June 2023

The U.S. Biosciences
Industry in the States:
Best Practices in Innovation, Partnerships,
and Job Creation

TABLE OF CONTENTS
Introduction									1U.S. Biosciences Industry Economic Impacts and Industry 		
Sector Opportunities

3

Biosciences High-Skilled Jobs, Companies, and Wages		

6State and Regional Economic Development Legislation Guide

8

Supportive 2023 State Tax Incentives for Industry Development

9

Dynamic Bioscience Supportive Tax Credit Measures			11

Bioscience Incubators and Accelerators for 				Early-Stage Company Growth			13

Workforce Development Measures for Bioscience Employment

15

Glossary of Terms								18Economic Development Guide Conclusion				June 2023

20

The U.S. Biosciences Industry in the States

INTRODUCTION
As the nation emerges from the global COVID-19 pandemic,
the U.S. Biosciences industry continues to illustrate its value through advancements in biomedical,
energy, and advanced food and industrial technologies, along with an expanding mix of employment
opportunities with incomes that support a quality standard of living.
Even during the economic downturn of 20202022, the Biosciences industry actually grew and
its advancements continue into 2023, providing
ample awareness to state and local stakeholders
that Biosciences companies are an importantcomponent of gathering people, developing
ideas, and bringing prosperity to states, cities,
and municipalities with the industry in theirlocation.
In its seventh edition, this report reviews
the latest state and regional economic
development measures that support the
Biosciences, or life science, industries. The
analysis is developed by the Biotechnology
Innovation Organization (BIO), in partnershipwith the Council of State Bioscience
Associations (CSBA), to highlight noteworthy
public policy strategies and programs to assist
policy leaders and their industry partners in
identifying new measures that enhance thefuture prospects of Biosciences in their states
and regions.
From an analysis of current state public policy
efforts to support the Biosciences, the authors
have identified four consensus strategies
that states have created to retain the industry
and grow the size and diversity of all of the
Biosciences industry sectors across the states:

Innovation, Partnerships, and Job Creation

1. Building career pathways for future
Biosciences talent is crucial.
Attracting and retaining a continuing flow of
educated (Ph.D., MS, BS, AA) and technically-proficient workers is essential to a state
aspiring to enhance a Biosciences industry
presence. In this global economy, nearly every
competitor has access to breakthroughs intechnology and to the equipment and capitalto produce standardized products. It is theregions that possess the human capital, with its
insights and competencies, that experience anenormous competitive advantage.

2. States and regions are addressing theirregulatory climate to ensure predictable andstable regulatory treatment of Biosciences firms.
A stable and supportive public policy framework
is vital to industry firms, large and small. It isimpracticable, and ill-advised, for any state, cityor municipality to miss the value of selective
incentives to either hold existing Biosciencescompanies or attract new enterprises.
Lawmakers and economic development
professionals have become increasingly awareof the unique challenges facing Biosciencescompanies, such as the high research costs
and the long development timeline involved inbringing a new Biosciences product to market.
They understand the importance of a stable andsupportive business industry climate, especiallyfor small and emerging companies.

bio.org 1

States are increasingly allowing companies
to monetize earned R&D and net operating
loss tax credits, sales tax exemptions for thepurchase of R&D equipment, and investment
tax credits to drive angel capital investment in
the Biosciences industry, among a diverse of
supportive public policy efforts.

3. Utilization of innovative technology-based
economic development tax support strategies
is on the rise.
Public and private stakeholders are creating
entrepreneur resource programs that help
connect biotech startups with early-stage capital.
Supportive measures include investor tax
credits to spur more early-stage investment
in Biosciences companies, and seed funds
to bridge the funding gap for companies as
they develop and advance their technologies,
conduct initial research, and establish proof ofconcept before attracting larger investments.

“We will continue to growMichigan’s economy bycreating good-paying jobs for
Michiganders while expanding on
our leadership in the life sciences
and agribusiness sectors.”

4. Universities and research centers continue
to be strong partners in pre-commercialization
research and technology transfer.
Thanks to a coalition of industry and university
technology transfer groups across the nationthat have provided strong support for enhanced
federal legislation, including the Bayh-Dole Actof 1980, U.S. colleges and universities continue
to be the international leaders in generating
cutting-edge basic research and creatingcompanies from that research effort.
States have made company formation a highpriority, especially policies that encourage full
funding of basic research, predictability ofpatents, and flexible technology transfer, andthat provide early-stage funding opportunities
and incentives that will serve to stimulate
biotechnology innovation.
As the contents of this report illustrate, state
and regional governments are taking measures
to increase the number of new and innovative
economic development initiatives to support
Biosciences company creation, expansion,and attraction for the betterment of theircommunities.

Michigan Governor Gretchen Whitmer

2 | June 2023

The U.S. Biosciences Industry in the States

U.S. Biosciences Industry Economic
Impacts AND INDUSTRYSECTOR OPPORTUNITIESDespite the challenges of a global pandemic and theresulting economic slowdown, the U.S. Biosciences industry has continued tohire and grow its employment base. In 2021, the Biosciences industry grew its employment base by
1.4% while the overall private sector saw a 5.1% decline.

• In 2021 the national Biosciences industry
employment reached 2.1 million jobs inmore than 127,000 business establishments
spread across every state and Puerto Rico.
• Since 2018, Biosciences employers grew
their payrolls by 11 percent while the private
sector overall experienced a net job declineof 1.5 percent, due to the steep job losses
experienced during the initial pandemic
wave and economic shutdowns of 2020.
Bioscience industry establishments andaverage wages also have risen at doubledigit rates over the latest three-year period..
• The Biosciences industry has not only
outperformed the overall economy inrecent years, but also other knowledge-andtechnology-intensive industry sectors suchas tech and aerospace manufacturing, in its
employment growth.
• All five of the industry’s major subsectors– Pharmaceuticals, Agriculture andEnvironment, Medical Devices, ResearchLaboratories, Specialized Distribution – havecontributed to the employment growthseen since 2020, led by impressive, doubledigit jobs gains in research, testing, medicallabs and pharmaceutical manufacturing,
especially during the pandemic.

Innovation, Partnerships, and Job Creation• The Biosciences continue to generate highwage jobs reflecting the industry’s outsized
demand for STEM talent and a highly skilledworkforce. In 2021, U.S. Biosciences workers
earned nearly $126,000 per year, on average,
which is $58,000 or 85 percent greater thanthat earned by their counterparts in theoverall private sector.
• The total economic impact of the
Biosciences industry on the U.S. economy,
as measured by overall output, totaled $2.9
trillion dollars in 2021.

“Life sciences have becomea strategic pillar of Utah’s
economy. The industry
embodies entrepreneurship andinnovation in its work to improveand save lives through advanced
testing, novel technologies, andgroundbreaking cures.”
Utah Governor Spencer J. Cox

bio.org 3

Commercial Applications for Job
Creation and Development:

Beyond the economic numbers the Biosciencesindustry provides a variety of job opportunities
across a number of commercial applications
that illustrate the many ways a person can
successfully participate in this growing
technology sector.
1). Medical Care: Biotechnology tools andtechniques open new research avenues fordiscovering how healthy bodies work and whatgoes wrong when problems arise. In humanhealth care, biotechnology products include
quicker and more accurate diagnostics tests
and therapies with fewer side effects because
they are based on the body’s self-healing
capabilities.
• Medicines – Biotechnology medicines assist
the body in fighting infections or carryingout specific functions. Biotechnology alsouses other living organisms – plant andanimal cells, viruses and yeasts – to assist
in the large-scale production of medicines
for human use. Some new biotechnology
medicines approved by the FDA include
treatments for anemia, cystic fibrosis,
growth efficiency, hemophilia, leukemia,
hepatitis, transplant rejection and many
forms of cancer.
• Vaccines – A biotechnology vaccine consistsof the antigen, not the actual microbe. By
isolating antigens and producing them inthe laboratory, it is possible to make new
vaccines that cannot transmit the virus itself.
4 | June 2023

• Diagnostics – Biotechnology has
revolutionized the medical diagnostics
field by providing accurate and relatively
inexpensive tests for a wide spectrumof diseases (e.g., blood screening test
for cholesterol, HIV, etc.) as well as
for consumer products, such as homepregnancy tests.
• Gene Therapy – Gene therapy uses
the genes themselves as drugs to treat
hereditary genetic disorders.

2.) Agricultural Production: Humanity
has always relied on living things for food,shelter, clothing, and fuel. Our demand forthese resources will increase as the world’s
population grows. In 1900, the global
population was approximately 1.6 billion. This
number has surged to over 6 billion today,
and the United Nations expects the global
population will reach 10 billion by 2030.
Agricultural biotechnology can help humanity
meet ever-increasing need by increasing yields,
decreasing water and fertilizer usage, andprovide for pest control methods that are morecompatible with the environment.
• Crop plant production – Farmers andbreeders have relied for centuries oncrossbreeding and other genetic modification
techniques to improve the yield and quality ofcrops. The tools of biotechnology allow plant
breeders to select single genes that productdesired traits and move them from one plant
to another, thus opening a world of traits tobenefit food production.
The U.S. Biosciences Industry in the States• Environmental benefits of crop production –New biotechnology diagnostics tools detect
plant diseases earlier and more accurately,
decreasing the amount of chemicals needed
to control the disease.
• Plant-Made Pharmaceuticals – Withbiotechnology scientists now use transgenic
plant2 as manufacturing plants forpharmaceutical compounds, making plantproduced antibodies 25 to 100 times lessexpensive than cell fermentation methods.
• Livestock Production – Improvements
in biotechnology research has fosteredenhanced abilities to detect, treat and prevent
diseases from better feed derived fromtransgenic crops designed to meet the dietaryneeds of different farm animals.
3.) Industrial and Environmental Applications:
The biotechnology industry employs thetechniques of modern molecular biology
to reduce the environmental impact ofmanufacturing and can best be characterized
by the reduction or elimination of waste andlow consumption of energy. Industrial andenvironmental biotechnology also works tomake manufacturing processes more efficientfor industries such as textiles, paper and pulp,
and specialty chemicals.
• Industrial Manufacturing Processes –Biotechnology offers many options forminimizing the environmental impact ofmanufacturing processes by decreasingenergy use and replacing harsh chemicals
with biodegradable molecules produced byliving plants and organisms.
• Green Plastics - Replacement of petroleumderived polymers with biological polymers
derived from grain or agricultural biomass isanother environmentally-friendly aspect of
biotechnology applications.

Innovation, Partnerships, and Job Creation• Environmental Monitoring and Remediation– The techniques of biotechnology science
are providing novel methods for diagnosing
environmental problems and assessing normal
environmental remediation. The remarkableability of microbes to break down chemicals
is proving useful not only in pollution
remediation but also in pollutant detection.
4.) Other Applications:• DNA Fingerprinting – In its simplest form, DNA
fingerprinting is the process of cross-matching
two strands of DNA to establish paternity.
Comparing the different-sized DNA fragmentsof two samples provides very strong evidence
about whether or not the two samples comefrom a single source or individual.
• Space – Biotechnology has aided NASA solve
some of the toughest problems holdingback space exploration, such as putting
heavy objects into outer space, controllingspacecraft and explorer modules from the
Earth, and developing energy-efficient ways
to feed astronauts and keep them safe andhealthy while they are far from home.
• Domestic Animal Health – The Center for
Veterinary Biologics at the USDA has licensed
more than 90 veterinary biotech products,
including therapeutics for horses, a vaccine forfeline leukemia, and gene-based drugs andvaccines to treat arthritis, infectious diseases
and cancer in companion animals.

“Technology, aerospace,biotechnology, advanced
manufacturing and many moreindustries are building for growthin North Carolina.”
North Carolina Governor Roy Cooper

bio.org 5

Biosciences HIGH-SKILLED JOBS,COMPANIES, AND WAGESThe U.S. Biosciences industry stands out for being a steadygenerator and source of high-wage jobs. Industry wages are consistently

significantly higher, on average, than those for the overall economy, reflecting the mix of skilled,
high-quality jobs in demand within an industry advancing a wide range of value-adding products andservices, and it further reflects the importance of the industry as a national economic engine.
In addition, industry employees who earn high average wages generate the demand for goods andservices through their own personal spending. As a result, the Biosciences have a national economic
impact that extends and multiplies well beyond the industry’s direct employment and earnings.
The chart below illustrates that every state, and Puerto Rico have the Biosciences industry in theirindustrial mix of private sector employment and the average salaries that accompany this innovativetechnology industry.

United States
Alabama
AlaskaArizona
Arkansas

Bioscience Industry
Establishments, 2021
127,389
1,264
171
2,912
1,316

Bioscience Industry
Employment, 2021
2,135,704
14,372
1,147
36,41010,177

Bioscience Industry Avg.
Wages, 2021
$125,750$77,658$72,574$99,585$79,472

California

14,268334,690$163,181

Colorado
Connecticut
DelawareDistrict ofColumbia
FloridaGeorgia
Hawaii
Idaho
Illinois
Indiana
Iowa
KansasKentucky

3,359
2,021
686

38,102
24,251
7,190$117,225$136,103$131,612

484

3,387

$161,710

8,599
3,349
424
1,065
4,297
2,713
1,805
1,603
1,860

106,688
38,4493,393
8,031
90,941
65,29026,46919,405
16,354$106,360$97,413$79,396$89,521$141,681$109,138$87,885$90,745$92,798

STATE

6 | June 2023

The U.S. Biosciences Industry in the States

STATELouisiana
Maine
Maryland
Massachusetts
MichiganMinnesota
Mississippi
MissouriMontana
Nebraska
NevadaNew Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
OregonPennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

Bioscience Industry
Establishments, 2021
1,609
575
3,104
4,612
2,429
2,670
1,032
2,662
645
1,424
1,069
875
4,340
770
5,314
5,863
602
4,290
1,277
1,664
3,123
999
666
1,918
718
2,899
7,462
1,845
342
2,696
2,638
673
2,152
238

Bioscience Industry
Employment, 2021
12,353
10,37449,945
131,800
44,34063,3387,720
35,7393,745
18,1479,413
8,293
104,989
6,821
110,259
92,223
4,299
59,052
10,49017,392
93,10538,673
5,773
19,4187,427
44,375
116,473
40,4192,747
28,13543,546
6,581
42,483
1,073

Bioscience Industry Avg.
Wages, 2021
$99,681$89,095$140,498$202,857$101,374$116,110$80,053$97,496$84,944$82,718$97,766$119,883$165,670$72,248$128,308$111,993$84,600$98,478$90,236$89,192$126,292$57,207$95,450$83,546$79,945$104,420$111,025$80,984$91,235$99,016$123,108$94,391$95,151$81,889

Source: Peter M. Pellerito/Teconomy/BIO, The U.S. Biosciences Industry Fostering Innovation and Driving America’s
Economy Forward, 2022

Innovation, Partnerships, and Job Creation

bio.org 7

State and Regional

ECONOMIC DEVELOPMENTLEGISLATION GUIDEThe Biosciences sector has three distinct phases ofcompany growth, including early-stage creation, successful

testing and expansion, and the manufacturing of products and services in health, agriculture, and theenvironment. The following stages of development and priority legislative support mechanisms areneeded for companies to succeed in a very competitive Biosciences marketplace of ideas and products.
Early-Stage Development Companies: It is at
this stage that company researchers identify
the action protocols to begin verifying theviability of the discovery with early testing.
Typically, these companies have no productson the market and have less than 100
employees, and are funded by a variety ofprivate or venture funding.
Priority Legislative Enablers:• SBIR/STTR Small Business Technology
Match Funding• Refundable/Transferable R&D Credits• Angel Investor Tax Credit• Seed Capital Tax Credit• Incubator/Accelerator Funding• Net Operating Loss (Carry-Over)

Mid-Stage Testing Companies: Oncethe technical viability of a discovery has
been established, the target product must
be developed. This stage of company
development typically requires significant
investment in personnel, equipment andfacilities and funding sources may include
venture funding, and early sales of products orservices. These companies generally have lessthan 200 employees.

8 | June 2023

Priority Legislative Enablers• Net Operating Losses (Carry-Over,
Transferability)• Research and Development Tax Credits• Capital Investment Tax Incentives• Innovation Investment Tax Incentives

Manufacturing Companies: At this stage, thecompany manufactures commercial quantities
of its approved product, creates a sales force
or licenses product to another company. Saleof manufactured products produces revenues
and, hopefully, profits with traditional sourcesof financing placed in commercial loans andpublic stock offerings.
Priority Legislative Enablers:• Site and Infrastructure Grant Funds• Renewable Energy Tax Credits andUtility Rebates• Sales and Use Tax Discounts, Exemptions
and Refunds• Biomanufacturing Workforce Credits

The U.S. Biosciences Industry in the States

SUPPORTIVE 2023 STATE TAXINCENTIVES FOR INDUSTRY
DEVELOPMENT

State governments continue to enact tax credit legislation
to mitigate the significant financial risks associated with research and development andmanufacturing in the Biosciences. Tax credits are an important component to building and growing
a thriving Biosciences industry hub in a state and in maintaining the dominant U.S. position as thecenter of innovation.

Select State
Incentive

SBIR State
Matching

Manufacturing
Sales Tax

R&D Tax Credit

Angel Funding

Legislation
Categories

GrantsExemption on
Equipment

For ProductDevelopment

For Emerging
Companies

Note: * indicates
Refundable or salable
tax credits.

STATE

Alabama
AlaskaArizona
Arkansas
CalifornianColoradonConnecticut
Delaware
FloridaGeorgia
Hawaii
Idaho
Illinois
Indiana
Iowa
KansasKentuckyLouisiana
Maine
Maryland
Massachusetts

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bio.org 9

Select State
Incentive

SBIR State
Matching

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R&D Tax Credit

Angel Funding

Legislation
Categories

GrantsExemption on
Equipment

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STATE

Minnesota
Mississippi
MissouriMontana
Nebraska
NevadaNew Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
OregonPennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Puerto Rico
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10 | June 2023

The U.S. Biosciences Industry in the States

Dynamic Bioscience Supportive

TAX CREDIT MEASURESState governments currently enact tax credit legislation
to mitigate the significant financial risks associated withresearch and development in the Biosciences. Tax credits are an

important component to building and growing a thriving Biosciences industry hub in a state and inmaintaining the dominant U.S. position as the center of innovation.
Due to the extensive length of time inherent to the drug development process, small biotechnology
companies, for example, often have difficulty obtaining early-stage financing for their research anddevelopment. Given that these smaller biotech companies are not yet profitable, they are unable toimmediately use their tax assets to offset income.
• In 2022, the Colorado legislature expanded
the Advanced Industries Investment Tax
Credit, increasing the funds available for
qualifying investments in life sciences andother designated advanced Industries from
$750,000 to $4 million. Also included is anincrease in the qualified investments inrural counties or enterprised zones.
• The Connecticut General Assembly has
increased the research and development tax
credit from 50% to 70% level, in Fiscal year 2023.
• The newly-approved Illinois Angel
Investment Tax Credit Program
encourages investment in innovative, earlystage companies to help obtain the working
capital needed to further the growth of theircompany in Illinois. Investors in companies
that are certified as Qualified New Business
Ventures (QNBVs) can receive a state tax
credit equal to 25% of their investment (upto $2 million). A total of $10 million in Angel
Investment tax credits a year are allocatedwith set-asides for minority-owned,
women-owned person with a disabilityowned, and rural businesses. Credits will be
released by quarter, on a first-come firstserved basis.

• Maryland’s Biotechnology Investment
Incentive Tax Credit (BIITC) provides aninvestor with a refundable State income
tax credit for an eligible investment ina Qualified Maryland Biotechnology
Company (QMBC). BIITC provides anincome tax credit equal to 33% of aneligible investment in a QMBC up to$250,000 in tax credits, or 50% of an eligible
investment in a QMBC up to $500,000
in tax credits if the QMBC is located incertain Maryland counties. Enhanced
tax credits are also available for eligible
investments made in certain QMBCs
located in Opportunity Zones. Total credits
issued during the fiscal year cannot exceed
the budget amount and are, therefore,
issued on a first come basis. The credit isrefundable if the investor has no Maryland
income tax liability.

“As governor, I am working to build
an Arizona for everyone. Innovation
is at the heart of this mission tofind breakthroughs in biosciences
technology and sustainability.”
Arizona Governor Katie Hobbs

Innovation, Partnerships, and Job Creation

bio.org 11• The New Jersey Technology Business
Tax Certificate Transfer Program allows
new or expanding emerging tech/biotech
companies in New Jersey with unused
amounts of R&D tax credits which cannot
be applied for the tax year, to surrender
or transfer those tax benefits for use byother corporation business taxpayers in
New Jersey, provided that the taxpayer
receiving the surrendered tax benefits is
not affiliated with the corporation thatis surrendering its tax benefits under the
program. The maximum lifetime value ofsurrendered tax benefits that a corporation
shall be permitted to surrender pursuant to
the program is $20,000,000.
• The New York State Life Science Credit
now offers up to a 15% refundable credit on
qualified R&D expenses (20% for companies
that employ fewer than 10 people) in New
York state and is a refundable credit thatcan be used to offset a tax liability, or it canbe received as a cash refund. Combinedwith the benefit of the federal R&D credit
for life science startups in New York, there
is a potential $2,750,000 in cash rebatesover a five-year period per eligible company
and these credits can be directly applied toquarterly payroll and income taxes.

• In 2022 Pennsylvania passed legislation
providing $115 million in new tax credits
annually in the renamed Pennsylvania
Economic Development for Growing
Economy (PA EDGE) program for a variety oftechnology sectors including semiconductor
manufacturing and biomedical research,and biomedical research. A provision in thelegislation requires a company to make acapital investment and create a formulafor the hiring of a specified number ofpermanent jobs.
• Wisconsin’s Refundable Research Tax
Credit was increased in 2022 from 10% to
20% with any unused research credit thatis not refundable and may be able to be
carried forward.

“In 2023 We will put our focus on
the high-wage and high-growth
innovation sectors that have thepotential to bring the greatest
investment and most jobs into ourstate – clean energy, life sciences,advanced manufacturing.”
New Jersey Governor Phil Murphy

12 | June 2023

The U.S. Biosciences Industry in the States

Bioscience Incubators and Accelerators

FOR EARLY-STAGE
COMPANY GROWTH

An investment in the physical structure needs of bothbasic and applied research at universities and life sciences-related institutes

is an essential step in the Biosciences invention and innovation ecosystem. As the science ofbiotechnology has steadily advanced, the industrial applications of the industry have dramaticallychanged in the past ten years, state-of-the art research demands modern research facilities.
Growing a company is a complex, multi-faceted effort. Founders of early-stage Biosciences andtechnology companies need qualified laboratory space, equipment, advice, mentoring, andinvestment for entrepreneurs reach their goals of getting to market.
State governments, academic research centers and private developers are very aware of thiscompetitive advantage and have increasingly integrated the physical facilities into the long-term
vision and strategy for economic development by setting aside physical assets to leverage publicprivate partnerships in early-stage commercialization efforts.
• QB3 is the University of California’s center
for innovation and entrepreneurship inlife science and is a research organization
combined with the fundamentals of astartup accelerator. QB3 benefits bioentrepreneurs by creating high-valuejobs and brings more than $750 million
each year with five of its incubators,
an affiliated venture capital firm, and a
special initiative in health technology. QB3
only focuses on life sciences, specificallyquantitative Biosciences.
• Connecticut’s CURE Innovation Commons
opened in a renovated laboratory buildingin Groton that was donated by Pfizer. The
22,000-square-foot biotech incubation
facility, which features laboratories, officesuites, conference rooms, event spaceand office hours with mentor and industry
experts, was renovated with a $4.2 million
grant from their state Department of
Economic and Community Development.

Innovation, Partnerships, and Job Creation• Delaware’s Graduated Lab Space Grants
incentive program creates “ready-to-go”
lab space for companies growing out of
space that hampers their ability to continue
thriving in Delaware. Target companies
include early-stage and small to medium
sized companies that are growing out of
their existing space in Delaware, as wellas similar companies from outside of thestate which are considering relocating or
expanding to Delaware. The Agreement
is structured so that both the company
receiving the grant and the space owner/
lessor are parties to ensure that: 1) thecompany remains operating in the state
for a period of five years; and 2) theowner maintains the improved space as acommunity asset for the same length oftime, regardless of whether the Company
Grantee leaves before the end of the fiveyear term. Eligible applicants may apply
for a grant of up to 33% of the fit-out orbuilding costs for the lab space portion of
the space.

bio.org 13

• The Sid Martin Biotechnology incubator
has approximately 40,000 square feet ofarea and is funded by the University of
Florida and the United States Departmentof Agriculture and the Florida Legislature
with its mission of nurturing the growth ofstartup companies that work in the field of
Biosciences and related to the University of
Florida. The incubator deals in all areas of
Biosciences such as life sciences, biomedical
research, medicine and chemical science.

“Over a decade ago, (Former)
Governor Patrick and thelegislature made a bet onlife sciences in this state —offering funding and support
and leadership to make
Massachusetts a leader inbiotech. Now, the results arenothing short of remarkable.”
Massachusetts Governor Maura Healey• LabCentral is a Massachusetts based
non-profit company which was founded in2013 as a launchpad for highly prospective
life sciences and biotech start-ups. It hasover 100,000 sq. feet of operational area in
Cambridge University and on the Harvard
University campus. LabCentral has a setup of fully permitted and fully equippedlaboratory and office spaces for as manyas 100 start-ups including around 500
scientists and entrepreneurs. Moreover,
LabCentral is building a more supportable
and comprehensive biotech system that
supports development, workforce training
and next-generation entrepreneurship
through its LabCentral Ignite initiative.
LabCentral offers world-class facility
and organizational support, a skilled andqualified laboratory operations team, anddomain-specific events and programming
as well as the other crucial facilities andsupport that early-stage startups need topush-start laboratory operations.
14 | June 2023

• Located in the heart of New Jersey’s
research corridor between Rutgers
and Princeton universities, theCommercialization Center for Innovative
Technologies (CCIT) incubator offers
wet labs and access to a wide array of
resource and networking opportunities
essential to the startup community. The
incubator’s leasable space includes offices,
as well as both small and large labs. The
46,000-square- foot CCIT also offers
discounted first-year rent for university
spinouts, educational programs andbusiness development resources, including
helping to identify funding sources.
• The North Carolina Biotechnology Center’s
Landing Pad program helps Biosciencescompanies establish a presence in thestate. The effort offers short-term flexible
lease office space in Research Triangle
Park as well as easy access to NC’s
life science community facilitated by
NCBiotech staff. Tenants have immediate
access to a conference center, accounting
and information services, university andinvestor connectivity, and a personal liaison
to support a soft landing in North Carolina.
• The Portland State University BusinessAccelerator in Oregon is an organizationof innovative entrepreneurs in Oregon.
The institute has 36,000 square feet of
total area, including a 2,600-square-footBiosciences lab. PSU is the abode to
future-ready technologies and Biosciences
startups which come from all main Oregon
research universities. The Accelerator
provides office space and fully-loaded lab
facilities are a plus for fast-growing startup
needs. The dedicated and skilled staffof the accelerator appeals to the region’s
top science and technology startups. The
startups are also leveraging the affordable
co-working space, access to the conference
room, monthly Business tycoons meetings
and topic-related Lunch & Learns,
fundraising and business management.

The U.S. Biosciences Industry in the States

Workforce Development Measures for

BIOSCIENCE EMPLOYMENT
Because workforce and economic development efforts naturally align, there is a growing recognition
by state policy and education leaders that to continue job growth there needs to be public funding
mechanisms to ensure a supply of skilled workers to meet Bioscience employer demand andeconomic prosperity for businesses and residents of the state.

State tax incentives continue to be important funding
sources states can implement in an innovative way to accomplish workforce

and economic development collaboration to attract new businesses in a target growth industry andcreate jobs. BIO believes that there is a growing need for enhanced support through new legislationand public-private partnerships focused on the future of the Biosciences workplace at all levels of
academic preparation for the Biosciences careers through educational opportunities.

• Arizona has established the Arizona HealthInnovation Trust Fund as a vehicle to drive
the creation of health innovations that can
improve quality of life for the people of
Arizona and increase opportunities for thehigh quality jobs Arizona health innovators
create. The appropriation allows the initial
set up of the fund and monies invested
must mature for five (5) years from thedate of deposit prior to the prescribed 4%
distributions being made to a contracted
Arizona non-profit that will focus on
workforce development, entrepreneurial
support, and mission related investments.
• In Connecticut, a new training program
has been launched for New Haven
residents interested in jobs in the city’s
rapidly growing biotechnology industry.
BioLaunch’s goal is to shape the biotech
industry to better benefit the broader New
Haven community, as well as to provide anavenue for historically underrepresented
communities in biotech to build rewarding
careers. The program is designed for noncollege-bound 18 to 26-year-olds andincludes both a classroom curriculum andinternship opportunities.

Innovation, Partnerships, and Job Creation• The Georgia Bioscience Training Center
offers customized workforce training
programs with high tech labs for preemployment assessments, gowning
simulations, production system andmanufacturing training, testing of raw
materials and microorganisms, aseptic
practices, technology maintenance andmetrology training, and computer labs. The
center is operated by Quick Start and isdesigned to be altered to teach a variety ofprocesses, pending a client’s needs.
• BioNexus KC of Kansas City, Kansas is coleading the development of a statewide
workforce training initiative to help area
life sciences employers fill in-demandjobs. The initiative also plays into anational challenge to rely less on overseas
pharmaceutical manufacturing and bringmore manufacturing capabilities stateside.
The $2 million workforce training effort
award has established the “Bioscience
Industry Occupational Training and Equity
Collaborative Hub for Missouri” or BIOTECH
for MO.

bio.org 15

• New York City’s BioBAT, Inc. is a partnershipcreated by the Research Foundationfor SUNY that works to support theadvancement of the life science industry byproviding facilities and resources for scientificresearch and advanced manufacturing at the
Brooklyn Army Terminal. A focus of BioBAT’s
mission is to attract and retain promisingresearch firms and develop a skilled 21stCentury workforce.

“New York is at the forefront of
the rapidly growing life sciencesindustry, which has becomea powerful growth engine forthe state growth and is turning
regions of the state into dynamic
life science .”• The University of Minnesota’s
BioTechnology Institute (BTI) received a
grant awarded by the State of Minnesota
Job Skills Partnership (MJSP) Board to kickstart their training efforts. Over the next
three years, BTI will provide advanced
biopharmaceutical training for up to 125
Takeda employees working at its biologics
manufacturing facility in Brooklyn Park,
Minnesota. The training program will consistof six courses focused on a range of topics
based on current Good Manufacturing
Practices (cGMP), technical writing, facility
operations and the product life cycle ofbiologics.

New York Governor Kathy Hochul• BioSTL has been awarded a $2 million grantfrom the Missouri Department of Economic
Development to create the Bioscience
Industry Occupational Training and Equity
Collaborative Hub for Missouri, which will help
train underrepresented communities for quality
employment in the Biosciences industry.
• The Nebraska Legislature approved thecreation of the Nebraska Innovation Hub
Act to serve as a resource for stimulating andsupporting entrepreneurship and technology
based small businesses in Nebraska.
The Nebraska Department of Economic
Development designates innovation hubs
within iHub areas to stimulate partnerships
economic development and job creation byleveraging iHub partner assets to provide aninnovation platform for startup businesses,
economic development organizations,business groups, and venture capitalists.

16 | June 2023

• The Oklahoma City Innovation District’s
biomanufacturing workforce training center(BWTC) program. One of the only programsof its kind within the United States, the
BWTC program presents inclusive, nondegreed careers within the city’s emerging
Biosciences industry that directly benefit
from the BWTC program’s output of skilled
technicians that are able to step directly into
the roles needed at local research labs andgenerate data more quickly.
• Puerto Rico and LIFT, the Detroit-based
national manufacturing innovation
institute, to open a local branch of its
operation to offer advanced appliedresearch and development, as well as
advanced manufacturing on the island.
In the agreement, LIFT will engage tosupport the local workforce developmentin the Biosciences and CHIP’s sectors byproviding next-generation manufacturing
training opportunities.

The U.S. Biosciences Industry in the States• Oregon’s BioCatalyst Advanced Training
Program offers Biosciences-specificprofessional training to under/unemployed
Oregonians hoping to launch their careers
in the Biosciences industry. The objective isto prepare qualified, mid-career candidates
to earn sector-specific Biosciences industry
certificates to facilitate this employmenttransition. Business Oregon, in partnershipwith Oregon BIO, received funding fromthe legislature to start the BioCatalyst
program in 2014.

• The University of Washington Bothell
School of STEM has been awarded
additional funding from the FY 2022
Omnibus Appropriations Bill to support
the growing Biomedical Innovation
Partnership Zone (IPZ) in the BothellWoodinville corridor, as well as the broadarray of biotech opportunities in the region
and across the state. Its aim is to expand
curriculum, increase student-faculty
research and create a pipeline of talent for
the growing biotech sector.

• The South Carolina Biotechnology
Industry Organization (SCBIO) launched
its life sciences workforce development
mobile app ‘Rad Lab’ and is designed for
middle- and high schoolers across South
Carolina. It is part of a workforce and careerdevelopment initiative spearheaded by
SCBIO and select industry partners that
seek to connect over 400,000 middle
and high schoolers in the state, including
underserved youth, to life-science careers
via mobile gaming technology.

“In order to make Virginia aleader in biotechnology, life
sciences and pharmaceuticalmanufacturing, we have toaccelerate our growth andcreate a best-in-class businessenvironment for this industry.”• The Employee Training Incentive Programprovides refundable tax credits to New
York State employers for skills trainingthat upgrades or improves the productivityof their employees. Businesses can also
receive tax credits for approved internshipprograms that provide training in advanced
technology, life sciences, softwaredevelopment or clean energy. Tax credits
may be awarded for costs associated with
an eligible training program for current or
new employees. The internship program
is available for current students, recent
graduates and recent members of thearmed forces. Tax credits may be issued only
after approved training is completed.

Innovation, Partnerships, and Job Creation

Virginia Governor Glenn Youngkinbio.org 17

GLOSSARY OF TERMS
As the science of biotechnology has advanced over the decades, the need to better define key
components of the various facets of company creation and expansion and description of thefoundational building blocks for individuals or groups interested in various phases and tools
needed to successfully navigate the growing economic development community of interest in the
Biosciences. Here are some examples.

Angel Investor: An investor who provides
financial backing for small startups orentrepreneurs. Angel investors typically invest
their own funds, as opposed to venture
capitalists who manage pooled money ina professionally managed fund. The capitalprovided by an angel investor can be a onetime injection of seed money or ongoingsupport.
Bioeconomy: Economic activity involving
the use of biotechnology and biomass inthe production of goods, services, or energy.
This includes the application of scientific andtechnological developments to agriculture,
health, chemical, and energy industries.
Biomanufacturing: A type of manufacturingthat utilizes biological systems to produce
commercially important biomaterials andbiomolecules for use in medicines, foodand beverage processing, and industrial
applications.
Bioscience Research: : The basic, applied,or translational research that leads to thedevelopment of therapeutics, diagnostics,
or devices to improve human health oragriculture.
Business Incubation: A business support
process that accelerates the successful
development of start-up and fledgling
companies by providing entrepreneurs with anarray of targeted resources and services.

18 | June 2023

Business Retention: The activity that an
economic or workforce development agency
undertakes in order to reduce the loss ofprivate sector businesses.
Drug Development Costs: The total cost ofdeveloping a new drug, including studies
conducted after regulatory approval.
According to a 2020 analysis by the Tufts
Center for the Study of Drug Development,
the average cost is $2.7 billion and up to ten
years of research and testing.
Economic Development: A process that
influences the growth and restructuring ofan economy to enhance the economic wellbeing of a community. Economic development
encompasses job creation, increases incommunity wealth and the improvement ofquality of life.
Fund of Funds: A "fund of funds" is aninvestment strategy of holding a portfolio ofother investment funds rather than investing
directly in stocks, bonds or other securities.
FDA Review: The regulatory process by which
the U.S. Food and Drug Administration reviews
a sponsor company’s data from clinical studies
to determine if the new product is safe andeffective for its intended use.
Human Capital: A measure of the economic
value of an employee’s skill set, including
education, experience, abilities, andproductivity.

The U.S. Biosciences Industry in the States

Incentives: Benefits or rewards offered tomotivate action. Incentives are often as part ofan economic development strategy, including
tax abatements and credits, low interest loans,infrastructure improvements, job training andland grants.
Net Operating Losses: Net operating loss
is the result when a company's allowabledeductions exceed its taxable income within atax period. The NOL can generally be used tooffset a company's tax payments in other tax
periods through an IRS tax provision called aloss carryforward.

Tax Credit: The amount of money that can beoffset against a tax liability. Tax credits are often
used as an incentive to attract new companies
and retain existing companies in the state.
Tax Exemption: The amount of money thatcan be subtracted from the assessed market
rate. Tax exemptions are often granted toindividuals, institutions and types of property.

Initial Public Offering (IPO): The first sale ofstock by a company to the public.
Public-Private Partnership: A venture which
is funded and operated through a partnership
between a government entity and one or moreprivate sector companies, usually to finance,build or manage a project for the public good.
Seed Capital: The funding required to get a
new business started. The capital is almost
always supplied by an entrepreneur and his/herfamily, friends and relatives, and it is used tohelp attract other investments.
Small Business Innovation Research Grants(SBIR): Federal and state grant agreements
entered into with companies focused on theperformance of experimental, developmental
or research work leading to potential creationof goods and services.

Innovation, Partnerships, and Job Creation“Illinois continues to grow asa thriving innovation hub withworld-class research institutions
and top-tier talent for a biomedical
research hub that will take medical
research to a new level.”
Illinois Governor J.B. Pritzger

bio.org 19

Economic Development Guide

CONCLUSION

As illustrated in this 2023 biennial economic
development report, every U.S. state continues
to actively engage in building Biosciencesindustry infrastructure through state-based
policy measures that encourage investment
in capital and human resources to support
companies in a challenging economic
innovation cycle.
We have growing life science clusters, bothlarge and small, and a diverse community of
stakeholder groups that provide the strategic
research initiatives, financing, enabling legislation,state-of-the-art laboratories within both industry
and university research parks, and workforce
training efforts needed to successfully compete
in today's marketplace of ideas.
Since the beginning of the Biosciencesindustry forty-plus years ago, public-private
partnerships that provide cutting-edge
research turned products for the marketplace
are crucial at all levels of company creationand expansion, and the future of our industry
is predicated on leadership and commitment
to maintain and grow the Biosciences industry
into the future.

Principal Author, EditorPeter M. Pellerito
BIO Senior Policy Adviser
Federal/State Economic Development 		& Technology Transfer LeadBIO Editor
Michael Linehan
BIO Manager, State Government Affairs“We’ve always talked about
Rhode Island being a hub ofbioscience activity and overthe past few years we’velaid the foundation for thisgrowing sector. It’s time todouble down and make amajor investment in Rhode
Island’s life science industry.”
Rhode Island Governor Dan McKee

Beyond the economic efforts noted in thereport, we believe that while we are living
through one of the most challenging times
in our nation’s history, this has also been aclarifying time. Clarifying in the sense that weare seeing the best of the scientific community
and unprecedented public collaboration andcooperation within our industry to identify ways
to improve the human condition through science.

Editorial Review Contributors:
Vicky Stinson, BIO Director of State Policy 		& Strategic Communications
Patrick Plues, BIO Vice President, State
Government Affairs
Michele Oshman, BIO Vice President ofExternal Affairs
John Guy, BIO Manager of Emerging 		Companies Policy

Designed and Formatted by:
Meagan Samuel, 29M Designs, LLC

20 | June 2023

The U.S. Biosciences Industry in the States

1201 New York Avenue, NW Ste. 1300
Washington, D.C. 20005
bio.org

Innovation, Partnerships, and Job Creation

bio.org 21