Hillside, NJ, August 5, 2004 — The pharmaceutical and medical technology industry has long been an economic engine in New Jersey, with many companies arriving here more than a century ago. Now, a groundbreaking study conducted by renowned Harvard Professor Michael E. Porter underscores the importance of this industry to the state’s “life sciences cluster.”
In fact, the newly-released “New Jersey Life Sciences Super-Cluster Initiative” concludes our industry is the innovation “anchor” for our state’s economy. However encouraging these findings are, Dr. Porter’s study also demonstrates the need for greater collaboration among industry, government and academia, if New Jersey is to remain a national leader in the life sciences.
Porter’s report clearly indicates that we have some important challenges ahead of us. For instance, while pharmaceutical and medical technology leads our state in the area of private research expenditures, the state lags behind in National Institutes of Health (NIH) and public funding of all types.
And, despite the fact that our industry has important relationships with New Jersey’s research universities, a great deal more needs to be done to strengthen that alliance. Dr. Porter acknowledged that large pharmaceutical companies are a key strength to New Jersey, but their dominance has led to a “muscle-bound” economy that is not transforming itself fast enough.
One finding from Porter’s analysis is that other states are being extremely creative and aggressive in their efforts to attract investment from the pharmaceutical and medical technology industry to their states. To preserve New Jersey’s dominance in health care, we need to continue our innovative leadership — both public and private — and invest in the life sciences cluster to ensure its continued growth.
Dr. Porter’s recommendations for business, academia, and government included: working for a stronger lobby in Washington, creating incentives for start-up companies, developing life-science research parks, and exploring use of the state pension fund for investing in science companies.
Porter also noted that government has an important public policy role to play in the development and nurturing of the pharmaceutical and medical technology industry. The federal government and its policies play a significant role in shaping our industry. Their actions have an impact on our ability to discover new breakthrough medicines and develop innovative medical devices. The federal government must fully protect this industry’s intellectual property and foster innovation. State government also needs to be an integral partner.
When Governor McGreevey asked our industry to participate in this study, HINJ believed it was an important recognition that pharmaceuticals and life sciences had truly assumed the status of New Jersey’s premier industry. The completion of this study by Dr. Porter, an international expert on competitiveness, emphasizes this status.
As we move forward with implementing the recommendations of the Porter Study, we will be looking to the Governor and state policy-makers to embrace the concerns of the life science cluster. As Dr. Porter correctly noted, New Jersey became the world’s leading pharmaceutical cluster by attracting and growing large companies with global reach. These companies employ the best scientists and the best managers.
But, as Porter said, competition in life sciences among the states is shifting and evolving. Great research universities and teaching hospitals, vibrant new companies, and effective linkages among life science partners characterize the fastest growing and most dynamic regions of our country. New Jersey needs to accommodate this new paradigm.
New Jersey’s pharmaceutical and medical technology industry can lead the transformation of the life science cluster in our state. Our state has a long and proud history in the research-based pharmaceutical and medical technology industry. And we believe New Jerseys’ best days are ahead of us in the life sciences.