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Biotech Plan for Southwestern Pennsylvania Released

March 15, 2002

To shed light on the strengths and weaknesses of the region's biotechnology cluster, Carnegie Mellon University's Center for Economic Development (CED) has published A Biotechnology Action Plan for Southwestern Pennsylvania. The CED report says the Pittsburgh biotechnology cluster largely depends on the amount of available venture capital and the development of new technologies and that total funding levels must be increased to continue biotech development.



Dividing the biotechnology/biomedical cluster into three sub-clusters — pharmaceuticals, instruments and devices, and tissue engineering — the report draws a comparison with other regions, including Boston, Philadelphia, San Jose and Chicago, and observes that Pittsburgh ranked 165th nationally in 1998 in biotechnology patents per biotechnology employee.



One of the region's strengths, the report says, is the high level of Small Business Innovation Research (SBIR) awards in biotechnology received from the U.S. Department of Health and Human Services, including the National Institutes of Health. Between 1993-1998, these agencies accounted for 32 percent of all SBIR awards made to firms in the region, including nearly $7.3 million in 1998.



Among the region's weaknesses, according to CED, is a level of biotechnology venture capital investment too low to support "a robust biotechnology cluster." Out of more than $1 billion in such funding nationally in 2000, Pittsburgh's biotech firms received only $1.9 million. This level of funding showed an increase over the previous year but reflected a 68 percent decrease from 1998-2000, the report states.



CED suggests two keys to success will be experienced managers for the region's biotechnology workforce and university technology transfer policies that could make the region a center of biotechnology. The region's Life Science Greenhouse initiative, which will receive about $30 million in state funding, is one effort underway to help ensure that success. (see related Digest article at http://www.ssti.org/Digest/2001/051101.htm)



A Biotechnology Action Plan for Southwestern Pennsylvania is available in its entirety at: http://www.pghtech.org/advocacy/clusterbio.pdf

Pennsylvania