Hubs of life science activity can now be found around the world. To build such a science center, it takes the right combination of ingredients:
1. A Rainmaker: Areas need single groups that make large investments. As an example, Southwest Michigan First has poured $62 million, most of it private capital, into attracting business to Kalamazoo, Mich. Likewise, the Philadelphia, Pa., metropolitan area benefits from the money that Merck & Co. spends to build infrastructure there.
2. A Collection of Capital: Many areas hope that venture capital can attract startups. But it takes more than that, says Ted Abernathy, vice president of the Research Triangle Regional Partnership, an economic development group in North Carolina. "It takes all types of money," he says. This includes angel money (long-term investors) and mezzanine money (comes in during later phases of development).
3. Local Talent: Nothing can replace human capital. Once it leaves, it's not likely to come back. Cities and regions looking to become life science centers need to hold on to people. Their presence often leads to business growth. Take Chicago, for example. Dave Miller, president of the Illinois Biotechnology Industry Association, says the presence of Abbott Laboratories in the Chicago area led directly to the creation of successful startups such as Hospira and Valent BioSciences.
4. "Coolness": When trying to build clusters in a new knowledge-based economy, companies looking for a home want to know: Can we attract good people here? In this economy, it's good to be "cool." Examples of cool include a high quality-of-life rating, accessibility to outdoor recreation, or a thriving arts scene.
5. Government Support: To attract top life science companies, government needs to get involved. In the past five years in Kalamazoo, for example, the state of Michigan has earmarked more than $220 million to help cultivate the life science industry there, according to Jeff Mason of the Michigan Economic Development Corporation. This, says Mason, has helped build some 2,000 life science-oriented companies.
6. Attention: A region also needs attention. Andy Levine, president of Development Counsellors International, says the Research Triangle Park in North Carolina is a place that has benefited from such attention in the past 30 years. "If there is a perception that a cluster is developing and growing and building in a particular region of a particular city, I think that helps to attract other people," says Levine.
7. Major Academic Institutions: It helps to have a support network already in place, including universities, medical schools, and major hospitals. Boston, Chicago, and San Francisco have all grown their life science and biotech industries with the help of nearby universities.
8. Other Biotech Companies: While there isn't a specific threshold, more companies in the area mean employees have more job choices and employers can draw from a greater pool of talent. Abernathy, for example, knows that top talent wouldn't leave San Francisco for Durham, NC, if they thought they might get stranded there if their startup fails, or gets bought out, somewhere down the line.
Eight Biotech Hubs on the Move
Belo Horizonte, Brazil: Traditionally strong in minerals and automotive manufacturing, this city is also developing an international reputation in biotechnology, thanks in part to facilities such as the Biominas incubator, which provides publicly funded research space and equipment.
Genome Valley, India: This 600 square kilometer area in Hyderabad, India, includes more than 50 biotech companies.
Malaysia: Plans to invest $7.9 billion could make this country a biotech cluster that generates more than one-quarter million jobs.
North Carolina Research Campus, NC: The 350 acres in Kannapolis, NC, are being developed with hopes of attracting 100 biotech companies.
Singapore: This country attracts companies with offers to pay 30% of building costs, and it is home to Biopolis and liberal laws related to biotech, including research on stem cells.
Israel: An ongoing initiative promotes collaborations between local biotech companies and academic researchers, and the new Haifa Life Sciences Park is under development.
Paris, France: This city makes a home for many French biotech companies, and it also attracts others from around the world, including many from California, such as Abbott Laboratories and Genentech. Government agencies in Paris also offer companies help with site selection and tax incentives.
Shenzhen, China: Local government collaborates with biotech companies and, not surprisingly, this city is home to some of China's earliest biotech companies, including SiBiono Gene Tech, which received the first approval for gene therapy.
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