WRAL Tech Wire

When Thinking about 21st Century Biotech, Don’t Overlook Georgia

RESEARCH TRIANGLE PARK - Quick quiz: Which state does this phrase most apply:

“21st Century Bioeconomy”

North Carolina comes to mind. California, certainly. Massachusetts, of course.

What about Georgia?

Yes, the Peach State is conceding no ground in development of a biotech industry with applications in pharmaceutical development, biofuels and much more. For example, last month, state and local officials announced plans to turn part of U.S. Army base Fort McPherson into a biotech campus.

The goal: Produce a technology hub similar to Research Triangle Park or MIT.

While North Carolina justifiably takes pride in its booming biotech industry (more than 400 companies, more than 40,000 jobs), leaders in the biotech sector constantly warn that the state can’t take the sector for granted. Other states – especially Georgia – have targeted life sciences and biotech as major economic growth objectives.

Georgia’s drive was highlighted this week at the annual Georgia Bio conference and the release of the Georgia Bio organization’s second annual report on the state’s life science sector. It’s title speaks to Georgia’s public and private sector commitment to biotech: “Shaping Infinity.”

The 48-page overview notes that there are now 195 biotech companies in the greater Atlanta metro area alone. While Research Triangle Park ranks third nationally in terms of biotech clusters, North Carolina leaders know they must keep their collective radar focused on Georgia’s intensifying recruitment efforts and burgeoning life science research taking place at universities such as Georgia Tech and Emory.

“In 2006, private establishments in the life sciences ndustries provided 15,283 jobs, over $940 million in annual wages, and an average annual wage of $61,507,” the Georgia Bio report notes. “The industry is projected to produce $6.9 billion in Georgia-generated sales in 2007.”

While growth in the biotech sector did slow between 2005 and 2006, researchers also found that emerging biofuel and bioenergy firms should give the biotech sector a boost.

Georgia is also nurturing many small companies that could become big job producers in the future. More than 38 percent of the companies that participated in the Georgia Bio survey have 10 or fewer employees. Of 70 firms that participated in the report, 43 plan to add jobs with the vast majority being researchers and technologists.

Like North Carolina, however, Georgia firms expressed concerns about the availability of skilled workers. (The Tar Heel state is investing millions and millions of dollars on workforce training initiatives such as the new Golden LEAF center at North Carolina State University.) In Georgia, workers are a problem. “The availability of skilled managers and technicians is considered the most pressing labor force issue by survey respondents,” the Georgia report said.

However, access to university researchers is considered a Georgia strength. Over the past two surveys, Georgia Bio reports that 47 of 90 companies reported affiliations with universities. “The availability of skilled researchers is considered a strongpoint,” the report said.

Like North Carolina, biotech firms also face funding issues. Respondents told Georgia Bio they raised nearly $250 million in capital in 2006 and expect to raise more than $319 million this year. But that’s apparently not enough.

“Access to capital and the quality of life are singled out as the most important factors for the life sciences companies in Georgia,” the report said. “While the majority of respondents considered the quality of life a strongpoint, access to capital was singled out as a weakness.”

Other strengths for Georgia include:

• Proximity to academic institutions

• Adequate space and facilities

• Availability and cost of land

Sound familiar?

To read the full report, check out the Georgia Bio Web site.

The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…