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The North Carolina Biotechnology Development Model: Why does it work? Part II

BT Catalyst, Jan, 2002 by Dr. Charles E. Hamner

The North Carolina Bioscience Industry Organization recently held its 7th Annual Meeting, with Dr. Charles E. Hamner serving as the keynote speaker. He was asked to talk about the development of the North Carolina Biotechnology Center model and the state's success in cultivating a thriving biotechnology industry. His address is being presented in BT Catalyst in two parts. Part I was printed in the December 2001 issue and can be viewed online at www.ncbiotech.org/news/btcat/dec01-6.cfm.

PART II

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What can North Carolina's bioscience industry expect in the future and who will be our competition? The industry started its growth phase about five years ago, and this growth may well last 50 years because of our genomics and bioinformatics activities that are just getting under way. The potential is great for all involved industries of health care, agriculture, environment and specialty products.

The great majority of future products have not been conceived yet. In health care, we will see many new products in cancer, metabolic diseases, stroke, infectious-disease vaccines and so on. In agriculture, we already see improved row crops and vegetables that are disease- and insect-resistant and easier to cultivate. Value-added crops in the near future will provide pharmaceutical-grade proteins, vaccines and special nutrients. There will also be new forest products that have less lignin for paper production and trees that grow two to three times faster and are uniform in size and structure for better lumber. The nursery industry will have many new ornamental plants, and medicinal or herbal plants will be available. Transgenic animals will provide pharmaceutical-grade proteins in milk and possibly non-rejectable tissues and organs for replacement therapy.

This huge potential is generating a number of serious competitors. There are about 200 programs around the world trying to emulate North Carolina's program, and 35 of those are in the United States. North Carolina is on everybody's list as one of the top five places to locate or start a bioscience company.

North Carolina has invested an average of $7 million per year for biotechnology programs beyond support to the university system. In 2002 the state plans to appropriate $5 million. These appropriations were reasonable until about three years ago when we shifted into a yearly 15 percent to 20 percent growth rate made with 15 to 20-plus new companies being formed throughout the state or considering the state as a place to relocate. At this time, the Biotechnology Center is working with the state Department of Commerce to help 36 companies expand within the state or move to the state. The recent appropriation of $5 million is only half of what is needed to meet service demands, maintain momentum and compete with other states.

Nine other state biotechnology programs are very active. Wisconsin has great research capabilities and tremendous experience with technology development through the Wisconsin Alumni Research Foundation. It plans to spend $40 million per year for the next five years on bioscience research and development.

Pennsylvania has the successful Franklin technology program. Pennsylvania, New Jersey and Maryland are emphasizing bioscience development and each plan to spend over $30 million per year on these programs.

In addition, Georgia and Virginia are gearing up. Each has appropriated over $15 million per year for bioscience research and development. Other states such as Texas, Michigan and Washington are also talking about spending money for biotechnology development.

In conclusion, the good news is that biotechnology is going to continue to grow at a good rate for a long time to come. The Amex Biotech Index has outperformed the Dow Jones by 90 percent and the Nasdaq by 120 percent over the past 18 months. North Carolina is well positioned in the top four or five states and is on everyone's list for consideration in relocation.

North Carolina's major industries of agriculture, pharmaceuticals and environmental protection will be enhanced by biotechnology. Biotechnology will be a major player in improving the rural economy through value-added crops and bioprocess manufacturing plants.

Many new jobs will be created. The genomics and bioinformatics activities will cause computing and telecommunications to merge with the biopharmaceutical and agricultural/chemical industries. This will be a powerful union and will result in hundreds of new companies and thousands of new products over the coming 25 to 50 years.

Technology Industry

The North Carolina Biotechnology Development Model: Why does it work? Part II

BT Catalyst, Jan, 2002 by Dr. Charles E. Hamner

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