New Brunswick, NJ, November 13, 2014 ― The Asbury Park Press has published an op-ed by HealthCare Institute of New Jersey (HINJ) President and Chief Executive Officer Dean Paranicas regarding New Jersey’s “2.0 business environment” and its impact on the state’s life sciences community.
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There have been reports that claim that New Jersey is no longer the pharmaceutical powerhouse it used to be, including a recent Asbury Park Press story by Michael L. Diamond (“What NJ Needs to Learn from Other States,” October 18, 2014).
We disagree. To paraphrase Mark Twain, reports of New Jersey’s demise are greatly exaggerated.
For decades, New Jersey has rightly earned its reputation as the “Medicine Chest of the World” — and our state leaders are working with the life sciences industry to keep it that way.
Mindful of the life sciences’ significant contributions to the state’s economy and global human health, Governor Christie and his economic development team, together with the State Legislature and its leadership, both Democrats and Republicans, have worked diligently over the past few years to enhance the state’s business climate to retain and grow the many life sciences companies that call New Jersey home — and attract new industry investment.
These measures — which have created, in effect, a “2.0 business environment” in New Jersey — certainly are not the sign of a state willing to cede its life sciences leadership role to any other state or nation, for that matter.
What measures have contributed to this new business environment?
State leaders have adopted the single sales factor as the basis for calculating the state’s corporate business income tax, lifted the cap on the Research and Development Tax Credit to 100 percent, provided full funding for the Technology Business Tax Certificate Transfer Program, reformed state regulatory review processes, and streamlined business incentive programs.
Our leaders also have bolstered the Garden State’s “Innovation Ecosystem” — a partnership among the state, academia and industry to support and grow New Jersey’s innovation-based economy.
In addition, state officials restructured New Jersey’s higher education system to encourage greater collaboration between our research-driven companies and the state’s institutions of higher education.
These efforts have been greatly welcomed by our life sciences industry, and there are a number of signs that these steps are paying dividends.
Even as other states and nations compete aggressively for industry investment, life sciences companies continue to come to New Jersey (e.g., Actavis, Allergan, Biotrial SA, Celsion, Dendreon, Ferring, Frontage, Ipsen, Leo Pharma, Valeant).
Moreover, incumbent life sciences companies have increased their capital spending in New Jersey (e.g., Bayer, Celgene, Novartis, Novo Nordisk).
Very importantly, New Jersey life sciences companies are investing in research and development to discover new, innovative medicines, therapies, devices and diagnostics tools. According to HINJ’s 2013 Economic Impact Report, participating HINJ member companies’ New Jersey facilities spent $8.7 billion for R&D in 2012.
When it comes to employment, the business model of the life sciences industry is evolving — around the world and in the United States. Consequently, since New Jersey is an industry leader, those changes understandably are reflected here in the state.
While the mix of jobs may be evolving, the life sciences industry, in 2011, still accounted for creating or sustaining more than 320,000 direct and indirect jobs New Jersey, and generated more than $43 billion in direct annual economic activity in the state, according to the Battelle Technology Partnership Practice.
Life sciences activity elsewhere does not necessarily imply that New Jersey has relinquished its innovation leadership. Our state’s life sciences industry remains dynamic, fueled by research and focused on providing innovative medicines, therapies, diagnostic tools, medical devices and technologies that improve the human condition.
We are confident that — with the leadership New Jersey officials have demonstrated as well as their ongoing commitment to preserving the life sciences as the state’s economic crown jewel — New Jersey will remain a world-class innovation hub and the “Medicine Chest of the World.”
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