State Needs to Be More Competitive Against Other States, Nations to Keep and Expand Life Science Jobs
Bridgewater, NJ, December 21, 2010 — New Jersey′s biopharmaceutical and medical technology sectors felt the brunt of the recession and the aftereffects of significant merger activity in 2009, according to the HealthCare Institute of New Jersey′s (HINJ) most recent economic impact report conducted by Deloitte.
The industry reported 4,600 fewer life science jobs in New Jersey in 2009 due to the global recession and industry consolidation. Despite this decrease, HINJ member companies had an estimated $29.25 billion impact on the state′s overall economy, the highest ever recorded.
New Jersey′s workforce and economy continue to benefit from the life science industry′s presence, but HINJ urges national and state leaders to act quickly to adopt policies that will make our nation and state more competitive against other states and foreign countries seeking to attract life science jobs and investment.
“New Jersey has long benefitted from a robust and vibrant life science industry that has provided tens of thousands of jobs and pumped billions into the state′s economy,” said HINJ Board of Trustees Chairman Tim Ring, chief executive officer of C.R. Bard. “But times are changing and other states and nations are vigorously competing, and many are succeeding, to attract life science companies. If New Jersey fails to act, our state′s place as the national and world leader in developing new medicines and medical technologies will diminish, and with it countless economic benefits for New Jerseyans.”
HINJ points to recommendations from the Council for American Medical Innovation for federal action to protect and strengthen America′s leadership position in medical innovation. Among the recommendations is the creation of a federal-level office to develop a national strategy for medical innovation that engages the public, private and academic sectors. Key to maintaining our leadership position in medical innovation is developing a predicable regulatory system based on sound science.
“The promise of investment in medical innovation is profound – from creating jobs to bolstering the economy to finding cures for devastating diseases. Unfortunately, the benefits of investment are not reaped for years and sometimes even decades, which often makes it difficult for policymakers to see the value of investing in medical innovation today,” said Debra Lappin, president of the Council for American Medical Innovation. “It is my hope that the report issued today by the HealthCare Institute of New Jersey is yet another wake up call to policymakers that investment in medical innovation is also an investment in jobs, cures and state economies.”
For New Jersey, greater collaboration between its colleges and universities and the life science industry is another necessity for the state to remain a global leader in medical innovation.
“If you look at the highly successful life science clusters in the United States and globally they include, and are often nucleated by, major life science research universities,” says Dr. Kathleen W. Scotto, PhD, vice president of research at the University of Medicine and Dentistry of New Jersey. “The transfer of intellectual property developed in colleges and universities to the life sciences industry has become even more critical as pharmaceutical companies downsize their own research and development efforts. Equally important is the transfer of our highly educated and motivated life sciences students and trainees to New Jersey′s life science workforce.”
Companies prefer to work with, and be in proximity to, academic researchers who are developing tomorrow′s medical breakthroughs. Massachusetts, North Carolina and California, which have all grown their life science industries, actively encourage and facilitate collaboration between the industry and academia.
California′s Innovation Hub Initiative encourages partnerships, economic development, and job creation around specific research clusters through state-designated innovation hubs. These hubs leverage assets such as research parks, technology incubators, and universities to provide an innovation platform for startup companies and others.
“Regional clustering doesn′t just happen. New Jersey′s life science industry is the perfect anchor for a cluster, but it takes a progressive attitude towards public-private partnering to foster innovation across a supply chain. The states that figure out how to collaborate to compete will be the winners in the new economy,” said Dr. Donald H. Sebastian, New Jersey Institute of Technology′s senior vice president for research and development.
The Massachusetts Life Sciences Center links businesses, schools and non-profits to each other to foster relationships among academic, corporate, and governmental entities.
Despite its steep and proud life science history, New Jersey has lagged these states in fostering the partnerships that grow life science companies, attract innovator companies, and create jobs for New Jerseyans.
HINJ officials are encouraged by the governor and legislature′s recent actions to make New Jersey more competitive and attractive for life science investment.
“Actions and policies by Governor Chris Christie and his administration to streamline the permitting process, control property taxes, and foster greater collaboration between business and academia signal that New Jersey policymakers appreciate and understand the economic importance of the biopharmaceutical and medical technology industry,” said Ring. “These actions will make New Jersey a more competitive venue for investment and job creation.”
The HealthCare Institute of New Jersey is the trade association for New Jersey′s research-based biopharmaceutical and medical device companies.
To download a copy of the economic report, please click here.