Tisei: A wise investment in biotechnology
By Sen. Richard Tisei
GateHouse News Service
Wed May 16, 2007, 12:49 PM EDT
Last week's BIO International Convention offered a tantalizing glimpse of
where the next wave of Massachusetts jobs may come from, if the Commonwealth
works to make this vision a reality.
More than 25,000 people filled the Boston Convention and Exhibition Center
for the four-day convention, which brought together a diverse group of
entrepreneurs, researchers and investors from around the country and the
world. Among those gathered were a number of local companies and state
officials eager to promote Massachusetts as a prime location for businesses
specializing in biotechnology and the life sciences.
Biotechnology is one of the most promising - and perhaps most
misunderstood - industries. For some people, the word "biotechnology"
conjures up images of genetically modified foods or scientists working on
lethal strains of bacteria in a lab. But for many other people, it offers
hope that research will some day yield treatments and possible cures for
many life-threatening and debilitating illnesses.
Michael J. Fox, a former actor who has battled Parkinson's Disease since
1991, was one of the featured speakers at last week's conference. Fox has
been actively lobbying the industry and Congress since his diagnosis,
calling on scientists to move more aggressively from the research stage to
the development stage so that individuals with Parkinson's, ALS and other
diseases can access effective treatments that will enable them to enjoy an
improved quality of life.
Some significant medical breakthroughs have already taken place in the
industry. Consider Biogen, a company that was founded in 1978 by a group
that included Harvard University Professor Walter Gilbert and MIT professor
Phillip Sharp. Eleven years ago, the FDA approved its drug Avonex, which is
used to treat multiple sclerosis and now generates more than $1 billion a
year in sales.
The biotech industry is a natural fit for Massachusetts, which is home to
many world-renowned universities and teaching hospitals. However, the number
of workers employed in biotech is still very small, representing only 1
percent of the state workforce.
That may soon change. As the Boston Globe recently noted, state projections
indicate that "the number of scientific R&D (research and development) jobs
in Massachusetts will grow 26 percent between 2004 and 2014 - three times
the projected rate for all jobs".
The Massachusetts Biotechnology Council has also seen a 41 percent increase
in membership since 2004, growing from 380 members to 538 today. Our state
is now second only to California in terms of the number of biotechnology
companies concentrated within our borders.
What became clear at last week's conference is that many other states are
eager to displace Massachusetts as a biotech leader. To prevent that from
happening, we need to be aggressive in offering incentives for businesses to
establish roots here, and to stop local companies from being lured away by
other states.
One proposal already under consideration by the Legislature would extend the
Investment Tax Credit (ITC) to biotechnology companies. Another would allow
for the transfer of tax credits within emerging industries.
These two proposals, which make up part of the Republican Policy Conference
agenda, would remove one of the most significant barriers these companies
face, namely the ability to generate an infusion of capital to develop their
product and get it to the marketplace.
Two years ago, under the leadership of former President Robert Travaglini,
the Senate developed groundbreaking legislation establishing in statute
guidelines for stem cell research. This sent a strong message that
Massachusetts offers a welcoming environment for companies conducting
research in the area of regenerative medicine.
Now Governor Deval Patrick is looking to build on this milestone. The
governor used last week's BIO convention to unveil a plan to invest $1
billion in public funding in life sciences programs over the next 10 years,
an investment of taxpayer dollars he hopes to leverage into an additional
$250 million in private matching funds.
Half of the funding earmarked for the so-called Massachusetts Life Sciences
Initiative would be directed to capital funding for public higher education,
while $250 million would be set aside for research grants, fellowships and
workforce training. The remaining $250 million would be used for targeted
tax benefits promoting job creation.
Other states are pursuing similar policies. California, for example, has
committed to a $3 billion bond issue for stem cell research as part of a
voter-approved ballot initiative. Also, Florida has launched a $1 billion
campaign to encourage research institutes to open campuses in the Sunshine
State.
Massachusetts should not allow other states to overtake it as a leader in
biotechnology. We already have a natural built-in base that is thriving here
and should be encouraged to grow even further.
By promoting the life sciences, we can create jobs, attract billions of
dollars in investor funding, and develop potential cures for many
life-threatening illnesses. That is an investment worth making.
State Sen. Richard Tisei, R-Wakefield, represents the Middlesex and Essex
District.

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