Texas Healthcare & Bioscience Institute
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1 Texas Healthcare & Bioscience Institute Tom Kowalski President October 27, 2004
2 What is THBI? The Texas Healthcare and Bioscience Institute (THBI) is a non-profit, public policy research organization, comprised of biotechnology, medical device, and pharmaceutical companies, academic, and private research institutions, as well as companies that provide goods and services to core organizations.
3 THBI Mission Statement The mission of the Texas Healthcare and Bioscience Institute is to research, develop, and advocate policies and actions that promote biomedical science, biotechnology, agriculture, and medical device innovation in Texas.
4 Council of State Biotech Associations
5 CSBA Mission The CSBA is a confederation of autonomous state-based, non-profit trade organizations. The common mission of the associations is to promote the growth and understanding of the biotechnology industry with their states.
6 BIO State Affiliates - BIO State Affiliates *40 affiliates in 37 states
7 Areas of Focus Legislative Representation - Federal: in support of BIO initiatives - State: lead on issues with BIO support Communications/Public Relations Education Initiatives Inter-association Relationships Professional Development
8 Laboratories of Innovation: State Bioscience Initiatives 2004
9 Approach Key involvement of SSTI state contacts and Bio affiliate organizations Participated in interviews Reviewed draft profiles Focused on bioscience-specific initiatives/programs or ones that are being used to assist bioscience firms Included only initiatives that have some state involvement Work in progress looking for input on how to improve the profiles in future years
10 Key Bioscience Trends Rapid growth projected during the next decade Includes a diversity of markets and cuts across manufacturing, services, and research activities Offers high paying, quality jobs across a range of occupations U.S. Average Annual Wages per Employee 2003* Drugs & Pharmaceuticals $73,731 Research & Testing $73,553 TOTAL BIOSCIENCES $62,555 Finance & Insurance $58,324 Information $55,588 Agricultural Feedstock & Chemicals $55,261 Medical Devices & Equipment $51,936 Manufacturing $44,277 Construction $38,097 Transportation & Warehousing $36,695 US Total Private Sector $35,925 Real Estate $33,238 * Wages are based on the second quarter of 2003 ES-202 data from the Department of Labor, Bureau of Labor Statistics. The data from BLS is considered preliminary according to the Department of Labor.
11 Bioscience Subsectors Agricultural Feedstock & Chemicals Drugs & Pharmaceuticals Medical Devices & Instruments Hospitals & Laboratories Research & Testing Agricultural processing Basic organic chemicals Ethyl alcohol mfg. Organic fiber mfg. Fertilizers Pesticides and other agricultural chemicals Medicinals & botanicals Pharmaceutical preparations Diagnostic substances Biological products Laboratory apparatus & furniture Surgical, medical, dental, & analytical instruments & equipment Irradiation apparatus & electromedical equipment Specialty hospitals University medical research hospitals Clinical research institutions Diagnostic medical laboratories Biological research Commercial medical research Noncommercial biological research Testing laboratories Product-Oriented Service-Oriented
12 Key Findings: State Initiatives Forty states are targeting the biosciences for development States are making significant investments to develop and grow the biosciences Scripps Florida Biotechnology Research Institute $510 m Arizona investing $440 m in bioscience facilities at the state s universities More states are strategically targeting specific niches within the biosciences Renewed interest and enthusiasm among higher education leaders to contribute to regional economies
13 State Trends in Biosciences Increased interest by states in encouraging private investments through tax credits Biosciences are changing traditional economic development approaches: Attracting research anchors Engaging philanthropic leadership A willingness to focus discretionary funding sources to biosciences (21 states used 2.3% of tobacco settlement dollars for health research in 2003) More states are comprehensively addressing the key elements of technology, talent, and capital But priorities, focus and resources dedicated to each area vary greatly
14 Key Best Practice Factors in Building a Bioscience-driven Economy Ingredients for building a critical mass in the biosciences in states and regions include: Engaged universities with active leadership (33) Building entrepreneurial cultures with intensive networking across sectors and with industry (39) Available capital covering all stages of business cycle (18) Discretionary federal or other R&D funding (33) Workforce and talent pool Access to specialized facilities and equipment (37) Supportive business, tax and regulatory policies (33) Patience and a long-term perspective
15 State Bioscience Strategies Address: Building bioscience R&D capacity Encouraging academic/industry interaction Moving technology into commercial products and services Making capital available Supporting entrepreneurs and firms Growing the bioscience workforce
16 Texas Healthcare & Bioscience Institute
17 Knowledge Creation The Life Science Innovation Federal R&D Industry Consortia And Partnerships Patents Universities and Research Institutions Regulatory Environment Licenses Lifecycle Proof of Concept Testing Conception Maturity Incubation/ Research Parks Formation Growth Venture Capital Clinical Trials Collaborations/ Partnerships Technology Transfer Regulatory Approval Business Planning Industry R&D M&A Activity Job Creation IPOs/Gazelles Product Pipeline Clusters and Networks Economics of Scale Value-add Labor Market/ Graduates Commercialization
18 Texas Healthcare and Bioscience Institute Policy Initiatives Texas Congressional Delegation and Texas Legislature Economic Development State of Texas Academic & Research Pharmaceutical Life Science Medical Device Institutions Companies Companies Companies National Alliance: AAMC National Alliance: PhRMA National Alliance: BIO National Alliances: HIMA, MDMA Research Hubs Houston, Dallas, Austin, San Antonio, The Woodlands, Fort Worth, Amarillo, College Station, Lubbock, Tyler Voluntary Health Associations Local Government Media Research Parks Regional Health Care Coalitions Economic Development Foundations Chambers of Commerce
19 Texas Life Science Industry The Texas Life Science Industry is an important and growing part of the new Texas economy: The Texas life science cluster surpasses state averages in job growth and wages. The cluster stimulates creation of at least two additional jobs in Texas for each job it adds directly. The number of life science patents and new intellectual properties are steadily increasing, paving the way for new products, companies, and jobs. Texas is a leader in research and treatment of cancer, heart disease, diabetes and age-related conditions.
20 Texas Life Science Industry(con t) Altogether, the industry employs nearly 56,000 people statewide. The largest segment is laboratory/research services (52% of employment), followed by medical devices (36%) and pharmaceuticals (12%). Medical devices is the fastest-growing segment, enjoying average annual job growth of 4.7 % since The average establishment size in pharmaceuticals is 87 people, compared with 75 for medical devices and 19 for laboratory/research services. The industry provides a wide range of occupational opportunities, with 42 % of jobs related to production and 24% related to science and engineering.
21 Governor s Council on Science and Biotechnology Development How do we best merge the research role of academia with the goals of entrepreneurship to create unprecedented engines of intellectual AND economic growth?
22 Governor s Council on Science and Biotechnology Development My vision is to create a seamless system of innovation from the laboratory to the marketplace, harnessing the brainpower of state and regional leaders to bring the inventions of our universities and scientists to he marketplace for the good of our people. - Governor Rick Perry
23 Key Findings Create a sustainable mechanism to lead the effort Fill the research-to-market gap Develop collaborative regional tactics Develop a statewide federal funding strategy Improve education and skills development for the life sciences Identify target of opportunity
24 Identify Targets of Opportunity Nanotechnology Vaccines Molecular Sciences Advanced materials and manufacturing Animal and plant modeling Wireless information technology/software applications
25 The Life Science Innovation Lifecycle Knowledge Creation Patents Licenses Proof of Concept Testing Incubation/ Research Parks Venture Capital Technology Transfer Clinical Trials Universities and Research Institutions Federal R&D Conception Formation Collaborations/ Partnerships Regulatory Approval Regulatory Environment Industry Consortia And Partnerships Maturity Growth Business Planning Industry R&D Job Creation M&A Activity IPOs/Gazelles Product Pipeline Clusters and Networks Economics of Scale Value-add Labor Market/ Graduates Commercialization
26 Texas Healthcare & Bioscience Institute Tom Kowalski President October 27, 2004
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