Bioscience summit proclaims Maryland as high-tech hotspot

Daily Record, The (Baltimore), Dec 14, 2007 by Karen Buckelew

Comptroller Peter Franchot fulfilled his promise Thursday to hold a summit on the life sciences in Maryland, marking an unusual foray into economic development for the official charged with collecting the state's taxes.

The seminar, which Franchot promised during his inauguration speech in January, was a virtual crash course in Maryland's bioscience industry, capped with the release of a report on Maryland's status as a center for bioscience activity.

"Maryland's bioscience sector is among the nation's largest, if not the largest, generating $29 billion in annual economic output, $11 billion in income and nearly $600 million in state government taxes," said the report by the Sage Policy Group Inc.

Such studies generally do not rank Maryland above more high- profile bioscience hotbeds such as California and the Research Triangle in North Carolina.

But, Franchot said yesterday, those reports undervalue some of Maryland's key assets, notably major federal agencies such as the Food and Drug Administration, the National Institutes of Health and various laboratories.

"Traditional rating systems have short-changed the state, because they focus on the private sector," said Franchot, referring to studies such as the highly regarded Ernst & Young Global Biotechnology Report, which gives weight to the number of large firms operating in a region.

Federal agencies and laboratories such as those at Fort Detrick and Aberdeen Proving Ground "give us a huge competitive advantage," Franchot said.

The comptroller said he hoped the conference and the new report would give the state a new confidence about its biotech industry.

"We need to brand ourselves as number one," he said.

More than 100 people, including bioscience executives, educators and federal regulators, spent the morning at the Columbia Sheraton for the invitation-only event.

Presenters included National Cancer Institute Director Dr. John E. Niederhuber, who spoke of the institute's plans to build a research park and incubator at its Frederick campus.

Northrop Grumman Vice President James Pitts also spoke, imploring the audience to examine key issues such as work force.

"We saw all these great facilities being built, all this need for jobs," Pitts said. "But where are all these people going to come from? It's all of our issue."

Del. Brian J. Feldman, a Montgomery County Democrat, echoed Pitts. Feldman sponsored legislation in 2005 creating a tax credit program to encourage investment in the state's biotech firms.

"We don't necessarily need a lot of brick and mortar," Feldman said. "What we need is venture capital. That is where, as a public policy measure, we need to be taking far more steps."

Feldman praised Franchot's venture into economic development. The comptroller's office spent about $10,000 to fund the economic impact report and about $2,000 on the summit.

"Anybody in the state government who's willing to raise the profile of [the question], 'How do we take Maryland to the next level in biotech,' it's good," the delegate said.

The governor's office also is getting into the game, with the formation earlier this year of the Life Sciences Advisory Board to develop a strategic plan for biotech, Feldman noted. And the upcoming General Assembly session will mark the first year of a new legislative group, the Maryland Biotechnology Caucus.

"But they cannot work across purposes with each other," Feldman cautioned of the various players. "We have to be on the same page."