Transcript Document
Life Sciences Economic Development
“How Does Your Community Stack Up?”
Life Science Economic Development Summit
March 26, 2015
Robert T. Skunda
Senior Consultant, Innovation Centers and Technology Parks
President Emeritus, Virginia Biotechnology Research Park
Virginia Biotechnology Research Park
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Joint initiative of the Commonwealth of Virginia, City of Richmond and Virginia
Commonwealth University
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Planning undertaken in 1992 as regional initiative
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State created political subdivision in 1993 (VBRP Authority)
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34 acres adjacent to VCU Medical Center
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1.5 million s.f. R&D/office space
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Employment center for more than 3,000 high technology workers
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McGuireWoods Consulting, LLC
Formed in 1998 as subsidiary of McGuireWoods LLP
Top 20 National Law Journal’s “Influence 50” law firms
Services include:
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Infrastructure & Economic Development
Public-Private Partnerships
State & Federal Government Relations
Communications and Public Relations
Capital Market Strategies and Business Performance
National Economic Development Experience
• Site selection services for
major clients in over ½ of
U.S. states
• Lead incentive negotiations
• Secure necessary legislative
or regulatory changes
• Negotiate and finalize
performance and incentive
agreements
Presentation Overview
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Introduction and Background
Biotechnology Industry
Life Sciences Economic Development
Community Readiness
Closing Comments
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What is Biotechnology?
“From Beer to Biofuels and
Human Growth Hormones”
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Biotechnology Industry Segments
“Healing, Fueling, Feeding and
Supplying the World”
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Agricultural Biotech
Bio Defense
Biofuels
Biomanufacturing
Vaccines
Human Health
Regenerative Medicine
Nanobiotechnology
Marine Biotechnology
NC Biotechnology Center
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Future of Biotech and Impact on our Lives
• Ag biotech now in 30 countries
• Growth surpassing traditional
industries
Regenerative Medicine 13%/yr
Biobased plastics 20%/yr
Industrial Biotech 85%/yr
• 2012 Biofuel production fell for
first time since 2000
• Biotech is subject to market
conditions just like traditional
industries
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Creating a Life Sciences Cluster
“Big Bang versus Incremental Approach”
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Factors for Creating Successful Biosciences Cluster
• Research magnet
• Venture capital
• Funding (federal/state) for
research
• Specialized facilities &
equipment
• Workforce & talent pool
• Entrepreneurial culture
• Create “critical mass”
“Big Bang” Strategy
Creating a Research Base and Industry Cluster in Unison
• Necessary in absence of an
existing research magnet
• Also a major expansion of an
existing research institution
• Can apply to greenfield and
brownfield sites
• Common denominator:
“Lots of $$$”
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Florida Biotechnology Strategy
• Instituted in 2003 to attract
satellite facilities of world class
bioscience research labs
• Scripps, Max Planck, SanfordBurnham, Torrey Pines Institute
among notable successes
• Public criticism about average
cost/job ($1.4 M) to taxpayers
• Be careful of “Castle on the Hill”
syndrome coming into play
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North Carolina Research Campus
• Site of former Cannon Mills
in Kannapolis, NC
• $1.5 B scientific and
economic revitalization
project led by David H.
Murdock
• Multiple institutions and
private corporations on site
with room for growth
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Incremental Growth Strategy
• Model most often used by most
U.S. research parks
• University partner usually will
occupy space in initial phase(s)
in addition to providing funding
• Organizational structure often a
university foundation, 501-c-3, or
government entity
• Mixed-use (live, work, play) is
new emphasis in planning
Association of University Research Parks
• 175+ university-affiliated
research parks in U.S. today
• 50% governed by affiliated
institution
• Access to skilled workforce #1
reason tenants choose parks
• 64% of parks have programs
to facilitate collaboration
between industry and the
university
2012 Battelle Survey
“Typical” U.S. Research Park:
• 119 acres
• 7 buildings/250,000 s.f.
• 25,000 s.f. incubator space
• 26 resident organizations
• 64% for-profits
• 24% university
• 850 average employment
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Virginia Biotechnology Research Park - 1997
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Virginia Biotechnology Center
• 27,000 sf incubator and
meeting center
• Constructed with $5 M grant
from state in 1994
• 10 laboratory suites & 12
private offices for start-ups
• Over 70 companies formed
at Center 1995-2013
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Biotech 1 & 2
Biotech 1
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100,000 s.f. multi-tenant building
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VCU Research Institutes
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Vice President for Research
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Private Sector Companies
Biotech 2
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131,000 s.f., $30 million project
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Build-to-suit project
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Virginia Division of Forensic Science
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Office of the Chief Medical Examiner
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Central Lab for Forensic Science
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BioHio Research Park
• Wooster, OH (100 mi. from Columbus)
• Ohio Agricultural Research &
Development Center
• Research facilities and expertise for
entrepreneurs and companies in Ag
biotech
• Master Plan for 350,000 sf of business
attraction and meeting space
• Adjacent to OSU Agricultural Research
& Development Center
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Non-University Affiliated Examples
Sandia Science &Technology Park
• 300 acre park adjacent to Sandia
National Laboratories and Kirkland
AFB
• No higher-ed affiliation
• Government and corporate
partnerships
• C3 Center for Entrepreneurship
• Multi-tenant space
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Perennia Research Center, N.S. Canada
• Private company created by
governments of Canada, Nova
Scotia, and agricultural industry
• Serves as agricultural extension
and innovation center for crops
and marine resources
• 25,000 s.f. Innovation Center
offering extraction, research and
scale-up of bio-based products
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Rogue Valley Research Park
• Medford, OR
• Equidistant from Portland and
Sacramento (300 mi)
• Greenfield site
• Goal is to retain talent and build
technology base
• Major employers Harry & David
and Rogue Regional Medical
Center
• “Highly risky real estate venture”
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Common Themes of Successful Innovation Centers
• Capitalize on indigenous strengths of the area (human,
natural, institutional and business)
• Provide key resources necessary to transform intellectual
property and ideas into viable businesses (sources of funding,
mentoring, proof-of-concept, networking and market access)
• Places for bringing entrepreneurs and the support
networks/resources together
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Formulating a Community
Strategy
“If you don’t know where you’re going, you
might end up someplace else”
Yogi Berra
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North Carolina Biotechnology
• 30 year investment in life
sciences
• Over 600 life science companies
• Created NC Biotech Center
• Regional offices based on
market segments and strengths
• Now ranked in “Top 5” states for
biotech by every measure
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What Drives Innovation?
• Innovation is derived from
collaboration
• Places don’t drive collaborationpeople do
• Our role: “build the framework to
attract those who have the
shared interest and innovative
ideas and create the community
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What is your Community’s Life Science “I.Q.”?
(Innovation Quotient)
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Higher education institutions
Major employers
Research parks
Community colleges
Non-Profits and major health care providers
Business leaders
Commercial real estate agents
Yes– even the local Starbucks!
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Life Sciences Economic Development Toolkit
• Workforce skills and
specialized expertise
• Educational resources
• Natural resources
• Access to specialized
facilities and equipment
• Research collaborations
• Site (or facility) readiness
• Capital availability
• Marketing & business
support
• Additional incentives
• Programs, events, venues
that bring people together
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Virginia Life Science Investments
• Targeted to Israeli companies in
Virginia Biosciences
Commercialization Center
• $75 M locally-raised and based
venture fund
• Selectively screen and recruit
new companies into portfolio to
commercialize technologies in
U.S. and headquarter in the
Biotech Park
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Technology Accelerator
• Joint Initiative of 2 local gov’ts,
Biotech Park and public utility
• Initial focus on renewable energy
• Goal to create technology jobs in
suburban county of Richmond
• Entrepreneur-in-Residence and
technical support from Dominion
• Budget of ~$500K/yr.
• 2014- needed to change tech
focus and location for budgetary
and demand factors
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Formulating Your Community Strategy
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Inventory of resources
Identify needs and opportunities
Meet with NC Biotech Center
Develop strategic outline of plan
Identify partners and approach to meeting needs
Who will be the champion?
Timetable and implementation strategy
Set intermediate goals and benchmarks
“Adopt a good dose of patience”
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Some Closing Thoughts
“Winning isn’t everything, but wanting to win is”
Vince Lombardi
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Assessing your Community’s Life Sciences
Attraction for Innovation
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What are your unique strengths and resources?
Are you starting from scratch or building on existing cluster?
Where is innovation occurring?
Are there unmet needs that are stifling innovation?
Are there opportunities for stimulating life science innovation
through strategic outside involvement?
• Who are potential partners and leaders?
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Summing Up
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Understand your strengths
Think out of the box
Formulate a vision and plan
Assemble the resources and support to round out your toolkit
Don’t be afraid to adjust your strategy as you move forward
Don’t sit back and wait for the opportunities to come to you
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Thank You !
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