Smart industrial recruitment in the knowledge economy: North Carolina must be strategic, proactive and coordinated to attract, retain, and expand biotechnology companies

BT Catalyst, Nov-Dec, 2004 by Leslie M. Alexandre, James T. Fain, III

A SIGNIFICANT THEME OF THIS YEAR'S Emerging Issues Forum on global challenges for North Carolina's economy was the need for smart industrial recruitment of knowledge-based companies. Success in attracting, retaining and expanding companies driven by scientific and technical know-how requires economic developers who understand the underlying science and business models of the companies they want to attract.

Biotechnology companies need highly educated workers, access to university science and technical expertise, and specialized infrastructure to move their technically demanding, highly regulated products from the mind to the marketplace. Certainly, traditional infrastructure such as good sites, roads, water, sewer and power is also a critical factor in a company's relocation or expansion decision. However, the scientific and knowledge-based needs of biotechnology companies are so critical that they must be credibly addressed first.

North Carolina has all of the assets required for biotechnology companies to succeed, but to maximize our opportunities to attract these companies we must use both traditional and innovative recruitment methods, especially given the intense global competition for them. Our recruiting experience underscores the importance of a proactive, relationship-building effort to give us the best chance to be on a company's short list. And we know the best way to make a sale is to better understand our customers' business than do our competitors.

Given that, we are implementing a new, proactive approach that gives North Carolina a head-start, one that identifies promising biotechnology companies, builds relationships with their senior executives, and demonstrates North Carolina's advantages long before the companies are ready to relocate or expand. If we do our homework, North Carolina will be well positioned to be the companies' No. 1 choice.

Knowledge-driven recruitment is consistent with the state's new strategic plan for biotechnology development and with two high priorities of the business group N.C. Citizens for Business and Industry (NCCBI): economic development and more efficient state government. And now is an opportune time to implement refined recruitment methods.

Biotechnology is transitioning from an enterprise rooted in ideas and promise to one of products, jobs and revenue. Biomanufacturing--the making of recombinant drugs, vaccines, enzymes, amino acids, vitamins and other biologicals--is particularly lucrative because it is growing rapidly, is creating thousands of clean, safe, high-paying jobs, and is already well established in North Carolina. Recent investments in the Biomanufacturing and Pharmaceutical Training Consortium by Golden LEAF, the state and industry have given North Carolina a lead over other states in preparing a highly trained work force, a requirement for pharmaceutical and biomanufacturing companies.

North Carolina is fortunate to have many organizations capable of adopting this strategic approach to industrial recruitment, including the Department of Commerce, the Biotechnology Center, our universities and community colleges, seven regional partnerships, dozens of local chambers of commerce, several research parks, and many companies whose own success is tightly intertwined with the growth of the life sciences industry in our state. The recruitment efforts of these organizations have already helped bring new biotechnology companies to the state and encouraged those already here to expand. We can all be proud of our respective roles in having helped North Carolina rise to No. 3 nationally in biotechnology, according to Ernst & Young's latest industry survey.

The Commerce Department and the Biotechnology Center have always worked together in company recruitment, but in recent months we have been thinking of ways to better leverage each other's strengths to jointly manage client relationships. With its knowledge of the science and business of biotechnology and its single-minded focus on this industry's development, the Biotechnology Center is perfectly suited to do the front-end work of biopharma industrial recruitment. The Center can identify the most promising companies based on their size, technology, product pipeline, stage of development, location, and fit with North Carolina's resources. It can introduce them to North Carolina's many biotechnology resources: for example, the community colleges for work force training, the universities for scientific collaborations, the investment community for financing, and so on.

As a company recruitment progresses, the Commerce Department will take the lead in managing the relationship. With its knowledge of state permits, tax policy, incentives and other state issues, Commerce can close the deal in tandem with local economic development partners.

Rather than having multiple points of contact, this coordinated approach will ensure a focused, informed, well thought out approach to calling on companies with a full understanding of the companies' science, technology, product pipeline and business direction. The cliche that you don't get a second chance to make a first impression is very apt. We must ensure that North Carolina's first impression on these companies is that we appreciate the unique challenges and needs of their industry; we understand their technology, products and business; and we have a capable and cohesive biotechnology community with the resources to help them thrive.