City region. KCSourceLink facilitates the linking of these resource organizations to one another and to established, emerging, and start-up small businesses throughout the region, providing access to education, technical assistance, new markets, and capital.

The New Enterprise Creation Act, passed in 1999, has helped generate investment for new businesses starting up in Missouri. Through legislative statute, the Missouri Department of Economic Development (DED) issues a tax credit equal to 100 percent of the investment in a qualified fund to any accredited individual, corporation, partnership, or financial institution that makes a qualified investment. The Missouri Seed Capital Investment Board selected Prolog Ventures, LLC (Prolog) as the Fund Manager to manage the investments of the fund. Currently, Prolog manages 14 portfolio companies and has approximately $100 million under management specializing in the life sciences and related information technologies. In addition, the Coalition for Plant and Life Sciences is establishing a $7.5 million Pre-seed Fund, to be managed as part of a Prolog II venture fund (see details below), to be closely affiliated with the BioGenerator described above. The fund will be used to invest in very early-stage companies, with an emphasis on newly created companies that have successfully emerged from the BioGenerator project.
Venture capital
The Missouri Certified Capital Company Program encourages the creation of Missouri-only venturecapital funds by offering tax credits to insurance companies that invest in these funds. Since 1997, six participating venture funds have invested more than $95 million in 33 Missouri small businesses in a variety of industries, including biotechnology and the life sciences. These investments have attracted at least $2.1 billion in syndicated co-investment or follow-on investment. Additionally, in the past 5 years, more than $565 million has been invested in locally managed venture capital funds specializing in investing in plant and life sciences in the St. Louis region. Prolog Ventures, which, as stated above, specializes in life science, health care, and related IT companies, raised its first fund in 2001 and has just closed on $68 million for a Prolog II fund. RiverVest Partners, a local venture capital firm focused on seed, early-, and later-stage life-science investments is headquartered in St. Louis and has invested in three St. Louis companies. Triathlon Medical Ventures, based out of Cincinnati, has opened an office at the Nidus Center in St. Louis. Oakwood Medical Ventures, which invests in mid-stage companies, has raised a fourth fund. Ascension Health Ventures, investing in medical device, technology,
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and service deals since 2001, has raised more than $125 million. The St. Louis Arch Angels, established in January 2005, provide seed and early-stage capital in the range of $250,000 to $2.5 million. Arch currently has 49 members and has made investments in two companies totaling $1.5 million. Lastly, a fund of funds, the Vectis Life Science Fund, has raised $82 million to invest in venture funds both on the East and West Coasts as well as in St. Louis. Prairie Wind Angels in Kansas City is a vehicle formed to invest in local technology and life-science start-ups. Prairie Wind Angels typically will make $250,000 to $500,000 investments in start-ups, but will have the capacity to make a $5 million investment in capital-intensive life-science firms. Mid-America Angels investor network facilitates introduction of entrepreneurs (within a 150-mile radius of Kansas City) needing funding for their businesses to potential investors through presentations and other mechanisms. The network consists of individual investors interested in financially rapidly growing, privately held companies in an early stage of development.

Incubators
Currently, Missouri has incubators represented in the St. Louis region. Under Governor Blunts LCDI, additional space will be available in St. Louis, Kansas City, Columbia, Cape Girardeau, and Springfield, more than doubling incubator resources currently available to Missouri businesses. The CET in St. Louis, also a Missouri Innovation Center, is an incubator servicing primarily bioscience and medical-related start-up companies. CET operates a two-building complex totaling 92,000 square feet and contains wet and dry labs and DNA labs, among other biotechnology-related necessities. It is a public and private partnership financially supported by the University of Missouri-St. Louis and DED. The Nidus Center for Scientific Enterprise in St. Louis is a nonprofit, 40,000-square-foot plant and life science incubator consisting of a mix of wet-lab, dry-lab, and office suite space. The Nidus Center serves entrepreneurial clients who are refining and preparing new technology for market. The incubator does not receive state funding. Instead, it is part of the investment Monsanto and others have made to help promote the St. Louis region as a world center in biotechnology and the plant sciences. The mission of the Jordan Valley Innovation Center (JVIC) is to support advanced materials and biotechnology industries in Missouri. Focus areas include medical instruments and materials, bioprocessing techniques and equipment, agribusiness research and development, and chemical and biological sensors and systems. JVIC has leased facilities to four tenants, and another three companies are corporate affiliates of JVIC. The facilities are operated by Missouri State University, and researchers at JVIC have acquired more than $30 million in federal funding since 2003. The State of Missouri has proposed investing $7 million as part of a $14 million investment in construction of a new Biotechnology Research and Manufacturing Facility to complement the Advanced Devices Research and Development Laboratory Building currently under construction. Soon the University of Missouri-Columbia will open the Mid-Missouri Business Incubator. The 52,000-square-foot facility will provide laboratories and office space for 10 to 14 companies utilizing research from the campus. Start-up companies will be supported in their earliest stages by Centennial Investors, a funding entity created under the aegis of the Columbia Chamber of Commerce. Governor Blunt has earmarked $2 million from the LCDI to build the incubator. Combined with nearly $1 million
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from mid-Missouri businesses and $5.6 million from federal and university sources, construction costs will be met without any borrowing.
The State of Missouri is providing tax incentives authorized under the Missouri Quality Jobs Act to assist companies with new ventures. For example, Pfizer is building a $200 million research facility in St. Louis.

Missouri Research Park is owned and managed by the University of Missouri System. Officially opened in 1985, the park now has more than 130 acres developed for high-tech and research facilities and houses 17 tenant companies that employ more than 2,000 people. The park is located along the Highway 40/61 corridor in St. Charles County. The University of Missouri Technology Park at Fort Leonard Wood is located on an active Army post. The 62-acre park was developed by the University of Missouri and DED, with the backing of Fort Leonard Wood. The Tech Park collaborates with the University of Missouri on technology transfer and is focused on biochemical, homeland security, and geographic information system projects. The Center of Research, Technology, and Entrepreneurial Exchange (CORTEX) in mid-town St. Louis will enable collaboration between all the area research institutions. The institutions involved have collectively committed $29 million over 5 years, and the State of Missouri has awarded $12 million in tax credits (50 percent contribution credits over 5 years) for land acquisition. CORTEX is intended to house companies graduating from the incubator and companies attracted to the region because of the proximity to the research institutions. To date, CORTEX has purchased several properties and, in December 2005, completed CORTEX I, a 170,000-square-foot office/wet-lab facility. In 2006, the St. Louis Board of Aldermen approved CORTEXs 175-acre redevelopment plan. In January 2006, Stereotaxis graduated from CETs incubation program and located in the new facility. The Midwest Research Institute (MRI), headquartered in Kansas City, recently established a 160-acre research farm near Butler. The new facility serves as an extension of MRIs field station in Grandview and supports the expansion in the research of new technologies in crops, farming practices, agriculture products, and the growing interest in improved nutrition and natural products. MRI is a key partner in the development of the proposed incubator in Kansas City under Governor Blunts LCDI.
Under development
Discovery Ridge is a new research park that is being planned to be located at the University of Missouri College of Agriculture, Food and Natural Resources South Farm. Discovery Ridge will focus on leveraging the University of Missouris resources in the life sciences, in the areas of agriculture, health, veterinary medicine, bioengineering, nutrition, biology, and environmental services. Also under development in the St. Louis region is the North Eight bioscience research park. Plans for the 8-acre development, adjacent to the Donald Danforth Plant Science Center, the Nidus Center, and Monsanto, include a three-phase development of multitenant buildings designed to support businesses graduating from incubators. A letter of intent for the purchase of the land has been signed with a national developer of similar facilities that has successfully completed like projects on the East and West Coasts.
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Both the Nidus Center and the CET, both in St. Louis, have CEO-in-residence programs.

The St. Louis Community College-Florissant Valley bioscience initiative is a program that was initiated to allow students to receive a specialization in biotechnology at the community-college level. The associates degree in applied science in biotechnology is providing a larger pool of qualified laboratory technicians and research assistants for Missouri companies and research universities. The community college has also cooperated with the University of Missouri-Columbia and Southeast Missouri State University to offer combined courses that lead to bachelor of science degrees in biotechnology. Webster University in St. Louis responds to the educational needs of the BioBelt region by offering a new emphasis area in biotechnology for undergraduate biology majors, a new and first-of-its-kind masters degree in patent agency, and a new masters degree in professional science management and leadership. Websters 4-year bachelor of science degree in biology, with an emphasis in biotechnology, nurtures undergraduate students interests and experiences in scientific research. The master of arts degree in patent agency engages individuals with engineering and science degrees with the growing area of intellectual property. The master of arts degree in professional science management and leadership prepares scientists and engineers who are already working in the industry to become effective managers and leaders. The Kansas City region was recently awarded a $15 million grant from the U.S. Department of Labor for career training in high-growth industries. The grant, OneKC WIREDWorkforce Innovation in Regional Economic Developmentwill focus on meeting the needs of the health care, biotechnology, and advanced manufacturing industries. WIRED funds will be used to support A systemic science reform initiative aimed at elementary schools; Biotechnology workforce development initiatives across the educational continuum, including elementary, secondary, and continuing adult education; Student internships and teacher externships in biotechnology, health care, and manufacturing; and Partnerships between biotechnology, health care, and manufacturing.

Kansas City Science Initiative (KCSI) works to implement a National Science Education Standardsbased science learning and teaching program that provides two key componentsongoing professional development for teachers and an inquiry-based, hands-on curriculumthat will allow students to learn science the way scientists do, by doing it, rather than just reading about it. Bayer Corporation has awarded two grants through its Making Science Make Sense program that will enable KCSI to expand into all 46 Kansas City Missouri School District elementary schools. KCALSI will house the reform programs headquarters and help galvanize support from other local corporations, foundations, and individuals.
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Pending Proposals
The Governors proposed LCDI would fund the following bioscience-related capital projects: CORTEX Accelerator Facility at Harris-Stowe State University: Total cost, $40 million; proposed FY 2007 allocation, $6.5 million Life Science Incubator at Missouri State University: Total cost, $14 million; proposed FY 2007 allocation, $7 million Center for Plant Biologics at Northwest Missouri State University: Total cost, $15.65 million; proposed FY 2007 allocation, $11.65 million Life Science Incubator at Southeast Missouri State University: Total cost, $18.6 million; proposed FY 2007 allocation, $5.0 million Health Sciences Research Center at University of Missouri-Columbia: Total cost, $150 million; proposed FY 2007 allocation, $87.5 million Life Science Incubator at University of Missouri-Columbia: Total cost, $8.7 million; proposed FY 2007 allocation $2.0 million Plant Science Research Center at University of Missouri-Columbia: Total cost, $8.7 million; proposed FY 2007 allocation, $2.0 million Transgenic Greenhouse at University of Missouri-Delta Center: Total cost, $2.0 million; proposed FY 2007 allocation, $2.0 million Life Science Incubator at UMKC: Total cost, $15 million; proposed FY 2007 appropriation, $12 million Health Sciences Center at UMKC: Total cost, $12.9 million; proposed FY 2007 appropriation, $3.0 million CET II at University of Missouri-St. Louis: Total cost, $45 million; proposed FY 2007 appropriation, $6.5 million. The Lewis and Clark Discovery Fund would also allocate $30 million to an endowment fund to be used by the Missouri Discovery Alliance. The funds would generate $1.5 million annually and would be used to attract and retain life science companies and commercialize existing research being conducted in the state. Another $20 million would be used to create 40 endowed professorships for Missouri research scientists. The initiative also proposes to create a $10 million annual tax credit program to incent private investment into qualified Missouri technology companies approved and administered by the Discovery Alliance and the Missouri DED. The first investors to invest $500,000 in a qualified Missouri technology company may receive a 30 percent or 40 percent tax credit if the company is located in a rural or distressed area. The program also allows a tax credit guarantee for investments of more than $500,000 and up to $5 million on the net loss of his/her investment within 5 years of investing. This tax credit is also at 30 percent or 40 percent if the company is located in a rural or distressed area. The legislation is currently being reviewed in the Missouri General Assembly.
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Contacts
Mike Mills Deputy Director Missouri Department of Economic Development P.O. Box 1167 Jefferson City, MO 65102 (573) 751-3946 mike.mills@ded.mo.gov
The Missouri Biotechnology Association is a nonprofit trade association dedicated to development and growth of the Missouri biotechnology and biomedical industry. By supporting basic research in the life sciences, development of a highly educated work force, and providing a friendly environment for attracting and founding new business, the Missouri Biotechnology Association seeks to make a significant impact on Missouri economic development. Mr. Kelly Gillespie Executive Director Missouri Biotechnology Association 428 East Capitol, P.O. Box 148 Jefferson City, MO 65102-0148 (573) 761-7600 gillespie@mobio.org
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Missouri 96 15.7% 3,853 -7.6% 3.7% 1.81 $57,133 6.37 24,556 82 -2.4% 5,240 -0.4% 1.7% 0.83 $63,506 5.62 29,462 261 -8.7% 4,717 -1.2% 1.1% 0.57 $40,364 2.70 12,714 342 15.7% 9,676 38.9% 2.3% 1.15 $78,858 2.58 24,918 158,354 3.0% 2,214,362 -1.3% 2.0% n.a. $35,035
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11
Bioscience Occupations in the Missouri Workforce, 2004
9,000 8,000 Number of Workers in Occupation 7,000 6,000 5,000 4,000 3,000 2,750 2,000 210 1,000 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 120 8,110
Bioscience-Related Degrees from Missouri Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 200 400 600 800 1,000 1,200 1,400 1,600 1,800
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in Missouri, FY 2003
Medical Sciences
$306,947
Biological Sciences
$258,376
$66,413
Other Life Sciences
$26,561
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Missouri University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $806,907 $659,886 81.8% $115.68 53.3% $496,674 $87.07 35.4% 2,503 11,190
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 15 11
12
13 19
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Montana recognizes interest in agricultural, environmental, and human applications of the biosciences through a grant program operated by the Montana Board of Research and Commercialization Technology. Since the last BIO report, Montana has created the Montana BioScience Alliance; opened two wet-labcapable incubators; and moved toward a venture-capital program supported by the Montana Associated Technology Roundtables, a multisector technology council. The BioScience Alliance has received a $50,000 award from the U.S. Economic Development Administration, matched with $50,000 from the state, to support various activities related to developing a bioscience cluster pursuant to a 2003 roadmap.

Montana State University has opened a 40,000-square-foot Molecular Biosciences Building and has broken ground on a 73,000-square-foot structure for chemistry and biochemistry research. The University of Montana has broken ground on a 59,000-square-foot, $14 million research addition to the College of Health Professions and Biological Sciences. It has also received $12 million for a new Bio-Science Building.

The Montana Board of Research and Commercialization Technology, a unit of the Department of Commerce, offers matching grants or loans to encourage university/industry collaborations with a clear path to commercialization. The program functions over multiple disciplines including the biosciences. Projects must be matched at least 1:4, but the average match has been 1.3:1. The typical grant is $100,000 per year for up to 2 years, with a range of $20,000 to $500,000. As of October 2005, the cumulative total awarded was $22.3 million, and the current year program is funded at $2.6 million. Private laboratories or research centers are defined as eligible applicants, making them eligible for the same grants and loans as college- or university-based centers.
MONTANA

The TechRanch incubator (see below) also operates as a commercialization center assisting entrepreneurs who may not be tenants.

TechRanch started and manages Bridger Private Capital Network, which entertains presentations from bioscience companies.
Venture capital
Montana has passed (SB 133 of 2005) but has not yet provided administrative funding for the Capital Formation Act, a $60 million contingent tax creditbacked fund of funds intended to attract out-of-state venture-capital investment partnerships.

Incubators
Montana has two bioscience incubators: TechRanch, a 10,000-square-foot facility in Bozeman at the Advanced Technology Park (below) Montana Technology Enterprise Center, a 32,000-square-foot former food warehouse near the campus of the University of Montana at Missoula.

Montana State Universitys Advanced Technology Park in Bozeman, currently housing 43 companies in 14 buildings over 74 acres, includes both academic and industrial bioscience tenants. Ravalli County, home to the National Institutes of Health (NIH)/National Institute of Allergy and Infectious Diseases (NIAID) Rocky Mountain Laboratories in Hamilton, has begun planning a research park and incubator that could serve spin-outs from the Laboratories, in the pattern of Corixa, which was recently acquired by SmithKline.
MONTANA
Contacts
Dave Desch Executive Director, Montana Board of Research and Commercialization Technology P.O. Box 2000501 Helena, MT 59620-0501 (406) 841-2760 ddesch@mt.gov
The Montana BioScience Alliance serves as a hub for Montanas biotechnology companies, entrepreneurs, laboratories, hospitals, clinics, and universities to commercialize, grow, and sustain globally competitive bioscience companies. Sharon Peterson Executive Director, Montana BioScience Alliance P.O. Box 1773 Billings, MT 59103 (406) 896-5876 speterson@msubillings.edu
MONTANA
Montana 15 3.6% 156 -9.8% 0.1% 0.50 $38,325 5.12 800 7 -12.5% 83 8.0% 0.0% 0.09 $33,080 2.85 237 69 9.0% 370 15.9% 0.1% 0.30 $32,482 1.93 715 78 20.5% 407 13.6% 0.1% 0.33 $42,051 1.93 786 39,600 3.7% 323,817 5.6% 0.3% n.a. $26,608
MONTANA
Bioscience Occupations in the Montana Workforce, 2004
1,200 1,070
1,000
800 660 600
400
200 130 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians
Bioscience-Related Degrees from Montana Institutions, AY 2004
Biological Sciences

MONTANA
Total Bioscience R&D Expenditures at Academic Institutions in Montana, FY 2003
Medical Sciences
$9,731
Biological Sciences
$24,008
$46,236
Other Life Sciences
$2,246
$-
$5,000
$10,000
$15,000 $20,000 $25,000
$30,000 $35,000
$40,000
$45,000 $50,000
Montana University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $141,220 $85,277 60.4% $92.93 58.1% $34,052 $37.11 140.5% 445 1,860
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 42 40
45
46 44
MONTANA

The public/private partnerships serving the metropolitan area that includes Lincoln and Omaha have actively targeted the biosciences as an area of growth for the region. Since the last BIO report, the Nebraska Advantage initiative overhauled state tax incentives administered by the Department of Economic Development, creating a refundable R&D tax credit and other incentives that focus more on start-up and early-stage business entities. In 2005, leaders from the private sector, state and local governments, and the University of Nebraska system formed the Bio Nebraska Life Sciences Association to coordinate existing initiatives and advance development of the sector.

The University of NebraskaLincoln (UNL) is now constructing a cGMP Facility as the final phase of the privately funded Othmer Chemical Engineering Building, which also includes a Biological Process Development Facility. The total cost of the two add-on facilities is $9.5 million, with $8 million arranged by the Congressional Delegation. UNL also has begun fund-raising for a $15 million facility to house the Nebraska Center for Virology, begun through a series of NIH grants that link UNL to the University of Nebraska Medical Center and Creighton University. The University of Nebraska Medical Center (UNMC), located in Omaha, fully occupied the 289,000-square-foot, $77 million Durham Research Center, which was also funded by a mixture of private donations and federal funds. UNMC is planning a second research center and an additional cGMP facility.
Research programs
Since the last BIO report, UNMC received its largest-ever single grant, a $17 million award from the NIH for building biomedical research infrastructure. Biosciences and biosccurity are among eight program areas supported by the Nebraska Research Initiative, an academic seed fund initiative funded through the state Board of Regents. Projects are at least $50,000 and a maximum of 2 years.
NEBRASKA

UNMCs Technology Advancement Group funds precommercialization research in support of UNeMeD, the licensing subsidiary of UNMC.

Among the incentives in the Nebraska Advantage Act, which took effect this year, is a refundable 3 percent R&D tax credit. Invest Nebraska Corporation, a nonprofit in Lincoln funded by $500,000 in state appropriations and private donations, serves as the statewide coordinator of mentoring and education for angel investors and companies seeking early-stage financing. The Midlands Venture Forum in Omaha sponsors monthly meetings at which entrepreneurs can present business plans to angel investors.

Incubators
The Technology Development Center incubator at UNL Tech Park is 22,000 square feet, with BSL-2 wet-lab capacity. The Tech Park is in design phase for a new $2 million wet-lab wing that would bring the Technology Development Center to 44,000 square feet.

The UNL Tech Park, currently six buildings on 130 acres, includes a 30,800-square-foot multitenant building (One Technology Place) that can be wet-lab equipped and currently includes five bioscience firms including a graduate of the Technology Development Center incubator.
Contacts
Darrell Ullman Development Consultant, Nebraska Department of Economic Development 301 Centennial Mall South Lincoln, NE 68509 (402) 471-3786 darrell.ullman@ded.ne.gov
NEBRASKA
The Bio Nebraska Life Sciences Association was formed in 2005 to coordinate and expand life sciences in the state. Julie Karavas President, Bio Nebraska Life Sciences Association 1320 Lincoln Mall, Suite 201 Lincoln, NE 68508 (402) 742-7427 jkaravas@bionebraska.com
NEBRASKA
Nebraska 45 13.0% 1,741 11.5% 1.7% 2.48 $47,403 6.01 10,461 23 -8.0% 2,005 17.5% 0.6% 0.96 $51,766 4.60 9,223 77 2.9% 3,894 -8.7% 0.9% 1.42 $39,365 2.46 9,565 99 54.2% 1,862 -6.4% 0.5% 0.67 $55,402 2.06 3,840 51,749 4.7% 730,421 -0.7% 0.7% n.a. $31,053
NEBRASKA
Bioscience Occupations in the Nebraska Workforce, 2004
3,500 3,160
2,500
2,000
1,500 1,070 790 500 240
1,000
Bioscience-Related Degrees from Nebraska Institutions, AY 2004
Biological Sciences

50 100 150 200 250 300 350 400 450 500
Number of Degrees
NEBRASKA
Total Bioscience R&D Expenditures at Academic Institutions in Nebraska, FY 2003
Medical Sciences
$52,420
Biological Sciences
$92,405
$48,085
Other Life Sciences
$9,476
$-
$10,000
$20,000 $30,000
$40,000 $50,000 $60,000
$70,000 $80,000 $90,000 $100,000
Nebraska University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $300,540 $204,880 68.2% $117.80 45.5% $74,135 $42.62 79.3% 1,054 5,260
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 34 30
37
36 33
NEBRASKA

The biosciences are among several sectors targeted for development in Nevada by the Center for Entrepreneurship and Technologya technology council attached to the Nevada Commission on Economic Development. Since the last BIO report, significant new capital resources and some start-up funds were provided for bioscience projects in both Reno and Las Vegas.

Recent state investments in facilities The Capital Improvement Bill of 2005 (SB 524) included the following: $5.4 million toward a University of Nevada at Reno (UNR) Biotechnology and Genomics Research Facility in Reno. $10 million toward construction costs of a new building to be operated in partnership between UNR and the independent Nevada Cancer Institute, which recently opened a privately financed 142,000-square-foot, $54 million facility. The new joint facility is also authorized to use full recovery of indirect costs associated with grants made to the joint program. An additional $15.8 million toward the University of Nevada at Las Vegas (UNLV) Science, Engineering and Technology Building. There has also been state support for buildout of the new UNLV Shadow Lane Campus, which gives UNLV presence at the 214-acre Las Vegas Medical District, home to the UNR-affiliated University Medical Center, the county health department, and other health services. Shadow Lane will include research facilities for the School of Dental Medicine and a new UNLV Biotechnology Center.
Research programs
SB 524 also included $10.15 million for start-up research expenditures at the cancer institute. Separately the state provided $800,000 for start-up expenditures at the Lou Ruvo Center for Alzheimers Care and Research, which opened a privately donated $35 million building at the Union Park downtown redevelopment area.
NEVADA

All three elements of the university system (UNR, UNLV, and the Desert Research Institute [DRI]) have access to state appropriations for an internal Applied Research Initiative that makes matching grants up to $50,000 for 1-year projects continent on matching by federal or industrial sources.

Incubators
Dandini Research Park (see below) is conducting a feasibility study for a mixed-use, wet-lab incubator that would target the biosciences, including agricultural and environmental uses.

Under development
Dandini Research Park is a 470-acre park being developed by the university-affiliated DRI at its secondary campus in Reno. Harry Reid UNLV Technology Park is planned for 115 acres deeded to the university by the federal government in the southwest quadrant of Las Vegas.
Contact
David Archer Director, Center for Entrepreneurship and Technology Nevada Commission on Economic Development 108 East Proctor Street Carson City, NV 89701-4240 (775) 687-4325 darcher@bizopp.state.nv.us
NEVADA
Nevada 7 20.4% 93 33.8% 0.1% 0.10 $59,376 3.86 359 20 17.6% 408 19.0% 0.1% 0.14 $40,633 3.01 1,229 109 5.9% 1,138 -24.6% 0.3% 0.30 $42,024 2.16 2,462 188 29.9% 3,095 18.1% 0.7% 0.81 $52,841 2.08 6,432 62,499 25.7% 1,010,256 9.7% 0.9% n.a. $36,110
NEVADA
Bioscience Occupations in the Nevada Workforce, 2004
1,800 1,600 Number of Workers in Occupation 1,400 1,200 1,000 800 600 400 200 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 390 1,700
Bioscience-Related Degrees from Nevada Institutions, AY 2004
Biological Sciences
Number of Degrees
NEVADA
Total Bioscience R&D Expenditures at Academic Institutions in Nevada, FY 2003
Medical Sciences
$11,813
Biological Sciences
$25,283
$14,325
Other Life Sciences
$382
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Nevada University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $154,515 $51,803 33.5% $23.11 144.3% $20,576 $9.18 35.2% 364 2,090
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 41 46
47
48 41
NEVADA

In 2002, the Department of Resources and Economic Development (DRED) funded a feasibility study that assessed the need for facilities and technology parks to support the development of New Hampshires technology industries, emphasizing biotechnology. The study recommended developing two hightechnology business incubator facilities that would build on the expertise of the states colleges and universities. The first incubator, being developed in partnership with Dartmouth University, is under construction and expected to open in 2006. New Hampshire became a member state in the National Science Foundations Experimental Program to Stimulate Competitive Research (EPSCoR) on August 15, 2004. The EPSCoR committee cites four enabling technology clusters as high priority and high potential for New Hampshire: Nanotech/Materials/Precision Engineering/Robotics IT/Bioinformatics/Medical Technologies Optics/Sensors/Environmental Technologies Computational Tools/Geospatial Analysis.

The incubator being developed at Dartmouth College will also house R&D functions (see below).

In 1991 the New Hampshire Industrial Research Center (NHIRC) was created by the New Hampshire Legislature for the purpose of providing a mechanism to promote applied and basic scientific, engineering, and associated marketing research and technological transfer to support the New Hampshire industrial and business community. This center fosters cooperative industry and university research partnerships to increase the pace of innovative technology development. The NHIRC grants Innovation Investment competitive contract awards and provides other developmental support to New Hampshire business. These grant awards allow
NEW HAMPSHIRE 1
researchers at the University of New Hampshire, Dartmouth, and Dartmouth Medical School to conduct applied research or provide engineering and marketing services for New Hampshire companies. To be eligible to receive grant-funded services, businesses and industries must have an ongoing business within the state or an announced intention to locate a business in the state. The NHIRC may provide services other than grants including, but not limited to, training regarding the capture and protection of intellectual property, strategic thinking and strategy development, and writing better proposals. Companies may apply for up to $25,000 of state funding to match company funds at least dollar for dollar. Companies may receive more than one award. A 5 percent fee on the total project is charged to help cover administrative expenses. The NHIRC is funded by the State of New Hampshire through its DRED at an annual level of $500,000.

Both Dartmouth and the University of New Hampshire have offices whose mission is to promote the transfer of research into commercial products.

The Dartmouth Entrepreneurial Network (DEN) will provide business development services to companies that locate in the bioscience incubator that is under development with state support. DEN offers a range of services to entrepreneurs and start-up companies, including strategic advising, mentoring, and providing networking opportunities, as well as providing infrastructure and office space.

Venture capital
The DEN seeks to link entrepreneurs to sources of venture capital. Also, the state has begun organizing diversified angel investors into a statewide referral network.

Incubators
Under development
Dartmouth College donated land to help build the Dartmouth Regional Technology Center in Lebanon. The estimated cost of the incubator is $4 million. The incubator was awarded $2.6 million by the U.S. Department of Commerces Economic Development Administration in January 2004. The New Hampshire Community Development Finance Authority is providing $1 million in tax credits. The facility will have a biotechnology and high-technology machining infrastructure. Construction of the Dartmouth Regional Technology Center commenced in August 2005 and is progressing toward an expected second quarter 2006 opening. The business incubator facility will have 34,000 square feet, including laboratory, manufacturing, and office space. The space in the building is already more than twothirds committed.
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The New Hampshire Community Technical Colleges (NHCTCs) Industrial Biotechnology Education and Training program, located at NHCTC at Stratham/Pease, offers an entry-level biotechnology education and training program to support the biomanufacturing industry. With financial support from a National Science Foundation (NSF) Advanced Technology Program grant, matching funds from the state, and a federal earmark through a Veterans Affairs/U.S. Department of Housing and Urban Development 2002 appropriation, a fully equipped bench-top biotechnology research, development, and manufacturing laboratory was built at the NHCTC-Stratham/Pease Center. This laboratory provides students, college and high school faculty, and business professionals experiential instruction in a state-ofthe-art biotechnology laboratory. At NHCTCs Biotechnology Program, students can receive a 2-year biotechnology associate in science degree, a biotechnology diploma, or a biotechnology certificate. The New Hampshire Biotechnology Education and Training (NH BET) Center at NHCTC was recently awarded three federal grants to build the education and training infrastructure for biotechnology and biomanufacturing education and training locally, statewide, and throughout the Northeast region. The first grant was a High Growth Job Initiative Department of Labor grant of $775,000 to create the Center of Expertise in Biomanufacturing, one of five Centers of Expertise forming the National Center for the Biotechnology Workforce. This grant is helping build capacity by facilitating hiring of staff and purchase of biomanufacturing equipment. The grant also supports an apprenticeship program for high school students entering the associate of science in biotechnology program and the development of short courses for incumbent workers. Another Department of Labor grant, a Community Based grant entitled, bioCONNECTnh was awarded to NHCTC's Biotechnology enterprise in November 2005. This 3-year grant supports the development of the states biotechnology infrastructure, adding a focus on discovery research with outreach to New Hampshires high schools and including $750,000 for companies to access for incumbent worker training. Finally, an NSF Advanced Technological Education regional center grant was awarded in August 2005. This $3 million, 4-year renewable grant entitled, The Northeast Biomanufacturing Center and Collaborative: Building a Sustainable Infrastructure for Biomanufacturing Jobs and Education, provides funding to six Hubs in Northeast region states to work with industry to develop curricula, instructional materials, and other resources to support education and training for biomanufacturing jobs and provides funding for faculty and teacher development workshops at the Hubs and an annual Biomanufacturing Conference at the NH BET Center in the summer. Plymouth State College offers a bachelor of science degree in biotechnology.

The University of New Hampshires Advancing Science Program encourages hands-on learning for high school science students in molecular biology, spectroscopy, and molecular modeling. To date, more than 2,000 students have developed their problem-solving skills and team communication skills to solve current problems posed by their teachers. The goal of the program is to improve teachers knowledge of modern analytical methods and tools used in research and industrial laboratories. Participants develop
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strategies for engaging students in experimental design utilizing current scientific applications. Students use these instruments and methods in their own high school classrooms. NHCTC biotechnology college-level courses are taught at the states high schools through NHCTCs Project Running Start Program. NHCTC college courses offered at the states high schools include anatomy and physiology, biotechnology, biology, and medical terminology. Milford High Schools Applied Technology Center, Nashua High School, and the Seacoast School of Technology offer 3-year courses in biotechnology that cover a wide range of biotechnology topics. Under these programs, high school students complete Biotechnology I and receive four credits from NHCTC in microbiology. Students who complete Biotechnology II receive four credits in college-level biology, and those who complete Biotechnology III receive three credits toward a NHCTC-level internship. The Eastern Region Partnership, Inc., a member of the New Hampshire Department of Educations Tech Prep consortium, created the Biotechnology Career Pathway for middle and high school professionals and students to expose middle and high school science classes to biotechnological concepts.
Pending Proposals
Legislation is proposed to adopt a state R&D tax credit and is supported by the current administration. The legislation would allow companies to take an R&D tax credit equal to 15 percent of the federal R&D tax credit for R&D work conducted in New Hampshire. Companies could apply the R&D tax credit against New Hampshires Business Profits Tax. New Hampshire had an R&D tax credit in the 1990s, but it was repealed as part of a larger overhaul of the New Hampshire business tax structure.
Contacts
Stuart Arnett Director, Economic Development New Hampshire Resources and Economic Development Department 172 Pembroke Road P.O. Box 1856 Concord, NH 03302-1856 (603) 271-2341 sarnett@nheconomy.com
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The New Hampshire Biotechnology Councils mission is to develop the biotechnology, medical device, diagnostics, and life science industry within the state by providing information and assistance to companies in these sectors, from start-ups to those planning to relocate in New Hampshire; increase the education level within and outside of the industry by supporting the creation of new initiatives for basic knowledge as well as job training activities for companies; represent the industry to government and the local public; and serve as a local clearinghouse resource for council members. Paula Newton, President New Hampshire Biotechnology Council P.O. Box 279 Greenland, NH 03840-0279 (603) 436-2552 president@nhbiotech.com
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New Hampshire 2 -51.6% 60 -68.7% 0.1% 0.12 $80,646 5.57 334 12 50.0% 671 -1.2% 0.2% 0.44 $54,366 3.66 2,454 95 16.6% 3,076 6.2% 0.7% 1.54 $46,774 2.51 7,726 104 -2.0% 1,041 -2.4% 0.3% 0.52 $50,146 1.99 2,071 45,060 2.0% 529,349 -0.3% 0.5% n.a. 39,545
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Bioscience Occupations in the New Hampshire Workforce, 2004
900 860 800 Number of Workers in Occupation 700 600 500 400 300 200 100 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 290
Bioscience-Related Degrees from New Hampshire Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 50 100 150 200 250
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in New Hampshire, FY 2003
Medical Sciences
$98,515
Biological Sciences
$16,093
$11,482
Other Life Sciences
$1,477
$-
$10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000
New Hampshire University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $252,210 $127,567 50.6% $99.07 92.4% $99,352 $77.16 73.6% 574 1,150
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 37 36
33
42 49
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Since the last BIO report, New Jersey became the first state to provide state funding for research on human embryonic stem cells when the New Jersey Commission on Science and Technology (NJCST) issued $5 million in grants to 17 teams at research institutions across the state. These grants were preliminary to establishing the New Jersey Stem Cell Institute, created by memorandum of understanding between the University of Medicine and Dentistry of New Jersey (UMDNJ) and Rutgers University. The New Jersey Economic Development Authority (NJEDA) inaugurated a series of programs aimed at technology-based companies under the Techniuum brand, with preferred access for companies in three Innovation Zones surrounding the states public research universities. As part of the Techniuum initiative, NJEDA also expanded its investment in privately managed venture funds that target the life sciences and grew its tax credit sale program. Governor Jon Corzine has called for creation of an Edison Innovation Fund (see below under Pending Proposals).

The state invested $1 million to create a New Jersey Stem Cell Research Bank billed as the nations first public cord and placental blood bank. Facilities were created at the Coriell Institute of Medical Research in Camden and Community Blood Services. The most recent bioscience facility to receive public financing was the Life Sciences Building at Rutgers in Piscataway, a 75,000-square foot, $28 million building that will house the genetics institute and biomaterials center. The UMDNJ has also announced plans for a new 160,000-square-foot, $136 million Biomedical Research Building in Camden near Cooper Hospital.
Research programs
During 2005 the NJCST allocated $5 million to 17 research stem-cell projects across the five public universities, the Coriell Institute, and one private company. The average project size was just under $300,000. Three funded projects involved embryonic stem cells. The Stem Cell Institute is a collaborative established by memorandum of understanding between the UMDNJ and Rutgers, the state university. Long-term funding strategies will be considered by the current Legislature.
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During 2005 the NJCST made pools of funding available to each of the five major research universities (ranging from $100,000 to $300,000) to mount their own internal competitions for precommercialization research funding. The NJCST has announced its intention to provide Entrepreneurial Partnering grants up to $500,000 directly to companies partnering with New Jersey universities to commercialize intellectual property.

Under the Innovation Zone program, the NJEDA gives preference on all its various incentive programs to firms that agree to locate in zones surrounding the public research universities, principally in Newark, the Greater New Brunswick area, and Camden. This specifically includes all the grant and loan programs in Techniuum, as well as the states existing business incentives. The long-term plan includes creation of actual physical facilities for commercialization and business acceleration in each of the zones. Under the Technology Business Tax Certificate Program, New Jersey continues to allow firms that cannot use NOL or R&D tax credits because they are not yet profitable to sell these to other taxpayers for at least 75 percent of their value, subject to approval by the NJEDA. Since the last BIO report, the cap for this program was raised to $60 million annually.

Seed/Early Stage loans from Techniuum provide up to $100,000 at 4 to 8 percent to help early-stage businesses underwrite proof-of-concept and commercialization research, not necessarily university linked. Emergent/Growth Stage loans provide up to $1 million to those that have met the proof-of-concept milestone, requiring a 1:1 match. Participants in both programs are provided access to mentoring services from a private consultant. The Techniuum Angel Guarantee program guarantees up to one-third the investments made by the Jumpstart NJ Angel Investor Network in early-stage companies across all fields including the biosciences. The Waterfront Technology Center at Camden (see below under Incubators) is equipped with the Camden Technology Fund, a $1 million low-interest revolving loan fund that will make loans up to $100,000. NJCST continues to offer $50,000 bridge grants to support companies between Phases I and II of the federal SBIR program. In 2005, 12 such grants were issued.
Venture capital
The following venture capital funds have investments from NJEDA as a limited partner and will consider bioscience deals:
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Garden State Life Sciences Venture Fund, a $40 million fund developed jointly with the Biotechnology Council of New Jersey, privately managed by Quaker BioVentures. The NJEDA investment was $10 million. New Jersey Technology Council Venture Fund, an $85 million fund. Edison Venture Fund, a family of funds with a broad mid-Atlantic focus. The most recent NJEDA investment was $2 million. NextStage Capital, a fund now seeking to raise $40 million of which $10 million would be targeted at early-stage companies in New Jersey. The NJEDA investment was $400,000, required to be matched 2:1 by nonstate investors.

Incubators
At least one business incubator now exists in each of the Innovation Zones: New Jersey Institute of Technology (NJIT) Enterprise Development Center serves Newark. Buildings I and III are wet-lab equipped (50,000 and 80,000 square feet, respectively), and III is part of the University Heights Science Park (see below). Commercialization Center for Innovative Technologies is a 50,000-square-foot incubator within NJEDAs Technology Centre of New Jersey (see below). Based in North Brunswick, it serves the Rutgers/UMDNJ complex in New Brunswick and Piscataway. Rutgers Technology Incubator will move into NJEDAs new Waterfront Technology Center, a 100,000-square-foot, five-story, wet-labcapable structure not far from the Rutgers-Camden campus.

Technology Centre of New Jersey is a research park set on a 50-acre former Johnson & Johnson campus acquired by the state. Developed by NJEDA in partnership with the AFL-CIO Building Investment Trust, the Technology Centre now has 400,000 square feet over several buildings, predominantly in bioscience use. University Heights Science Park in Newark is a collaboration of NJIT, UMDNJ, and Essex Community College. Its anchor tenant is the International Center for Public Health, a 160,000-square-foot, $66 million structure housing several related activities in infectious disease, microbiology, and genetics, also developed by NJEDA. Rowan University in Glassboro also plans a South Jersey Technology Park, and NJEDA recently completed the Waterfront Technology Center in Camden, the first of six buildings planned for the zone.
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Several of the states largest pharmaceutical companies partner with Rutgers Graduate School of Management to sponsor an MBA in pharmaceutical management. NJCST offers a $55,000 Technology Fellowship that allows postdoctoral students in all fields, including the biosciences, to spend time with early-stage companies. In 2005, 14 company/postdoc pairs were selected for funding.

The HealthCare Institute of New Jersey offers day-long tours of pharmaceutical and biotechnology companies for high school students. The New Jersey Association for Biomedical Research offers a Summer Biomedical Research Fellowship in which students visit a different research facility each day.
Pending Proposals
Governor Corzines proposed Edison Innovation Fund would focus on strategic investments to bolster R&D-based business growth. The program is likely to include both university centers of excellence and investment components.
Contacts
Virginia S. Bauer Secretary/CEO, New Jersey Commerce and Economic Growth and Tourism Commission 20 West State Street Trenton, NJ 08625 (609) 292-2444 virginia.bauer@commerce.state.nj.us Caren Franzini CEO, New Jersey Economic Development Authority 36 West State Street, P.O. Box 990 Trenton, NJ 08625-0990 (609) 777-4471 cfranzini@njeda.com Sherrie Preische, Ph.D. Executive Director, New Jersey Commission on Science and Technology 28 West State Street Trenton, NJ 08625 (609) 984-1671 njcst@scitech.state.nj.us
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The mission of the Biotechnology Council of New Jersey is to: formulate and advocate policy positions to elected officials and regulators, acquire and coordinate resources and provide services to members regarding issues critical to building successful biotechnology enterprises, and enhance awareness and appreciation of New Jerseys biotechnology industry. Debbie Hart President, Biotechnology Council of New Jersey 1 AAA Drive, Suite 102 Trenton, NJ 08691 (609) 890-3185 dhart@biotechnj.org
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New Jersey 57 -3.6% 3,869 37.9% 3.7% 1.23 $84,007 7.48 28,930 218 7.4% 39,683 4.6% 12.7% 4.22 $99,521 6.81 270,424 533 4.7% 15,801 0.9% 3.8% 1.28 $72,511 3.11 49,079 824 17.0% 23,093 -6.0% 5.6% 1.86 $89,177 2.41 55,597 260,278 3.3% 3,278,011 -0.8% 3.0% n.a. $47,608
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Bioscience Occupations in the New Jersey Workforce, 2004
12,000
10,000 Number of Workers in Occupation 9,010 8,000
10,230
6,000
4,000
2,000
380
1,670
Bioscience-Related Degrees from New Jersey Institutions, AY 2004
Biological Sciences

200 400 600 800 1,000 1,200 1,400 1,600
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in New Jersey, FY 2003
Medical Sciences
$137,153
Biological Sciences
$171,937
$37,725
Other Life Sciences
$16,514
$-
$20,000
$40,000
$60,000
$80,000
$100,000 $120,000 $140,000 $160,000 $180,000
New Jersey University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $747,481 $367,262 49.1% $42.52 50.1% $274,114 $31.73 47.7% 2,309 21,290
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 17 22
22
16 8
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In August 2005, the State of New Mexicos BioTeP Initiative Task Force issued a final report outlining a strategy to grow the states convergent bioscience sector. The strategy was spearheaded by the Department of Economic Developments Office of Science and Technology with input from various public and private enterprises that make up the bioscience community in New Mexico. Governor Bill Richardson signed a proclamation recognizing the role that the biosciences have and will continue to play in the states future economy. The New Mexico Office of Science and Technology recently joined forces with New Mexico Technology Research Corridor to leverage resources and minimize duplication of efforts. The New Mexico Biotechnology and Biomedical Association (NMBBA) launched a new Web site in 2005 to improve communications and coordination on bioscience-related activities in the state and elected a new board in 2006. NMBBA also hosted a regulatory affairs workshop in December, which provided insight into key Food and Drug Administration (FDA) issues such as the importance of developing FDAspecific design controls for medical devices, clinical trial preparation and processes, FDA enforcement activities specific to biomedical and biotechnology companies, and related aspects of regulatory law.

Pete and Nancy Domenici Hall, a 42,300-square-foot expansion to the Clinical and Magnetic Resonance Research Center will house the MIND (Mental Illness and Neuroscience Discovery) Institute, the University of New Mexico (UNM) Mind Imaging Center, and the UNM BRAIN Center. The facility, which was completed in June 2005, brings together leading-edge neuro-imaging equipment and researchers, establishing a strong platform for disease-oriented, translational research. The UNM plans to break ground in September 2006 on a $50 million Cancer Research and Treatment Center. The designation as a National Cancer Institute center will also make it eligible for $36 million in federal grants. The center will open by 2008 and will provide New Mexicans with state-of-the-art cancer treatments on par with the leading cancer centers across the United States. Funds originated from an increase in the cigarette tax in 2003.
Research programs
The New Mexico Tobacco Revenue Oversight Committee has allocated a portion of the states tobacco settlement revenues to bioscience research programs at the UNM Health Sciences Center (HSC). These
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funds have been used for existing health care research programs by UNM HSC to translate research findings into effective clinical care programs, disseminate scholarly work, and recruit and hire scientists and support personnel.

The Southwest Biotechnology and Informatics Center (SWBIC) at New Mexico State University (NMSU), funded initially by the U.S. Army Research Office, provides a single point of access to a store of widely distributed biotechnology information as well as developing new educational and bioinformatics services. SWBIC encourages information sharing among researchers in academia, industry, government, and the Department of Defense.

New Mexico Technology Research Collaborative (TRC) is composed of a variety of organizations across the various regions in New Mexico. Members range from research universities and the State of New Mexico Department of Economic Development to institutes, national laboratories, and technology accelerators. The mission of TRC is to collaborate in the acceleration of new technology business formations and expansions that will benefit research programs of TRC members, entrepreneurs, industry, and investors. By promoting interaction among its members, TRC serves as a resource for both public and private sector entities interested in new job creation in the technology sector. The Science and Technology Corporation (STC) at UNM is a nonprofit corporation formed in 1995 by the Regents of UNM and owned entirely by UNM to protect and transfer its faculty inventions to the commercial marketplace. STC licenses technology developed at UNM, including optics, microfluidics, and high-performance materials, as well as therapeutics, diagnostics, medical devices, and drug discovery tools. Additionally, STC manages all patenting, patent prosecution, and other intellectual property (IP) protection of UNM IP. Arrowhead Center, Inc. is a nonprofit corporation created to commercialize IP at NMSU. The Arrowhead Center helps foster economic growth by integrating academic, research, and business talents in the business development process. The center also works to help recruit and retain faculty talent. Organizers hope the activities of the center will help create jobs, enhance student education, recruit and retain faculty, and attract and deploy venture capital to and in New Mexico.

Technology Ventures Corporation (TVC), a nonprofit organization sponsored by Lockheed Martin since 1993 as part of its contract with the Department of Energy for management of Sandia National Laboratories, identifies technologies with commercial potential, coordinates the development of business and management capabilities, and seeks sources of capital investment for businesses. Since its founding, TVC has assisted in securing $627 million in capital investments and creating 7,824 jobs and 78 businesses. In addition to its offices in New Mexico, TVC has offices in California and Nevada.
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Lobo VentureLabs (LVL), a program of the STC, links companies with technologies in various stages of development to the resources necessary to commercialize these technologies. LVL provides a full array of commercialization services. Next Generation Economy (NextGen) is a nonprofit organization that provides specific programs for entrepreneurs in several key clusters: entrepreneurial mentoring programs, professional services and capital resource mapping, business research/development services, and infrastructure support and talent connecting. Convergent bioscience is one of six economic clusters targeted for development by NextGen.

New Mexico Private Investors (NMPI) is an angel investor network whose members invest in earlystage technology and life science companies in New Mexico. NMPI members typically invest $250,000 to $1 million and will participate with venture capital firms or corporate strategic partners at a premoney valuation of less than $5 million. NMPI provides seed capital, business plan development, staff recruitment and mentoring, marketing and financial advice, and help raising the next round of capital. Other funds that provide seed capital in which New Mexico has invested include the following: Mesa Capital Partners was established in 2004 as an early-stage private-equity firm focusing on high-potential small businesses in industries and geographic areas underserved by other capital providers. Verge is a seed and pre-seed venture capital fund, investing in promising technology opportunities in New Mexico. Village Ventures is an early-stage venture-capital firm that invests in entrepreneurs building technology and life science companies in emerging U.S. technology centers.
Venture capital
New Mexico has actively tried to improve the availability of venture capital through the creation of the New Mexico Venture Capital Investment Program at the New Mexico State Investment Council (NMSIC). The program allows the NMSIC to be a limited investor in venture capital funds provided the fund has an office in the state and assists emerging New Mexico companies. In 2003, the New Mexico State Legislature amended the programs statutory language to allow the NMSIC to make direct equity investments in New Mexico companies as well. The NMSICs structure is fairly young, and its efforts have helped create a vibrant atmosphere of entrepreneurship and investment in New Mexico. With the strong support of Governor Richardson, this program has committed nearly $200 million to quality New Mexico companies and funds in the past 3 years. Notably in 2005 alone, more than $140 million in venture capital was invested in New Mexico technology companies. Each New Mexico venture-capital fund must be a limited partnership or corporation organized and operating in the United States and maintaining its principal active office in New Mexico. Not more than $15 million may be invested in any one New Mexico venture-capital fund, and such investments cannot exceed 50 percent of the committed capital of that fund. The funds may be invested in entrepreneurial businesses with the following conditions: the company must have an experienced management team, a rapidly growing and potentially large market, and a convincing proprietary or competitive advantage
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where there are barriers to entry for other businesses and opportunity for significant capital appreciation for investors over a 5- to 7-year period. The total capital under investment in 23 venture capital funds as of 2005 is $235 million, with the total amounts available now for investment at $135+ million. The total amount committed in a typical year is $20 million to $40 million. The New Mexico Venture Capital Investment Program has invested in the following venture-capital funds with a stated interest in the life sciences: Fort Washington Capital Partners Group (FW Capital) is the private equity division of Fort Washington Investment Advisors, Inc., a registered investment advisor. In New Mexico, FW Capital manages a $46 million direct co-investment fund and provides advisory services to the state. New Mexico Community Capital was formed in late 2004 by business and community leaders to provide equity capital and management resources to qualifying businesses throughout New Mexico, particularly in rural and underinvested areas. Technology Funding manages public venture-capital funds with a focus on early-stage medical and biotechnology companies. Since its founding in 1979, Technology Funding has managed more than 20 funds and financed more than 250 emerging growth companies. Tullis-Dickerson provides venture capital to small and mid-sized health care companies at all stages of growth. Founded in 1986, the firm has raised four health-care venture-capital funds totaling approximately $400 million. Within health care, Tullis-Dickerson focuses on biotechnology, the life sciences, health care information technology, health care services, medical devices, and medical distribution. vSpring Capital, with $200million under management, invests in early-stage companies, particularly in the areas of information technology and the life sciences. The fund has offices in Utah and New Mexico. Wasatch Venture Fund, formed in 1994 with headquarters in Salt Lake City, Utah, and offices in Santa Fe, New Mexico, and Phoenix, Arizona, is a leading venture-capital firm in the Southwest region. Wasatch invests in early-stage technology companies and manages four funds with more than $150 million in capital under management. Wasatch is an affiliate fund of Draper Fisher Jurvetson.

In 2005, legislation was passed and signed by the Governor creating the SMART Money Initiative under which the New Mexico Department of Economic Development and the New Mexico Finance Authority have joined forces to partner with New Mexico bankers to stimulate economic development in the state by offering low-cost loan financing to businesses creating new jobs for New Mexicans. The SMART Money Fund is a $10 million fund that can be used to provide gap loans to companies looking to build or expand in New Mexico. The initiative is administered by the New Mexico Finance Authority. The Public Project Revolving Fund (PPRF) was created in 1992 as a revolving loan fund to provide low-cost financing for capital projects with a useful life of 3 years or more. Public financing provides
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borrowers with access to AAA-insured, tax-exempt ratesthe same rates enjoyed by the State of New Mexico itselfbecause the PPRF is funded with government gross receipts tax revenues. The New Mexico Finance Authority administers the PPRF.

Arrow Head Research Park is a 257-acre tract of land located on the southern end of the NMSU campus. The first phase of development included construction of the Genesis Center (which serves as an incubation facility for small, start-up, research-oriented companies) and an Academic Research Center. The park also includes an 11,000 square-foot, single-tenant facility. Los Alamos Research Park is a 40-acre technology community. Located adjacent to Los Alamos National Laboratory, tenants have access to its facilities, technologies, scientists, and engineers. The site is master planned to accommodate five buildings on 20,000-square-foot pads. Building One was completed for initial occupancy in February 2001. It is an 83,000-square-foot building incorporating office and light laboratory space. Sandia Science and Technology Park (SS&TP) is a 217-acre technology community. Located adjacent to Sandia National Laboratories, tenants have easy access to its facilities, technologies, scientists, and engineers. Tenants in the SS&TP include Sandia industry partners and critical suppliers, as well as companies providing services to other high-tech companies in the park. The Science and Technology Park at the UNM is managed by the UNM Real Estate Office. The park was established in 1987 and consists of research and development, laboratory, office, and mixed-use space with a focus on technology companies. The Science and Technology Park is a master-planned, 153-acre business and technology park adjacent to the UNM Campus, comprising more than 360,000 square feet of commercial space. The STC is located within the park.

Next Generation Economy, Inc., in concert with NMBBA, TVC, the State of New Mexico Department of Economic Development, and other organizations, provides referral services to technology entrepreneurs seeking management and technical professionals for their activities.

Albuquerque Technical Vocational Institute (TVI) instituted the Biotechnology Training Program in 2003 to prepare students for employment in the biotechnology industry and facilities conducting research and development. TVI and UNM are articulating the transfer of credits of the biotechnology program for students who wish to pursue a baccalaureate degree in a related discipline. TVI is developing partnerships with the local biotechnology industry for internships and support. Northern New Mexico Community College offers an associate of applied science degree in laboratory biotechnology. The program is designed to provide students with essential skills needed for positions as biotechnicians at industrial, medical, or research laboratories in the state. The program provides a strong background in the techniques and instruments used in biological and chemical laboratories with an emphasis on deoxyribonucleic acid (DNA) and protein isolation and analysis.
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New Mexico Tech (NMT) in Socorro has created a program to interest high school students in biotechnology. It offers mini-courses during the summers on the NMT campus. This years course is entitled CSI: Socorro, and students learn about DNA forensic genotyping as part of a crime-solving exercise while learning molecular biology.
Contacts
Ms. Ellen Veseth Program Director Office of Science and Technology New Mexico Department of Economic Development P.O. Box 20003 Santa Fe, NM 87504 (505) 827-0281 Ellen.Veseth@edd.state.nm.us
The New Mexico Biotechnology and Biomedical Association (NMBBA) connects regional bioscience organizations with national and international investors, customers, and collaborators. NMBBA further serves its membership of over 180 member and 100 device, diagnostics, bioinformatics, and pharmaceutical companies by sponsoring key networking events, workshops, and conferences.
Dr. Janeen Vilven-Doggett Secretary New Mexico Biotechnology and Biomedical Association P.O. Box 26927 Albuquerque, NM 87125 (505) 998-6134 jvilven@peacocklaw.com
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Industry Subsector Agricultural Feedstock & Chemicals Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004 Direct-Effect Employment Multiplier Total Employment Impact Drugs & Pharmaceuticals Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004 Direct-Effect Employment Multiplier Total Employment Impact Medical Devices & Equipment Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004 Direct-Effect Employment Multiplier Total Employment Impact Research, Testing, & Medical Laboratories Establishments 2004 2001-2004 Establishment % Change Employment 2004 2001-2004 Employment % Change Share of U.S. Employment Location Quotient Average Annual Wage 2004 Direct-Effect Employment Multiplier Total Employment Impact
New Mexico 7 -9.9% 89 32.6% 0.1% 0.16 $33,130 4.16 369 9 -10.0% 642 83.4% 0.2% 0.38 $40,587 3.89 2,500 89 21.2% 847 9.1% 0.2% 0.39 $31,496 2.43 2,061 147 12.7% 4,322 22.9% 1.0% 1.96 $57,676 2.34 10,129
United States 2,111 0.4% 104,893 -6.9% 100.0% n.a. $63,383 10.91 1,212,094 2,589 -0.6% 313,207 2.7% 100.0% n.a. $79,303 9.51 2,731,321 15,190 0.2% 411,460 -3.6% 100.0% n.a. $56,449 4.56 1,817,705 20,565 19.4% 413,550 8.2% 100.0% n.a. $65,414 3.15 1,272,936
TOTAL PRIVATE SECTOR Establishments 2004 46,649 8,156,137 2001-2004 Establishment % Change 3.0% 4.8% Employment 2004 582,310 109,249,195 2001-2004 Employment % Change 3.6% -0.7% Share of U.S. Employment 0.5% 100.0% Location Quotient n.a. n.a. Average Annual Wage 2004 $30,076 $39,003 Source: Battelle calculations -- based on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group, RIMS II Employment Multipliers from the Bureau of Economic Analysis, and the Census Bureau's Economic Census. Note: n.a. = metric is not applicable. NEW MEXICO 7
Bioscience Occupations in the New Mexico Workforce, 2004
1,800 1,600 Number of Workers in Occupation 1,400 1,200 1,000 800 600 400 200 140 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 410 1,660
Bioscience-Related Degrees from New Mexico Institutions, AY 2004
Biological Sciences
Number of Degrees
NEW MEXICO
Total Bioscience R&D Expenditures at Academic Institutions in New Mexico, FY 2003
Medical Sciences
$31,883
Biological Sciences
$45,282
$20,985
Other Life Sciences
$14,738
$-
$5,000
$10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
New Mexico University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $306,623 $112,888 36.8% $60.22 105.3% $98,797 $52.70 51.7% 623 2,210
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 33 38
34
40 40
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Life sciences are among several sectors targeted in the strategic plan maintained by the New York State Office of Science, Technology and Academic Research (NYSTAR), which operates the states programs for technology-based economic development. NYSTAR also coordinates with separately budgeted life science initiatives such as the Center of Excellence in Bioinformatics and Life Sciences and other bioscience capital grants through the Generating Employment Through New York State Science (Gen*NY*sis) initiative. Since the last BIO report, a new bioscience research park in New York City entered development, wet-lab incubation space expanded statewide, and state law was changed to reconstitute NYSTAR as a publicbenefit corporation to be known as the New York State Foundation for Science, Technology and Innovation. Existing programs would be continued and 10 regional councils created. The same law also dramatically expanded the states Qualified Emerging Technology Company (QETC) tax credit program to include refundable tax credits up to $250,000 a year per firm for a wide variety of expenses undertaken by research-based companies, including research and development, soft costs involved in fund-raising or commercialization, facilities, and training. Finally, this law expanded the Empire Zones, until then a conventional enterprise zone program, to convey benefits to noncontiguous projects in the biosciences and other technology sectors. In his state of the state address, Governor George Pataki proposed a new $200 million Biotechnology and Biomedicine Research Initiative to support equipment acquisition and faculty recruitment. This was later endorsed by the state Senate majority leader. In his budget message, the Governor also proposed further expansion of the Empire Zones into 1-square-mile Tech Zones surrounding each of the five Centers of Excellence. For more on both concepts, see below under Pending Proposals.

The 150,000-square-foot Center of Excellence in Bioinformatics and Life Sciences at the State University of New York (SUNY) at Buffalo is the bioscience flagship of Governor Patakis Centers of Excellence initiative. Five centers across multiple fields received $250 million in state capital funding for start-up capital costs and operating expenses, matched between 2:1 and 3:1 by New York State companies in the same sector. The Bioinformatics Center is part of the Buffalo Niagara Medical Campus, a downtown development district surrounding Buffalo General Hospital that also includes a new 73,000-square-foot, $24 million Structural Biology Research Center for the Hauptman-Woodward
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Institute and a new 170,000-square foot, $72 million Center for Genetics and Pharmacology at Roswell Park Memorial Cancer Institute. Funding has come from a variety of state sources. Gen*NY*sis, a separate capital program organized by the state Senate, has contributed to bioscience facilities and programs across the state, including projects co-funded with SUNY such as a 194,000-square-foot, $78 million life sciences building at the East Campus of the University at Albany that houses the universitys Center for Functional Genomics and related programs. Additional Gen*NY*sis awards of varying size were made to Alfred University, Binghamton University, Cold Spring Harbor Laboratory, Cornell University, Clarkson University, City University of New York (CUNY) College of Staten Island, Hofstra University, Niagara University, Rensselaer Polytechnic Institute (RPI), Rochester Institute of Technology, SUNY Upstate Medical Center, University of Rochester, Trudeau University, and Yeshiva University-Albert Einstein College of Medicine. Since the last BIO report, some of the projects funded by NYSTAR in its own capital-facilities funding program opened or entered construction. This program operated at two levels: large-scale Strategically Targeted Academic Research (STAR) Centers, funded at $15 million to serve as a significant funding source for major building programs; and Academic Research Centers (ARCs), funded at up to $4 million each, representing construction and fit-out of new laboratory suites for targeted projects. One STAR Center that opened since the last BIO report is the New York Structural Biology Center, a high-field nuclear magnetic resonance spectroscopy center at CUNY City College that is funded and operated by a consortium of 10 large universities and institutions, most in the New York City area. STAR grants are also funding centers that are part of major facilities now being developed at Cornells Life Science Building (genomic technologies and information sciences), University at Buffalo/Buffalo Niagara Medical Campus (disease modeling and therapy), Stony Brook University (biomolecular diagnostics and therapeutics), and Columbia University (integrated imaging). Smaller ARC grants were made to facilities in pharmacogenomics (Albany Medical College), plant proteomicsmetabalomics (Cornell); and neuronal plasticity (Mt. Sinai School of Medicine). RPI continued construction on its 218,000-square-foot, $80 million Center for Biotechnology and Interdisciplinary Studies, funded by an anonymous gift and support from the Gen*NY*sis program.
Research programs
NYSTAR maintains a pool to match federal awards from the NSF, NIH, or other agencies. For example, it made a $1.2 million grant to allow Cornell University to leverage the NSF Nanobiotechnology Center.

NYSTAR offers two programs: Faculty Development Program, which assists in recruitment of entrepreneurial research faculty in targeted fields including the biosciences. In 2005 the program made awards totaling $4.4 million, supporting recruitments at Columbia and the University at Buffalo (both in nanobiomedicine) and Cornell University (in biofuels). James D. Watson Investigator Initiative, which provides recognition and professional development to young investigators. In 2005 the program made awards totaling $3.2 million ($200,000 each) including to faculty in the biosciences.
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NYSTAR funds a series of 15 Centers for Advanced Technology (CATs) charged to conduct applied research in close partnership with New York State companies. Each center is funded at $1 million per year, and several will make grants available to faculty outside the home university provided they bring a matching partner. Several CATs with bioscience focus were renewed for 10 years after a recent program review: Center for Biotechnology, a biomedically oriented program at Stony Brook University Center for Life Science Enterprise at Cornell, which integrates this originally agbiotech-oriented program into a larger Institute for Biotechnology and Life Sciences Center for Advanced Biomedical and Bioengineering Technologies, a medical-deviceoriented center at the University at Buffalo Center for Photonic Applications, which is exploring multiple medical applications of photonic sensing in laboratories at CUNY Center for Advanced Information Management at Columbia University, which has medical informatics as one of three focus areas.

NYSTAR offers regular rounds of a Technology Transfer Incentive Program, which makes grants up to $750,000 over 2 years to support commercialization of a university-owned technology by a New York State company, which must match the award 1:1. The program has also been used to build university infrastructure for technology transfer, including the start-up of university-affiliated business incubators. University at Buffalo has unusually organized its CAT to report to the Office of Science, Technology Transfer and Economic Outreach (STOR), which also manages intellectual property and operates a business incubator. New York University (NYU) Office of Industrial Liaison and Technology Transfer maintains an Applied Research Support Fund that can fund precommercialization projects up to $50,000.

New York State offers a series of interrelated credits to QETCs, which are broadly defined in law to include the biosciences and other research-intensive sectors. Since the last BIO report, the law was amended to allow a refundable 9 percent credit to the companies themselves for research and a very broad range of other soft costs, including not only research but also fund-raising and commercialization, as well as tuition costs for companies in a qualified university business incubator. The range of QETC credits is refundable up to a total cap of $250,000 a year per firm. NYSTAR funds a series of Regional Technology Development Centers (RTDCs), one in each economic region of the state. The RTDCs function as multisector commercialization centers. The
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program is funded at $1 million in total, exclusive of funding for the manufacturing extension partnership also operated by the same grantees. Commercialization support programs are also aimed specifically at the life sciences in four regions of the state: Bioconnex, a networking group affiliated with the Center for Economic Growth RTDC in the Albany area Bufflink, an independent nonprofit based near the Buffalo Niagara Medical Campus CNY Med Tech, based in Syracuse, with strong corporate support from the nearby Welch-Allyn Corporation Long Island Life Sciences Initiative, a separately funded outreach adjunct of the CAT for Medical Biotechnology at Stony Brook University. Several of the regional initiatives have begun meeting with each other regularly. The New York Biotechnology Association interacts with all of the groups listed above.

Among the QETC tax credits is a Capital Tax Credit available to early-stage investors in these firms. This credit is 10 percent for investments held 4 years and 20 percent for investments held 9 years, capped at $150,000 and $300,000, respectively. Cornells student-run BR Ventures Fund, whose returns support the Johnson School endowment, can make investments including in the biosciences between $50,000 and $200,000. It targets companies with some relationship to the Cornell community. At the regional level, seed investments from $250,000 to $750,000 in multiple fields including medical technology are available from Monroe Fund, capitalized at $10 million from the county and local institutions in the Rochester area and privately managed by Trillium Group. Trillium also operates a $6 million University Technology Seed Fund capitalized by some of the same institutions, which can invest up to $2 million with focus on spin-offs from local universities. Under the announced NYSTAR reorganization, additional pre-seed funding vehicles will be created, probably at the regional level.
Venture capital
Empire State Development, the states financing agency, operates an in-house Small Business Technology Investment Fund that can make several investments per year. In 2004 New York State created a new $60 million pool of CAPCO credits, joining four previous rounds totaling more than $270 million. The newest pool emphasizes earlier-stage investments. Participating venture funds are as follows:
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Advantage Capital Aegis NY Venture Fund Enhanced Capital New York Small Business Venture Fund Stonehenge Capital Fund New York Whitecap New York Growth Fund Exponential/Wilshire New York. The state has also invested $364 million with at least 12 New Yorkdomiciled venture partnerships through an In-State Private Equity Investing Program. Investees with bioscience deals currently in their portfolios or stated interest in bioscience include the following: Wheatley Partners ($50 million from the state) High Peaks Ventures ($30 million from the state) Easton Hunt Capital Partners ($30 million from the state) Trillium Lakefront Partners ($25 million from the state).

Incubators
Since the last BIO report, new or expanded bioscience incubators have opened at SUNY campuses in Farmingdale, Stony Brook, and Brooklyn and at Cornell Universitys Geneva campus. Bioscience incubators statewide include the following: Audubon Business and Technology Center, a 100,000-square-foot, multitenant wet lab that anchors Columbia Universitys Audubon research park (see below) Building II at Broad Hollow Bioscience Park, a 41,000-square-foot, $16.4 million incubator with 37 laboratory suites Calverton Incubator, a 15,000-square-foot wet-lab facility aimed at environmental technology and operated by Stony Brook University in nearby Riverhead Downstate Advanced Biotechnology Incubator, a 50,000-square-foot facility built in phases (two completed, two under development) at SUNY Downstate in Brooklyn, with support from NYSTAR East Campus Incubator, 330,000 square feet of space at University at Albanys East campus, a renovated former pharmaceutical research facility
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FlexTech, a 20,000-square-foot commercial facility anchoring Cornell Universitys Agriculture and Food Technology Park Long Island High Technology Incubator, a 72,000-square-foot facility on the Stony Brook campus UB Technology Incubator, a 45,000-square-foot facility on land just opposite the University at Buffalo campus in Amherst. Cornell also expects to include incubation space at its Life Science Building now under construction.
Under the reorganization of NYSTAR into a foundation, 10 regional partners will be recognized and provided with access to up to $90 million to support programs including the financing of specialized facilities.

Major private technology parks specializing in bioscience include the 275-acre Landmark at Eastview in Westchester County and the 500-acre Rochester Technology Park.
Under development
Since the last BIO report, the New York City Economic Development Corporation (NYCEDC) announced the master lease of 4.7 acres near the NYU/Bellevue Hospital medical campus to Alexandria Real Estate Equities for development of East River Science Park. Alexandria targets buildout of 872,000 square feet of bioscience space over two phases, starting with a speculative multitenant building now in planning. The New York City Investment Fund, associated with the New York City Partnership, will invest $10 million in the project. NYCEDC is also seeking to convert part of the city-owned Brooklyn Army Terminal into 300,000 square feet for biomanufacturing and other uses. Other bioscience parks under development include the following: Agriculture/Food Technology Park, a 72-acre zone for agriculture, food, and agbioscience being developed by Cornell University at the Geneva campus of its New York Agricultural Experiment Station Audubon Biomedical Science and Technology Park, a four-building complex anchored by the Audubon incubator (above) at Columbia University Medical Centers campus in upper Manhattan Broad Hollow Bioscience Park, a commercial bioscience development zone within the campus of SUNY Farmingdale on the Route 110 corridor in Long Island, anchored by OSI Pharmaceuticals Downstate Biotechnology Park, a planned four-building complex at SUNY Downstate Medical Center in Brooklyn, anchored by a wet-lab incubator and single-tenant space.
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Rochester Institute of Technology, not previously known for the life sciences, opened a statesupported Center for Biotechnology Education and Training. The Biotechnology CAT at Stony Brook University added a certificate program in biotech fundamentals. St. Johns Universitys Institute for Biotechnology offers a professional masters degree program in biological and pharmaceutical biotechnology. CUNY Hunter College offers undergraduate science students a 4-week, credit workshop in biotech techniques and coordinates internship placements at hospitals, universities, and research institutions.

Cold Spring Harbor Laboratory on Long Island sponsors the Dolan DNA Learning Center. Stony Brook University offers a 10-week Summer Research Institute for minority students interested in the sciences including the biosciences, with support from NYSTAR. NYSTAR supports a pilot program through which middle school teachers from Long Island participate in 3-day genetics workshops at Brookhaven National Laboratory. There is also a broader Science Research in the High Schools Program that serves 135 New York schools.
Pending Proposals
Elements of the proposals unveiled in the state of the state and budget addresses are as follows: Creation of 1-square-mile Tech Zones around each of the Centers of Excellence, including the Center in Bioinformatics. This would convey Empire Zonelike benefits to companies locating in the zone in order to collaborate with the center. $11 million for an Empire Innovation Program to help SUNY and CUNY campuses attract 200 new research faculty members across multiple fields including the biosciences. A two-part Biotechnology and Biomedicine Research Initiative available as a challenge grant to a broad range of research institutions: $40 million in capital funding for equipment $200 million for recruitment and start-up costs, to be financed by a foundation established with 5 percent equity ownership in the states privatized Blue Cross/Blue Shield program.
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Contacts
Jim Denn Deputy Executive Director, New York State Office of Science, Technology and Academic Research 30 South Pearl Street, 11th Floor Albany, NY 12207 (518) 292-5700 jdenn@nystar.state.ny.us Jeff Janiesewski Empire State Development Corporation 30 South Pearl Street Albany, NY 12207 jjaniesewski@empire.state.ny.us
The New York Biotechnology Association is a not-for-profit trade association dedicated to the development and growth of New York Statebased biotechnology-related industries and institutions and to strengthening the competitiveness of New York State as a premier global location for biotechnology/biomedical research, education, and industry. Karin A. Duncker Executive Director, New York Biotechnology Association 30 Rockefeller Plaza, 27th Floor New York, NY 10112 (212) 332-4395 kduncker@nyba.org
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New York 56 -6.6% 1,557 -17.4% 1.5% 0.24 $53,182 3.86 6,019 149 -3.2% 21,630 4.8% 6.9% 1.10 $69,110 4.29 92,836 885 3.1% 20,799 -3.4% 5.1% 0.81 $50,397 2.40 49,967 1,233 11.4% 27,294 -1.3% 6.6% 1.05 $56,326 1.91 52,058 541,784 2.2% 6,852,824 -2.5% 6.3% n.a. $50,768
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Bioscience Occupations in the New York Workforce, 2004
30,000
25,230
20,000
15,000
10,000
11,170
5,000
1,990 430
Bioscience-Related Degrees from New York Institutions, AY 2004
Biological Sciences

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Number of Degrees
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10
Total Bioscience R&D Expenditures at Academic Institutions in New York, FY 2003
Medical Sciences
$1,029,064
Biological Sciences
$911,932
$80,423
Other Life Sciences
$106,871
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
New York University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $3,089,988 $2,147,286 69.5% $111.90 58.2% $1,964,889 $102.39 38.1% 6,760 38,820
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 2 2
3 3
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11

State government and regional business partnerships are cultivating bioscience clusters in both the Research Triangle (Raleigh/Durham/Chapel Hill) and the Piedmont-Triad (Winston-Salem/Greensboro/ High Point regions). The North Carolina Biotechnology Center, a state-sponsored intermediary created in 1984 by the North Carolina Board of Science and Technology, is pursuing the New Jobs Across North Carolina bioscience strategy it developed in 2004 to expand bioscience growth statewide. Headquartered in the Research Triangle, the Biotechnology Center has regional satellites in Asheville, Winston-Salem, Greenville, and Wilmington, with another office planned for Charlotte. Since the last BIO report, Golden LEAF Foundation, a nonprofit foundation that administers a major portion of the states tobacco settlement trust funds to assist communities in economic transition, rolled out several aspects of its $60 million Biomanufacturing and Pharmaceutical Training Consortium, a network of facilities and programs at North Carolina (NC) State University in Raleigh, NC Central University in Durham, and the NC Community College System. Golden LEAF also made a major placement of endowment funds in a bioscience venture fund. The University of North Carolina (UNC) system also announced a major new bioscience park to be developed with financial support from the former owners of a closed textile mill in Kannapolis, north of Charlotte.

Bioscience research buildings included in the $3.1 billion higher education bond approved in 2000 include the recently opened 100,000-square-foot, four-story, $35 million College of Veterinary Research Building at NC States Centennial Biomedical Campus. The state has also approved separate bond funding for The Bioinformatics Research Center at the Charlotte Research Institute at the UNC Charlotte (UNCC), a 70,000-square-foot, $35 million project; A new research and clinical facility for the UNC Chapel Hill Cancer Center, budgeted at $180 million; and
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The Cardiovascular Disease Institute, a $60 million facility at East Carolina University in Greenville.
Research programs
The Biotechnology Center offers two tiers of grants for bioscience research at North Carolina universities: Institutional development grants of up to $250,000 for equipment that will serve at least six investigators Multidisciplinary research grants of up to $250,000 for up to two years for projects involving three or more scientists from different disciplines, with an emphasis on industrially relevant research.

The UNC system has a trust fund for eminent-faculty recruitment under which the state may optionally grant up to one-third of privately raised endowments at either the $500,000 or $1 million level. The Biotechnology Center will also provide up to $150,000 to an institution to assist in faculty recruitment in the biosciences.

The Biotechnology Center and the Kenan Institute for Engineering, Technology & Science at NC State jointly offer Collaborative Funding Grants of up to $50,000 a year for three years, to match university and industry contributions to joint research projects. The North Carolina Small Business and Technology Development Center offers a Strategic Applied Research program that provides grants up to $20,000 for universities participating in applied research matched by in-state companies. Biosciences projects are eligible.

The Council for Entrepreneurial Development, a non-profit organization that seeks to accelerate the entrepreneurial culture of North Carolina and Research Triangle Park (RTP), has active programs to mentor entrepreneurs and prepare them for the process of raising formal venture capital.

The North Carolina Board of Science and Technology has a $3 million fund that matches SBIR and STTR Phase I awards to a maximum of $50,000. Biosciences are eligible. The program also covers stipends up to $3,000 for the costs of preparing SBIR and STTR proposals.
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The Biotechnology Center makes loans to companies of up to $150,000 for product development, $25,000 for proof-of-concept research, and $15,000 for nonscientific commercialization work such as business planning. Investors in qualified businesses, including those registered with the state as R&D firms with revenues less than $5 million, licensees of the UNC system, and recipients of SBIR awards, are eligible to claim credits up to 25 percent against personal income tax. The annual credit pool is $7 million.
Venture capital
North Carolina has generally supported capital formation through various intermediaries. Most recently, the Golden Leaf Foundation placed $30 million of its endowment fund in HBM Bio-Capital, a privately managed fund that is a collaboration of a major financial firm and local advisors.

Incubators
There are bioscience incubators in several regions of the state: First Flight Venture Center is a 14,000-square-foot incubator in RTP. Becton-Dickinsons (B-Ds) RTP BioVenture Center sets aside space in the companys Research Triangle building for start-up firms working in technologies of corporate interest to B-D. NC State Technology Incubator offers 10 wet lab suites in one of the laboratory buildings in the Partners II building at Centennial campus. Eastern Carolina Technology Center at Eastern Carolina University in Greenville has a 17,000square-foot wet lab unit.
North Carolina created a Life Science Industry Revenue Bonding Authority to assist in facilities financing, but has not yet financed it.

RTP has been developed since the 1950s with the goal of attracting R&D laboratories and has a longstanding focus in the biosciences, including agricultural biotechnology. The park now encompasses 15 million square feet of space over 7,000 acres. It is the headquarters for the Biotechnology Center. The Centennial campus of NC State University in Raleigh includes 1,334 acres on two sites being developed as a dual-use campus/research park. The main Centennial campus includes university resources in genomics and bio-informatics, and the new Centennial Biomedical Campus is developing tenancies around the College of Veterinary Medicine. The Centennial Biomedical Campus will have 1.6 million square feet when complete. Piedmont-Triad Research Park in Winston-Salem levers the Bowman Gray School of Medicine at Wake Forest University and is being developed by Idealliance, the regional technology council and
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commercialization support group. It houses 14 bioscience companies in four buildings. When complete, the park will cover 200 acres and have 5.7 million square feet of space. Initiatives similar to the Centennial campus are authorized and at varying stages of development at UNCC, North Carolina A&T, UNC Greensboro, and UNC Chapel Hill/Carolina North. The extent of bioscience use at these parks is not yet clear, although all have expressed bioscience as a target. Since the last BIO report, the UNC system and billionaire philanthropist David Murdock announced that the former Cannon Mills textile plant in Kannapolis would be redeveloped into a research campus eventually totaling 1 million square feet. The first building, 330,000 square feet, will include core bioscience laboratories for NC State, contract bio-manufacturing, multitenant wet-lab space, and a research institute sponsored by Dole Foods. The park will be paired with a venture capital fund financed by Murdock.

Golden Leaf has financed the nations largest biotech/biomanufacturing training programs, a Biomanufacturing and Pharmaceutical Training Consortium comprising the following two major facilities, and curricula delivered through a $7.1 million BioNetwork funded at the North Carolina Community College System: Biomanufacturing Training and Education Center (BTEC), a 91,000-square-foot, $35 million commercial-scale biomanufacturing and packaging facility being built at NC States Centennial Campus. The BTEC will provide hands-on experience in a commercial environment and will train as many as 3,000 students a year through both on-site programs and distance learning. Biomanufacturing Research Institute and Training Enterprise, a $19 million facility at NC Central University in Durham, which will offer laboratory experiences in underlying science and analytical instrumentation to students from multiple universities. Operational funding for the consortium totaled $12 million in 2005 and will increase this year to $15 million.

The Biotechnology Center offers summer workshops for K-12 educators, taught at colleges around the state, and the BTEC will offer four-week in-residence courses for high school students.
Contacts
Dr. Leslie M. Alexandre Chief Executive Officer North Carolina Biotechnology Center 15 T. W. Alexander Drive Research Triangle Park, NC 27709 (919) 541-9366 leslie_alexandre@ncbiotech.org
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Formed in 1994, the North Carolina Biosciences Organization focuses primarily on legislative monitoring and lobbying activities at the state and federal level. Sam Taylor President North Carolina Biosciences Organization Box 20296 Raleigh, NC 27619-0296 (919) 788-8601 staylor@ncbioscience.org
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North Carolina 59 -0.4% 5,184 15.2% 4.9% 1.72 $68,327 6.47 33,562 70 -12.5% 20,646 9.9% 6.6% 2.29 $72,998 6.46 133,454 379 1.5% 8,309 3.3% 2.0% 0.70 $43,562 2.97 24,697 538 14.3% 13,845 35.7% 3.3% 1.16 $60,743 2.33 32,328 220,964 2.4% 3,139,889 -1.6% 2.9% n.a. $34,632
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Bioscience Occupations in the North Carolina Workforce, 2004
12,000
10,230
8,000 6,830 6,000
4,000
2,000 1,340 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 1,240
Bioscience-Related Degrees from North Carolina Institutions, AY 2004
Biological Sciences
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in North Carolina, FY 2003
Medical Sciences
$645,929
Biological Sciences
$283,102
$71,634
Other Life Sciences
$34,155
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
North Carolina University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $1,397,371 $1,049,850 75.1% $124.87 44.3% $985,447 $117.21 69.6% 3,739 19,640
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 8 5
9 10
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The Hoeven administrations economic development initiative targets development of a range of technology sectors, including aspects of the biosciences, such as applications to value-added bioprocessing of agricultural commodities. Since the last BIO report, the state Centers of Excellence Commission received an additional $20 million to fund academic/industrial collaborations, which will be matched 2:1 by nonstate sources. The states Department of Commerce is redefining the states targeted industries to include science-based niches.

Research programs
Red River Valley Research Corridor is the states branded initiative to grow federal research funding in several targeted fields including the biosciences along the corridor connecting the University of North Dakota (UND) in Grand Forks with North Dakota State University (NDSU) in Fargo. The North Dakota Department of Commerce committed 3 years of funding for development of the Corridor, leveraged by a 3-year university centers grant from the U.S. Economic Development Administration (U.S. EDA). An inventory of life science assets is currently under way as part of the project. The UND secured line item support from the Office of National Drug Control Policy for positron emission tomography (PET) and functional magnetic resonance imaging (MRI) instrumentation that will be used in addiction research. NDSU has used support from the NIH COBRE program to create a Center for Protease Research.

The Centers of Excellence are not necessarily research centers, but may include programs for collaboration including research parks, incubators, and commercialization centers associated with them. For example, the Center of Excellence in Life Sciences and Advanced Technologies will co-fund a 60,000-square-foot, secured, academic/industrial BSL-3 laboratory at the UND Technology Park. The facility will house the UND Center for Infectious Disease, Proteomics, Genomics, and Bioinformatics as well as companies partnering with the center and associated emergency-preparedness training programs. It is co-funded by local government, private donors, and the U.S. EDA.
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Another Centers of Excellence grant to NDSU funds a collaborative project to develop canola strains for testing at commercial biodiesel plants in the state.

The Center for Innovation at UND in Grand Forks is a multisector commercialization center aimed at assisting entrepreneurs through a range of technical support and introduction to venture capital. The centers Entrepreneurs Forum meets 10 times a year. The North Dakota Legislature funded a recent program to review the impact of the states open-record policy on commercialization of university intellectual property.

North Dakota also offers a Seed Capital Tax Credit against income tax of 45 percent on investments up to $500,000 in businesses certified by the Division of Economic Development and Finance in the Department of Commerce. The program is capped at $2.5 million in credits in any calendar year, and the aggregate investment for a single taxpayer is $250,000. The credit must be claimed over several years and may be carried forward 4 years.
Venture capital
North Dakota offers a credit against income tax of 25 percent of investment (up to a maximum credit of $2,000) in a qualified venture-capital company. The credit may be carried forward 7 years. There is a parallel deduction of up to $5,000 in the first year in which the investment qualifies for the credit. The state offers a similar credit for investment in a Small Business Investment Company. Efforts are under way to organize qualifying funds in Fargo, Grand Forks, and Bismarck. The Bank of North Dakota, the only state-owned bank in the nation, maintains a $10 million New Venture Capital Fund that may make debt or equity investments up to $300,000 in (among other categories) companies working to commercialize university-developed technology. The program complements the North Dakota Development Fund, an existing financing vehicle within state government.

Incubators
The Ina Mae Rude Entrepreneur Center, one of the two incubators associated with the Center for Innovation at UND at Grand Forks, has added wet-lab capability to address bioscience businesses. A 50,000-square-foot, wet-lab-equipped Center for Technology Enterprise is being planned for NDSU Research Technology Park in Fargo. It will also provide commercialization assistance.
NORTH DAKOTA 2

The UND in Fargo is planning an 80-acre Research Enterprise and Commercialization Park targeting pharmaceutical and veterinary products. It will be anchored by the Centers of Excellencesupported BSL3 laboratory described above. The NDSU Research Technology Park, currently three buildings on 55 acres, is supported by the Centers of Excellence program. Among other fields, the park targets agbiotech for nonfood uses, which is also the focus of a Centers of Excellence grant to the university.

NDSUs 5:01 Entrepreneur Society sponsors networking events at which students, faculty, investors, and entrepreneurs can socialize. The Center for Innovators at UND offers an entrepreneurs forum 10 times a year. The state Economic Development Strategic Plan supports Operation Intern, a tool to link students to businesses with skill shortages.
Pending Proposals
Governor John Hoeven has proposed expanding the capacity of the Centers of Excellence program to $50 million in the 2007 budget year.
Contact
Linda Butts Director, Economic Development and Finance North Dakota Department of Commerce P.O. Box 2057 Bismarck, ND 58502-2057 (701) 328-5311 lbutts@state.nd.us
NORTH DAKOTA
North Dakota 9 -30.3% 394 -21.4% 0.4% 1.59 $49,105 5.55 2,190 0 0.0% 0 0.0% 0.0% 0.00 0 0.00 0 16 23.1% 190 -2.6% 0.0% 0.20 $29,809 1.78 338 28 -9.3% 281 44.5% 0.1% 0.29 $41,428 1.83 515 22,390 4.6% 258,001 2.9% 0.2% n.a. $28,593
NORTH DAKOTA
Bioscience Occupations in the North Dakota Workforce, 2004
1,000 900 Number of Workers in Occupation 800 700 600 500 400 300 200 100 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 320 490 940
Bioscience-Related Degrees from North Dakota Institutions, AY 2004
Biological Sciences
Number of Degrees
NORTH DAKOTA
Total Bioscience R&D Expenditures at Academic Institutions in North Dakota, FY 2003
Medical Sciences
$10,788
Biological Sciences
$4,811
$46,863
Other Life Sciences
$2,643
$-
$5,000
$10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
North Dakota University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $133,615 $65,105 48.7% $102.72 71.2% $16,275 $25.68 202.5% 450 1,750
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 44 44
48
45 46
NORTH DAKOTA

Ohio has undertaken a number of strategic initiatives and provided new investments in programs that are impacting bioscience-based economic development. A major component of the states technology-based economic development activities is the Third Frontier Project. Governor Bob Taft unveiled The Third Frontier Project in February 2002. The $1.6 billion Third Frontier Project is the states largest commitment ever to accelerate the growth of Ohios economy through globally competitive research and innovation. The majority of state funding comes from state capital funds, tobacco settlement proceeds, general revenue funds, and a recently passed bond fund initiative that will provide $500 million that can be used for both noncapital and capital-related expenses of funded projects. In targeted areas of technology, Ohio seeks to establish regional and statewide clusters of excellence. Bioscience was identified as one of five areas of focus for the Third Frontier Project. As of late 2005, more than $300 million in Third Frontier funds had been awarded, greater than 60 percent of which were targeted for bioscience-related initiatives, most notably 10 major biosciencefocused collaborations between academic research centers and private businesses. No new awards for 2006 have been made to date. The Third Frontier Project, and its respective funding programs, is administered by the Third Frontier Commission, which was legislatively created in 2003. Funding sources include the Third Frontier Action Fund, the Biomedical Research and Technology Transfer (BRTT) Trust Fund, the Wright Capital Fund, and the Third Frontier Research and Development Fund. The Third Frontier Commission consists of the Director of the Ohio Department of Development, the Chancellor of the Ohio Board of Regents, the Governors science and technology advisor, and six regional commissioners appointed by the Governor.

Research programs
Wright Centers of Innovation are funded by grants to support large-scale world-class research and technology development platforms designed to accelerate the pace of Ohio commercialization. Wright Centers are collaborations among Ohio higher education institutions, nonprofit research organizations, and Ohio companies in the areas of advanced materials; bioscience; power and propulsion; information technology; and instruments, controls, and electronics. Consideration is being given to creating a new class of Wright Centers that will be funded at a level of $50 million to $60 million for a 5-year period,
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with the majority of funding being for operating expenses. The current centers are funded at $15 million to $28 million for a 3-year period, and the majority of funding is for capital acquisitions. The Biomedical Research and Commercialization Program (formerly BRTT Partnership) awards grants to support biomedical and biotechnology research leading to Ohio commercialization and longterm improvements to the health of Ohioans. Projects are to be collaborations among Ohio higher education institutions, nonprofit research organizations, and Ohio companies in the areas of human genetics and genomics, structural biology, biomedical engineering, computational biology, plant biology, and environmental biology. No 2006 awards have been made to date.

In FY 20002001, Governor Taft reinstated Ohios Eminent Scholar Program, endowing Eminent Scholar faculty positions to foster national eminence of selected outstanding academic programs at Ohio colleges and universities. Today, the Eminent Scholar Program is used to support the Third Frontier Project by providing funding to develop endowed faculty positions to bolster the Wright Centers of Innovation. Since the program was reinstated, 12 positions have been endowed, 48 since the program was created by the Ohio General Assembly in 1983. In 2004, a $731,250 Ohio Eminent Scholars Program award in regenerative medicine was presented to Case Western Reserve University. Approximately $1.5 million in funding is next available in FY 2007

The Ohio MicroMD Laboratory is a technologically integrated microfabrication facility for developing biomedical microelectromechanical system (bioMEMS) devices and therapeutic applications. The combination of multiple microfabrication process lines with a complete biochemical wet-lab facility provides capabilities for the research, development, testing, and characterization of new devices. Occupying 20,000 square feet of Science Village on the West Campus of The Ohio State University, MicroMD has 6,000 square feet of Class 100 clean room, microfabrication-laboratory space and a 4,000-square-foot biohybrid laboratory. Specialized services and scheduling are available for R&D programs requiring protection of intellectual property and/or isolation in their processing. Specialized training and support are available, as well as direct support in fabrication of user-specified designs. With the depth of research programs on the campus of The Ohio State University, the MicroMD Laboratory also facilitates the development of a broad range of R&D activities. Ideally, a partnership is developed between MicroMD staff and facilities and users.

Supporting entrepreneurs and emerging companies
Ohios Thomas Edison Program (TEP) has a history of more than 20 years. TEP is a network of nonprofit organizations funded to provide services to new and existing businesses. The overall objectives of the program are to retain and expand high-wage jobs and high-growth companies and to create and grow early-stage technology companies. TEP services are focused in the following four areas:
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Product innovation and commercialization Process innovation Business assistance Ohio research linkage to in-state applied innovationfulfilling the technology needs of
business by exploiting the products of research laboratories.

Bioscience support is provided through a number of the Edison Technology Incubators and Omeris, one of the Edison Technology Centers. Omeris, founded in 1986 as the Edison BioTechnology Center, is a nonprofit organization designed to build and accelerate bioscience industry, research, and education in Ohio. It accomplishes these goals by both directly providing business services and by promoting the growth of the bioscience sector in the state. Ohio established and provides ongoing funding to Omeris, which is both the states bioscience accelerator and its industry organization. Originally located in Cleveland, the entity underwent a reorganization process in 2002; today, the statewide Omeris office is located in Columbus, with regional affiliates around the state. Each regional operation seeks to nurture and commercialize bioscience technologies through the formation of new companies and the attraction of companies from out of state. The regional offices include the following: BioEnterprise Corporation, a business formation and acceleration company committed to helping early-stage bioscience companies grow. Based in Cleveland, its founding and equal partners are the Cleveland Clinic, University Hospitals Health Systems, and Case Western Reserve University. BIO/START, a bioscience incubator in Cincinnati. The Edison Biotechnology Institute, a biomedical and genetics research institute of Ohio University in Athens. Its dual mission is basic discovery research and the transfer of new technology to the private sector for Ohios economic benefit. The Central Ohio Regional Office of Omeris, a collaborative, early-stage technology commercialization catalyst that partners to create and/or grow bioscience-based businesses. With Columbus, Dayton, and Toledo as focus areas, it provides networking and business development services to emerging and established science companies.

The Technology Division within the Ohio Department of Development supports an SBIR Office to help Ohios small research-oriented firms compete for federal agency R&D grants or contracts. In addition, the Ohio Research Commercialization Grant Program was recently established to help finance commercialization and pilot production of technologies by companies that have successfully competed for federal SBIR, STTR, and ATP awards. The program provides grants of up to $350,000 to emerging technology firms.
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The Pre-seed Fund Initiative (formerly the Validation Fund and Seed Fund Initiative) makes grants to pre-seed funds to increase the availability of professionally managed capital and associated services to accelerate the growth of early-stage Ohio technology companies. Awards include the following: $1 million to the Cleveland Clinic Foundation BioValidation Fund (Cleveland) to invest in eight to 10 companies to support activities that further demonstrate the potential of technologies prior to the initiation of clinical trials. $1 million to Draper Triangle Partners II, LLP (Cleveland and Pittsburgh) to invest in 25 early- and seed-stage technology companies. $1 million to Ohio TechAngels Fund (Columbus). The fund is a contributed-capital and sidecar angel fund with 68 private equity investors from throughout Ohio investing in early-stage technology opportunities. Ohio TechAngels is central Ohios first angel fund and the largest in the upper Midwest. In addition to providing the capital for the $2.5-million-plus fund, the angels provide statewide networking resources and mentoring for management. $1 million to Queen City Angels First Fund II (Cincinnati) to invest in 10 to 12 high-growth technology companies. The fund makes investments in very early-stage companies and encourages others to co-invest. $500,000 to JumpStart Evergreen Technology Validation Fund (Cleveland) for investing in 15 companies. $500,000 to Cincinnati Childrens Hospital Medical Center TOMORROW Fund (Cincinnati) to invest in four to six spin-off opportunities. $1.1 million to the Ohio Innovation Fund based in Cleveland. $1.1 million to the First Fifty Validation Fund co-managed by Omeris, the Business Technology Center (BTC), and the Science and Technology Campus Corporation (Scitech). $1.6 million to the Columbus Emerging Technology Fund. $1.6 million to the Early Stage Partners Fund in Cleveland. Ohios Technology Investment Tax Credit Program offers a variety of benefits to Ohio taxpayers who invest in small firms oriented toward R&D and technology that have been pre-approved for investment. Through the program, Ohio investors may offset the risk of investment by reducing their state taxes by 25 percent of an investment up to $250,000. The credit may be applied to personal income tax, public utility excise tax, or the tax on dealers in intangibles. Twenty million dollars is available for the credits, and the credit process for bioscience investments is managed through Omeris.
Venture capital
The Ohio Venture Capital Fund Program increases the amount of professionally managed early- and seed-stage capital available to Ohio companies by increasing the number of Ohio-based early- and seedstage venture capital funds. To accomplish this, the statute authorized the creation of a fund-of-funds, referred to as the Program Fund. To capitalize the Program Fund, a fund manager, referred to as a Program Administrator, is raising up to $100 million in the form of loans from banks and insurance companies. To assist the Program Administrator in these fund-raising efforts, the statute authorizes the
OHIO 4
issuance of state tax credits to secure the principal and interest payments on the loans. The Program Administrator, Buckeye Venture Partners, is investing Program Fund monies in early- and seed-stage venture capital funds that commit to invest at least 50 percent of the investment in Ohio-based companies.

Incubators
The Edison Program within the Technology Division of the Ohio Department of Development has been providing operating support for technology incubators since 1986. Today, 10 Edison incubators located throughout the state receive, on average, approximately $200,000 in annual operating support. Of the 10 technology incubators, three provide assistance to bioscience companies through access to wet-lab space and a variety of business services. All three are regional affiliates of Omeris. The TechColumbus/BTC, located in Scitech, currently occupies 68,000 square feet and offers clients space for offices, workrooms, light manufacturing, and wet labs. Room sizes vary from 230 to 2,327 square feet. BioEnterprise, the Cleveland regional affiliate of Omeris, maintains and manages office and wet-lab space for emerging bioscience companies within University Circle in close proximity to Case Western Reserve University, the Cleveland Clinic, and University Hospitals of Cleveland. Offered in flexible arrangements to accommodate the evolving needs of a growing bioscience company, space is available for early- and mid-stage medical device, biopharmaceutical, health care service, and other healthcarerelated companies. BIO/START, located in Cincinnati, provides 31,500 square feet of incubator space featuring wet labs; dry labs; culture labs; photodocumentation and X-ray labs; a cold room; a device design lab; and a shared equipment room with ultra and high-speed centrifuges, spectrophotometer, and analytic balances. In addition, BIO/START has a GMP manufacturing module.
Under development
The Akron Industrial Incubator, another of the 10 Edison incubators, offers 129,000 square feet of space for manufacturing, assembly, and distribution; as of July 2006, it will offer an additional 60,000 square feet of upscale office, wet-lab and conferencing facilities to accommodate technology companies, including bioscience companies. The Akron program will be able to take a technology company through stages from idea generation to market introduction, all within the confines of the facility. The MidTown Technology Center is geared toward start-ups, incubator graduates, and established technology firms. It was designed to meet the technical requirements of growing technology companies in the fields of the life sciences, information technology, biopharmaceutics, and medical devices. The MidTown Technology Center will be constructed in two phases: renovating the former Ohio Knitting Mills building to create 84,000 square feet of laboratory and loft-style office space with a keycard-secured 71-space indoor parking garage and maximizing the total 7.5-acre site by offering the opportunity to create up to 400,000 square feet of space.
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Scitech, a research park affiliated with The Ohio State University and located on the Universitys West Campus, occupies a 53-acre campus with 380,000 square feet of office, laboratory, manufacturing, and warehouse space. In addition to the technology incubator and accelerator space offered within the park, Scitech has developed Science Village, a modular, flexible concept for larger companies. Phase I features 40,000 square feet of office and laboratory space. Additional phases will increase the buildout to more than 150,000 square feet. The area of bioMEMS was a significant focus of the Phase I buildout (see above discussion of the Ohio MicroMD Laboratory). The TechSolve Business Park is a 143-acre site located in Cincinnati. TechSolve, one of the Edison Technology Centers created by the state, owns the Business Park. Its facility includes 65,000 square feet containing laboratories, training facilities, and meeting space.
Under development
Cleveland Biotechnology Park, Inc. (BioPark now rolled into BioEnterprise) received $1 million from the State of Ohio in FY 2001 to develop a bioscience research park. BioPark is a collaborative venture of the Cleveland Clinic Foundation (with its Lerner Research Institute), Case Western Reserve University, and University Hospitals Health Systems (with University Hospitals of Cleveland and its Research Institute). It is envisioned that BioPark will help these three institutions and others in northeastern Ohio identify research results in biomedical science and technology that can be commercialized.

The Third Frontier Internship Program helps develop critical partnerships between Ohios students and businesses. Created in 2003, the 3-year, $15 million initiative, utilizing Governors discretionary funds from the federal Workforce Investment Act, is expected to create approximately 1,500 annual internships for Ohio students. With required private matching funds, students are able to earn up to $12,000 over 2 years, leveraging the states annual investment of $3,000 per student. The awards assist businesses, students, and educators working or studying in the five core technology areas identified by the Third Frontier Project, including the biosciences. The program is being administered by the Ohio Department of Development.
Pending Proposals
Federal Matching Grants. Proposed is a program to support bids for major federal funding opportunities of at least $10 million for research and development activities relevant to Third Frontier Project priorities. Federal awards must be for the establishment of a designated federal center or facilitynot a singular research project. Nonrenewable matching funds up to 10 percent of the value of the federal funds awarded will be provided, up to a limit of $2 million per award. Entrepreneurial Assistance Projects. Proposed is a program to enhance support for the start up and growth of new technology-based companies. Funding for 3-year initiatives will be provided up to $15 million. Applicants must demonstrate that they have developed a comprehensive regional plan to dramatically improve the delivery of entrepreneurial assistance. A minimum cash contribution of $1 will be required for every $2 of state funding. It is expected that the majority of
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the funding from this program will support pre-seed capital formation, the attraction and retention of experienced entrepreneurial management, and the provision of well-defined business expertise to client companies. As a component of any project, applicants may request pre-seed funding in an amount not to exceed $2 million per project year. Targeted Industry Company Attraction Program. Proposed is a program to support the identification of company attraction opportunities within targeted industry sectors relevant to the Third Frontier Project. Initial areas of interest are the biosciences; advanced polymers; and instruments, controls, and electronics. Competitive funding for 2-year initiatives will be provided to use the states assets to develop the Ohio value proposition for specific industry sectors and companies, identify and qualify potential targets for attraction to Ohio, and interface with the Ohio Department of Development and local economic development organizations to facilitate closing deals. A portion of the available funding will be incentive based. Targeted Industry Grants. Proposed is a program to provide direct funding to eligible companies that are targets for attraction to Ohio. Initial areas of interest are the biosciences; advanced polymers; fuel cells; and instruments, controls, and electronics. To be eligible for funding, companies would be required to have identified linkages to cluster components including universities and other businesses.
Contacts
Will Indest Ohio Department of Development Technology Division 77 South High Street, 25th Floor Columbus, OH 43215-1001 (614) 466-3887 windest@odod.state.oh.us
Omeris is both the states bioscience accelerator and its industry organization. As such, it helps to build and accelerate bioscience industry, research, and education in Ohio both directly by providing business services and by promoting the growth of the bioscience sector in the state. See more information, above. Dr. Tony Dennis, President Omeris Inc. 1275 Kinnear Road Columbus, OH 43212 (614) 675-3686 tdennis@omeris.org
OHIO
Ohio 73 -5.2% 6,493 -7.0% 6.2% 1.49 $73,551 8.05 52,238 50 -7.4% 4,745 8.3% 1.5% 0.37 $64,548 5.34 25,326 498 -4.0% 12,325 -9.7% 3.0% 0.72 $41,555 2.84 34,967 663 25.0% 8,434 25.8% 2.0% 0.49 $45,668 2.21 18,655 272,752 0.0% 4,533,865 -3.3% 4.2% n.a. $35,929
OHIO
Bioscience Occupations in the Ohio Workforce, 2004
16,000 14,000 Number of Workers in Occupation 12,000 10,000 8,000 6,000 4,000 560 2,000 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 4,270 400 14,740
Bioscience-Related Degrees from Ohio Institutions, AY 2004
Biological Sciences

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Number of Degrees
OHIO
Total Bioscience R&D Expenditures at Academic Institutions in Ohio, FY 2003
Medical Sciences
$408,415
Biological Sciences
$223,408
$51,848
Other Life Sciences
$37,062
$-
$50,000
$100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000
Ohio University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $1,268,784 $736,232 58.0% $64.38 53.0% $691,538 $60.47 49.1% 4,447 19,970
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 10 10
7 9
OHIO
10

In the summer of 2003, Governor Brad Henry initiated the Economic Development Generating Excellence (EDGE) project, which included the recommendation to Transform Oklahoma into the Research Capital of the Plains. The EDGE plan proposed to achieve this by establishing a $1 billion research endowment. Under the leadership of the Governor, plans to fund the $1 billion EDGE endowment and structure and operate the endowment to support research and technology transfer in the private and public sector are progressing. During the 2005 legislative session, in a first step toward this objective, HB 1193 created the Dynamic Economy and Budget Security Fund, which promotes research and development of critical sectors of the states economy. The Legislature and Governor authorized the deposit of approximately $93 million into the fund. In the 2006 legislative session, that $93 million was used to fund other projects, but the money was replaced with new funding in the amount of $150 million. In March, 2005 Governor Brad Henry signed legislation establishing a $475 million bond issue for a slate of higher education projects, much of which targets research and laboratory facilities. The Oklahoma Higher Education Promise of Excellence Act of 2005 also provided $25 million in the form of a bond bank to finance future improvements at the states colleges and universities. The final $125 million in bonds of the $475 million total is scheduled to be sold in the spring of 2006. Among the projects to be funded with bond proceeds are the following: University of Oklahoma: A long-proposed cancer center; the first phase of a multiphase project for a new, freestanding, Chemistry and Biochemistry teaching and research-laboratory complex; and construction of a College of Allied Health Phase II building. Oklahoma State University, Tulsa campus: An Advanced Technology Research Center that will focus on the development of next-generation composites and materials for industries such as aerospace, biotechnology, telecommunications, and manufacturing. Oklahoma State University, Okmulgee campus: A Health Science and Technology Center focused on needs of rural Oklahomans and used for applied research, technology transfer, technical education, and clinical residency. The Oklahoma Center for the Advancement of Science and Technology (OCAST), created by the Oklahoma Legislature in 1987, offers a suite of programs to support research and development, facilitate technology transfer and commercialization, stimulate seed capital investment, and encourage manufacturing competitiveness. Programs supporting basic and applied research are open to the full range of
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performers, including universities, nonprofits, and firms. Since its inception, OCAST has supported the development of the states bioscience sector through the Oklahoma Health Research (OHR) Program, which is described below. The Oklahoma Medical Research Foundation (OMRF) and the Noble Foundation are private institutions integral to the Oklahoma bioscience community. The OMRF research campus in Oklahoma City has grown substantially over the years; its annual budget is now over $36 million. In 2004, OMRF completed a 5-year fund raising campaign, during which time over a third of the foundations laboratories were renovated and an additional 100,000 square feet of new space was added. New core facilities included microarray, cell signaling, transgenic mouse production,, and small animal MRI. The Donald W. Reynolds Center for Genetic Research was also completed. OMRFs operation is highly integrated with the facilities and strategies of the Oklahoma University (OU) Health Sciences Center. OMRF has spun off several local biomedical companies. The Noble Foundation, based in Ada, explores and improves production agriculture techniques and advances plant science through research and discovery. The foundation's operations are conducted through three operating divisionsagricultural, plant biology, and forage improvement. The foundation is doing extensive work in plant genomics. The Presbyterian Health Foundation (PHF) Research Park is a 27-acre biomedical research park developed by the Oklahoma City Urban Renewal Authority and PHF. It is located close to the OU Health Sciences Center, the OU School of Medicine, and OMRF. A key development is the aggressive building campaign by PHF, which has greatly increased the space available for, and the number of, businesses and R&D activities in the park.

In addition to the projects to be funded by the bond issue discussed in the overview, other investments include those below. The Stephenson Research and Technology Center, located at the University of Oklahoma Research Campus in Norman, is a multiphase project to support interdisciplinary programs in the biosciences, bioengineering, and the OU Supercomputing Center. Phase 1 at $27 million is nearing completion and includes 94,600 square feet of laboratory and office space. The $25 million Phase 2 will add 100,000 square feet of laboratory and office space and will provide growth space for the universitys chemistry and biochemistry research programs. The complex includes a Biological Lab Level 3 (BL-3) and secured areas to support homeland security research. It also includes space for private companies to collocate and collaborate with university research programs. In addition to other labs, the complex houses the OU Microarray and Bioinformatics Core Facilities, the Advanced Center for Genome Technology, and the OU Bioengineering Center. In May 2004, the Legislature passed a new statute that officially recognized OU-Tulsa as one of the core components of The University of Oklahoma system. Major areas of research focus at OU-Tulsa will include cancer, diabetes and obesity, cardiovascular disease, infectious diseases and bioterrorism, neuroscience, new drug development, and health services research. The Schusterman Center at OUTulsa is slated to receive $1 million of the higher education bond issue funding described in the overview.
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Research programs
The OCAST Oklahoma Health Research Program has been operating since 1986. It awards seed funds for research projects related to human health for 1 to 3 years at a maximum of $45,000 per year with no matching funds required. Eligible applicants include Oklahoma universities and colleges, nonprofit research organizations, and private enterprises located in Oklahoma. The Oklahoma Applied Research Support (OARS) Program, also managed by OCAST, was initiated to accelerate the development of technology (including biotechnology) with potential for producing a commercially successful product, process, or service that will benefit Oklahomas economy. The program is described in more detail below.

A subprogram within OCASTs OHR Program, the Health Research Scientist Recruitment and Retention Program supports the research projects of health research scientists who are new to Oklahoma for 1 to 3 years at a maximum of $100,000 per year. The awards are specifically designed to increase the pool of health research talent in the state.

The OARS Program accelerates the development of technology (including biotechnology) with potential for producing a commercially successful product, process, or service that will benefit Oklahomas economy. Funding is provided to applied research projects under terms that increase industrial R&D investment and reward university/industry collaborative efforts. Awards are made to Oklahoma businesses, universities, and nonprofit research organizations for 1- to 3-year R&D projects. Awards range from $10,000 to $300,000. A minimum of $1 matching support is required for each state dollar awarded. The OCAST STTR support program helps small firms in Oklahoma compete for federal Small Business Technology Transfer (STTR) awards including those in biotechnology areas. The OCAST program offers Phase 0 financial incentives and proposal development assistance.

The Oklahoma Technology Commercialization Center, an OCAST initiative managed by the private not-for-profit corporation i2E, works with Oklahoma companies, inventors, university and foundation researchers, and entrepreneurs to turn technological innovations into successful business enterprises.

The OCAST Technology Business Finance Program, funded by OCAST and administered by i2E, provides pre-seed financing and early-stage risk capital to Oklahoma-based start-up technology companies. The life sciences, medical devices and instruments, and agricultural sciences are among the industries eligible to receive financing from the program. All funds must be matched on a 3:1 basis from other sources and at least $1 of every $3 of matching funds must be provided in cash; the remaining
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match can include in-kind contributions. Successful projects require repayment at a minimum of twice the investment and a maximum of five times the investment. Annual funding for the program is approximately $800,000 to $900,000, with average investments of $100,000 to $200,000. The life sciences account for approximately 40 percent of projects funded. OCAST SBIR Funding Programs support companies applying for federal SBIR funding. The SBIR Phase I Incentive Program reimburses companies that have applied for Phase I SBIR funding. The program offers reimbursement for 50 percent of the proposal costs, up to $5,000. The SBIR Matching Funds Program supports companies in between Phases I and II. Companies that have received Phase I funding and have applied for Phase II funding may seek 50 percent of the Phase I award, up to a maximum of $25,000. Oklahoma Life Sciences Fund, LLC (OLSF) is an Oklahoma limited liability company created to take advantage of private equity investment opportunities in the Oklahoma life sciences. The OLSF is $5.1 million and invests in the most promising, very early-stage life-science companies that are not yet able to attract venture capital. The PHF is an investor in this fund.
Venture capital
The State of Oklahoma created the Oklahoma Capital Investment Board (OCIB) in 1993 to mobilize equity and near-equity capital for investment in companies with significant potential to create jobs and enhance the economy of Oklahoma. OCIB is an institutional investor, operating as a fund of funds. It contributes to the building of the venture capital industry in Oklahoma by supporting investments in professionally managed seed and venture capital partnerships. OCIB has supported investment in 16 venture capital funds, which in turn have attracted investment of more than $100 million to Oklahoma projects, including bioscience companies. Under the Venture Capital Tax Credit, investment in qualified venture capital companies creates a transferable income tax credit or premium tax credit. Venture capital companies must be capitalized at a minimum of $5 million and invest at least 55 percent of those dollars in qualified Oklahoma companies over a 10-year period. The credit equals 20 percent of the cash invested.

Incubators
The Center for Business Development at the Meridian Technology Center in Stillwater offers 15,000 square feet of office space and/or laboratory and engineering space. Of its current seven tenants, one is a bioscience company. The State of Oklahoma provides special tax incentives for incubator clients. The Center for Business Development is an Oklahoma Department of Commercecertified business incubator, which automatically qualifies its clients for a 10-year, state income tax exemption.

The PHF Research Park is a 27-acre biomedical research park developed by the Oklahoma City Urban Renewal Authority and PHF. It is located close to the OU Health Sciences Center, the OU School of Medicine, and OMRF. PHF completed the first building in the research park in 1996. Today, the research park is completing its sixth building, with a master plan for four more. With 550,000 square feet of Class A wet-lab and office space, the research park is currently home to 34 tenants.
OKLAHOMA 4

The biotechnology program at Oklahoma City Community College (OCCC) offers a 2-year, 65-credit, associates degree program or a 44-credit certificate of mastery, both designed to prepare students to enter the job market directly after completion. OCCC is also benefiting from the statewide higher education bond issue with the Health Profession Education Center expansion, which will provide an additional 30,000 square feet of health profession classrooms, laboratories, student clinical practice space, high-tech patient simulator laboratories, and specialized recruitment and health profession offices. The University of Central Oklahoma offers a biotechnology degree. OCASTs OARS Program supports student and faculty internships in Oklahoma R&D facilities to encourage greater numbers of students to prepare for careers in scientific and technical fields. OARS funding for R&D Faculty and Student Intern Partnerships supports 1- to 2-year projects requiring a minimum of $10,000 per year and a maximum of $50,000 per year of OARS funds. An individual student or faculty member may intern for up to 1 year.
Pending Proposals
Senate Bill 1056 would help fund the start-up cost for creating two diabetes research facilities based on the OU campuses in Oklahoma City and Tulsa. OU anticipates a need for start-up funds of $15 million, with $10 million to $12 million of that going to pay for the actual bricks and mortar and $3 million to $5 million for operations, researchers, and matching grants. The facilities would provide critical care treatment, conduct research, and provide outreach programs for medical centers around the state. Governor Henrys FY 2007 budget proposal includes $390 million for various economic development and research initiatives including an increase in funding for the OCAST Health Research Program and a $180 million state bond issue that includes $60 million each for projects at the University of Oklahoma and Oklahoma State University. The proposed bond issue includes $60 million for a new credit facility that would allow private research entities, such as foundations, to borrow at low cost to develop research and development facilities. Part of the University of Oklahomas $60 million would go toward expanding the capabilities of the new cancer research center and establishing the diabetes research center. The Greater Oklahoma City Chamber of Commerce recently issued a Regional Bioscience Strategic Plan for Oklahomas bioscience corridor. Planning is underway to determine potential funding sources for these proposed initiatives: Formation of an Oklahoma Bioscience Collaborative Funding the proposed $1 billion EDGE research endowment Creation of an Oklahoma Bioscience Opportunity Fund for short-term funding of research, recruitment of faculty and investigators, purchase of equipment, and construction of laboratories and facilities
OKLAHOMA
Creation of a Technology Development Fund to support commercialization of technology owned by universities and research organizations Creation of a bioscience early-stage seed fund to help attract additional venture capital to the state.
Contacts
Dan Luton Assistant Director, Technology Development Programs Oklahoma Center for the Advancement of Science and Technology 755 Research Parkway, Suite 110 Oklahoma City, OK 73104-3612 Toll free1 (800) 265-2215or (405) 524-1357 dluton@ocast.state.ok.us
Josh O'Brien Business Development Manager, Bioscience Greater Oklahoma City Chamber of Commerce 123 Park Avenue Oklahoma City, OK 73102 Ph: (405) 297-8893 Fax: (405) 297-8908 jobrien@okcchamber.com
OKLAHOMA
Oklahoma 17 -14.7% 629 -35.7% 0.6% 0.58 $50,263 6.84 4,305 21 -8.7% 329 -28.8% 0.1% 0.10 $45,359 4.70 1,547 157 -0.4% 1,342 -12.0% 0.3% 0.32 $37,249 2.45 3,285 228 28.3% 2,619 -8.0% 0.6% 0.61 $49,615 2.26 5,917 86,974 2.0% 1,130,201 -3.4% 1.0% n.a. $30,451
OKLAHOMA
Bioscience Occupations in the Oklahoma Workforce, 2004
4,000 3,500 Number of Workers in Occupation 3,000 2,500 2,000 1,500 1,000 500 340 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers 100
3,970
2,400
Bioscience-Related Degrees from Oklahoma Institutions, AY 2004
Biological Sciences

OKLAHOMA
Total Bioscience R&D Expenditures at Academic Institutions in Oklahoma, FY 2003
Medical Sciences
$43,131
Biological Sciences
$55,819
$38,304
Other Life Sciences
$3,561
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Oklahoma University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $295,098 $140,816 47.7% $40.10 26.2% $87,856 $25.02 97.7% 1,490 6,810
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 35 35
35
30 29
OKLAHOMA

Since the last BIO report, the Kulongoski administration adopted an innovation state economic strategy that includes the biosciences among other advanced sectors. In 2005 SB 838 created the Oregon Innovation Council, a board with grant- and loan-making powers staffed by the Oregon Economic and Community Development Department. The Innovation Council subsumes the Oregon Council on Knowledge and Economic Development, as well as a previously funded nanotechnology institute as a first example of a series of anticipated Signature Research Centers. The council is charged to develop a full innovation plan for the state during 2006. Related legislation enables the states public universities to self-finance funds for precommercialization research.

Recently constructed bioscience facilities include the Biomedical Research Building, a 274,000-squarefoot, 11-story, $113.4 million building financed by general obligation bonds at the Oregon Health and Science University (OHSU) in Portland.
Research programs
The Oregon Innovation Council is charged to support a series of Signature Research Centers, starting with the Oregon Nanoscience and Microtechnology Initiative (ONAMI), which has a small bio-nano component. Follow-on centers have not yet been determined.

SB 853 directs the state treasurer to establish University Venture Development Funds that will pay for precommercialization research and other entrepreneurial programs at the Oregon University System (OUS) institutions and OHSU. In a technique that has been used before in Oregon, these funds will be capitalized by donations from taxpayers who may take a 60 percent tax credit up to $50,000 over 3 years. Donations are unlimited, but the overall credit pool is capped at $10 million for OUS institutions and $4 million for OHSU. The institutions will pay the treasurer 20 percent of commercialization revenues until the total amount of tax credits granted has been reimbursed.
OREGON 1

Portland State University (PSU) is the lead organization for Lab2Market, a commercialization program in the School of Business Administration funded by the NSF Partnerships for Innovation Program. The 3-year, $600,000 program will provide mentoring for start-up companies and facilitate the commercialization of university-developed technologies coming out of OHSU, the University of Oregon, and other research institutions in the state in addition to PSU. Lab2Market has a goal of launching 12 new companies in 3 years.

The Oregon Innovation Fund legislation authorizes grants or loans to private businesses for commercialization activity. This program is not yet funded.
Venture capital
The Oregon Growth Account in the state treasurers office invests proceeds from the Oregon Lottery for the benefit of the Education Stability Fund in venture funds that commit to local investment activity. The Growth Account seeks to earn a rate of return, but economic development may be a byproduct. Since the last BIO report, the board invested $10 million with Cascadia Partners of Portland, joining the following previous investments in venture funds that consider bioscience deals in the Northwest: Fluke Venture Partners ($2 million from the fund) Northwest Technology Ventures ($14 million from the fund) Pacific Horizons Ventures ($2 million from the fund).

Riverfront Research Park is a 67-acre research park at the University of Oregon along Willamette River in Eugene. To date one-quarter of an anticipated 1 million square feet of space is built out.
Contacts
Amy Keiter Industry Cluster Specialist, Innovation and Economic Strategies Division Oregon Economic and Community Development Department One World Trade Center 121 SW Salmon, Suite 205 Portland, OR 97204 (503) 229-5113
OREGON
The mission of the Oregon Bioscience Association (OBA) is to promote the growth and quality of the biotechnology industry in the State of Oregon and ensure that it achieves its full economic and social potential. OBA is a nonprofit association with membership open to any company, organization, or individual with an interest in biotechnology, medical devices, or the life sciences. Mary Erichsen Chairman, Oregon Bioscience Association 37886 SW Lyle Court Portland, OR 97221 (503) 225-9901 erichsen@us.ibm.com
OREGON
Oregon 30 54.2% 484 37.6% 0.5% 0.37 $44,394 4.91 2,377 33 -13.2% 702 -8.2% 0.2% 0.18 $34,961 3.49 2,450 278 4.1% 4,313 2.8% 1.0% 0.85 $42,156 2.61 11,252 237 7.9% 3,134 10.7% 0.8% 0.62 $56,422 2.27 7,113 113,618 3.5% 1,344,923 0.1% 1.2% n.a. $35,020
OREGON
Bioscience Occupations in the Oregon Workforce, 2004
4,500 4,000 Number of Workers in Occupation 3,500 3,000 2,500 2,000 1,500 1,000 500 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 710 2,020 4,270
Bioscience-Related Degrees from Oregon Institutions, AY 2004
Biological Sciences
Number of Degrees
OREGON
Total Bioscience R&D Expenditures at Academic Institutions in Oregon, FY 2003
Medical Sciences
$114,087
Biological Sciences
$101,341
$54,871
Other Life Sciences
$17,469
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Oregon University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $436,958 $293,858 67.3% $82.55 35.5% $258,047 $72.49 37.9% 1,243 7,000
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 27 27
23
33 27
OREGON

A Pennsylvania Biosciences Continuum strategy was released in 2005 by the state Department of Community and Economic Development. This strategy emphasizes creating connectivity among the states research institutions, its mature pharmaceutical and bioscience companies, and emerging companies. The strategy is being implemented through several intermediary programs such as three regional Life Sciences Greenhouses, several statewide venture-capital initiatives, and various programs operated by the Ben Franklin Technology Development Authority (BFTDA). The three Greenhouses were established with a $100 million commitment from the state Tobacco Settlement Investment Board, matched by local communities. The Greenhouses are conceived as comprehensive centers for commercialization of bioscience research. The BioAdvance Greenhouse in Philadelphia targets bioinformatics, biopharmaceuticals, medical devices, and clinical trials. The Pittsburgh Life Sciences Greenhouse focuses on drug discovery tools and targets, tissue and organ engineering, medical devices, and therapeutic strategies for neuropsychiatric disorders. The Life Sciences Greenhouse of Central Pennsylvania targets rational drug design/delivery, biomedical devices, and bionanotechnology. In the most recent fiscal year, 69 companies and 22 university-based projects were funded for a total of $20 million, levering an estimated total of $130 million in private follow-on investment. Since the last BIO report, the Tobacco Settlement Investment Board completed its related commitment of $60 million to four venture capital funds that operate in Pennsylvania. Also, the economic stimulus proposed in 2004 was largely approved, giving the Commonwealth Financing Authority (CFA) $60 million in new capacity for loans to in-state venture partnerships and $250 million in capacity to guarantee in-state investments. The BFTDA also rolled out the Keystone Innovation Zone (KIZ) Program. KIZs are intended to help regions surrounding colleges and universities better link their economic-development strategies to these institutions. Each KIZ receives $250,000 in planning funds, and participating institutions are eligible for $250,000 grants to develop infrastructure for technology transfer. Companies locating in KIZs qualify for $25 million in tax credits targeted at very early-stage businesses with rapid revenue growth. These credits can be sold, along the model of the states R&D tax credit for which the statewide pool was expanded from $15 million to $30 million. In his 2006 budget address, Governor Edward Rendell proposed that part of the 19 percent of the tobacco settlement currently used to fund a research initiative operated by the Department of Health be diverted to back $500 million in bonding capacity for a Jonas Salk Legacy Fund that would support bioscience faculty recruitment and facilities construction (see below under Pending Proposals).
PENNSYLVANIA

The University of Pittsburgh opened Biomedical Science Tower 3, a new 331,000-square-foot, 10-story, $205 million structure that will house a regional biocontainment laboratory and university programs in bioengineering, computational biology, neurobiology, structural biology, drug discovery, neurodegenerative disease, and core facilities in proteomics. Financing came from the state capital budget, the Pittsburgh Life Sciences Greenhouse, and other sources. Since the last BIO report, the state has made commitments to the following additional capacity: Cancer Research Pavilion, a five-story, 300,000-square-foot structure at Fox Chase Cancer Center ($10 million state commitment) Research/Clinical expansion at University of Pennsylvania ($10 million toward a 2-millionsquare-foot. new Riverview Campus at the old convention center Research/Clinical expansion at Childrens Hospital of Philadelphia ($10 million state commitment toward a $1 billion expansion project) Materials Science Research Building at The Pennsylvania State University (Penn State), $40 million state commitment toward 192,000-square-foot, $84 million building aimed at convergent applications such as biomaterials Research Building at Penn State Cancer Institute in Hershey ($10 million state commitment) Life Sciences Building at Franklin and Marshall College, a focal point for the Lancaster KIZ ($10 million state commitment toward a $40 million building). Penn State is also planning a Life Sciences II building for neuroscience, complementing the Huck Life Sciences Institute biotechnology building opened in 2004. In the private sector, Penn was fund-raising through its life science initiative for a new, 217,000-square-foot life research building.
Research programs
Under Act 77 of 2001, 19 percent of tobacco settlement funding is allocated to the Commonwealth Universal Research Enhancement Fund (CURE), administered by the state Department of Health. In the 2004/2005 annual round, CURE made 44 grants totaling $72 million to universities, research institutes, and hospitals statewide. The CURE pool is part formula and part competitive, with a different priority stressed each year in the competitive program. The most recent competitive priority was neurodegenerative disease, and the next is obesity. See Pending Proposals below for more information. Since 2001, the BFTDA has had the ability to make grants for large-scale university research programs or consortia. For example, in the southeastern region, Ben Franklin supported creation of the Nanotechnology Initiative, a collaborative of Penn, Drexel, other universities in the Philadelphia region and Ben Franklin Technology Partners of Southeastern Pennsylvania that focuses specifically on biomedical applications of nanotechnology and includes resources for commercialization. BFTDA university funds have also supported capital projects.
PENNSYLVANIA

The BFTDA recently announced Keystone Innovation Starter Kits to be used in conjunction with KIZ grants to attract faculty across multiple fields. These awards will average about $200,000 per institution and may be enhanced if the proposed Jonas Salk Legacy Fund is enacted. The Pittsburgh Life Sciences Greenhouse offers an Opportunity Fund to help universities attract faculty members in the four areas it has targeted.

A portion of the BFTDAs Technology Development Grant Fund has been set aside for the Keystone Innovation Zone program, which is recognizing geographically designated zones where collaboration is fostered among universities, economic-development agencies, financial institutions, and businesses. KIZs are eligible for planning grants that start at $250,000 and decline 25 percent a year until they reach selfsufficiency. To date, $3.7 million in operational grants have been committed to 16 KIZs involving 30 institutions of higher education, including two zones in Philadelphia and one in Pittsburgh. There are 10 zones in which a campus of the Penn State system has some participation, including its large Medical Center at Hershey. Each participating institution is also eligible to compete for a $10 million pool of Keystone Innovation Grants, which provide up to $250,000 to build infrastructure for collaboration and technology transfer. To date, 13 institutions have received these grants. The Pittsburgh Life Sciences Greenhouse offers a Collaborative Research Fund that finances projects matched by in-state companies. The matching requirement scales from 0.5:1 for the smallest companies to 1:1 for companies with more than 100 employees.

BioAdvance will provide up to $200,000 for precommercialization research on university-owned intellectual property with commercial promise. Also in Philadelphia, the Science Center research park has also created a commercialization division that sources technology from all its shareholding institutions and creates start-up vehicles that can attract capital. In Southwestern Pennsylvania, the University of Pittsburgh (Pitt) operates a Technology Commercialization Alliance. MPC Corp., a collaborative of Pitt and Carnegie Mellon that operates the KIZ in Pittsburgh, received $500,000 from the BFTDA to match $400,000 from the Heinz Endowments for a Gap Fund accessible to both institutions. Pitt operates an Office of Technology Development that educates faculty on entrepreneurial possibilities stemming from bioscience and other research. Life Sciences Greenhouse of Central Pennsylvania will make grants for commercialization research up to $250,000 through its Technology Development Fund.

Innovation Philadelphia is a multisector commercialization assistance center supported by city and state funds and linked to a pre-seed investment fund (see below). The BioAdvance Greenhouse also offers up to $50,000 to assist entrepreneurs in the commercialization process, not necessarily in collaboration with
PENNSYLVANIA 3
universities. Both Pitt and Penn State maintain industrial liaison offices to assist entrepreneurs in accessing university resources. Pennsylvanias 10 percent R&D tax credit may be transferred by application to the Department of Community and Economic Development. The overall pool of tradable tax credits is capped at $30 million annually (up from $15 million). As of the first year, 11 tradable assignments were approved, generating $564,000 for six sellers.

The Innovation Partnership, a collaborative of 13 organizations statewide, will support half the cost of SBIR proposal preparation up to a total grant of $3,000. Innovation Philadelphia, a city-supported accelerator, can make pre-seed investments directly and has also raised $4 million from 80 investors for Mid-Atlantic Angels, a formal pre-seed investment fund. Pennsylvania Angel Network plans statewide outreach to potential bioscience angel investors. The four regional centers of the statewide Ben Franklin Technology Partners program make direct investments in start-ups from all sectors including the biosciences. The size of the investment varies from region to region but usually ranges from $100,000 up to $500,000. Above that level, some of the centers may co-invest with other parties. Several of the centers such as the one in Philadelphia maintain a separate Technology Commercialization fund that invests up to $350,000, but only in companies formed around a discovery licensed from a university in the region. Pre-seed and seed-stage investments targeted at the bioscience sector are also available from each of the three Greenhouses: In Philadelphia, the BioAdvance Greenhouse Fund can invest up to $500,000. In Pittsburgh, the Life Sciences Greenhouse Pre-Seed Fund invests up to $100,000. In Central Pennsylvania, the Life Sciences Greenhouse Gap Fund invests up to $500,000.
Venture capital
The Health Venture Account of the Tobacco Settlement Investment Board has invested more than $50 million to date in four Pennsylvania-based venture capital funds. In each case, the board required that its investment be levered at least 3:1 by outside investments, and the actual leverage has been double that goal. All have at least some interest in bioscience and a commitment to source deals in-state in partnership with the three Greenhouses: PA Early Stage Partners of Wayne ($20 million investment from the Health Venture Account), an $86 million, multisector fund that also includes participation from city and state pension funds. PA Early Stage also manages an allocation from the Pittsburgh Life Sciences Greenhouse and has opened a Pittsburgh office. Quaker BioVentures of Philadelphia ($20 million investment), a $280 million bioscience fund with broad mid-Atlantic scope. Quaker BioVentures also manages additional funding from the
PENNSYLVANIA 4
BioAdvance Greenhouse in Philadelphia and has a similar investment from the New Jersey Economic Development Authority. Birchmere Ventures III of Pittsburgh ($10.8 million), a $44 million multisector fund. Commerce Health Ventures of King of Prussia ($9.2 million), a bioscience fund with special focus on the western region of the state. The Science Center of Philadelphia has created its own internal $10 million venture fund to support its commercialization division, capitalized by refinancing of certain properties in the research park. Pittsburgh Life Sciences Greenhouse is also attempting to raise its own $150 million venture fund specifically targeted at the biosciences in southwestern Pennsylvania. The BFTDA also has the capacity to make direct investments in venture capital funds, and the Commonwealth Financing Authority has two venture capital initiatives: CFA has completed the first round of what will be a $60 million program called the New PA Venture Investment Program. Under this program, CFA will loan funds to Pennsylvania-focused venture firms that agree to match its commitments 3:1 with investments in Pennsylvania companies. Loans in the range of $3 million to $7 million have been made to various firms, among which Draper Triangle Ventures II of Pittsburgh will consider deals in medical devices. The $250 million New PA Venture Guarantee Program, set to roll out this spring, will guarantee portfolio investments in Pennsylvania companies by top-quartile venture firms that agree to commit at least $15 million to Pennsylvania.

Incubators
Bioscience incubators include the following: The Science Center Incubator occupies a 25,000-square-foot floor in a larger, privately developed multitenant building. The Pittsburgh Life Sciences Greenhouse Incubator occupies 17,000 square feet in a building at Pittsburgh Technology Center developed for Cellomics and also housing research operations of the McGowan Center at Pitt. The Ben Franklin Business Incubator occupies 10,400 square feet on the campus of Lehigh University in Bethlehem. Zetachron Center for Science and Technology Business Development at Penn States Innovation Park has three bioscience tenants in 4,000 square feet of wet-lab space, and Innovation Parks own Technology Center Incubator has an additional four wet labs totaling 2,000 square feet. Penn States separate Hershey Medical Center is planning incubation space within an 80,000-square-foot Center for Applied Research due to open in 2007.
PENNSYLVANIA 5

The research park with the strongest bioscience orientation is the Science Center, a 40-year-old, 17-acre park in Philadelphia. The Science Center is now targeting buildout to 2 million square feet, with substantial additional wet-lab multitenant space. The University of Pittsburgh Applied Research Center is a large facility with multitenant wet-lab space operated on the site of a former Gulf Oil R&D campus 14 miles upriver from Pittsburgh. The Pittsburgh Technology Center, an industrial park developed by the city on the site of a 48-acre former steel mill, houses bioscience operations of Pitt, Carnegie Mellon, and the Pittsburgh Life Sciences Greenhouse. A consortium of Pittsburgh area foundations is also developing another brownfield site for possible science park use on 138 acres of a former coke works.

Both Innovation Philadelphia and the Pittsburgh Life Sciences Greenhouse maintain CEO-in-residence programs to assist in the start-up process.

Penn has launched the Vagelos Program in Life Sciences and Management through which undergraduates receive special exposure to life science research and may receive either a BA from the School of Arts and Sciences or a BS from the Wharton School. Innovation Philadelphia coordinates Career Philly, an internship program designed to link college graduates to opportunities across multiple sectors. The goal is to develop 5,000 internship slots.

A consortium of employers and institutions in Eastern Pennsylvania has created a Life Sciences Career Alliance, which tracks educational training and internship opportunities across the health professions. For example, the Career Alliance will manage a $400,000 state grant for biotech worker training at four area firms, financed by the states Manufacturing Sector Incumbent Worker Fund. Several institutions also collaborate on Career Philly, which is aiming to create 5,000 regional internship opportunities across all sectors.
Pending Proposals
Governor Rendells Jonas Salk Legacy Fund proposal suggests that half the 19 percent of the tobacco settlement funds currently used to fund the CURE health research program be used to back a $500 million bond issue. Of this, $100 million would be used to enhance the Keystone Innovation Starter Kit program begun last year and $400 million would be available as a matching fund for research or incubation facilities.
PENNSYLVANIA
Contacts
Rebecca Bagley Deputy Secretary for Technology Investment, Pennsylvania Department of Community and Economic Development 400 North Street Commonwealth Keystone Building, 4th floor Harrisburg, PA 17120-0225 (717) 214-5325 rbagley@state.pa.us
Pennsylvania Bios mission is to be a catalyst to ensure that Pennsylvania is a global leader in the biosciences by developing a cohesive community that unites the region's biotechnology, pharmaceutical, research, and financial strengths. Dennis M. Mickey Flynn President, Pennsylvania Bio 20 Valley Stream Parkway, Suite 110 Malvern, PA 19355-1457 (610) 578-9220 president@pennsylvaniabio.org
PENNSYLVANIA
Pennsylvania 69 -10.3% 2,164 -25.6% 2.1% 0.47 $61,576 6.77 14,649 112 -9.7% 23,307 -9.6% 7.4% 1.70 $88,754 7.49 174,639 625 -3.8% 19,876 -6.3% 4.8% 1.10 $50,590 3.50 69,631 945 9.8% 27,488 19.0% 6.6% 1.52 $67,405 2.45 67,307 315,168 -2.0% 4,781,008 -1.4% 4.4% n.a. $38,055
PENNSYLVANIA
Bioscience Occupations in the Pennsylvania Workforce, 2004
25,000 22,450 Number of Workers in Occupation 20,000
15,000
10,000
10,440
5,000 560
1,160
Bioscience-Related Degrees from Pennsylvania Institutions, AY 2004
Biological Sciences

500 1,000 1,500 2,000 2,500 3,000 3,500
Number of Degrees
PENNSYLVANIA
Total Bioscience R&D Expenditures at Academic Institutions in Pennsylvania, FY 2003
Medical Sciences
$756,090
Biological Sciences
$326,103
$74,736
Other Life Sciences
$30,812
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Pennsylvania University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $2,013,453 $1,210,524 60.1% $97.90 52.8% $1,394,475 $112.77 47.4% 5,360 34,610
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 5 4
4 4
PENNSYLVANIA
10

The Commonwealth of Puerto Rico has targeted the biosciences for development as a logical outgrowth of its 40-year track record as a major center of pharmaceutical manufacturing. Puerto Rico also is a leader in agricultural biotechnology research and seed production. In March 2006, the U.S. Department of Agricultures Animal and Plant Health Information Service noted that, over the course of the past decade, Puerto Rico is the third leading state or territory for plant biotechnology research with just under 1,500 plant biotech field tests permitted by the Agency. Bioscience strategy is steered by the Puerto Rico Industrial Development Company (PRIDCO), the commonwealths agency for economic development. Individual cluster initiatives target biotechnology, pharmaceuticals, and medical devices. The commonwealth also allocated $14 million this year for a Puerto Rico Science, Technology and Research Trust, a separately governed entity that will be capable of making grants, loans, or other investments supporting research and infrastructure projects across three fields, including life sciences and healthcare. Some elements of this strategy are managed in partnership with INDUNIV, the nonprofit Industry/ University Research Consortium established in 1985 to manage public/private partnerships for technology-based economic development. INDUNIV administers a Pharmaceutical Industry Cluster organization and in 2001 created the Puerto Rico Biotechnology Alliance. In 2005 PRIDCO and INDUNIV jointly began to implement a Life Science Roadmap.

Recent commonwealth investments in facilities
PRIDCO and the University of Puerto Rico (UPR) jointly established the Centennial Fund, a $40 million endowment to support the development of research facilities. UPR will start construction of a 152,000-square-foot Molecular Sciences Complex that will house existing faculty (and incubator space) across a range of bioscience-related disciplines. The project is fully funded through grants from NIH and PRIDCO as well as an appropriation through the Commonwealth budget. The Molecular Sciences Complex is located in the Puerto Rico Knowledge Corridor, which links main and medical campuses of UPR with the newly formed Puerto Rico Cancer Center. A joint venture of UPR and the M.D. Anderson Cancer Center of Houston, this center will soon begin construction on a plot of land adjacent to the Puerto Rico Medical Center. The facility will include 20,000 square feet of laboratory space. Other recent investments in the corridor include a new education and research building for the School of Pharmacy at the UPR-Medical Sciences campus and upgrades to animal facilities at the Neuroscience Institute and the Caribbean Primate Institute.
PUERTO RICO 1
Construction will start this year on a 28,751-square-foot, $12.5 million Biotechnology Center for Research and Training in BioProcesses to be located at Guanajibo Industrial Park in Mayaguez, not far from the UPR campus. The facility will house a pilot plant with suites for mammalian cell culture and microbial cell fermentation. It will also serve as a training center for biotechnology companies and will include space for business incubation and contract production. The project is a joint venture of PRIDCO, UPR, and the U.S. Economic Development Administration.
Research programs
The Science, Technology and Research Trust will substantially expand Puerto Ricos capability to fund research projects with technology-transfer components. Up until now, INDUNIV has provided seed funding to A UPR Chapter (at the Pharmacy School) of the Center for Pharmaceutical Processing Research, an NSF Industry/University Cooperative Research Center based at Purdue; and The Center for Advanced Packaging Technologies, which will operate as a free-standing nonprofit center serving the pharmaceutical and medical device sectors, with participation from UPR-Mayaguez and Puerto Rico Polytechnic University.

One project under development is a Technology Transfer Consortium in partnership with the National Technology Transfer Center of West Virginia. The Science, Technology and Research Trust will participate in this project in the future. The goal of the consortium is to support commercialization of federal technologies by Hispanic entrepreneurs both islandwide in Puerto Rico and across Latin America, through the Central American Free Trade Agreement (CAFTA). The Puerto Rico Small Business Development Center includes a Technology Development Commercialization Center that assists entrepreneurs in commercializing technology-based products and services. Puerto Ricos tax code provides special low rates for companies that establish operations in core pioneer industries that utilize innovative technology not in place prior to 2000 and a 200 percent deduction for R&D expenses.

Incubators
Both the Molecular Sciences Complex and the Biotechnology Center for Research and Training in BioProcesses will include incubation space.
PUERTO RICO

The Local Redevelopment Authority that is converting the U.S. Naval Station Roosevelt Roads is considering use of certain acreage as a bioscience research park. Land transfer from the Navy to the commonwealth begins this year.

Pontifical Catholic University of Puerto Rico is developing a masters program in biotechnology management. UPR-Humacao and UPR-Arecibo also offer a post-bachelors certificate for those professionals wanting to transfer into bioscience careers. The Industrial Biotechnology Learning Center at UPR-Mayaguez offers an Industrial Biotechnology bachelors program and customized training programs for biopharmaceutical employees. UPR-Medical Sciences campus offers a professional masters degree in clinical research and doctoral programs through evening classes accessible to industry professionals. PRIDCO offers fellowships up to $18,000 for postgraduate students in the biosciences.

UPR-Medical Sciences operates a Biomedical Research Education Program that performs K-12 outreach, co-sponsored by the NIH, the Pfizer Foundation, and other companies with local operations. The Biotechnology Alliance is partnering with other organizations to improve teaching of bioscience, supported in part by a $34.9 million grant from NSF awarded to UPR and an alliance of universities for improvement of K-12 math and science curricula. Through a donation from Amgen Foundation, the Industrial Biotechnology Learning Center at UPRMayaguez (see above) sponsors a Biotechnology Summer Camp for high school students. The Biotechnology Alliance also distributes material for K-12 curricula.
Contacts
Enrique Mirandes, Esq. Deputy Executive Director, Puerto Rico Industrial Development Company 666 Fifth Avenue, 15th Floor New York, NY 10103-1599 (212) 333-0388 emirandes@pridco.com
PUERTO RICO
Carlos A. Tollinche, Ph.D. Director, Scientific Affairs and Coordinator of Puerto Rico Biotechnology Alliance INDUNIV Research Consortium 355 F. D. Roosevelt Avenue, Suite 302 P.O. Box 362350 San Juan, PR 00936-2350 (787) 772-4604 ctollinche@induniv.org
PUERTO RICO
Puerto Rico 17 325.0% 538 50.3% 0.5% 0.75 $43,174 NA NA 74 -2.6% 26,014 9.5% 8.3% 12.20 $48,443 NA NA 101 14.8% 13,988 1.8% 3.4% 4.99 $29,544 NA NA 579 5.2% 4,461 8.7% 1.1% 1.58 $19,203 NA NA 50,487 1.5% 743,857 2.5% 0.7% n.a. $20,871
Source: Battelle calculations -- based on Bureau of Labor Statistics QCEW data from the Minnesota Implan Group, RIMS II Employment Multipliers from the Bureau of Economic Analysis, and the Census Bureau's Economic Census. Note: n.a. = metric is not applicable. NA = data are not available.
PUERTO RICO
Bioscience Occupations in the Puerto Rico Workforce, 2004
4,000 3,940 3,500 Number of Workers in Occupation 3,000 2,500 2,000 1,500 1,000 500 350 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 1,160 80
Bioscience-Related Degrees from Puerto Rico Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 100 200 300 400 500 600 700 800 900 1,000
Number of Degrees
PUERTO RICO
Total Bioscience R&D Expenditures at Academic Institutions in Puerto Rico, FY 2003
Medical Sciences
$46,889
Biological Sciences
$2,684
$400
Other Life Sciences
$-
$5,000
$10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
Puerto Rico University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $128,383 $49,973 38.9% $12.89 -28.0% $55,808 $14.39 34.8% 1,590 5,530
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 45 47
42
27 32
PUERTO RICO

Health and life sciences are among eight industry clusters targeted by the Rhode Island Economic Development Corporation (RIEDC), a nonprofit economic development affiliate of the state, pursuant to a Technology Pipeline study conducted by the Rhode Island Economic Policy Council in 2001. Biomedical technologies are also among the four sectors in which pre-seed stage venture investments are made by the Slater Technology Fund (see below). Since the last BIO report, voters approved by 57.9 percent Question 13, a $50 million bond issue to support new bioscience facilities at the University of Rhode Island (URI) Kingston campus. The states technology council, now known as Tech Collective, also created a BioGroup subsidiary council, which is now the BIO affiliate. By Executive Order 7 of 2005, Governor Donald Carcieri created a Science and Technology Advisory Council (STAC) that has developed an innovate RI agenda. STAC has made a series of recommendations for improving the innovation climate, all of which were endorsed by the Governor in his 2006 legislative agenda (see below under Pending proposals).

The approved bond funding will support an 86,700-square-foot Center for Biotechnology and Life Sciences scheduled to open in 2008 on the north side of URIs Kingston campus. This building will facilitate interaction by life science researchers in the College of the Environment and Life Sciences with those in the College of Arts and Sciences. The Governor has announced support for $140 million in additional bond financing for three related buildings housing pharmacy, nursing, and chemistry in order to create a larger health sciences quadrangle. Brown University is set to open this spring a privately financed, $95 million, 168,000-square-foot Life Science Building. This building will house four departments and related interdisciplinary programs in genetics and genomics. In 2004, the university opened a separate 105,000-square-foot commercial facility that it acquired and renovated for a total of $38 million. Overall life science space has risen by more than half since 2000.
RHODE ISLAND

The Slater Technology Fund has elements of both a commercialization fund and a pre-seed investment fund. The fund makes investments of up to $100,000 in start-up companies across four fields, including biomedical technologies. Each investment pairs a set of seasoned entrepreneurs with university-based scientists/inventors. The funds stated intent is to provide technical assistance deep enough to sustain these start-ups until they can raise formal capital.

During the past 2 years, Rhode Island launched a second vehicle for technology commercialization called the Business Innovation Factory (BIF). The goal of this separately incorporated nonprofit is to create and launch collaborative innovation projects, or strategic partnerships for testing and refining new business models based on innovation. Dues-paying members of the BIF include large companies with diverse business interests in the state, major institutions, and other firms in the supply chain. One example of a bioscience project is the Health Care Innovation Pilot, which seeks to design and test new patientfocused models for healthcare delivery.

Pre-seed investments in multiple fields including the biosciences are available from Cherrystone Angel Group, founded in 2004.
Venture capital
The Slater Fund often co-invests with accredited angel investors and reports that 12 of the 80 companies formed in 7 years received formal venture capital.

Incubators
The Slater Fund acquired a 7,000-square-foot floor in a building on the east side of Providence in 2003 and makes it available for use as a wet-lab incubator.
In recent years RIEDC has financed two large biomanufacturing facilitiesone operated by Dow in Smithfield and another by Immunex/Amgen in West Greenwich (now 1,500 workers and total investment of $1.5 billion). This success has led to discussion of creating a 100,000-square-foot shared biomanufacturing facility in northern Rhode Island. Legislation has been offered allowing $5.39 million in credit enhancements for private development.
RHODE ISLAND

The state has provided $200,000 in planning money toward a privately developed Marine BioScience Research and Business Park at the current Quonset Point/Davisville Industrial Park.

The Brown Forum for Enterprise provides focus for entrepreneurial activity involving not only Brown spin-offs but also other entrepreneurial start-ups. The STAC has also proposed (see below) a tax credit to encourage serial entrepreneurs.

Spurred by the two biomanufacturing investments, URI created a Biotechnology Manufacturing Training Program at its Providence campus (with certain equipment donated by Amgen), and the state has provided $300,000 toward conceptual planning for a full-scale facility. Two local hospitals collaborate with URIs continuing education division on a Rhode Island School of Cytology. Work in the clinical internship may be applied toward a masters degree. Community College of Rhode Islands Biotechnology Education Initiative debuted in 2004 with a cross-departmental certificate program and is now developing an associates degree with particular emphasis on biomanufacturing. CCRI is a member of the Northeast Biomanufacturing Collaborative steered by institutions in New Hampshire.

Improvements in K-12 math and science education that would affect the bioscience pipeline have been a key focus of a series of Stakeholder Dialogues convened by the Tech Collective under the Carcieri administrations Project Making the Grade.
Pending Proposals
Recommendations of the STAC endorsed by Governor Carcieri for legislative action include the following: Creation of a Rhode Island Collaborative Research Alliance, equipped initially with a $1.5 million state match to a $6.75 million EPSCoR award intended to build the states capacity in genomics and proteomics. Appointment of a blue-ribbon commission to advise on strategies for improving the research capacity of the University of Rhode Island. Adaptation of the states existing film and television tax credit into a Science and Technology Entrepreneur Tax Credit designed to attract serial entrepreneurs who can implement the innovate @ scale vision of the STAC report. Details have not been released, but the existing film tax credit offers investors in certain Rhode Islandbased productions a refundable credit of up to 25 percent against their share of in-state production costs.
RHODE ISLAND 3
Contacts
Saul Kaplan Director of Business Development, Rhode Island Economic Development Corporation One West Exchange Street Providence, RI 02903 (401) 222-2601 skap@riedc.com
The Tech Collective is a not-for-profit, membership-driven organization that champions technology growth and innovation in Rhode Island around three core programs: membership, workforce development, and entrepreneurship. Katherine ODea Executive Director, BioGroup of the Tech Collective 3 Davol Square, Box 183 Providence, RI 02903 (401) 521-7805 x104 kodea@tech-collective.org
RHODE ISLAND
Rhode Island 3 -24.1% 78 192.7% 0.1% 0.20 $58,282 3.60 283 13 0.0% 1,533 192.0% 0.5% 1.30 $83,354 5.85 8,965 80 3.3% 1,465 -8.9% 0.4% 0.94 $40,752 2.23 3,267 109 26.8% 1,332 3.2% 0.3% 0.85 $62,382 1.93 2,564 34,418 4.4% 412,224 1.8% 0.4% n.a. $35,959
RHODE ISLAND
Bioscience Occupations in the Rhode Island Workforce, 2004
800 700 Number of Workers in Occupation 600 500 400 300 120 200 100 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 540 730
Bioscience-Related Degrees from Rhode Island Institutions, AY 2004
Biological Sciences
Other Life Science Clinical/Technical Fields 50 100 150 Number of Degrees 200 250 300
RHODE ISLAND
Total Bioscience R&D Expenditures at Academic Institutions in Rhode Island, FY 2003
Medical Sciences
$49,156
Biological Sciences
$9,977
$7,612
Other Life Sciences
$15,501
$-
$5,000
$10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
Rhode Island University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $187,131 $82,246 44.0% $76.43 89.5% $133,162 $123.74 67.8% 546 1,390
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 38 41
31
43 48
RHODE ISLAND

The board overseeing South Carolinas Centers of Excellence faculty recruitment program effectively steers the states bioscience strategy, guiding both $20 million to $30 million per year in investments in faculty endowments and up to $220 million in discretionary bonding authority for new-facilities construction in the same fields. Bioscience represents a considerable share of both types of funding. Since the last BIO report, the South Carolina Research Authority (SCRA) was rechartered (under Act 113) to shift its focus from solely research-park development and contract research to include development of a series of incubator-like Innovation Centers at each of its three research parks. The state has also begun to implement the Life Science and Venture Capital Investment Act of 2004 and rolled out a new bioscience association, the Palmetto Biotechnology Alliance.

The Research University Infrastructure Act loosened a cap on state borrowing to accommodate $220 million in general obligation bonds for university projects in the same areas as endorsed by the Centers of Excellence faculty-recruitment program (see below). Projects currently under consideration for bonding support are as follows: The University of South Carolina (USC) is seeking $58 million (matched by $76 million in university funds) toward three buildings in the first phase of a 200-acre mixed-use campus/research park project in Columbia (see below) including two buildings for the biosciences, one academic and one commercial (privately financed). Clemson University and the Greenwood Genetics Center are seeking $5 million toward a 20,000-square-foot graduate education center at Greenwood that will house a $15 million Genetics Collaborative. Greenwood has donated the land as a matching commitment. General public funding also supported the $27 million, 108,000-square-foot Biosystems Research Complex at Clemson, which includes 40,000 square feet of greenhouses and 16,000 square feet of greenhouse support space.
SOUTH CAROLINA
Research programs
The Medical University of South Carolina (MUSC), USC, Clemson, and two hospital systems committed to form the Health Sciences South Carolina partnership, which will pursue research in the same areas supported through the Centers of Excellence faculty-recruitment program (see below).

The Centers of Excellence program offers $200 million in Lottery funds through 2010 to match funds raised by the states college and universities for Eminent Scholar endowments. Commitments have ranged from $17 million to $30 million annually over the past 3 years. Among the $96 million committed in three rounds to date for faculty recruitment are the following bioscience initiatives: Center in Applied Marine Genomics, including MUSC, Clemson, and the College of Charleston ($4 million) Center for Proteomics at MUSC ($4 million) Center for Neuroscience at MUSC ($3 million) Brain Imaging Center of Excellence between MUSC and USC ($5 million) Center for Regenerative Medicine, including MUSC, USC, and Clemson ($6 million) Translational Cancer Therapeutics Center with MUSC and USC ($5 million) Center for Drug Discovery in Cancer, including MUSC and USC ($5 million) Center for Vision Science, including MUSC and USC ($4.5 million). Together, MUSC, USC, Clemson, and participating hospitals project that they will receive $120 million over 10 years, matched by an equal amount raised privately, to support faculty endowment in the biosciences alone.

SC Bio, a collaborative of the states three research universities and the Greenwood Genetics Center, operates as a full-service commercialization center for the bioscience sector, based at the incubator on the Greenwood campus.

Venture capital
Board appointments are being made to the South Carolina Venture Capital Authority, which will manage a $55 million contingent-tax-credit-backed fund of funds authorized by the Life Science and Venture Capital Act.
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Incubators
SC Bio operates the 22,000-square-foot wet-lab incubator at Greenwood. Clemson has received $5 million from Research Infrastructure bonds to build a 40,000-square-foot Innovation Center (incubator) at the Clemson Research Park (see below). The bond allocation is matched by $1 million in federal grants, $1.2 million from the county to acquire vacant land from the SCRA, and $5 million from the SCRA itself, which will build a companion structure in the research park. The Innovation Center will be used to accommodate spin-offs, nonrelated start-ups, and landing parties partnering with Clemson.
The Life Science and Venture Capital Act created eligibility for bioscience companies for discretionary incentives for company investments of $100 million or more, creating 200 jobs and paying 1.5 times state per capita income.

Bioscience is one of three fields (the others are alternative energy and nanotechnology) targeted under USCs plans for the Innovista research campus. The first phase of five buildings includes a two-building Bio-Medical Block, comprising one academic and one commercial structure. Greenwood Genetics Center hopes eventually to construct a research park surrounding its wet-lab incubator and the graduate center to be constructed in partnership with Clemson.

Biotech training is available from the Orangeburg-Calhoun Area Biotechnology Consortium, through a $1.1 million grant to a partnership of Orangeburg-Calhoun Technical College and the South Carolina Biotechnology Center at Claflin University, a historically black institution.

Clemson now hosts a DNA Learning Center in partnership with the Dolan DNA Learning Center at Cold Spring Harbor Laboratory in New York. Both centers focus on precollege preparatory courses.
Contacts
Eric Miller South Carolina Department of Commerce 1201 Main Street, Suite 1600 Columbia, SC 29201-3200 (803) 737-0400 emiller@sccommerce.com
SOUTH CAROLINA 3
The Palmetto Biotechnology Alliance is a membership organization that acts as a catalyst in the expansion of the infrastructure requirements that create new jobs and promote life-science companies growth in South Carolina. Dawn W. Parks Director, Public, Industry, and Government Affairs Palmetto Biotechnology Alliance P.O. Box 840001 Summerville, SC 29484-8401 (843) 851-5077 dwparks@arborgen.com
SOUTH CAROLINA
South Carolina 36 10.9% 1,506 7.2% 1.4% 1.06 $52,670 5.35 8,053 24 -14.6% 2,681 8.9% 0.9% 0.63 $44,833 3.58 9,606 113 -13.1% 4,000 10.4% 1.0% 0.72 $37,729 2.62 10,472 215 38.1% 1,495 17.2% 0.4% 0.27 $48,691 2.15 3,217 108,900 -2.7% 1,476,822 0.1% 1.4% n.a. $31,297
SOUTH CAROLINA
Bioscience Occupations in the South Carolina Workforce, 2004
6,000 5,330
4,000
3,000
2,000
1,000
180 700
Bioscience-Related Degrees from South Carolina Institutions, AY 2004
Biological Sciences

200 400 600 Number of Degrees 800 1,000 1,200
SOUTH CAROLINA
Total Bioscience R&D Expenditures at Academic Institutions in South Carolina, FY 2003
Medical Sciences
$97,724
Biological Sciences
$69,408
$29,739
Other Life Sciences
$45,804
$-
$10,000
$20,000 $30,000
$40,000 $50,000 $60,000
$70,000 $80,000 $90,000 $100,000
South Carolina University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $435,328 $247,665 56.9% $59.72 84.1% $120,764 $29.12 92.0% 1,553 6,210
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 28 29
32
28 30
SOUTH CAROLINA

The 2010 Initiative of Governor Mike Rounds outlines goals and objectives to grow the states economy and improve the states quality of life. One of the goals is for South Dakota to become a recognized leader in research and technology development by 2010. To accomplish this, the state is focusing on developing the states research and technology infrastructure at its universities, health care providers, and other public institutions. Specific actions undertaken to achieve these objectives include improving universities intellectual property policies; establishing an Office of Commercialization within the Department of Tourism and State Development; and providing funds for faculty research time, graduate assistants, and equipment to support research focused on concepts with commercial potential. Another goal of 2010 is to increase gross state product by $10 billion by providing assistance to entrepreneurs and start-up companies; enhancing existing industry clusters, which include health care and biotechnology; and providing capital to new and emerging technology companies through a restructured Revolving Economic Development and Initiative (REDI) Fund. The Governors Office established the South Dakota 2010 Research and Commercialization Council to provide oversight of the 2010 Research Initiative, to make recommendations for funding of 2010 Research Centers, and to aid the commercialization process for technology transfer and innovation. Another major initiative is the Homestake Lab Conversion Project, for which the state is seeking support from the National Science Foundation (NSF) to develop a deep underground laboratory using the now-closed Homestake Gold Mine in Lead, South Dakota. A deep underground laboratory developed at this site could be a resource for bioscience research in areas such as nuclear imaging (because it would lack background radiation) and geomicrobiology. The Homestake site is one of two under consideration by NSF. The South Dakota Science and Technology Authority (SDSTA) exists to foster and facilitate scientific and technological investigation, experimentation, and development. Created in February 2004 by the Legislature in response to Governor Rounds 2010 Initiative, the Authority is working to convert the closed Homestake Gold Mine. (See Recent state investments in facilities, below.)

In 2005, the SDSTA announced that an agreement had been reached with Barrick Gold Corporation to transfer the Homestake Mine to the SDSTA. The South Dakota Legislature appropriated an additional
SOUTH DAKOTA 1
$19.9 million for the establishment of the Homestake Deep Underground Science and Engineering Laboratory. With this additional appropriation, a total of $45.6 million is available for the development and operation of this underground laboratory. The laboratory will provide the scientific community an opportunity to conduct experiments at a location in the United States that is the second deepest site in the world and offers a short timeline to science. The SDSTA will manage rehabilitation of the site and will participate in the management of the operation of the laboratory. The SDSTA plans to open the 4,850-foot level and some higher levels for beneficial occupancy in early 2007 for scientific and engineering experiments and other technical uses. The funds available from the State of South Dakota will cover rehabilitation and basic laboratory operations into 2012. The 2006 Legislature approved and provided $14 million for the acquisition of 260 acres of land and construction of a Board of Regents education and research campus in Sioux Falls. The first building to be constructed, the Graduate Education and Research Facility in 2006 will be a bioscience research facility. Funding of $8 million for construction of a classroom facility to be used by all six South Dakota state universities was also approved.
Research programs
The South Dakota Health Research Foundation (SDHRF) is a nonprofit, 501(c)3 organization formed by the University of South Dakota School of Medicine and Sioux Valley Hospitals and Health System. SDHRF is dedicated to research excellence through the work of its Cardiovascular Research Institute, Signal Transduction Institute, Oncology Research Center, and Womens Health Center (see Research Centers Program, below). The Governor requested and the Legislature approved approximately $3.5 million for a Research and Development Initiative that is being undertaken jointly by state government and the Board of Regents. Almost $2.8 million of this amount was designated to fund a Research Centers Program. In 2006, the Legislature approved an additional $500,000 for 5 years to establish a fifth 2010 Research Center. Three of the four 2010 Research Centers focus on the biosciences: Center for Infectious Disease Research and Vaccinology, South Dakota State University (SDSU) Department of Veterinary Science, $780,000This center fosters research leading to the development of novel therapeutic and diagnostic technologies and products for infectious diseases in humans and domestic animals. Research targets include vaccines for diarrheal diseases of livestock and humans, an improved vaccine for porcine reproductive and respiratory syndrome, and improved diagnostic tests for transmissible spongiform encephalopathies, such as bovine spongiform encephalopathy in cattle and chronic wasting disease in deer. South Dakota Signal Transduction Center, University of South Dakota (USD) Cardiovascular Research Institute, $900,000 This center examines the pathways that regulate cell growth and differentiation, cell death, response to stress, and the maintenance of constant physiological conditions, leading to improved detection and treatment of a range of serious heart and cancer conditions. Center for the Research and Development of Light-Activated Materials, USD Department of Chemistry, $503,741The center performs both basic and developmental research on materials with light-activated properties. The research relates to medical applications such as human tissue bonding, drug delivery, and antitumor agents and is important to developing phosphors for sensors,
SOUTH DAKOTA
new laser materials, and thin films that impart special properties and characteristics to the materials they coat.

In July 2005, Governor Rounds announced award of nearly $445,000 in Research Seed Grants to 19 faculty members at South Dakota public universities to spur their research work. The awards are intended to help support faculty researchers as they develop research programs to become more competitive for external grants and contracts, and to help them develop ideas with commercial potential. The grants pay for 25 percent of a faculty members salary for one academic year, plus one summer months salary. Under the terms of the grants, funding is matched by the faculty members university, so the researcher earns 50 percent release time and two summer months of salary to do research. The award is also intended to give the faculty member an opportunity to start a sustainable research program and to help build research capacity in his or her department.

One of the functions of the Commercialization Office, which is housed in the Department of Tourism and State Development, is to facilitate interactions between researchers and companies and to encourage greater commercialization of university-developed technologies in South Dakota.

Commercializing university research
The National Network for Technology Entrepreneurship and Commercialization (N2TEC) Institute, a nonprofit, 501(c)(3) organization designed to raise the level of innovation diffusion and wealth creation in America through technology innovation, commercialization, and entrepreneurship, was established and located at the Homestake Underground Laboratory. N2TEC began as an NSF Partnership for Innovationfunded initiative. N2TEC works to build a community of practice dedicated to innovation and technology commercialization that is virtually linked within an enterprise-level collaboration space the N2TEC Commercialization Portal; partner with organizations that can contribute expertise and resources to support this effort; provide resources and educational opportunities to facilitate effective innovation, technology commercialization, and entrepreneurship; and develop best practices, standards of excellence, and models for communities and others to emulate. N2TEC is a strategic collaboration of universities, industry, and government with a common purposeto raise the level of technology innovation and commercialization in the United States. Partners are as follows:
SOUTH DAKOTA
University Partners California State University, Fresno Caltech Case Western Reserve University CENTECOMFlorida Central Univ. Claremont Graduate University Cornell University Pennsylvania State University Rose-Hulman Institute of Technology San Diego State University University of Arkansas University of Maryland University of Pittsburgh University of South Dakota University of Southern California
Public/Private Partners Center for the Commercialization of Advanced Technology Gibson Dunn & Crutcher LLP Groxis Inc. Los Angeles Economic Development Corporation Microsoft Corporation NASA-AMES National Collegiate Inventors and Innovators Alliance (NCIIA) National Institute for Strategic Technology Acquisition and Commercialization (NISTAC) Pacific Northwest National Laboratory/Department of Energy PricewaterhouseCoopers

South Dakota has two nonprofit entities that provide assistance to start-up and emerging South Dakota companies: the Enterprise Institute and Genesis of Innovation. The Enterprise Institute (EI) is a nonprofit, 501(c)(3) organization formed by SDSU to provide support to entrepreneurs and start-up companies. The institute assists in developing university-generated technologies, mentors emerging businesses, and offers educational programs on entrepreneurship. Its Business Resource Center assists start-up companies by linking them to sources of capital and helping them with business planning, competitive assessments, and human resource issues. The EI also operates an Entrepreneur Network that links CEOs and business owners. It has worked with a number of bioscience start-ups. In 2004, the state allocated $300,000 to support the work of the EI. Genesis of Innovation (GOI) is a nonprofit, 501(c)(3) partnership between private enterprise and public universities within South Dakota that helps entrepreneurs with business development, start-up capital, and other assistance. Both GOI and EI can take ownership and equity positions in companies and can receive royalties from licensing agreements.

The state restructured its REDI Fund, a low-interest loan program, to make capital available to start-up companies. The subfunds include A $12 million fund to make loans to capital investment entities, including angel investor networks, private venture funds, and nonprofit development corporations, that can take equity positions in start-up companies. A $5 million Entrepreneur Support Subfund to make loans of $30,000 to $50,000 to South Dakota entrepreneurs and start-up businesses. The loans will be unsecured and interest free for the first
SOUTH DAKOTA 4
3 years. If the business fails, the loan is converted to a grant, and no repayment is due. If the business succeeds, the loan must be repaid over a 20-year time period. The Value-Added Agricultural Subfund is a $3 million fund within the REDI Fund that provides funding for feasibility and marketing studies for value-added agricultural projects. Loans can be for up to 50 percent of the total project cost; and proceeds can be used for salaries, consultant contracts, supplies, and necessary services for feasibility and marketing studies. The subfund has made loans to bioscience companies; one such company received funding to conduct a marketing research survey to provide information on the marketability of a biofungicide that it is developing. The EI has partnered with RAINs (Regional Angel Investment Networks), out of Minnesota, to help form LLCs for investment purposes. The LLCs can be either local or regional and will lead people through the due diligence process, making it easy to learn about angel capital investments. All of the LLCs will be for-profit entities.
Venture capital
The Genesis Equity Fund, LLC provides equity financing for emerging South Dakota companies. The Genesis of Innovation for South Dakota is based around four sectors: agriculture, biomed/health, materials, and communications technology.

Incubators
The South Dakota Technology Business Center is a 38,000-square-foot business incubator facility in Sioux Falls that opened in January 2004. It is adjacent to the Southeast Technical Institute and USDSU (a campus shared by Dakota State University, SDSU, and the University of South Dakota). The incubator, which provides space and support services for early-stage companies, also houses the Department of Tourism and State Development (Office of Commercialization, Governors Office of Economic Development, Workforce Development), Small Business Administration, Small Business Development Center, Procurement Technical Assistance Center, Manufacturing Extension Program, EI, and venture capital firms Prairie Gold Venture Partners and McGowan Group. The State of South Dakota provided $1.4 million for the facility, part of which has been used to develop wet-lab space in the building. The center still has 3,000 square feet available for lease and has graduated its first company. The Black Hills Business Development Center will open in May 2006 on the South Dakota School of Mines and Technology campus in Rapid City. In addition to providing space for start-up businesses, the facility will house the Governors Office of Economic Development, Small Business Development Center, GOI, Genesis Equity Fund, and Rapid City Economic Development offices.
In 2003, state government provided $8.2 million in low-interest loans to support the development of a headquarters and plant in Sioux Falls for Hematech, a biotechnology company that hopes to make human vaccines from genetically modified cows.
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Brookings and SDSU will begin construction of a bioscience research park adjacent to the SDSU campus. The land has been acquired, and construction of the infrastructure and first build is expected to begin in 2006.

The State of South Dakota and Black Hills Vision have partnered with N2TEC (described previously) to collaboratively develop business management teams. Through the N2TEC Pilot Project, management teams involving South Dakota entrepreneurs and researchers have partnered with management team members from Texas, California, and other states to start technology-based companies.

Lake Area Technical Institute in Watertown offers an associate of applied science degree in bioenvironmental technology. N2TEC operates a Science and Technology Entrepreneurship Program (STEP) in which students participate in a 10-week Summer Institute in the Black Hills working as part of a team to develop a plan for a technology venture. They also participate in technology entrepreneurship outreach activities on their home campus during the school year. Students may apply as a three-member team or individually for the program. Each team includes a science or engineering major, business or management major, and education or other major. Each STEP team will also be partnered with a community entrepreneur mentor team and faculty researchers. The N2TEC Summer Institute is led by a team of entrepreneurs from around the United States. The 2005 STEP program included several teams working to develop bioscience businesses.

Science On The Move is a statewide project to provide students in South Dakota schools with highquality science laboratory experiences. Two large semitrailers (Mobile Science Laboratoriess, or MSLs) are equipped with a broad range of equipment, from powerful microscopes to molecular biology tools such as gel electrophoresis cells to interfaced computers. Science On The Move may be the first (and only) experience that students in small and/or rural South Dakota schools have with this kind of equipment. The MSLs circulate around the state and usually remain at a school for 2 to 5 days. The Office of Commercialization is working with South Dakota Junior Achievement and the Center for Applied Mathematics and Science Education to develop and implement programs at the K-12 level to expose students to bioscience and other technology entrepreneurial opportunities. A statewide business idea competition will be held in 2007.
Pending Proposals
In continuation of the 2010 Initiative, for FY 2007 the Governor recommended and Legislature approved the following: $1,813,060 in general funds for the addition of three new Ph.D. programs.
SOUTH DAKOTA 6
$500,000 in other fund expenditure authority for funding of new research centers. The Governors 2010 Research and Commercialization Council will review and choose the proposal(s) with the greatest potential for commercial return. An increase of $500,000 in general funds for the Division of Research Commercialization. Included in the increase is $500,000 to fund a fifth research center. An increase of $17,884,031 in other fund expenditure authority to begin the process of constructing the underground laboratory at the former Homestake Mine. The total FY 2007 recommended budget consists of $19,182,583 in other fund expenditure authority. House Bill 1129 was approved, exempting certain business incubators from property tax liability. The legislation applies to incubators in South Dakota that are paying real estate taxes with taxpayers money.
Contacts
Melvin Ustad Director of Commercialization Department of Tourism and State Development 2329 North Career Avenue, Suite 108 Sioux Falls, SD 57107 (605) 267-4516 Mel.Ustad@state.sd.us
A new statewide bioscience association, the South Dakota Bio Association, is currently being organized. The President is Eddie J. Sullivan, Ph.D. Chief Operating Officer Hematech, a subsidiary of Kirin Brewery Co. Ltd. 4401 South Technology Drive Sioux Falls, SD 57106 (605) 361-6793 x2213 (605) 361-9702 (fax) www.hematech.com
SOUTH DAKOTA
South Dakota 18 49.1% 533 89.6% 0.5% 1.85 $45,219 5.00 2,668 1 -66.7% 84 35.4% 0.0% 0.10 $49,258 3.02 253 34 -8.5% 1,344 -9.0% 0.3% 1.19 $47,033 2.57 3,459 37 20.4% 320 4.8% 0.1% 0.28 $75,054 1.94 622 26,328 4.4% 300,583 1.2% 0.3% n.a. $27,793
SOUTH DAKOTA
Bioscience Occupations in the South Dakota Workforce, 2004
1,000
800
600
400 310 200 340
Bioscience-Related Degrees from South Dakota Institutions, AY 2004
Biological Sciences

SOUTH DAKOTA
Total Bioscience R&D Expenditures at South Dakota Institutions in Alabama, FY 2003
Medical Sciences
$6,200
Biological Sciences
$4,425
$15,550
Other Life Sciences
$5,789
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
South Dakota University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $49,977 $29,246 58.5% $38.26 84.6% $15,324 $20.05 92.0% 598 1,950
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 52 48
49
41 43
SOUTH DAKOTA
10

Much of the biotech activity in Tennessee is focused on what the state terms The Innovation Valley, situated at the axis of I-75 and I-40. The University of Tennessee (UT) science programs, Governor Phil Bredesens stated commitment to high-tech recruitment, and Oak Ridge National Laboratorys (ORNLs) $1.6 billion in capital investments and nearly $1 billion annual program budget form the underpinning for the states biotech effort. This includes a $20 million joint recruiting effort shared by the state and the entity that manages ORNL, an additional $8 million state investment in the Joint Institute for Biological Sciences (JIBS), and other joint research institutes that are coming online, some in Oak Ridge and some in Knoxville. A new area of focus for the state is alternative fuels. Governor Bredesen, in early 2006, created an interagency working group charged with developing an alternative fuels strategy for Tennessee, focused on biodiesel and ethanol. Representatives of six state agencies will form the Governors Interagency Alternative Fuels Working Group. Those agencies are the state departments of Agriculture, Economic and Community Development, Environment and Conservation, General Services, Health, and Transportation. A number of state-supported organizations promote the biosciences in Tennessee including Innovation Tennessee (a new entity under development to replace the former Technology Development Corporation) and the Memphis Bioworks Foundation. The nonprofit Memphis Bioworks Foundation leads a collaboration of public, private, academic, and government organizations to build upon the bioscience industry already in the Memphis economy and to establish the area as an internationally recognized center for the development and commercialization of biomedical technology. The foundation is funded by state and local governments, grants, and private donations. Among others, its partners include Southwest Tennessee Community College, the University of Memphis, and UT.

Research programs
The Joint Institute for Biological Sciences, funded by the State of Tennessee, will support research and teaching programs in genomics, bioinformatics and computational biology, molecular structural biology, proteomics, and biomedical technologies. JIBS will encompass both fundamental and applied research and development across a spectrum of systems, from microbial to mammalian. Included in JIBS is the Genome Science and Technology Graduate School offered jointly by UT and ORNL.
TENNESSEE
Ten of the states research institutionsincluding ORNL, UT, Vanderbilt, St. Jude Childrens Research Hospital, and Meharry Medical Collegejointly contribute to the Tennessee Mouse Genome Consortium. This consortium supports geographically distributed projects using resources at the facilities of any of its members.

The State of Tennessee is investing funds to recruit and support approximately 20 exceptionally accomplished researchers who will have joint appointments as tenured professors at UT and distinguished research staff at ORNL. This Governor's Chair (GC) program seeks to catalyze the development of cutting-edge research under the auspices of four joint institutes between UT and ORNL: Biological Sciences, Computational Sciences, Neutron Sciences, and Advanced Materials Sciences. The GC appointments include an ongoing discretionary research fund equal to 12 months salary. The Tennessee Higher Education Commission sponsors a Chairs of Excellence Program. Started with $44 million in state funding in the mid-1980s, the endowment has reached $205 million. Among the chairs supported are 19 in the biosciences at the UT Health Science Center in Memphis.

Vanderbilt University in Nashville partnered with Cumberland Pharmaceuticals and Tennessee Technology Development Corp. to create Cumberland Emerging Technologies (CET), a commercialization company intended to access federal SBIR funding and other sources to commercialize intellectual property licensed from Vanderbilt. Management is provided by staff from the pharmaceutical company. CET also has an agreement with the University of Mississippi School of Pharmacy to develop and commercialize new pharmaceutical products. The two groups will take innovative, early-stage UM research through the critical phases of development and work together to pursue grant funding for these projects, with CET providing program management.

ORNLs Center for Entrepreneurial Growth (CEG), part of its Office of Technology Transfer and Economic Development, identifies opportunities for entrepreneurs from both within and outside ORNL and links them to research and financial services. The CEG combines expertise, programs, and access to capital to develop an entrepreneurial community and assist with the development of technology-based businesses.

Tri-Cities Regional Angel Investor Network (TRAIN) recently provided an $800,000 capital investment in the East Tennessee State University (ETSU) Innovation Labs newest tenant company, ProteoGenesis, a biotech company.
TENNESSEE
Venture capital
The Southern Appalachian Fund (SAF) is a $12.5 million venture capital fund formed to provide equity capital and operational assistance to qualifying businesses in southern Appalachia. The fund focuses specifically on companies in Kentucky, Tennessee, and the Appalachian counties of Georgia, Alabama, and Mississippi. The SAF is one of six New Markets Venture Capital (NMVC) Companies in the United States. The NMVC Program is a developmental venture capital program designed to promote economic development and the creation of wealth and job opportunities in low-income geographic areas and among individuals living in such areas.

Incubators
CET announced in 2005 the expansion of its Life Sciences Center, located in downtown Nashville. An additional 5,800 square feet of wet-lab, dry-lab, and office space will be made available for use by earlystage life science companies. CET tenants include the Tennessee Biotechnology Association (TBA). TriStar Enterprises Biotech Incubator offers both laboratory and office space in the Van Vleet Building on the UT Health Science Center Campus. The building has 11,000 square feet of laboratory space and 11,700 square feet of office space. It is currently fully occupied. ETSU Innovation Lab is a 15,000-square-foot small business incubator with offices, wet labs, conference rooms, and classrooms, designed to help entrepreneurs start up and grow technology-based businesses. It has been in operation since October 2002 and currently houses seven companies with 40 employees, and total annual payroll of $12 million.
Under development
UT-Baptist Research Parks initial multitenant building will include incubation facilities (see below). The Cool Springs Life Sciences Center (CSLSC) will include 8,000 square feet of incubation space managed by Vanderbilt, with an option for 8,000 more (see below).

Founded by local life-science entrepreneurs, the Cool Springs Life Sciences Center in Franklin is designed to accommodate the needs of bioscience and biotechnology firms, particularly those engaged in biologics, pharmaceuticals, therapeutics, and medical devices. In the future, CSLSC will house high-tech biotech, pharmaceutical, and medical device manufacturing space built to suit the unique needs of the tenants. At full build-out, the three buildings of the CSLSC are planned to encompass more than 140,000 square feet. The first of three buildings at the CSLSC is now operational. Totaling approximately 32,000 square feet, it includes Vanderbilt University's life sciences incubator. Plans are underway for Buildings Two and Three.
Under development
The Memphis Bioworks Foundation is developing the UT-Baptist Research Park, a state-of-the-art campus located on 15 acres in the heart of the downtown Memphis Medical Center. The research park is expected to feature 1.2 million square feet of laboratory, research, education, and business development
TENNESSEE 3
space. The first phase of development is a dedicated, six-story, 165,000-square-foot, world-class biotechnology research facility The Memphis Bioworks Foundation has more than $100 million in construction planned for 2006. Governor Bredesen has included in his current budget proposal $3.5 million to continue the development of this research park. Including an incubation program, the research park will also be home to the State of Tennessees first Charter School, the Memphis Academy of Science and Engineering, which includes grades 7 through 12. In Tri-Cities, University Innovation Park is a 60-acre parcel intended to become the middle anchor of the MedTech Corridor concept (the other two anchors are a 130-acre, privately developed Med Tech business park and a privately operated conference center).

The University of Memphis inaugurated its new undergraduate biomedical engineering degree in the fall of 2005. An ETSU Pharmacy School has been approved for northeast Tennessee.

The Memphis Bioworks Foundation established the first charter school in Tennessee. The Memphis Academy of Sciences and Engineering, a school for grades 7 through 12 with a strong outreach to minority students, has been operating for 2 years. Memphis Bioworks has been assisting a Nashvillebased group with plans to start a similar program in Nashville in the fall of 2006. The Memphis Bioworks Foundation is working with community leaders to create the Bioworks Career Laddera series of new educational programs and outreach efforts. The Bioworks Career Ladder is designed to keep pace with industry demands and will offer the skills, courses, and experience required to attain each level of specialized training matched against potential jobs in the industry. The Bioworks Career Ladder includes BioEducation reform in secondary schools, skill enhancement for advanced and ongoing learning experiences, and internships Biomedical Applications is a new course approved by the Tennessee Board of Education for schools across Tennessee. It will be offered to 11th and 12th grade students. This course has been piloted for 3 years and will be offered to all schools across the state in the 20062007 school year.
Contacts
Eric Cromwell Director of Technology Tennessee Department of Community and Economic Development William R. Snodgrass Tower, 11th Floor 312 8th Avenue North Nashville, TN 37243-0405 (615) 741-1888 eric.cromwell@state.tn.us
TENNESSEE 4
The Tennessee Biotechnology Association (TBA) is a statewide organization of leading scientists, researchers, academicians, clinicians, legislators, and business professionals working to foster, develop, and support the life sciences in Tennessee. The TBA serves as an information clearinghouse that supports life science education, research, health care, and technology transfer programs. The organization also works to enhance access to capital for existing biotechnology companies, as well as support business recruitment to Tennessee or outside investment in Tennessee companies, research, and technologies. Joe Rolwing Executive Director Tennessee Biotechnology Association 111 10th Avenue S., Suite 110 Nashville, TN 37203 (615) 255-6270 jrolwing@tnbio.org
TENNESSEE
Tennessee 36 -4.0% 2,930 5.9% 2.8% 1.36 $79,632 5.80 16,982 19 -9.5% 3,136 0.5% 1.0% 0.49 $66,773 4.67 14,659 270 2.3% 8,541 15.0% 2.1% 1.01 $46,903 3.23 27,589 335 21.7% 8,025 12.3% 1.9% 0.94 $57,260 2.43 19,477 126,340 3.4% 2,247,512 0.2% 2.1% n.a. $34,866
TENNESSEE
Bioscience Occupations in the Tennessee Workforce, 2004
12,000
10,130
8,000
6,000
4,000
2,000
220 1,270
310
Bioscience-Related Degrees from Tennessee Institutions, AY 2004
Biological Sciences

200 400 600 Number of Degrees 800 1,000 1,200
TENNESSEE
Total Bioscience R&D Expenditures at Academic Institutions in Tennessee, FY 2003
Medical Sciences
$150,151
Biological Sciences
$188,293
$36,862
Other Life Sciences
$11,288
$-
$20,000
$40,000 $60,000
$80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000
Tennessee University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $599,723 $394,465 65.8% $67.53 68.1% $410,584 $70.28 79.0% 1,871 11,930
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 21 19
16
22 18
TENNESSEE

Bioscience is among six technology sectors targeted by Governor Rick Perrys Industry Cluster Initiative. The biotechnology and life sciences cluster strategy was updated most recently in an assessment report issued in August 2005. Biotechnology, medicine, and life sciences are also among the 13 sectors targeted for support through the $200 million Texas Emerging Technologies Fund (ETF) created in 2005 (HB 1765) in Governor Perrys office, pursuant to the 2002 report of the Governors Council on Science and Biotechnology Development. The ETF is loosely modeled on the Texas Enterprise Fund, a $300 million deal-closing discretionary economic development fund also run through the Governors office. However, the ETF is a multifaceted program, with aspects of both research capacity-building and commercialization support (see below). Since the last BIO report, ETF has rolled out seven regional Centers of Innovation and Commercialization, which forward funding recommendations to the ETF Committee. As recommended by the latest cluster-strategy update, a separate, statewide Texas Life Science Center of Innovation and Commercialization will act as the gateway through which applications for funding in the biosciences are submitted and recommended to the ETF. The state also restored funding for the Advanced Research Program operated by the Texas Higher Education Coordinating Board, which also disburses formula support for capacity building through the Research Development Fund. Regionally, bioscience continued to play an important role in the development strategies of Houston, Dallas/Fort Worth, Austin, Lubbock, and San Antonio.

In 2005 the Texas Enterprise Fund awarded $50 million for start-up costs of a Texas Institute for Genomic Medicine, a new nonprofit involving the Texas A&M University Institute of Biosciences and Technology (IBT) in Houston; the main Texas A&M campus in College Station; and Lexicon Genetics, a private firm. Lexicon will create a comprehensive knockout mouse embryonic stem cell library. Copies of the library will be deposited both at a $5 million remodeled facility at the IBT at the Texas Medical Center in Houston and at a new $15 million commercialization facility to be constructed at College Station. Other recent state-supported research facilities at College Station include the following: $95 million Interdisciplinary Life Sciences Building $14 million Veterinary Research Building Addition
TEXAS 1
$5 million NMR Facility $5 million Laboratory Animal Resources and Research Facility Expansion. The University of Texas (UT) system also continued a $3 billion construction program that included significant new bioscience facilities across multiple campuses approved by past legislative sessions. Examples both recently completed and still in progress include the following: UT Austin Neural and Molecular Sciences Building ($60 million) UT Austin Biomedical Engineering Building ($55.1 million) UT Medical Branch at Galveston National Biocontainment Laboratory ($167.1 million) UT Medical Branch at Galveston Research Facilities ($77.1 million) UT MD Anderson Basic Sciences Research Building ($221.9 million) UT Houston Health Science Center Sarofim Research Building ($110.6 million) UT Houston Health Science Center Research Facility ($80 million) UT Southwestern Medical Center Laboratory Research Building ($25 million) UT San Antonio Biotechnology, Sciences and Engineering Building ($94 million) UT San Antonio Medical Research Division ($20 million) UT El Paso Bioscience Facility ($30.5 million) UT Dallas Center for Brain Health ($14.6 million).
Research programs
The Texas Higher Education Coordinating Board operates an $8.3 million Advanced Research Program, a competitive grant program open to researchers at public universities. Biological sciences will receive $3 million as one of six fields targeted for support. Grants are made up to $100,000 over 2 years. The ETF sets aside 25 percent for a Research Grant Matching Program that assists institutions in leveraging federal or private resources. However, successful proposals must include involvement of a commercial entity ready to assist in commercialization if the subject research is successful.

The ETF sets aside 25 percent for a Research Capacity Program. The law defines this as including recruitment of faculty research groups from out of state. The Texas Higher Education Coordinating Board also will distribute $42.7 million over 2006 and 2007 through the formula-based Research Development Fund to allow public universities to increase research capacity. Bioscience development is a significant share of the program.
TEXAS

Half the ETF is set aside for a Commercialization Grant Program that encourages university/industry collaboration and requires that inventions discovered jointly be commercialized or manufactured in-state to the extent possible.

In Houston, BCM Technologies is a for-profit commercialization company wholly owned by Baylor College of Medicine. It was created to work with the university licensing office to create start-up companies to which intellectual property can be licensed. BCMT essentially manages a $20 million fund set up by the BCM endowment to make early-stage investments in these start-ups, along with regional investors. To date 13 companies have been established this way, of which seven have become public companies. In 2005 the Board of Regents for the Texas A&M University system authorized creation of the first system-level office of technology commercialization.

In San Antonio, bioscience is one of four key sectors for which commercialization support is provided to start-ups by the San Antonio Technology Accelerator Initiative.

Pre-seed investments in bioscience start-ups are considered by Members of the Houston Angel Network; and STARTech Early Ventures, a fund in the Dallas/Fort Worth region created by Texas Instruments (TI) alumni. An $8 million WesTech Ventures Fund, operated by Emergent Technologies of Houston, targets seedstage investments in West Texas and has launched four bioscience start-ups from the Texas Tech University System, based in Lubbock. Bioscience companies are eligible for seed-stage investment by the Product Development Fund and Small Business Incubator Fund setup with $45 million in bond funding in the Comptrollers Office. Tech Fort Worth offers $3,000 in support for preparation of Small Business Innovation Research Phase I proposals.
TEXAS
Venture capital
Venture partnerships certified by the Texas Certified Capital Companies Program have not yet been announced. The University of Texas Investment Management Company , or UTIMCO, the captive investment manager for the Permanent University fund serving the UT system, has agreed to invest some of its venture-capital allocation in partnerships that target investments in firms spun off from the UT system.

Incubators
Bioscience incubators include the following: North Texas Enterprise Center for Medical Technology, a joint venture of Hall Ventures and City of Frisco, with 11,000 square feet of dry laboratories TEKSA Innovations Corp., a for-profit incubator that provides access to molecular and cellculture laboratories in the INCELL building at Texas Research Park in San Antonio Tech Fort Worth (formerly Fort Worth MedTech Center), a 15,000-square-foot incubator situated in the biotechnology building at University of North Texas in Fort Worth. Creation of additional incubators will be supported through the ETF Commercialization grant.

The best developed bioscience research park is the Texas Research Park of West San Antonio. This 1,236-acre facility is being developed by a nonprofit foundation. It is anchored by the Institute for Biotechnology of the UT Health Science Center at San Antonio and hosts a variety of tenants including contract biomanufacturing firms and the TEKSA incubator (see above). Also well established, but only recently developing a bioscience orientation, is the Texas A&M University Research Park in College Station. The second phase is now complete with tenants occupying 310,000 square feet over six buildings.
Under development
UT Research Park, on 100 acres close by the multi-institutional Texas Medical Center, is being developed as a partnership of the UT MD Anderson Center and the UT Houston Health Science Center. The initial buildings are primarily clinical uses, but commercial partners are being sought. Temple Life Science Research and Technology Campus is anchored by a former TI facility on a hospital and research complex set on 503 acres an hour north of Austin. A Biotechnology Corridor is offering up to 400,000 square feet in wet-lab space adjacent to UT Southwestern Medical Center in a multi-institutional medical district in Dallas.
TEXAS
Contacts
Tracye McDaniel Executive Director Governors Office of Economic Development and Tourism P.O. Box 12428 1700 North Congress Austin, TX 787112428 (512) 936-0101
The Texas Healthcare and Bioscience Institute is composed of biotechnology, medical device, and pharmaceutical companies; universities and private research institutions; and companies that provide goods and services to core organizations. The mission of THBI is to research, develop, and advocate policies and actions that promote biomedical science, biotechnology, agriculture, and medical device innovation in Texas. Thomas Kowalski President Texas Healthcare and Bioscience Institute 815 Brazos Street, Suite 310 Austin, TX 78701 (512) 708-8424 tk@thbi.com
TEXAS
Texas 222 7.5% 11,082 -22.7% 10.6% 1.50 $76,298 8.15 90,352 142 6.0% 9,238 3.1% 2.9% 0.42 $68,762 4.98 46,047 763 -12.2% 16,334 -8.7% 4.0% 0.56 $47,724 3.24 52,937 1,240 29.3% 19,130 10.5% 4.6% 0.66 $52,501 2.48 47,366 497,393 3.7% 7,694,668 -1.2% 7.0% n.a. $39,109
TEXAS
Bioscience Occupations in the Texas Workforce, 2004
30,000
26,290
20,000
15,000
10,000 8,410 5,000 3,170 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 1,010
Bioscience-Related Degrees from Texas Institutions, AY 2004
Biological Sciences

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Number of Degrees
TEXAS
Total Bioscience R&D Expenditures at Academic Institutions in Texas, FY 2003
Medical Sciences
$918,913
Biological Sciences
$804,865
$105,387
Other Life Sciences
$20,441
$-
$100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000$1,000,000
Texas University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $2,765,634 $1,864,695 67.4% $84.30 61.0% $1,147,993 $51.90 50.0% 7,414 38,880
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 3 3
2 2
TEXAS

Biotechnology and medical devices are among the three sectors that have been targeted for development by Utah, which has a long-standing focus on genetics. Since the last BIO report, Utah has engaged in an industry-led process (including the Utah Life Science Association, the Salt Lake Chamber of Commerce, and the IT association) to define what is being called the Utah Science, Technology and Research (USTAR) Economic Development Initiative (EDI). Seed funding for facilities and recruitment at both public universities was appropriated in 2005 (SB 192). The Huntsman administration has a pending proposal (see below) to add a formal oversight structure and provide substantially increased funding for recruitment, facilities, and commercialization activities across multiple sectors, statewide. USTAR EDI will attempt to fill the innovation pipeline with new facilities and researchers, building on the widely perceived success of the Utah Centers of Excellence (COE), a long-standing program of targeted research and commercialization funding operated by what is now the Governors Office of Economic Development (GOED), which replaced the Department of Community and Economic Development and absorbed the multisector Utah Technology Industry Council. If the full USTAR EDI program is enacted, based on experience with the COEs, the state projects an incremental $4.9 billion in external research funding levered, creation of 422 companies, 123,000 new jobs, and $5 billion in tax revenues over an extended period. Since the last BIO report, voters also approved by 57.5 percent Constitutional Amendment 2 of 2004, which authorizes the states public institutions to acquire equity interests in private businesses in exchange for intellectual property.

SB 192 provided $3 million in seed funding to the University of Utah for research equipment and $4 million to Utah State University for faculty recruitment. Significantly increased investment levels at the public universities for facilities and faculty recruitment are contemplated in SB 75 (see below under Pending Proposals).
UTAH

The Utah Centers of Excellence Program received a one-time budget boost to $3 million and ongoing appropriation of $2.5 million (up from $2 million) to continue its program. The COE program attempts to identify university-based research programs with strong commercial potential, and then supports them with targeted funding over 3 to 5 years with the goal of attracting commercialization partners. The COE program provides $25,000 to each project on top of research costs to retain serial entrepreneurs and other consultants to write a commercialization plan for the technology and, if appropriate, to help foster a start-up. This function was separately budgeted at $500,000 for the year. About a third of the spin-offs created through the COE are bioscience based. The state calculates a 3.8:1 return on investment for this program. Separate from the COE program, the University of Utah offers grants for commercialization research from a Technology Commercialization Project funded by its research park. Projects may be funded at up to $35,000 a year for 2 years, and the goal is to have the technology ready for licensing by the end of the grant. The Technology Commercialization Office, formerly the licensing office, now reports to the Dean of the Business School, in which is also lodged the Lassonde Center for New Venture Development (see below).

Utah is home to the Wayne Brown institute, one of the early programs aimed at mentoring entrepreneurs and preparing them for presenting their business plans at formal venture-capital conferences. Also, the Mountain West Capital Group offers monthly networking meetings for entrepreneurs across multiple sectors. Army Dugway Proving Ground is also creating a federally funded commercialization center for chemical and biological defense technology.

With encouragement from GOED, a private-sector Life Sciences Angel Network is being formed.
Venture capital
With leadership from industry groups including Utah Life Science Association, the Utah Venture Capital Enhancement Act of 2003 was created. The state authority created under this law will back a Utah Fund of Funds with $100 million in contingent tax credits. The first investments are expected in April. The board of the nonprofit that serves as general partner has announced that it will give preference to out-ofstate and newly created venture funds that plan to domicile in Utah, followed by pre-existing venture funds in Utah. It will also give priority to venture funds that have demonstrated commitment to investment in Utah-based entities. The fund of funds will invest in venture funds at all stages from seed through late and mezzanine. Investee funds will work across multiple fields including the life sciences.
UTAH

Incubators
The Miller Business Innovation center is a 30,000-square-foot office incubator at Salt Lake Community College (SLCC) with substantial bioscience presence including Innovabio, a student-run start-up contract research organization (CRO) that works with the colleges biotechnology programs (see below).

Both public universities operate research parks with significant bioscience tenancy: University of Utah Research Park in Salt Lake City is a 320-acre mature park across the street from the campus, with 40 commercial tenants and 36 university departments as well as a hotel/conference center. Innovation Campus at Utah State University in Logan has 22 tenants and six university affiliates in 10 privately developed buildings. It recently expanded to 38 acres and will be building out in seven neighborhoods including one each for genomics and pharmaceutical R&D, with the ultimate target of 135 acres. Because the University of Utah Research Park is full, the GOED is planning to support a new universityrelated park at a location yet to be determined in the Salt Lake Valley, targeting 3 million square feet on 250 acres. The park will target multiple sectors including the biosciences. There is also early-stage planning for research parks at Hill Air Force Base near Ogden, in Utah County (Provo), and Washington County.

The GOED sponsors a Talent Access Program to publicize high-skill career opportunities in Utah. The Lassonde New Venture Development Center at the University of Utah offers opportunities for graduate and undergraduate students in engineering, science, and business to become involved in earlystage business development, including opportunities spinning off from the universitys Technology Commercialization Office. Many of its early activities have been in the biosciences.

Innovabio is a student-run CRO that spun out of SLCCs biotechnology training program. With support from the NIH, Innovabio seeks industry contracts that will provide hands-on experience for students in collaboration with industry. The SLCC also refers students to on-site projects at Army Dugway Proving Ground.

Utah created Itineris, a magnet school dedicated to teaching biotechnology skills to qualified 11th and 12th graders with preference to nontraditional students who can succeed in the sciences.
UTAH
The SLCC has partnered with Granite School District to bring a program on biomanufacturing and regulatory compliance into the high schools with articulation into the community college and 4-year institutions. The GOED is initiating informal education programs such as a science summer camp. These will complement existing private-sector efforts such as the Leonardo outreach program of the Utah Science Center museum.
Pending Proposals
SB 75 of 2006, which enjoys the backing of both the administration and the business community and passed the state senate unanimously, calls for the following: $50 million in planning funds for a Neuroscience and Biomedical Technology Research Building at the University of Utah and a Bio Innovations Research Institute at Utah State University $111 million in bonding authority to fund construction $19.5 million for faculty recruitment and retention. A joint executive legislative oversight committee would supervise USTAR under this bill.
Contacts
Ned M. Weinshenker, Ph.D. Director, Life Sciences Cluster Governors Office of Economic Development 324 South State Street, 5th Floor Salt Lake City, UT 84111 (801) 538-8684 nweinshenker@utah.gov
The Utah Life Science Associations mission is to develop and promote life science industries by bringing members together in partnership to foster education at all levels; to facilitate innovation, excellence, and international competitiveness in our products and services; to gain consensus for action; and to be proactive in matters relating to policy formation, legislation, and regulation. Brian H. Moss President and Executive Director Utah Life Science Association P.O. Box 58073 Salt Lake City, UT 84158-0073 (801) 584-1111 ulsa@xmission.com
UTAH
Utah 10 -1.7% 200 29.0% 0.2% 0.23 $42,840 3.83 763 63 14.5% 4,401 15.0% 1.4% 1.73 $42,980 5.28 23,239 219 7.0% 9,305 2.2% 2.3% 2.79 $43,375 3.17 29,489 202 17.8% 3,891 20.0% 0.9% 1.16 $46,100 2.35 9,132 73,143 11.8% 885,116 1.5% 0.8% n.a. $31,588
UTAH
Bioscience Occupations in the Utah Workforce, 2004
4,000 3,500 Number of Workers in Occupation 3,000 2,500 2,000 1,500 1,000 280 500 310 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 1,520 3,610
Bioscience-Related Degrees from Utah Institutions, AY 2004
Biological Sciences

UTAH
Total Bioscience R&D Expenditures at Academic Institutions in Utah, FY 2003
Medical Sciences
$83,669
Biological Sciences
$50,497
$24,570
Other Life Sciences
$32,490
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Utah University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $385,158 $195,472 50.8% $83.13 42.0% $151,954 $64.62 32.9% 1,434 5,720
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 29 31
29
31 31
UTAH

In his FY 2007 budget request, Governor Jim Douglas proposed investing $3 million in technology transfer and job creation in the field of sustainable environmental technologies. These funds would be used to support technology transfer at the University of Vermont (UVM) and workforce development programs focused on this field at Vermonts state colleges. Support would also be provided to the Vermont Student Assistance Corporation to encourage more high school students to attend college. In the last several years, Vermont has received two awards from NIHs Centers of Biomedical Research Excellence program, which is funding research in lung biology and neurosciences. The Biomedical Research Infrastructure Network in Vermont is funding the Vermont Genetics Network (VGN), which is building a new microarray facility and enhancing bioinformatics services at UVM and five baccalaureate colleges.

In January 2006, UVM completed an addition to its Marsh Life Science Building providing space for faculty from the Food Science Program, part of the Department of Nutrition and Food Sciences. The additional space includes new biochemistry research laboratories. Construction will begin in the spring of 2006 on a new Plant Science Building at UVM that will house programs in the Departments of Botany and Agricultural Biochemistry and Plant and Soil Science within the College of Agriculture and Life Sciences.
Research programs
UVM was recently awarded a $16.5 million NIH research grant to further biomedical studies and education. The money will be distributed to the VGN, which is a collaboration of UVM, St. Michaels College, Norwich University, Middlebury College, and Castleton and Johnson state colleges.

UVMs Office of Technology Transfer provides assistance for efforts to commercialize UVM research.
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The Vermont Center for Emerging Technologies (VCET); an incubator at UVM, provides entrepreneurial support services. In addition, the Experimental Program to Stimulate Competitive Research (EPSCoR) and the states traditional economic development programs have been used to assist bioscience companies. UVM faculty members also work closely with businesses on collaborative research projects and SBIR grant applications.

The EPSCoR program at UVM works closely with businesses to provide SBIR phase 0 grants. These $10,000 grants assist businesses in preparing full SBIR applications. Approximately one third of the grants given each year in Vermont are to bioscience initiatives.
Venture capital
Vermont offers an Angel Investment Tax Carryover that allows Vermont income tax to be deferred on the capital gain for an investment of up to $200,000 by any one person when the gain is used for capital investment in an eligible business.

Incubators
VCET at UVM was completed and opened in the summer of 2005. Its mission is to leverage UVMs science and technology expertise and specialty laboratories, facilities, and equipment to link client companies with faculty and private sector mentors and advisers, with sources of capital, and with staff and student interns. VCET offers traditional incubator services and received both federal and state support. An expansion is being contemplated.
Although Vermont does not have a program specifically designed to assist with financing bioscience facilities, the states economic development tools, e.g., tax credits, training programs, and low-interest loans, have been used to assist bioscience companies like PBM Nutritionals and Mylan Technologies.

The Vermont Academy of Science and Engineering, an honorary organization of the states top scientists and engineers, supports the bioscience industry and talent by serving as a resource on a variety of issues, including issues of science and technology.
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The VGN is a collaborative effort among UVM and five baccalaureate colleges throughout the state to build critical mass and infrastructure in the broad area of genetics and to increase the number of undergraduates who go on to biomedical careers. Among other activities, the network sponsors the Microarray Outreach project. This is a hands-on undergraduate microarry laboratory module that uses the Affymetrix microarray platform and travels to undergraduate schools in Vermont. The goal is to expose undergraduates in the state to microarray technology using hands-on laboratory experiences. The NIH grant includes $1.25 million in funding for a five-year outreach education program in which UVM faculty will visit area colleges to share their technology and research expertise.

The VGN is part of a High School Outreach Program in which it partners with the UVM and EPSCoR to have representatives visit Vermont high schools and encourage youth to go into science and engineering careers.
Pending Proposals
As noted above, Governor Douglas has proposed investing $3 million in technology transfer and job creation in the field of sustainable environmental technologies.
Contact
Mike Quinn Commissioner Vermont Department of Economic Development National Life Building, Drawer 20 Montpelier, VT 05620 (802) 828-3080 mike@thinkvermont.com
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Vermont 4 33.3% 26 30.0% 0.0% 0.11 $24,625 2.31 60 4 0.0% 36 24.1% 0.0% 0.05 $51,010 3.11 112 42 34.6% 608 45.0% 0.1% 0.65 $34,236 2.00 1,217 34 23.4% 201 43.1% 0.0% 0.21 $41,984 1.80 362 22,590 0.3% 248,073 -0.7% 0.2% n.a. $32,720
VERMONT
Bioscience Occupations in the Vermont Workforce, 2004
250 230 Number of Workers in Occupation 200
150
100
50
50 40
Bioscience-Related Degrees from Vermont Institutions, AY 2004
Biological Sciences
Number of Degrees
VERMONT
Total Bioscience R&D Expenditures at Academic Institutions in Vermont, FY 2003
Medical Sciences
$44,443
Biological Sciences
$33,845
$7,069
Other Life Sciences
$10,177
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Vermont University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $106,581 $95,534 89.6% $154.31 69.5% $69,410 $112.11 39.8% 362 320
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 47 39
40
49 52
VERMONT

To enhance state-funded biomedical research in the Commonwealth of Virginia, newly elected Governor Tim Kaine and former Governor Mark Warner jointly proposed a $520 million investment package for the states major research universities. The multitargeted initiative is designed to boost basic research funding and recruit top scholars in the leading fields of biomedical science, biomaterials engineering, nanotechnology, and modeling and simulation. The initiative also calls for new state-of-the-art research facilities such as A bioscience research building and a biodefense laboratory facility at George Mason University (GMU); A medical research building at Virginia Commonwealth University (VCU) and additional funding for the Massey Cancer Center addition; Investments in a new clinical cancer center at the University of Virginia; and, Construction of a critical technology building and an infectious disease laboratory at Virginia Polytechnic Institute and State University (Virginia Tech). These initiatives follow recommendations made by the Governors Commission on Biotechnology, a blue ribbon panel first launched in 2002 by former Governor Warner. The commission made key recommendations to increase the availability of seed and pre-seed capital, attract the best and brightest faculty to Virginias universities, build specialized research facilities, assist bioscience companies with facilities financing, and accelerate the movement of intellectual property from the states laboratories and universities into the marketplace.

The Janelia Farm Research Campus (JFRC) of the Howard Hughes Medical Institute (HHMI) will open in the third quarter of 2006. Located on a 689-acre property in northern Virginia, the biomedical research complex represents a $500 million investment by HHMI. The campus includes 760,000 square feet of laboratory space, in addition to facilities to support collaborations with scientists from around the world. Recruitment of the interdisciplinary scientific staff is underway. When fully operational in 2009, JFRC will house 300 scientists. JFRC will emphasize collaborative, technology-driven research in two
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broad areas: understanding how neuronal circuits process information, and developing new imaging technologies and computational methods for image analysis. The University of Virginia has broken ground on the new $70.7 million Carter-Harrison Research Building, which will house 60 research teams comprising 240 scientists and laboratory personnel. The new Innovation Center for Biotechnology-based Economic Development, managed by Virginia Techs College of Agriculture and Life Sciences, is located in southern Virginia. The center is funded by a $890,000 grant from the Virginia Tobacco Commission to focus on plant or microbe R&D for new bio-based products. Future phases will integrate the centers research into high school science curricula, develop joint research projects with targeted private sector companies, and assist in the development and diversification of the regions existing businesses.
Research programs
Virginia offers the Commonwealth Technology Research Fund, a $26 million initiative designed to leverage federal and private sector research investment in Virginia universities. The program was launched in 2000 and has funded numerous projects, such as the Virginia Bioinformatics Consortium, the relocation of the Institute for Computational Genomics to the College of William and Mary, research in cancer genomics, and research partnerships with private sector biotech firms in mucosal therapies of infectious and autoimmune diseases.

Virginias Center for Innovative Technology (CIT) works to accelerate Virginias next generation of technology and technology companies. CIT encourages and facilitates discussions among the states research institutions, federal and state laboratories and government officials, and life sciencerelated industries and has focused recent efforts to develop a unified statewide vision called SmartBio in the arena of information technology applied to living systems.

Carilion Biomedical Institute (CBI), founded with a $20 million grant from Carilion Health System and headquartered in Roanoke, is a partnership between the Health System, Virginia Tech, and the University of Virginia. Its mission is to foster collaborative research among the partners and enhance regional economic infrastructure through investing in very early-stage companies with disruptive technologies. CBI, Virginia Tech, and the University of Virginia currently have nine funded collaborative research projects in the areas of applied biomechanics, healthy aging, infectious disease, and rural health. CBI also has 10 portfolio companies, with plans to add at least five more every year.

The Virginia BioTechnology Research Park created the Virginia Biosciences Development Center (VBDC), a nonprofit organization whose mission is to deliver business assistance and support services to the early-stage life science companies located in the park. The VBDC provides park tenants with one-onone business counseling, access to resource networks and pro bono professional services, assistance with
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business plan preparation, intellectual property consulting, conduits to start-up funding, educational workshops, and staff recruitment.

In December 2003, Virginias CIT launched the Growth Acceleration Program (GAP) to provide preseed and seed capital to start-up and emerging technology companies. Companies can receive up to $100,000. GAP is open to early-stage companies in six industry sectors, one of which is biotechnology.
Venture capital
Virginia provides an angel investor tax credit of 50 percent of up to $50,000 to individuals who invest in technology companies. An angel investor tax credit of up to 50 percent of $500,000 is available for technology investments in tobacco-dependent localities. A total of $5 million is available for the credits annually. Virginia also provides 100 percent sales and use tax exemptions for company purchases used directly and exclusively in research and development and manufacturers purchases used directly in production, including machinery, tools, spare parts, industrial fuels, and raw materials. A number of Virginia localities have elected to tax research and development tangible property at reduced rates.

Incubators
The Virginia Department of Business Assistance manages the Virginia Small Business Incubator Grant Program, which provides grants to local governments and nonprofit economic development organizations to construct or renovate buildings to provide incubator space for start-up companies. The program also can provide support for initial incubator operations. The Fairfax County BioAccelerator was established in northern Virginia in 2003. The accelerator, which can accommodate 10 to 12 early-stage bioscience or bioinformatics companies, currently houses five companies. Companies joining the BioAccelerator receive a range of customized business development services especially designed for early-stage bioscience and bioinformatics firms. The VBDC is a 27,000-square-foot incubator located in the Virginia BioTechnology Research Park in Richmond. The center provides business assistance and space for bioscience companies.

The Virginia BioTechnology Research Park, located on a 34-acre site in downtown Richmond, adjacent to the VCU Medical Center continues to expand with construction on its third multitenant facility scheduled for completion in early-2007. The park is home to more than 50 national and international bioscience companies; research institutes affiliated with the VCU Medical Center; major state and national medical, forensic, and public health laboratories; and organizations involved with management of the nations organ transplantation process. After completion of the new 450,000-square-foot Philip Morris Center for Research and Technology, the park will be two-thirds developed. Ultimately, the park is projected to contain more than 1.5 million square feet of space and will be an employment center of more than 3,000 life science professionals.
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At the Virginia BioTechnology Research Park at Meadowville Technology Park, Chesterfield County has designated a significant portion of its 1,300-acre campus for bioscience companies. This site provides for more than 2 million square feet of offices, laboratories, and manufacturing facilities. In Henrico County, the Virginia BioTechnology Research Park at White Oak Technology Park contains approximately 2,247 acres of land, which has been master-planned to attract and support hightechnology manufacturers, including those in the biosciences industry. INNOVATION@Prince William Technology Park is a 1,600-acre technology park owned by both public and private developers in Prince William County. Biotechnology is a key component of INNOVATION, which is planned and zoned for immediate bioscience laboratory, production, testing, and development facilities. In addition to major pharmaceutical and bioscience firms located in the park, the park will also accommodate the recently announced Virginia Department of Forensic Science Northern Virginia laboratory; GMUs Regional Biocontainment Laboratory; and the Alexandria Technology Center, which, when fully developed, could contain up to 400,000 square feet in specialized biotechnology space. The University of Virginias Fontaine Research Park is a 54-acre research park which, when completely developed, will include nearly 400,000 square feet. The Advanced Research and Technology Building, the last building to be built in the park, is currently in the final planning stages. The University of Virginia Research Park at North Fork is a 562-acre, mixed-use park that will, when completed, include facilities for laboratory research, medical, and pharmaceutical companies as well as residential, retail, and other uses. The Emerging Technology Center, a 40,000-square-foot, multitenant building, provides both wet- and dry-lab space. The Riverside Center for Research and Technology in Roanoke is a 110.5-acre, city-developed research park situated just south of Roanokes central business district. CBI, the first tenant of Riverside Center, is currently constructing an $8 million office and laboratory complex. CBI is a partnership among Carilion Health System, the University of Virginia, and Virginia Tech. The Virginia Tech Corporate Research Center (CRC), located on 120 acres adjacent to the Virginia Tech campus, contains 16 single- and multi-tenant buildings. Riverstone Technology Park in Halifax County is a 165-acre technology park owned and managed by the Halifax County Industrial Development Authority that is targeting biomanufacturing. A $12 million, 67,000-square-foot, multitenant building has been constructed to attract biotechnology, R&D, and technical manufacturing.

The Virginia Community College Systems (VCCSs) Institute for Excellence in Advanced Technology adopted a biotechnology strategic plan in 2004. The plan is aimed at expanding and strengthening partnerships between industry and VCCS in biotechnology; improving the abilities of individual colleges to assess, collaborate, communicate, and deliver biotechnology training programs and services; and marketing the services and abilities of VCCS in the area of biotechnology.
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Many of the states community colleges currently offer courses, certificates, or degrees in biotechnology. Recently established programs include one focused on biotechnology manufacturing training at the Danville Community College and an industrial biotechnology certification program offered at Virginia Western Community College in Roanoke. The Williamsburg BioProcessing Foundation (WilBio) is basing the new WilBio Institute for BioProcess Technology at Tidewater Community College (TCC). TCC students and faculty will be able to use the institutes equipment and technology.

The Outreach Program at Virginia Techs Fralin Biotechnology Center sponsors the Biotech-in-a-Box program that provides biotechnology equipment and materials to high school and community college classrooms across the Commonwealth at no cost. The center sponsors an annual biotechnology education conference and other professional development opportunities for high school and college biology educators. The center also helps establish teacher-scientist partnerships, collaborations designed to help high school students understand current advances in biology and biotechnology. The HHMI funds a number of education initiatives in Loudoun County, the home of its new biomedical research center. These include a $1 million donation to establish a biotechnology magnet program, college scholarships to outstanding science students graduating from all 10 Loudoun High Schools, and a summer science academy program offered to 36 middle school teachers annually.
Pending Proposals
In addition to the Governors budget proposals described in the overview, the 2006 session of Virginias General Assembly is considering several initiatives designed to assist biotech firms with their financing challenges. These include return guarantees for venture capital funds investing in Virginia technology firms, additional tax credits for investments in biotech companies, and allowing biotech companies to sell their unused but otherwise allowable research and development tax credits or net operating loss carryovers to another corporation taxpayer.
Contacts
Dr. Terry Woodworth Director, Life Sciences Virginias Center for Innovative Technology 2214 Rock Hill Road, Suite 600 Herndon, VA 20170-4200 (434) 817-0449 twoodworth@cit.org
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Keith Oing Business Development, Life Sciences Virginia Economic Development Partnership (VEDP) 901 East Byrd Street P.O. Box 798 Richmond, VA 23218-0798 (804) 545-5600 koing@yesvirginia.org
The Virginia Biotechnology Association (VaBIO), formed in 1992, is a 220-member trade association that promotes the biotechnology industry in Virginia. Mark A. Herzog Executive Director Virginia Biotechnology Association (VaBIO) 800 East Leigh Street, Suite 14 Richmond, VA 23219 (804) 643-6360 mherzog@vabio.org
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Virginia 36 11.6% 2,423 -16.1% 2.3% 0.88 $64,476 4.67 11,310 26 0.0% 3,836 3.6% 1.2% 0.47 $65,975 4.92 18,885 299 11.2% 3,619 -14.4% 0.9% 0.34 $36,020 2.29 8,300 396 30.0% 6,136 7.7% 1.5% 0.57 $57,059 2.30 14,127 198,896 4.7% 2,859,426 1.1% 2.6% n.a. $40,112
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Bioscience Occupations in the Virginia Workforce, 2004
9,000 8,000 Number of Workers in Occupation 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers 130
8,940
1,780
210
Bioscience-Related Degrees from Virginia Institutions, AY 2004
Biological Sciences

200 400 600 800 1,000 1,200 1,400 1,600 1,800
Number of Degrees
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Total Bioscience R&D Expenditures at Academic Institutions in Virginia, FY 2003
Medical Sciences
$177,811
Biological Sciences
$136,401
$70,322
Other Life Sciences
$31,197
$-
$20,000
$40,000
$60,000
$80,000
$100,000 $120,000 $140,000 $160,000 $180,000
Virginia University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $773,200 $419,416 54.2% $56.78 58.3% $450,160 $60.95 111.4% 2,444 11,060
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 16 17
13
14 20
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Since the last BIO report, bioscience became a cornerstone of Washington states economic development strategy, as legislation was passed under the Gregoire administration creating a $350 million Life Sciences Discovery Fund (SB 5581), an idea that emerged from Bio21 study group that met over the previous 2 years. Starting in 2008, the fund will begin allocating $35 million annually from tobacco settlements to research with economic-development potential, possibly including recruitments and facility enhancements. The state projects that it will lever $1 billion in additional external research funding over its 10-year lifetime and create 20,000 jobs within about 15 years. The Seattle region is building a particular focus on global health and has started an annual Pacific Health Summit. Seven university, nonprofit, and charitable institutions recently joined to create Puget Sound Partners for Global Health, a collaborative that has resources available for both pilot research and training grants. The University of Washington (UW) also recently received approval to create a new Department of Global Health. Both initiatives were supported by the Bill & Melinda Gates Foundation, which contributed $20 million to the new departments start-up costs.

Both major public universities are in the process of adding bioscience research facilities across the state: UW Medicine is constructing $170 million of interdisciplinary research space in the de facto research park that is developing in South Lake Union, across from the main UW campus. Phase I (100,000 square feet) is open, and Phase II (300,000 square feet) breaks ground this year. Revenue bonds are backed in part by anticipated increase in indirect cost recovery. Bioproducts, Sciences, and Engineering Laboratory is a $24 million joint project of Battelles Pacific Northwest National Laboratory and the Washington State University (WSU) Tri-Cities campus. It will receive $13 million from the state capital budget. Bioengineering-Genome Sciences Building, a 265,000-square-foot, $150 million building at the University of Washington in Seattle funded in part by a $70 million gift from the Gates Foundation. Biotechnology/Life Sciences Building, a 117,210-square-foot, four-story, $57.1 million research building at WSU in Pullman.
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At the private institutions, Fred Hutchinson Cancer Research Center continues its multiyear initiative to create new space and consolidate operations on its 14.3-acre campus at South Lake Union, and the Institute for Systems Biology previously opened a 65,000-square-foot, $100 million facility at North Lake Union near the main UW campus.
Research programs
The Life Science Discovery Fund will provide the first regular source of public support for strategic life science R&D in the state. The fund adopts a broad definition of the life sciences, encompassing biotech, pharmaceuticals, biomedical technologies, life system technologies, nutraceuticals, cosmeceuticals, food processing, environmental, and biomedical devices. It is governed by an 11-member board of trustees that will evaluate grants for their potential health-care impact, future employment impact, and geographic diversity. A 2:1 match from external sources will be required. The executive director is the retired president of UW, a former leader of the universitys bioengineering programs.

Puget Sound Regional Partners has a pool of $500,000 for Research and Technology Grants, up to $50,000 each, to help new regional collaborations in global health attract long-term funding. These grants may be used to attract new investigators.

The Washington Technology Center, a state-funded nonprofit intermediary, offers a series of grant programs across multiple disciplines aimed at linking in-state companies with academic researchers at UW and WSU. The Research and Technology Development grant offers up to $100,000 a year for 2 years, matched 1:1 by larger firms and at lower ratios for small and start-up companies. There is also a smaller version for exploratory projects, which has been used by medical device and diagnostic firms.

The Washington Research Foundation, which once handled technology transfer for UW but is now a stand-alone nonprofit endowed by profits from that period, maintains its own $500,000 Gap Fund for precommercialization research. WRF also has partnered with UW by contributing $250,000 to the universitys internal Technology Gap Innovation Fund, likewise funded at $500,000. Both funds have a similar purpose, to fund additional research necessary to make discoveries suitable for licensing or company start-up. The UW fund is structured on a royalty payback basis.

In Eastern Washington, commercialization assistance is available from two organizations: the Spokane Intercollegiate Research and Technology Institute (SIRTI) and Connect Northwest, a mentoring organization modeled on the CONNECT program in San Diego.
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Pre-seed investments in the biosciences are available from the following sources: WRF Capital, a $25 million seed fund operated by the Washington Research Foundation Alliance of Angels, an affiliate of the Washington Technology Council. Washington exempts SBIR/STTR grants and those from the Life Sciences Discovery Fund from its main business tax.
Venture capital
Accelerator Corporation is a $23 million venture fund created by several local institutions including the Institute for Systems Biology, the Alexandria Real Estate Equities group, and several existing regional venture investors. The fund particularly targets ISB spin-outs and tenants of Alexandrias accelerator space in its wet-lab facilities in the Eastlake neighborhood. Washington State Investment Boards private equity program has a memorandum of understanding with Washington Technology Center to provide priority access for Washington companies to the general partners of these venture firms.

Incubators
Since the last BIO report, the SIRTI Technology Center, a 30,000-square-foot, $6 million, wet-labequipped facility, opened in Spokane.

Since the last BIO report, private developers continued to build the de facto research park that is emerging in South Lake Union, across the lake from the main UW campus. Spurred by anchors such as the Fred Hutchinson Cancer Center, UWs presence in space rented from Paul Allens Vulcan Ventures, and the Seattle Biomedical Research Institute (SBRI), more than 500,000 square feet of bioscience space is online, and additional space is planned. UWs commitment will triple its presence in the district, which is a priority development area for the City of Seattle, which eased zoning restrictions and is putting in place infrastructure improvements.

UWs Center for Innovation and Entrepreneurship provides a fellowship for UW graduate students from business, engineering, law, medicine, and sciences to explore the viability of transforming research into ventures.
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UWs extension program is in the second year of offering a Certificate in Technology Commercialization developed originally by the Department of Bioengineering. Puget Sound Partners for Global Health offers Training and Education Grants to support involvement of students and trainees (such as medical residents) in programs based in developing nations. Shoreline Community College operates an unusually vigorous Northwest Biotechnology/Biomedical Education and Careers Consortium that links local college training programs to bioscience industry.

SBRI operates BioQuest, a science education program for high school students that is located on the first floor of its South Lake Union headquarters building. Life Sciences Education Advancement Partnership (LEAP) is a regional forum to coordinate life science outreach programs, sponsored by the Northwest Association for Biomedical Research.
Contacts
Dr. Lee Cheatham Executive Director Washington Technology Center 300 Fluke Hall, Box 352140 Seattle, WA 98195-2140 (206) 683-7549 cheatham@watechcenter.org
The mission of the Washington Biotechnology & Biomedical Association (WBBA) is to be the leader in advancing the states bioscience research and industry sector through business development, information, and member services. Jack Faris, Ph.D. President, Washington Biotechnology & Biomedical Association 200 First Avenue West, Suite 200 Seattle, WA 98119 (206) 624-1967 jack@washbio.org
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Washington 29 -24.7% 712 11.7% 0.7% 0.34 $54,598 5.60 3,991 58 1.8% 1,795 -22.5% 0.6% 0.29 $66,115 5.99 10,750 405 -0.8% 7,593 2.3% 1.8% 0.92 $57,466 2.87 21,759 484 10.8% 11,461 19.1% 2.8% 1.38 $63,735 2.50 28,624 206,910 -4.3% 2,196,274 -0.6% 2.0% n.a. $38,833
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Bioscience Occupations in the Washington Workforce, 2004
9,000 8,000 Number of Workers in Occupation 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 920 7,310 8,550
610
Bioscience-Related Degrees from Washington Institutions, AY 2004
Biological Sciences
Number of Degrees
WASHINGTON
Total Bioscience R&D Expenditures at Academic Institutions in Washington, FY 2003
Medical Sciences
$319,074
Biological Sciences
$175,668
$66,057
Other Life Sciences
$23,658
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Washington University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $869,695 $599,204 68.9% $97.73 50.1% $815,256 $132.96 53.7% 1,920 17,390
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 14 14
21 12
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West Virginia has identified biotechnology as one of several key industries for development. In three targeted corridors, components for bioscience clusters already exist with the most comprehensive development in the north-central part of the state in Morgantown and along the I-79 corridor. Morgantown is home to West Virginia University (WVU), which has a specialization in biometrics. The Morgantown region includes the Federal Bureau of Investigation (FBI) Criminal Justice Identification Services Division, the largest fingerprint repository in the world; the Biometrics Fusion Center, the prime biometrics technology research and development facility within the Department of Defense; and a National Information Assurance Partnership certification laboratory with special expertise in biometrics products. Efforts to further develop this regions bioscience cluster are focused on creating collaborations with Pittsburgh-based biotech companies, establishing a strong commercialization effort at WVU with a focus on biotechnology, stimulating and promoting commercially viable innovations from faculty and graduate students, and creating an on-campus facility for commercialization and academic research. In the western part of the state, Marshall University (MU) in Huntington focuses on biotechnology, with expertise in forensics, environmental science, and medical research. With MU as an anchor, the Charleston-to-Huntington corridors concentration of chemical companies serves as a foundation for the development of biomanufacturing and industrial biotechnology. The Charleston areas Dow Tech Center houses various groups that perform scientific research in areas including biotechnology. There is an effort in this region to establish Advantage Valley as a biotech center including using a former Dow facility as a site for attracting production operations from biotech companies in high-cost areas, adding a bio capability (fermentation) to the existing chemical manufacturing capability of the region, exploring the technical/economic feasibility of biopolymers using wood waste as a raw material, and creating an oncampus facility that can be used for commercialization and academic research at MU. West Virginias Eastern Panhandle, within commuting distance of Washington DC is marketed to bioscience firms in the metro area. In this region, efforts include establishing a recruitment plan for attracting biotech businesses, stimulating entrepreneurial spin-offs, and promoting the area as a community where biotech professionals choose to live and raise their families. On a statewide basis, the West Virginia Development Office (WVDO), the states economic development entity, concentrates its technology-based economic development strategy by focusing on intellectual and physical infrastructure, developing a technically skilled workforce, making capital readily available, fostering an entrepreneurial culture, and maintaining the states excellent quality of life. The WVDO, which has a staff person dedicated to the biosciences, will build upon the states three concentrated biotech clusters. One area that the state is promoting is opportunities for geriatric pharmaceutical clinical trials given its demographics
WEST VIRGINIA 1

West Virginia is funding the development of bioscience facilities at MU and at WVU. These include the following: The MU Biotechnology Development Center will provide an environment where scientific concepts developed at MU can be guided to the marketplace and where outside biotech firms can find critical support for research and development. Federal, state, and private funding supports the construction and equipping of the $48 million, 200,000-square-foot Robert C. Byrd Biotechnology Center at MU, which will facilitate interdisciplinary research between the College of Science and the School of Medicine. A $1 million addition to the MU Forensic Science Center allowed for additional classroom space and DNA laboratories. Bond issue funding has enabled building of a medical research facility for the Blanchette Rockefeller Neuroscience Institute, a collaborative effort between WVU and Johns Hopkins University. The institute focuses on preventing, diagnosing, treating, and curing neurological, psychiatric and other cognitive disorders affecting the human brain. Expected occupancy of the facility is spring 2008. The National Biometric Security Project in Morgantown provides unbiased research, evaluation, and guidance to the private sector and all nondefense-related U.S. government agencies. A $24.4 million funding package will allow WVU to complete a 12-year research expansion plan in as little as half that time with the addition of 600 new health sciences research positions. The funds will build new laboratories at the universitys Mary Babb Randolph Cancer Center and new neurosciences laboratories. It also will create research space in the new Health Sciences Library. Three state development agencies created the funding package. The Infrastructure and Jobs Development Council will provide $9.4 million, the Economic Development Authority $9 million, and the West Virginia Housing Development Fund $6 million. The Edwards Comprehensive Cancer Center, which offers advanced linear accelerator technology and other state-of-the-art diagnostic and treatment options, officially opened to patients January 16, 2006.
Research programs
The West Virginia EPSCoR (Experimental Program to Stimulate Competitive Research) Office develops, administers, manages, and implements the states experimental research improvement program. Its mission is to build research competitiveness within institutions and among individual researchers and research teams and collaborations among institutions throughout the state. With the support of the West Virginia Department of Agriculture and the U.S. Department of Agriculture, a team of specialists at the Marshall University Forensic Science Center is creating bacterial source tracking databases in five major watershed regions of West Virginia. The database will help in identifying sources of bacterial contamination and lead to remediation efforts.
WEST VIRGINIA 2
The Biometrics Knowledge Center at WVU, created with a grant from the state, conducts interdisciplinary research in the convergence of disciplines defining biometrics. The center provides a forum where researchers and potential sponsors can collectively develop a national biometrics research enterprise. WVUs strategic plan includes a two-pronged bioscience approach calling for related facilities as well as for stepped-up faculty recruitment.

Using the sale of $1 million in state tax credits, West Virginia made possible the establishment of university-affiliated nonprofit centers for economic development and technology advancement to support industrial and academic R&D partnerships and technology commercialization. The Institute for the Development of Entrepreneurial Advances (IDEA) at MU will focus on commercializing technology findings, with an emphasis on biotechnology, from MU. IDEA will Connect entrepreneurs with faculty researchers; Establish an $8.2 million, 22,000-square-foot incubator, which will nurture businesses that can commercialize university research in molecular life sciences and medicine; Work with the Center for Business and Economic Research, which seeks to increase the flow of research dollars to MU; and Build businesses around technologies developed at or in partnership with MU.

INNOVA Commercialization Group, an initiative of the West Virginia High Technology Consortium Foundation, is a statewide commercialization group focused exclusively on West Virginia innovators. INNOVAs mission is to create real wealth for West Virginia by assisting entrepreneurs in obtaining the business development assistance and capital necessary to successfully launch new products into the commercial marketplace. The Mid-Atlantic Technology, Research and Innovation Center (MATRIC) is a nonprofit research and development corporation headquartered in Charleston. MATRICs focus is in the disciplines of chemistry and chemical products, biotechnology and the biosciences, and software systems, especially in the areas of confluence between two or more of these disciplines. Services include research incubation of new products and processes, provision of facilities and technical talent for carrying out experimental work from laboratory scale to production scale, and provision of other specialized technical services. MATRIC has developed partnerships with educational institutions, including WVU, MU, WVU Institute of Technology (WVU Tech), West Virginia State University, and the University of Charleston. MATRIC performs research and development activities for a variety of governmental and commercial clients.
WEST VIRGINIA

Venture capital
West Virginia Jobs Investment Trust (JIT) is a public venture capital fund created to develop, promote, and expand West Virginias economy by making investment funds available to eligible businesses, stimulating economic growth, and providing or retaining jobs within the state. JIT invests in early-stage, later-stage, and mature small companies that wish to expand. JIT has invested $4 million in each of the following venture funds: Adena Ventures provides equity and operational assistance to qualifying businesses in central Appalachia. The companys mission is to generate market-rate returns for investors while promoting shared and sustainable economic development throughout its target region. Anthem Capital invests exclusively in the Mid-Atlantic states and seeks opportunities in IT/telecommunication and healthcare/life science industries. Anthem invests in early- to expansionstage opportunities. Mountaineer Capital LP provides venture capital to promising new and existing businesses in West Virginia and surrounding states. PA Early Stage seeks portfolio companies in the corridor from New York to Washington DC with a primary focus on Pennsylvania companies. PA Early Stage invests in early-stage technology and life science companies, typically as a lead or co-lead investor. Toucan Capital focuses on seed and early-stage life science and advanced technology investments. Toucan invests nationwide and is an active venture capital fund in seed and early-stage life science, especially active in the mid-Atlantic region. Walker Ventures focuses on start-up and early-stage companies in the high-tech industry.

Incubators
West Virginia committed $1.5 million in FY 2004 for the development of a biotechnology incubator in South Charleston. The incubator was created in space that formerly housed R&D laboratories of Dow Chemical. The Chemical Alliance Zone Biotechnology and Allied Sciences Incubation Center provides 10,000 square feet of laboratory/office space to its tenants, as well as a full range of start-up business services from established service providers and affiliation with the Entrepreneurial League System. On its Evansdale campus in Morgantown, WVU has an incubator with two tenants.
Under development
IDEA at Marshall University will establish an $8.2 million, 22,000-square-foot incubator, which will nurture businesses that can commercialize university research in molecular life sciences and medicine. No target date for completion has been established.
WEST VIRGINIA
In Kinetic Park in Huntington, the Velocity Center, a $7 million incubator for biotech and other companies, is being built. The Velocity Center will work with the Robert C. Byrd Biotechnology Center at MU to explore and expand commercial applications to technology innovations. The 60,000-square-foot building also will house other technology businesses including AFB TECH, the American Foundation for the Blind Employment and Technology Center in Huntington.
The West Virginia Economic Development Authority provides direct financing programs for fixed assets and indirect financing programs in the form of loan insurance, including the leveraged technology loan insurance program, which expands loan insurance coverage to 90 percent for those businesses involved in the development, commercialization, or use of technology-based products and processes.

The 100-acre WVU Research Park focuses on enterprises based on engineering, agricultural, medical, and energy research. See Pending Proposals, below.

As part of MUs strategic plan, the university will establish the Marshall/West Virginia Science Technology Engineering Math (STEM) Academy, including a West Virginia Virtual STEM Academy to serve the entire state.

The Forensic Identification and Biometrics Degree Program at WVU in Morgantown is an interdisciplinary program incorporating academic and research activities in biometric and forensic investigative science. The program was initiated at the request of the FBI to create academic, research, and training programs focusing on the application of technology to assess state, local, and federal law enforcement agencies. The purpose of this program is to become a leader in identification technology and forensic and biometric research through education and training. The program operates in conjunction with the Center for Identification Technology Research, the Biometric Fusion Center, the FBI, the National White Collar Crime Center, and the National Biometric Security Project. The University of Charleston has a new School of Pharmacy.
Pending Proposals
In January 2006, Governor Joe Manchin announced that a new technology park will soon be created utilizing part of Dows South Charleston Technology Park (see Incubators, above). With the cooperation and coordination of Dow, WVU, WVU Tech, and MU, the current park will be transformed into an education, research, and development center.
WEST VIRGINIA
Contact
Mr. Jamie Gaucher Manager, Technology Development West Virginia Development Office Capitol Complex, Building 6, Room 553 1900 Kanawha Boulevard, E. Charleston, WV 25305-0311 (800) 982-3386 jgaucher@wvdo.org
Bio-Science in West Virginia, a group of university, business, and government leaders interested in advancing West Virginia's suitability for the biotechnology industry, is focused on making an inventory of bioscience industries in West Virginia and increasing the industry profile through education and advocacy to policymakers and lawmakers. Contact: Jamie Gaucher. The Governors Ambassador Council on Biotechnology includes high-level leaders from industry with a connection to West Virginia who are willing to help/share expertise. Contact: Jamie Gaucher.
WEST VIRGINIA
West Virginia 16 -9.4% 1,881 -29.7% 1.8% 3.56 $74,508 6.05 11,392 5 18.5% 1,643 16.0% 0.5% 1.04 $70,656 4.37 7,176 43 -0.6% 822 12.6% 0.2% 0.40 $33,508 1.97 1,618 78 19.7% 847 13.3% 0.2% 0.41 $38,803 1.82 1,541 44,227 0.6% 550,464 -0.2% 0.5% n.a. $29,576
WEST VIRGINIA
Bioscience Occupations in the West Virginia Workforce, 2004
2,000 1,800 Number of Workers in Occupation 1,600 1,400 1,200 1,000 800 600 400 50 200 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 30 680 1,880
Bioscience-Related Degrees from West Virginia Institutions, AY 2004
Biological Sciences
Number of Degrees
WEST VIRGINIA
Total Bioscience R&D Expenditures at Academic Institutions in West Virginia, FY 2003
Medical Sciences
$37,408
Biological Sciences
$18,715
$11,007
Other Life Sciences
$1,023
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
West Virginia University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $120,514 $68,153 56.6% $37.65 99.5% $37,862 $20.91 258.3% 660 2,640
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 46 42
43
38 38
WEST VIRGINIA

The biosciences remain a key component in the second iteration of the Doyle administrations Grow Wisconsin economic strategy, which includes a technology and entrepreneurship thrust. As a result, biotechnology and medical devices are also two of the three emerging clusters recognized and supported by the state Department of Commerce and its Forward Wisconsin outreach and recruitment affiliate. Since the last BIO report, Wisconsin has focused heavily on building its infrastructure for start-up development. The state continued to elaborate its efforts to stimulate capital formation, through both a range of tax credit and grant programs and several early-stage initiatives steered by the Wisconsin Technology Council. The University of WisconsinMadison consolidated its status as home to many of the federally approved embryonic stem cell lines with recent designation by the NIH as a National Stem Cell Bank. The university also combined various industrial liaison and start-upsupport activities at the University of WisconsinMadison into a centralized Office of Corporate Relations (OCR). In Milwaukee, several institutions combined into a state-supported Biomedical Technology Alliance of Southeast Wisconsin. Next year Milwaukee will host a 10-state BIO Mid-America Venture Forum catalyzed in part by the Wisconsin Biotechnology and Medical Device Association (WBMA).

Construction advanced on the $100 million Microbial Sciences Building at UW-Madison and a $134 million Interdisciplinary Sciences Building at the universitys hospital. Upgrades to the Biotechnology Center and the Biochemistry Building are already complete. An initial $50 million in borrowing and fund-raising was also approved toward a planned $375 million interdisciplinary Wisconsin Institute for Discovery, which will combine research in biology and bioinformatics with science and engineering disciplines. At the Medical College of Wisconsin in Milwaukee, $35 million in bonding was approved toward a $132 million research facility on infectious disease, cardiovascular illness, and bioengineering.
WISCONSIN
Research programs
The budget signed in 2005 included $2.5 million for Alzheimers and Life Science Research at the UWMadison Medical School. The state also funded $5 million in product development through a Consortium on Biobased Industry, which is due to make further recommendations in the spring of 2006.

WBMA hosts monthly best-practice events in Madison and Milwaukee to expose bioscience companies to research ongoing in the UW system. UW-Madison OCR is funded by the Wisconsin Department of Commerce at $600,000 annually to offer the Industrial and Economic Development Research Program. I&EDR offers faculty grants up to $35,000 for 12 months effort on applied research projects of interest to Wisconsin businesses or likely to open opportunities for additional support. Academic/industrial interaction is the key focus of the Biomedical Technology Alliance of Southeast Wisconsin, which includes the Medical College of Wisconsin.

UW-Madison OCR is supported by Wisconsin Alumni Research Foundation (WARF) at $400,000 annually to offer the Robert Draper Technology Innovation Fund. This fund provides grants up to $35,000 to faculty who have filed invention disclosures with WARF and need to conduct additional work in order to perfect the universitys patent position prior to licensing or spin-off formation. The WARF, a supporting foundation that returns patent license revenues to the university through an annual grant program, has added an explicit focus on creating start-up vehicles that will remain in-state, operated by the subsidiary WiSys Technology Foundation. In concert, the university sponsors First Look Investor Forums to introduce university spin-offs to sources of informal and formal capital. The Center for International Business Education and Research, part of the business school at UWMadison, has provided grants through WBMA to allow early-stage bioscience companies to showcase themselves at the BIO conference.

Commercialization assistance backed by WiSys and other UW affiliates will be available from the Wisconsin Entrepreneurs Network, a set of four regional technology transfer centers funded at $1 million under the Grow Wisconsin Initiative. The state Department of Commerce provides Technology Assistance Grants to help companies hire third-party consultants to assist in securing federal or private funding.
WISCONSIN

The state Department of Commerce offers Technology Development Loans on a range of terms to help businesses develop or commercialize new technology and Technology Venture Fund Loans to underwrite half the cost of seeking capital investment. Firms winning Phase I SBIR awards are eligible for both Technology Matching Grants to prepare Phase II proposals and Technology Bridge Grants to sustain them during the interval between phases. Verified angel investors are eligible for personal income-tax credits of 25 percent on up to $500,000 in investment in Qualified New Business Ventures as defined by Act 255 of 2003. The credits are offered over 2 years. Commerce may allocate $3 million a year in credits up to an authorized maximum of $30 million. In 2005 all the credits were claimed, resulting in more than $15 million in leveraged investments. At least 15 regional angel-capital groups are now linked by the statewide Wisconsin Angel Network created by the Wisconsin Technology Council. Deal-sharing allows groups that would not normally see bioscience companies in their parts of the state to participate in start-ups that originate in Madison or Milwaukee. A report commissioned by the state found that the number of angel deals doubled in the past year, and the amount invested grew by 65 percent.
Venture capital
Also under Act 255, certified formal venture funds that invest in the same class of business ventures are eligible for analogous 25 percent credits on investments up to $2 million. Previously, Wisconsins CAPCO program allocated $50 million in tax credits to three firms that agreed to target investments in companies with incomes of less than $2 million and fewer than 100 employees. These firms are as follows: Advantage Capital Wisconsin Partners I Banc One Stonehenge Capital Fund Wisconsin Wilshire Investors. Four formal venture-capital firms either headquartered or otherwise active in Wisconsin have a total of $135 million in capital committed by the State of Wisconsin Investment Board under its Wisconsin Private Equity Program: Mason Wells Biomedical Fund Venture Investors Early Stage III Baird Venture Partners I Frazier Technology Ventures II. In late 2005, the board approved in principle an additional $50 million in investments targeted at Mason Wells II and Venture Investors IV.
WISCONSIN 3
The Wisconsin Technology Council sponsors the Wisconsin Early Stage Symposium (formerly the Life Sciences and Venture Conference).

Incubators
The MGE Innovation Center at University Research Park in Madison, which totals 117,000 square feet of both wet and dry space, opened 20 new suites of 700 to 1,400 square feet each in space vacated by an incubator graduate. The Technology Innovation Center at Milwaukee County Research Park, which totals 137,000 square feet of mixed space, likewise added 6,600 square feet of wet-lab space upon graduation of an earlier tenant. Several bioscience companies have taken office space in the Technology, Education, and Commerce Center at Madison Area Technical College.
Five million dollars in corporate income-tax credits have been granted to each of eight Technology Zones created around the state.

University Research Park at UW-Madison announced plans for a second park to be developed on 270 acres on Madisons Far West Side. The existing park, 3 miles from the university campus, now houses 110 companies in 34 buildings totaling 1.5 million square feet, set on 255 acres. Bioscience companies also continued to settle at private development such as Fitchburg Technology Campus south of Madison and Old Saulk Trails west of the city. Milwaukee County Research Park in Wauwatosa, which totals 1.3 million square feet in 10 buildings on 175 acres, added a $90 million, 500,000-square-foot, single-tenant building housing the global headquarters of GE Healthcares Information technologies unit.

UW-Madison OCR manages a mentoring program to provide counseling and assistance to CEOs of university spin-offs and also sponsors a CEO breakfast series aimed at the same target.

Through the university-wide Technology Enterprise Cooperative, three UW-Madison colleges (business, engineering, and agriculture) collaborate on the G. Steven Burrill Technology Business Plan Competition, endowed by the bioscience venture capitalist. Students compete for prizes up to $10,000. A separate Governors Business Plan Contest is run by the Wisconsin Technology Council and has also been heavily focused on the biosciences.
WISCONSIN 4
Pending Proposals
In his 2006 State of the State Address, Governor Jim Doyle proposed a $5 million fund to recruit stemcell companies to Wisconsin and a $2 million increase for the Biomedical Technology Alliance in Southeast Wisconsin. The administrations most recent Grow Wisconsin document identified these additional legislative priorities: A pilot early-stage investment fund (investments up to $4 million) to be run directly by the Wisconsin Housing and Economic Development Agency Changes to Chapter 946 of Wisconsin Statutes to clarify the ability of UW faculty to become involved in spin-off formation Technical changes to the Angel Tax Credits created under Act 255 An Electronic Medical Records Initiative for state health systems with the dual purpose of supporting Wisconsin-based start-ups.
Contacts
Thomas Still President, Wisconsin Technology Council 615 East Washington Avenue, P.O. Box 71 Madison, WI 53701-0071 (608) 442-7557 tstill@wisconsintechnologycouncil.com
The mission of the Wisconsin Biotechnology and Medical Device Association (WBMA) is to foster Wisconsin's environment for public and private research and product commercialization in biotechnology, pharmaceuticals, and medical devices to benefit society through political advocacy, public promotion, organizational networking, and support of member needs. James Leonhart Executive Vice President, Wisconsin Biotechnology and Medical Device Association 2 East Mifflin Street, Suite 600 Madison, WI 53703 (608) 252-9393 wisbiomed@dewittross.com
WISCONSIN
Wisconsin 68 5.7% 2,224 6.9% 2.1% 0.99 $44,371 4.97 11,061 62 10.7% 2,715 4.3% 0.9% 0.41 $53,328 4.70 12,766 306 5.5% 12,873 0.6% 3.1% 1.46 $62,409 3.86 49,712 218 24.5% 4,668 21.6% 1.1% 0.53 $54,600 2.25 10,500 150,314 6.5% 2,335,273 -0.1% 2.1% n.a. $34,387
WISCONSIN
Bioscience Occupations in the Wisconsin Workforce, 2004
8,000 7,000 Number of Workers in Occupation 6,000 5,000 4,000 3,410 3,000 1,320 2,000 690 1,000 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians
7,020
Bioscience-Related Degrees from Wisconsin Institutions, AY 2004
Biological Sciences

200 400 600 800 1,000 1,200 1,400 1,600
Number of Degrees
WISCONSIN
Total Bioscience R&D Expenditures at Academic Institutions in Wisconsin, FY 2003
Medical Sciences
$321,261
Biological Sciences
$193,719
$45,925
Other Life Sciences
$7,567
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Wisconsin University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $881,214 $573,116 65.0% $104.73 50.3% $391,933 $71.62 54.8% 3,025 12,440
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 13 15
17
11 17
WISCONSIN

State technology strategy is steered by the Wyoming Business Council, the board that operates state economic-development programs and sponsors several initiatives at the University of Wyoming. Since the last BIO report, Wyoming created a $550 million Higher Education Endowment (Chapter 190 of 2005 Session Laws, Senate File 122), to be financed by federal mineral royalties. Of the total, about $70 million will be available for Eminent-Scholar endowments in multiple fields including the biosciences.

Income from the Higher Education Endowment Fund will be used to endow faculty chairs for recruitment or retention of Eminent Scholars and teachers at both the university and community colleges (one-third of the total). The selection of eligible academic disciplines will rely on a survey of the states needs currently under way, but the law specifies several examples including the health sciences.
Research programs
In 2005, the University of Wyoming received its largest-ever single research grant, a 5-year, $13 million award to the College of Health Sciences from the Institutional Development Award (IDeA) program at the National Institutes of Health. The program is aimed at building interdisciplinary research capacity in womens health and reproductive biology; integrative physiology, including neuroscience; and rural public health outcomes. The universitys $7.2 million EPSCoR award from the National Science Foundation (NSF) will partly fund an ecological geneticist and a Nucleic Acid Exploration Core Facility.

The University of Wyoming is a founding member of the Wyoming Technology Organization, a multisector technology council.
WYOMING

The Business Council supports the Research Products Center (RPC), the universitys technology transfer and commercialization office. The RPC also provides technical support to non-university entrepreneurs. In collaboration with the University of Wyoming, the Business Council operates an SBIR Phase 0 program that offers grants of $5,000 to companies making Phase I proposals. The Business Council sponsors Venture West, a nonprofit entrepreneurs forum open to multiple sectors including the biosciences.

The IDeA award includes funds for outreach from the University of Wyoming to the states seven community colleges to promote careers in the biomedical sciences. The award also supports remote access to the universitys microscopy core facility. The NSF EPSCoR award will assist in development of K-12 laboratory curricula, aimed at increasing the number of science students matriculating at the university.
Contact
Mr. Tucker Fagan CEO, Wyoming Business Council 214 West 15th Street Cheyenne, WY 82002 (307) 777-2800 tfagan1@state.wy.us
WYOMING
Wyoming 6 -4.1% 406 -14.2% 0.4% 2.25 $65,954 7.37 2,991 7 -12.5% 74 37.0% 0.0% 0.14 $41,521 2.44 180 21 -14.5% 62 -51.6% 0.0% 0.09 $23,326 2.12 131 38 -6.8% 375 30.7% 0.1% 0.53 $63,432 1.87 703 20,933 5.0% 187,735 3.6% 0.2% n.a. $30,660
WYOMING
Bioscience Occupations in the Wyoming Workforce, 2004
2,000 1,800 Number of Workers in Occupation 1,600 1,400 1,200 1,000 800 600 400 50 200 Agricultural, Food, Biological Scientists and Nutrition and Technicians Scientists and Technicians Biomedical and Biochemical Scientists and Engineers Medical and Clinical Laboratory Technicians 30 680 1,880
Bioscience-Related Degrees from Wyoming Institutions, AY 2004
Biological Sciences
Number of Degrees
WYOMING
Total Bioscience R&D Expenditures at Academic Institutions in Wyoming, FY 2003
Medical Sciences
$4,477
Biological Sciences
$10,757
$12,518
Other Life Sciences
$1,023
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Wyoming University R&D Expenditures, FY 2003 Total ($ thousands) Life Science R&D ($ thousands) Percent of Total R&D Life Sciences Per Capita Change in Life Sciences FY 19992003 NIH Support to Institutions, FY 2004 Total ($ thousands) Per Capita Expenditures Change in Expenditures FY 20002004 Higher Education Degrees in Bioscience Fields, AY 2004 Bioscience Occupations in the Workforce, 2004 $60,054 $27,752 46.2% $55.37 29.1% $8,126 $16.21 71.1% 283 770
United States $40,104,621 $24,062,088 60.0% $82.74 52.7% $22,556,459 $77.56 53.2% 111,329 616,140
Rank 51 49
52
51 50
WYOMING
Employment and Establishments

The economic analysis in this report examines national, state, and metropolitan area data and corresponding trends in the biosciences from 2001 to 2004. For employment analysis, Battelle has selected the Bureau of Labor Statistics (BLSs) Quarterly Census of Employment and Wages (QCEW) data set. The QCEW data (also known as the ES-202 program data) provide the most current, detailed 1 industry employment, establishment, and wage figures available at both a national and subnational level. Battelle receives an enhanced version of these state and county data from a private vendor, the Minnesota IMPLAN Group, Inc. The QCEW program is a cooperative program involving BLS and the State Employment Security Agencies (SESAs). The QCEW program produces a comprehensive tabulation of employment and wage information for workers covered by state unemployment insurance (UI) laws and federal workers covered by the Unemployment Compensation for Federal Employees (UCFE) program. Publicly available files include data on the number of establishments, monthly employment, and quarterly wages, by NAICS (North American Industry Classification System) industry, by county, and by ownership sector, for the entire United States. These data are aggregated to annual levels, to higher industry levels (NAICS industry groups, sectors, and supersectors), and to higher geographic levels (national, state, and 2 metropolitan statistical area [MSA]). Since 2001, the QCEW has been producing and publishing data according to the NAICS. Federal statistical agencies have a mandate to publish industry data according to this improved classification system. Compared with the prior classification systemthe 1987 Standard Industrial Classification (SIC) system, NAICS better incorporates new and emerging industries. Employment, establishment, and wage estimates produced by the QCEW program for 2001 to present are not comparable with SIC-based industry estimates from prior years. This limits the ability to construct a longer time series for data analysis; however, 4 years of NAICS-based data are available for analysis.
In general, QCEW monthly employment data represent the number of covered workers who worked during, or received pay for, the pay period that included the 12th day of the month. Virtually all workers are reported in the state in which their jobs are located. Covered private-industry employment includes most corporate officials, executives, supervisory personnel, professionals, clerical workers, wage earners, piece workers, and part-time workers. It excludes proprietors, the unincorporated self-employed, unpaid family members, and certain farm and domestic workers. An establishment is an economic unit such as a farm, mine, factory, or store that produces goods or provides services. It is typically at a single physical location and engaged in one, or predominantly one, type of economic activity for which a single industrial classification may be applied. Total wages: Covered employers in most states report total compensation paid during the calendar quarter, regardless of when the services were performed. A few state laws, however, specify that wages be reported for or be based on the period during which services are performed, rather than for the period during which compensation is paid. Under most state laws or regulations, wages include bonuses, stock options, severance pay, the cash value of meals and lodging, tips and other gratuities, andin some statesemployer contributions to certain deferred compensation plans such as 401(k) plans. Major exclusions from UI coverage, and thus from the QCEW data, include self-employed workers (both farmers and nonag), some wage and salary agricultural workers, unpaid family workers, railroad workers, and some state and local government workers.
APPENDIX
A-1
Twenty-seven NAICS industries at the most detailed (6-digit) level were selected for this analysis and together make up the biosciences and its major subsectors (Figure A-1). These detailed industries were aggregated up to four major subsectors of the bioscience industry. Two of the detailed NAICS industries, Testing Laboratories (NAICS 541380) and Physical, Engineering, and Biological Research (NAICS 541710), were adjusted in this analysis to include only the share of these industries directly involved in biological or other life science activities. To isolate these relevant life science components, Battelle used information and data from the U.S. Census Bureaus Economic Census.
Figure A-1. The Bioscience Subsector Industries NAICS Code NAICS Description Agricultural Feedstock & Chemicals 311221 Wet corn milling 311222 Soybean processing 311223 Other oilseed processing 325193 Ethyl alcohol manufacturing 325199 All other basic organic chemical manufacturing 325221 Cellulosic organic fiber manufacturing 325311 Nitrogenous fertilizer manufacturing 325312 Phosphatic fertilizer manufacturing 325314 Fertilizer (mixing only) manufacturing 325320 Pesticide and other agricultural chemical mfg. Drugs & Pharmaceuticals 325411 Medicinal and botanical manufacturing 325412 Pharmaceutical preparation manufacturing 325413 In-vitro diagnostic substance manufacturing 325414 Other biological product manufacturing Medical Devices & Equipment 334510 Electromedical apparatus manufacturing 334516 Analytical laboratory instrument manufacturing 334517 Irradiation apparatus manufacturing 339111 Laboratory apparatus and furniture manufacturing 339112 Surgical and medical instrument manufacturing 339113 Surgical appliance and supplies manufacturing 339114 Dental equipment and supplies manufacturing 339115 Ophthalmic goods manufacturing 339116 Dental laboratories Research, Testing, & Medical Laboratories 541380* Testing laboratories 541710* Physical, engineering, and biological research 621511 Medical laboratories 621512 Diagnostic imaging centers
*Includes only the portion of these industries engaged in relevant biological or other life sciences activities.
National, state, and MSA data were tabulated and presented in both analytical and state profile tables. Data for Puerto Rico and the District of Columbia are included in this report at both the state and national level. U.S. employment, establishment, and wage totals in this report reflect the sum of all state data and include both Puerto Rico and DC. All state and DC data are from the Minnesota IMPLAN Group; data for Puerto Rico are directly from BLS. Metropolitan area data do not include estimates for Puerto Rico as they are generally not disclosed at the 6-digit NAICS level of detail by BLS.
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Data for 361 U.S. MSAs with bioscience employment activity were tabulated for this report. To best analyze location quotients (LQs) for MSAs, the areas were sorted by their total private-sector employment base and designated as either large, medium, or small metro areas. A large MSA has total employment at or above 250,000. A medium MSA has employment greater than or equal to 75,000, but less than 250,000. A small MSA has employment less than 75,000. Within each size classification, the metropolitan areas are then ranked by their LQ. Employment growth rates for MSAs were not included in this analysis because the relatively small bioscience employment bases in most metropolitan areas tend to result in large percentage changes in either direction that appear to overstate gains or losses among smaller MSAs and understate gains or losses among larger MSAs. Employment multipliers from the Bureau of Economic Analysis (BEA) were used to estimate the employment impact on all other industries of adding bioscience jobs at both the state and national levels. BEAs Regional Input-Output Modeling System (RIMS II) is based on an Input-Output (I-O) table in an accounting framework. I-O tables are calculated for each industry and show the distribution of inputs purchased and outputs sold. These tables are derived from two major data sources: BEAs national I-O table for almost 500 U.S. industries and BEAs regional economic accounts used to adjust the data for a regions industrial structure and trading patterns. It is important to note that, like all impact models, RIMS provides an approximate order-of-magnitude estimate of impacts, and the multipliers are best used to estimate impacts of small changes on a regional economy. Multipliers and the resulting employment impacts are shown in each state profile table, for each major bioscience subsector. BEA does not provide employment multipliers for Puerto Rico. In the time series analysis of earnings estimates in this report, the Consumer Price Index for All Urban Consumers (CPI-U) was used to adjust for inflation. The Consumer Price Index is a measure of the average change in prices over time of goods and services purchased by households.
Additional Bioscience Data

For each of the state profiles, additional bioscience-related metrics provide further insights into the current structure and capacity of the states bioscience infrastructure. These metrics are briefly described in the following paragraphs.
University bioscience R&D expenditures

Based upon data from the National Science Foundation (NSF) Survey of R&D Expenditures at Universities and Colleges, state totals (summation of all states responding institutions) are calculated for FY 2003 (most current year available). Data are provided for total R&D expenditures (including per capita measures) as well as in chart form for the bioscience fields (including Medical Sciences, Biological Sciences, Agricultural Sciences, and Other Life Sciences).
National Institutes of Health (NIH) support to institutions

Using data from the NIH Awards to Institutions and Higher Education (NIH Office of Extramural Researchhttp://grants1.nih.gov/grants/award/awardtr.htm), total and per capita measures are calculated for FY 2004 (most current year available).
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Bioscience occupations
The U.S. Department of Labor BLSs Occupational Employment Statistics (OES) (http://www.bls.gov/oes/ current/oessrcst.htm) program produces employment and wage estimates for more than 800 occupations. 3 From these specific occupations, OES data from November 2004 were used to construct and calculate occupational employment totals for four bioscience-related occupational groupings: Agricultural, Food, and Nutrition Scientists and Technicians; Biological Scientists and Technicians; Biomedical and Biochemical Scientists and Engineers; and Medical and Clinical Laboratory Technicians. The specific occupational categories (and BLS Standard Occupational Classification [SOC] Code) included in each of these groups is shown in Table A-1.
Table A-1. Bioscience-Related Occupations and Groups and SOC Codes Bioscience Occupations and Groups Agricultural, Food and Nutrition Scientists and Technicians Agricultural and Food Scientists Soil and Plant Scientists Animal Scientists Agricultural and Food Science Technicians Biological Scientists and Technicians Microbiologists Epidemiologists Medical Scientists, Except Epidemiologists Biological Scientists, all other Biological Technicians Biomedical and Biochemical Scientists and Engineers Biomedical Engineers Biochemists and Biophysicists Medical and Clinical Laboratory Technicians Medical and Clinical Laboratory Technologists Medical and Clinical Laboratory Technicians Dental Laboratory Technicians Medical Appliance Technicians Ophthalmic Laboratory Technicians SOC Code 19-1010 19-1013 19-1011 19-4011 19-1022 19-1041 19-1042 19-1029 19-4021 17-2031 19-1021 29-2011 29-2012 51-9081 51-9082 51-9083
Bioscience-related degrees from academic institutions

Data from the U.S. Department of Educations National Center for Educational Statistics were used to construct and calculate five bioscience-related degree categories, each consisting of a number of individual Classification of Instructional Program codes (CIP codes). These categories include the following: Agricultural, Food, and Nutrition Science; Biological Science; Biomedical Sciences and Engineering; Medical and Veterinary Sciences; and Other Life Science Clinical/Technical Fields. Charts are provided that examine the numbers of associates, bachelors, masters, and doctorate (Ph.D.) degrees by each degree category. Given the emphasis on bioscience-related research and development activities, educational programs primarily designed to develop clinical practitioners (e.g., doctors, dentists, nurses)
The OES survey covers all full-time and part-time wage and salary workers in nonfarm industries. Surveys collect data for the payroll period including the 12th day of May or November, depending upon the industry surveyed. The survey does not cover the self-employed, owners and partners in unincorporated firms, household workers, or unpaid family workers. APPENDIX A-4
are not included in these categories. However, some instructional areas that provide degrees used in both clinical and research settings are included.
Comparability with the 2004 BIO Report

Employment, establishment, and wage data for the bioscience industry sector and its major subsectors in this report are not directly comparable with the same data tabulated and reported in the 2004 report, Laboratories of Innovation: State Bioscience Initiatives 2004. While the data concepts and methodology are very similar, some industry definitions have been changed to better define the U.S. bioscience industry. Battelle has conducted numerous regional bioscience studies and has applied its expertise to refine the definition of this dynamic, diverse set of industry groups. This and other comparability issues are discussed below. Two detailed industries were removed from the 2004 definition of the agricultural feedstock and chemicals subsector. The subsector no longer includes NAICS 325222, Noncellulosic Organic Fiber Manufacturing, and NAICS 424910, Farm Supplies Merchant Wholesalers. It was determined that these industries have a relatively minor connection with the biosciences; furthermore, the ability to distinguish relevant shares of bioscience activities within these two industries is limited. Two detailed industries were added to the 2004 definition of the medical devices and equipment subsector. The subsector now includes NAICS 339115, Ophthalmic Goods Manufacturing, and NAICS 339116, Dental Laboratories. With the increasing development and convergence of biomaterials, implantation technologies, and instrumentation, including these industries provides a more comprehensive definition of the medical devices and equipment subsector. The 2004 definition of the research and testing subsector was modified to include medical laboratories (NAICS 621511) and diagnostic imaging centers (NAICS 621512). The subsector was renamed for this report research, testing, and medical laboratories. Not only do medical laboratories and imaging centers incorporate key biotechnologies, but the lines between research, diagnosis, and clinical care continue to blur. No changes were made to the definition of the drugs and pharmaceuticals subsector. This report includes data for Puerto Rico. As a result, U.S. employment, establishment, and wage totals presented in this report include Puerto Rico. In addition, all calculations of LQs and employment shares use this adjusted U.S. total in the denominator. Data for Puerto Rico were not included in the 2004 BIO report. Employment data from the QCEW program are subject to revision. Some data from the 2004 report were ultimately revised and therefore are not comparable with the same data series reported here. Definitional changes were made to the occupational data contained in this report to account for additional occupations relevant to the changes made in industry definitions. Additionally, Chemical Engineering occupations were removed from the definition used in the 2004 report based on an analysis of their overall employment within the key bioscience sectors at the national level. The definitions used in this report for bioscience degrees have been modified to account for the changing structure of the CIP codes by the U.S. Department of Education. Due to these changes, all degree program
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areas were reevaluated for bioscience relevancy and to reflect the changes made in the overall bioscience industry and subsector definitions.
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Battelle 2006

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BI SCI O ENCE 06

G o n teN t n Bo c n eS co: rwig h ai isi c e tr os e S aeBo c n eIiaie 2 0 tt isi c nt t s 0 6 e i v

Appendix: Data and Methodology............................................................................................................ A-1

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Table of Contents (continued)

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Key Findings: The Nations Bioscience Sector

Research, Testing, & Medical Laboratories

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Table ES-2. Average Annual Wages by Major U.S. Industry, 2004

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

AGRICULTURAL FEEDSTOCK AND CHEMICALS

Agricultural Feedstock & Chemicals

Agricultural Feedstock & Chemicals

Agricultural Feedstock & Chemicals

*States are listed in descending order by subsector employment levels.

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

DRUGS AND PHARMACEUTICALS

Drugs & Pharmaceuticals

Drugs & Pharmaceuticals

Drugs & Pharmaceuticals

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

MEDICAL DEVICES AND EQUIPMENT

Medical Devices & Equipment

Medical Devices & Equipment

Medical Devices & Equipment

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

RESEARCH, TESTING, AND MEDICAL LABORATORIES

Research, Testing, & Medical Laboratories

Research, Testing, & Medical Laboratories

Research, Testing, & Medical Laboratories

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Key Findings: State and Regional Bioscience Initiatives 2

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

State tax policies

State use of tobacco settlement funds

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Bioscience Sector and Subsectors

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Figure 2. U.S. Employment Distribution among the Bioscience Subsectors

Research, Testing, & Medical Laboratories

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Figure 3. U.S. Bioscience Employment by Major Subsector, 2001 and 2004

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006

2001 Avg. Wages (in '04 dollars)

2004 Avg. Wages

Growing the Nations Bioscience Sector: State Bioscience Initiatives 2006