Region Focus

Milken Institute Study reinforces PA's strength

The Milken Institute Study released at BIO 2009 reinforces Pennsylvania's strength and importance of the regional Life Science industry to the economy. Supriya K, Associate Director, Pennsylvania Trade & Investment Office- India give some more details of the specific programmes

The study, 'The Greater Philadelphia Life Sciences Cluster 2009: An Economic and Comparative Assessment,' was released by Milken Institute at the recently concluded Biotechnology Industry Organization (BIO) International Convention at Atlanta.

This comparative study (available on www.milkeninstitute.org) ranks the Greater Philadelphia region second in its Overall Composite Index (after only Boston and ahead of Greater San Francisco) and first in its Current Impact Composite Index.

The study's findings came as no surprise, even the Business Facilities Magazine had ranked Pennsylvania number 1 in New Biotechnology Study in 2008. Pennsylvania is a global leader in biosciences.

Essential Growth Elements

The life sciences industry is widely considered to be one of the top economic drivers of the future. The 2004 Milken Institute report, "Biopharmaceutical Industry Contributions to State and U.S. Economies," concludes that not every state or region that is trying to grow a thriving life sciences cluster will succeed, but that Pennsylvania has the essential elements. These specific elements for growth include:

• First-rate research facilities
• Biopharmaceutical firms
• Highly skilled workers
• Long-term capital
• Catalyst organisations

Access to Capital

Investment is on the rise because of innovative programmes in Pennsylvania that are helping to draw out the best research and jumpstart young companies. Pennsylvania's programmes to address the ongoing needs of life science companies include the Commonwealth Universal Research Enhancement, or CURE, grant program; the Life Sciences Greenhouse Initiative; and venture capital investments.

Pennsylvania set aside $150 million in 2007-08 from its tobacco settlement allocation to support bioscience research in Commonwealth Universal Research Enhancement (CURE). According to a Life Sciences report released by the Department of Community and Economic Development, CURE has invested more than $228 million of its tobacco settlement funds directly in health-related research projects.

Also, more than $500 million in venture capital investment went to biotech, medical device and equipment companies in 2007. These venture capital investments have placed Pennsylvania number three in employment by VC-backed companies, according to The National Venture Capital Association.

Ben Franklin Technology Partners (BFTP)

For more than two decades Ben Franklin Technology Partners (BFTP), an international model for innovation in technology-based economic development, has worked to diversify and strengthen Pennsylvania's economy by focusing on entrepreneurial development and technological innovation.

BFTP delivers crucial resources for technology-driven enterprises in sectors such as information technology, life sciences, communications, advanced manufacturing, advanced materials and environmental technology by:

• Investing risk capital in emerging technology-based enterprises and established businesses;
• Providing hands-on technical and business expertise to spur enterprise growth and accelerate commercialisation activities; and,
• Delivering customised solutions that draw on an extensive network of public and private resources, including universities, federal laboratories and research institutions.

Ben Franklin Technology Partners has provided funding to thousands of companies throughout the Commonwealth in the last 20 years.

Pennsylvania Life Sciences Greenhouse Initiative:

The Life Sciences Greenhouse Initiative was created as part of a larger plan to ensure continued growth in the biosciences in Pennsylvania. The one-time investment of $100 million from the Tobacco Settlement into this initiative represents one of the largest technology-based economic development investments in our state's history.

Since its inception, the Greenhouse Initiative has established a national reputation-it is cited by the Battelle Technology Partnership as one of only two university/industry funding programs focused solely on the life sciences in the US, and it has become a national model for state funding of early stage risk capital in the life sciences.

Pennsylvania's Life Sciences Greenhouse Initiative was designed to be a flexible mechanism for the commercialisation of biotechnology and other biosciences business opportunities by accelerating technology transfer, enhancing collaboration and attracting new business.

There are three regional Greenhouses to respond to unique strengths and opportunities in each region of Pennsylvania: Life Sciences Greenhouse of Central PA, BioAdvance, the Biotechnology Greenhouse of Southeastern PA, Pittsburgh Life Sciences Greenhouse

Keystone Innovation Zone (KIZ)

The Keystone Innovation Zone (KIZ) programme creates "knowledge neighbourhoods" close to Pennsylvania Colleges, universities and training institutions to keep new graduates and budding entrepreneurs in the area, and provide grant funds to community/university partnerships to generate job growth through technology transfer and entrepreneurship. By focusing talent and resources in clusters, KIZs transform these communities into technology incubators.

Economic Stimulus Package:

• Over $2.8 billion dollars in loans, grants, and guarantees.
• Programmes to leverage funds generating at least $5 billion in private investment in economic and community development projects
• Investments in rural, urban, and suburban sites
• New capital resources for small cities and communities
• Tools to make Pennsylvania a leader in real estate and business development
• Incentives and services to attract high-growth firms
• Resources that allow our traditional industries, especially manufacturing, to access new technology to enhance their productivity

Pennsylvania's Strengths:

Overall, Pennsylvania has also taken a very sophisticated approach to economic development. Pennsylvania is also the nation's fastest growing exporter, and is home to nearly 6,000 foreign-owned businesses, employing nearly 250,000 people. Foreign companies choose Pennsylvania as their US presence because of it's superb location for easy access to major markets, highly skilled workforce, robust business environment and comprehensive business development programmes.

The Office of International Business Development's Center for Direct Investment, Governor's Action Team and Authorised International Representatives for Pennsylvania all work together to provide technical assistance to help companies achieve their goals. n

(To learn more about Pennsylvania's Life Science industry and the business assistance programs you may visit their website www.newPA.com and contact Supriya K at paindiaoffice@airtelmail.in.)