New Brunswick, NJ, October 7, 2002 — The pharmaceutical and medical technology industry has long been an economic engine in New Jersey, with companies such as Johnson & Johnson and Merck arriving 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 science cluster.”
In fact, the newly-released “New Jersey Life Sciences Super-Cluster Initiative” concludes our industry is the innovation “anchor” in life sciences.
However encouraging these findings are, Dr. Porter’s study also demonstrates the need for greater collaboration among industry, government and academe, if New Jersey is to remain competitive in the life sciences.
Dr. Porter’s also report clearly indicates that we have some 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. Moreover, 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. That stagnation could be cause for alarm.
One finding from Porter’s analysis is that other states are being extremely creative and aggressive in their efforts to attract investment from this industry to their states. To preserve New Jersey’s leadership role 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
- Incentives for start-up companies
- Creating life-science research parks
- Exploring use of the state pension fund for investing in science companies.
To that end, government has an important public policy role to play in the development and nurturing of this industry. The federal government and its policies play a significant role in shaping our industry, impacting the 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. Porter’s work recognizes this important dynamic.
State government also needs to be an integral partner.
When Governor McGreevey asked our industry to participate in this study, we believed it was an important recognition by the Governor 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 importance.
As we move forward with implementing the recommendations of this study, we will be looking to the Governor and state policymakers 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.
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. We are confident that New Jerseys’ best days are ahead of us in the life sciences.