$1B Investment in Massachusetts Life Sciences Now a Reality

A little more than a year after unveiling a comprehensive proposal to provide crucial funding for R&D, commercialization and infrastructure to position Massachusetts as a global leader in life sciences, Gov. Deval Patrick signed an historic 10-year, $1 billion life sciences investment package, transforming the ambitious idea into reality.
 
The signing of the bill coincides with BIO’s annual meeting, currently underway in San Diego – the same event during which the governor unveiled the proposal last year. With a typical draw of more than 20,000, the event provides an opportune backdrop for the governor, legislative and industry leaders to promote the state to biotech companies and investors.

Details of the legislation were debated incessantly among lawmakers and industry leaders over the past year. The final version of the bill directs half of the money in capital funding for infrastructure, divided between targeted projects ($299.5 million) and unrestricted funds ($200 million) for investment in public infrastructure projects to be decided on by the Massachusetts Life Sciences Center (MLSC).
 
MLSC also will receive $25 million per year for 10 years for the Massachusetts Life Sciences Investment Fund to provide loans, grants, fellowships and investments to stimulate R&D. Another $250 million over 10 years will be used for tax incentives for certified life sciences projects. Additional components of the bill include:

• The creation of a Life Sciences Investment Program to expand employment in the life sciences sector;
• The creation of five Regional Technology and Innovation Centers, along with an 18-member advisory board; and,
• Four additional funds to be administered by MLSC.

Adding to the buzz surrounding the legislation, the 2008 Massachusetts Life Sciences Super Cluster report released last week details the current economic impact of the life sciences sector in the Massachusetts region. The report finds the region is a strong force in research and innovation, but warns of increasing competition for talent and funding from other states and countries. Key indicators estimate that the life sciences sector contributes approximately $8 billion annually to the state’s economy and that the industry directly employs more than 77,000 people.
 
The report by PricewaterhouseCoopers, the New England Healthcare Institute, the Massachusetts Life Sciences Center and the Massachusetts Technology Collaborative includes the personal perspectives of 147 industry leaders in the life sciences sectors throughout the state.