December 2004
Technology Alliance Produces Bio 21 Plan to Make Washington a World Leader in Life Sciences and Information Technology Research
Since last year, the Technology Alliance has spearheaded a two-phase effort known as "Bio 21," a proposal to direct state and private resources to Washington's world-class universities and non-profit research institutions and their industry partners to make our state a leader in the emerging field of predictive and preventive medicine. The plan, which will build upon our state's existing assets in the life sciences and information technology and generate new jobs and health care innovations for the people of our state, was released at the Greater Seattle Chamber of Commerce's annual leadership conference in October.
The proposal calls for the creation of a Bio 21 Strategic Trust Fund to administer a competitive grants program to bolster our state's research capacity - one of the three key drivers of Washington's economic competitiveness identified by the TA - and support projects with clinical and commercial potential at the convergence of the life sciences and information technology. Based on an assessment of Washington's existing strengths and areas of opportunity, the Bio 21 program will focus grants in three key areas in which Washington has the foundation to be a global leader: diagnosing and treating disease; medical devices and imaging; and, software used in clinical settings.
"Washington State has a distinguished history leading global technical revolutions," observed steering committee member Rob Arnold, President & COO of Geospiza, Inc. and member of the TA board. "Aerospace was the first, software the second. The biotechnology stakes are the highest yet as it has the potential to deliver health benefits for every living being and create products and services that will touch one-third of the global economy. Bio 21 will anchor our competitiveness in global research and provide a critical platform for us to build commercial success."
The plan calls upon the state to devote $350 million in Strategic Contribution Fund payments allocated to Washington for its leadership in the national tobacco settlement to Bio 21. These funds would be combined with $100 million in private funds. A front-end commitment of private funds would support establishment of the program pending the availability of the tobacco-related funds, which will be disbursed to Washington on an annual basis beginning in 2008. Program grants are expected to attract an average overall match of 2:1 from federal and other sources for every Bio 21 dollar invested, meaning the $450 million in total program funds will catalyze an additional $900 million to our state's institutions. The aggregate impact of the program and the associated leverage will amount to $1.35 billion through fiscal year 2017/18.
Based on an analysis conducted by Battelle, a nationally recognized expert in state life sciences strategies, Bio 21 will expand life sciences R&D nearly three-fold, from $500 million recorded in 2002 to approximately $1.5 billion by the end of FY 2017/18. Battelle projects the program will lead to the creation or relocation of 160 companies and generate at least 20,000 new, permanent jobs in the state of Washington.
"Research is an economic powerhouse," noted Dr. Paul Ramsey, Vice President for Medical Affairs and Dean of the University of Washington School of Medicine and member of the Bio 21 Steering Committee. "Not only does it provide our region with high-paying jobs, but sustained growth and consumer demands fuel the local economy as well. We have a unique opportunity to create new approaches to improve health care, while at the same time contributing to the development of a robust economy."
Other states and nations are making significant investments in their life sciences research sectors. As a result, they are reaping the benefits of achieving a critical mass of resources, institutions, scientific and entrepreneurial talent and workforce, a concentration of factors which attracts even more investment and talent and improves the quality of life of a region. In the increasingly global economy, all industries are relying more heavily on research and innovation to remain competitive. The Strategic Contribution Fund payments, which accrue to Washington in addition to our portion of the regular tobacco settlement, presents our state with a unique opportunity to invest in our future economy while advancing health care innovations for Washington and the world.
The TA reprised its role as coordinator of the Bio 21 project for this second phase, seeking to build upon the initial framework for the program laid out in an earlier report and generate a program structure that could be implemented through legislation in the 2005 session. The plan was based upon the work of a re-formed Bio 21 Steering Committee under the continuing leadership of co-chairs Shan Mullin, Partner at Perkins Coie, and Lura Powell, President & CEO of Advanced Imaging Technologies. The steering committee brought together leaders from Washington's public research universities, private non-profit research institutions, high tech industry, government and the community. The committee's work was aided by several subcommittees formed to address specific issues relating to Washington's unique needs and competencies.
The Bio 21 plan issues a call to action to the new governor, state legislators and research, industry and community leaders to work together to enact the program in the 2005 legislative session. A commitment of the state and private funds next year will enable the first grants to be made in 2006.
The complete report is available online at www.technology-alliance.com.