Research parks are attractive ventures

Sioux Falls Business Journal

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As Sanford Health moves into year two of working on four key initiatives, at least one of those areas has existing models from which the health system can learn.

Development of a research park touches almost all of the initiatives that Sanford has identified.

Two initiatives - trying to cure a disease and establishing 20 pediatric clinics worldwide - may have never been done by a health system. However, there are more than 150 research parks in North America.

Other biomedical research parks have faced various challenges that Sanford also might encounter.

Neighboring Minnesota is a well-established medical hub that Sanford may look to when developing its park. Many medical breakthroughs and companies have developed out of that state.

"Minnesota is really a leader in the biosciences around the country," said Kirsten Morelle, spokeswoman for the Minnesota Department of Employment and Economic Development.

In 1957, Earl Bakken, co-founder of Minneapolis-based Medtronic, designed the first wearable, external cardiac pacemaker, which led to the success of the company.

One challenge in developing a biomedical research park is that it's a sought-after idea, she said.

"It's a vast, complex field," Morelle said. "Everyone in the world is trying to invest in this field."

She suggests that research parks focus on their strengths.

A solid work force, good quality of life and a favorable business environment are necessary in attracting businesses to a research park, she said.

Academics also are important in creating a sound foundation.

"To be a real leader in the bioscience industry, it kind of takes the interaction of the academic institutions, researchers and economic development," Morelle said.

Together, the University of Minnesota in Minneapolis, the Mayo Clinic in Rochester and the state of Minnesota manage research projects totaling more than $700 million.

The Minnesota Innovation Center, a proposed research and development technology park for medical technology and biotech companies, also is trying to establish a relationship with the U of M. The park will be built on land adjacent to the University of Minnesota.

Plans for the center, an affiliate of Wall Cos., include a 65-acre plot with 1.6 million square feet of building space.

John Wall, president of Wall Cos., said the donation to Sanford Health might help recruit a large anchor tenant and attract and develop other companies to the Sanford Research Park.

One of the challenges for research parks is that companies need additional cash to build their buildings.

"Startup companies have the same needs and have no credit. It will be more difficult to finance," Wall said. "Those are the cases where you need someone to help out."

Presbyterian Health Foundation Research Park in Oklahoma City is made of up 35 science-based companies, including a life-science biopharmaceutical company, cancer-profiling predictive medicine company, pathology company and robotic technology company.

The research park started in 1995 with a research science company that spun off from the University of Oklahoma.

The park is adjacent to the University of Oklahoma Health Sciences Center from which many of the park's startup companies developed. The park also is near the Oklahoma Medical Research Foundation.

"In the last five years, we've have had a new science-based startup company begin every 60 days," said Michael Anderson, president of the Presbyterian Health Foundation.

"We have built buildings that are sensitive and practical to the work of incubating a science company," he said. "Once that starts there is a momentum factor."