Pennsylvania: Life Sciences Greenhouse Initiative
To capitalize on their existing strengths in the biosciences in 2001, Pennsylvania House Bill 2 created the Pennsylvania Life Sciences Greenhouse Initiative to sustain early stage risk capital for the industry. The one-time investment of $100 million from Tobacco Settlement funding was allotted to Central Pennsylvania, Philadelphia, and Pittsburgh and is part of Pennsylvania's larger $2 billion Biosciences Enterprise Commitment to fuel research and development, venture capital and other early-stage company investment.
Arizona: Biodesign Institute
Arizona's Biodesign Institute at Arizona State University was established in 2000 to create an entrepreneurial research culture attractive to scientists uniquely capable of working across disciplines and in close cooperation with industry. In 2003, the Arizona legislature partially funded the construction of four interconnecting buildings with 800,000 square feet of advance research space with flexibility for adaptation related to new research efforts.
Delaware: Biotechnology Institute and Technology Park
The Delaware Technology Park was created in 1991 and is an early example of a statewide collaboration between the state's universities, government, and private sector to move early technology invention to the marketplace. In 2000, Senate Bill 242 authorized the creation of Delaware Biotechnology Institute, to more fully integrate biotechnology to state-of-the-art research laboratories in the areas of biology, biochemistry, engineering, and computer science.
3. Venture Capital/ Discovery Funds
The need for private equity funding continues to be a reality confronting all bioscience companies. Locating funds to underwrite innovative research is an on-going challenge for small companies which require significant funding to hire qualified personnel and acquire research space and equipment. More established companies require larger infusions of venture capital funding for investments in additional infrastructure and clinical research and to move products into the marketplace. It can take anywhere from 10-15 years and more than $1 billion dollars to successfully bring a biotech product to market.
A number of states have passed measures to encourage venture capital and discovery fund investments that benefit targeted technology sectors. These initiatives tend to specifically target early stage funding typically underserved by existing capital markets. Policymakers are establishing a variety of mechanisms to provide vital "deal flow" funding for companies at various stages of research and development. From encouraging pension fund and quasi-public investments administered by privately managed venture funds to tax credits to angel investors. Examples of state venture capital initiatives are listed below:
Michigan: 21st Century Jobs Fund
Michigan's 21st Century Jobs Fund Public Act 225 is a $2 billion, ten-year initiative to accelerate the diversification of the state's economy and devotes approximately $800 million for technologies in the targeted sectors of life sciences, alternative energy, and other industries. The annual awards are administered by the Michigan Economic Development Corporation (MEDC) with contracts that establish conditions and mileposts for receipt of funds. The Jobs Fund's Competitive-Edge Technologies Program invests in funds or alongside qualified private equity funds, qualified mezzanine funds, and qualified venture capital funds and a commercial enhancement program to assist small companies