North Carolina's economy is in transition. As manufacturing jobs in traditional industries decline, new opportunities for job creation must be identified and aggressively pursued. Few sectors offer as much promise for long-term, sustained community development and job creation as the relatively young field of biotechnology.
Few states are as well positioned as North Carolina for national and international leadership in biotechnology and economic gain from the industry's growth.
Often described as a single industry, biotechnology more accurately refers to the large and growing array of scientific tools that use living cells and their molecules to make products and solve problems in many different industries.
Agriculture, human and animal health care, forestry, the environment, and specialty chemicals are among the industries that have benefited most from biotechnology.
The economic promise of biotechnology is extraordinary. At present a $40 billion sector worldwide, it is estimated to become a market of at least $120 billion annually within 10 years. North Carolina companies, already creating about $3 billion in annual biotechnology revenue, can grow in number, employees, and revenues--if provided the right resources and environment.
The benefits of biotechnology to North Carolina--and the world--are clearly not limited to jobs and other forms of economic development. Biotechnology products are profoundly improving the crops we grow, the food we eat, the medicines we take, the environment in which we live, and the everyday products we use.
A Strong Foundation
North Carolina has a strong base on which to expand biotechnology science, companies, and economic return. In the early 1980s, visionary State leaders established a structure and a long-term commitment for biotechnology innovation and commercialization.
North Carolina recognized early that the science and applications of biotechnology fit remarkably well with its natural resources and economic foundations. A technology based on living organisms is well suited for a place strong in agriculture, native plants, marine resources, forestry, food, pharmaceuticals, and manufacturing.
To ensure a coordinated and innovative approach to biotechnology development, the State established the North Carolina Biotechnology Center--the first state-sponsored biotechnology initiative in the United States.
Over the last two decades, the Biotechnology Center has carefully targeted its funding to the requirements of biotechnology development: science and research, education and workforce training, and company establishment and growth.
Programs and activities have assisted but not duplicated the efforts of various public and private entities involved in biotechnology, from universities and entrepreneurs to investors and start-up companies.
Twenty years of strategic investment have paid off handsomely; North Carolina has deliberately and successfully stimulated one of the most envied, interactive, and productive biotechnology communities in the world.
North Carolina is one of the leading five states in the U.S. for biotechnology science, commercialization and revenue. With more than 150 companies employing 18,500 workers, North Carolina represents about 10 percent of the U.S. biotechnology industry.
In addition, the wider life science industry now includes tens of thousands of other North Carolinians employed in agricultural, pharmaceutical and chemical companies; contract research organizations and laboratory testing companies; professional support firms; and life science-related companies.
A Highly Competitive Sector Worldwide
Not surprisingly, the current impact and growing potential of biotechnology have captured the attention of governmental, educational, and economic development leaders worldwide. Benefits from biotechnology are particularly sought by places facing economic challenges due to globalization or decline of traditional industries.
Virtually every state in the nation has joined regions and countries worldwide in targeting biotechnology. While not all places will succeed, a challenging number have significant assets and are prepared to make enormous investments in biotechnology research, infrastructure, and company development.
And, while many places acknowledge their goal of duplicating North Carolina's approach and results, their indirect compliment is more alarming than gratifying.
Bold Vision and Leadership
In the face of intensified worldwide competition, just maintaining North Carolina's current position will require significant commitment and resources. Strengthening the state's biotechnology capability and competitiveness will demand clear vision, aggressive leadership, and greatly expanded investment.
The second option is realistically the only one to be considered; otherwise, economic gain and jobs will be lost to competing states and nations.
The biotechnology leadership and commitment demonstrated by North Carolina over the last two decades must be enhanced and expanded to ensure an equally strong third and fourth decade of biotechnology development and jobs.
Recognizing that vision and risk-taking must shape smart and practical decisions, in June 2003, Gov. Easley charged the North Carolina Biotechnology Center and leaders statewide to develop a long-term strategic plan to help guide future State investments in biotechnology.
The vision for that plan is for the State to aggressively create jobs, wealth and a better quality of life for all North Carolinians by encouraging biotechnology investments in health care, agriculture, the environment, manufacturing and other strategic growth industries vital to its economy.
Led by the Steering Committee listed on page three, more than 120 North Carolinians diverse in geography and perspective shared ideas and experience in six content-based work groups:
- K-12 education
- Workforce training
- Building entrepreneurial companies
- Attracting companies to the state
- University research and infrastructure
- Public policy and societal considerations
Listed at the end of the document, work group participants included representatives of the main partners in North Carolina's biotechnology community:
- State
- Regional, and local economic developers
- Private and public universities
- Community colleges
- Government agencies
- Large and small companies
- Venture capitalists
- Non-profit organizations such as the Council for Entrepreneurial Development, the North Carolina Biosciences Organization and the Small Business and Technology Development Center
- Various public policy organizations
Strategic Recommendations
Collectively, the work group participants identified 54 strategies necessary to reach the goal of having 48,000 North Carolinians employed in biotechnology-related jobs by 2013 and 125,000 by 2023.
Many of these strategies will require large and sustained investment over several years to achieve their intended outcome. Others do not require state investment but do need the commitment and action of various partners across North Carolina's large and well-established biotechnology community.
As summarized in the table at the end of this executive summary, the 54 strategies address the major requirements of a comprehensive biotechnology initiative: creation of knowledge, products and companies; attraction, retention and growth of companies; preparation of current and future workers; development of biotechnology statewide; and leadership, ethical and policy considerations.
All 54 strategies are important to meeting the plan's job creation goal and should be implemented as soon as possible. However, based on their contribution to three areas identified as immediate priorities below, a much smaller number of strategies are essential in the first year of the plan, fiscal year 2005.
Immediate Priorities
Given the need to create new jobs, and to bring these jobs to all parts of North Carolina, three areas should be considered immediate priorities for the state's biotechnology investments: biomanufacturing; biotechnology start-ups; and statewide development.
Target biomanufacturing: Biomanufacturing is an ideal industry for North Carolina, not only because it creates clean, high-paying jobs, but also because those jobs can be located in rural North Carolina, where traditional manufacturing jobs are in steep decline.
North Carolina already has a strong base of pharmaceutical manufacturing and biomanufacturing on which to grow. With the recent commitment of $64.5 million by the Golden LEAF and industry to build a statewide workforce training network in biomanufacturing, the State has assured companies already based in North Carolina and those that might come to the state that a supply of well-trained workers will be available.
To fully capitalize on this investment, the state should:
- Strengthen the recruitment capabilities of the Department of Commerce, with expert staff, marketing resources, appropriate incentives, and authority to match prospects selectively with North Carolina sites;
- Create a ready source of financing for biomanufacturing facility construction through credit-enhancing vehicles;
- Provide the community colleges with sufficient funding and infrastructure to train and educate workers for this industry
Create and Attract Biotechnology Start-up Companies:
If the environment is supportive, biotechnology companies tend to emerge and grow near the source of their technology, which is often a university, federal or private research laboratory, or another company.Therefore, the opportunity for long-term, sustainable job creation is strong with "home-grown" biotechnology companies, particularly in North Carolina, which has a well developed and cohesive biotechnology community. To help ensure a steady supply of entrepreneurial biotechnology companies, the State should:
- Expand funding for university research, particularly high-risk, early stage applied research, to facilitate a constant flow of new discoveries with future commercial potential
- Use every available mechanism to ensure that young companies have access to the investment capital they require, particularly at the earliest stages of their development. Two potential sources include the Biotechnology Center's Economic Development Investment Fund and State escheat or pension funds
- Give greater attention and resources to support the relocation of emerging biotechnology companies from other states and countries to North Carolina
Develop biotechnology statewide: Biotechnology development in North Carolina does not have to be limited to the technology-rich Triangle and Triad regions. Because of its varied natural resources, including agriculture, forestry and marine life, and its widespread network of higher education resources, North Carolina is uniquely able to develop biotechnology in multiple regions of the state.
While the manufacturing jobs associated with biotechnology and other life sciences may represent the best opportunity for economic development in some particularly rural regions, other areas can--and have begun to--capitalize on unique resources and infrastructure to build their own biotechnology communities.
These efforts should be supported and nurtured by:
- Assisting communities statewide to identify and target resources for building biotechnology-related activities and helping them establish realistic goals for these endeavors
- Supporting satellite offices of the Biotechnology Center in the East, West, Triad and Charlotte with staff and programmatic resources
Ensuring Prosperity
As regions across the globe struggle with economies in transition, North Carolina is well positioned with early and ongoing commitment to biotechnology--one of the few sectors that will provide long-term economic gain and job growth.
Fortunately, in North Carolina the value of the technology is fully granted by governmental, institutional and economic development leaders statewide. Their vision and commitment to the technology will in coming years bring jobs and other benefits critically important to the economy of North Carolina and the quality of life of its people.