Creating Connection – 2010 Keynote: State of Biotechnology and Oregon’s Role
By Linda Barney, Barney and Associates

Julie Shimer, president and CEO of Welch Allyn, was the keynote speaker at the conference. Welch Allyn is a privately-held, family-owned manufacturer of medical devices, products and solutions used by caregivers in doctors’ offices, hospitals, and emergency response settings around the world. Welch Allyn is headquartered in Skaneateles Falls, NY but gained a major facility in Oregon when it purchased Protocol Systems, maker of the Propaq line of patient monitors, in early 2000. The Oregon Welch Allyn site continues to be a major facility and produces the Welch Allyn Connex Electronic Vitals Document System.

Dr. Shimer provided an overview of biotechnology research, funding and proposed changes that need to be made. Shimer indicated that California and Massachusetts are the major biotechnology sites in the United States and they get the most venture capital and research funding. “We need to recognize that competitive, high-performing regional economies are essential to a strong national economy,” stated Shimer.

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Summary of biotechnology in Oregon

Shimer presented the following summary of biotechnology in Oregon:

• Oregon is home to 3 signature research centers.

• Oregon universities rank 26th nationally in total research spending with nearly $557 million spent in 2006.

• Of the $575 million spent for university and college research in 2007, only 4% is sponsored by industry. Yet Oregon is ranked 11th among states in industry R&D spending as a percentage of gross state product, with 75% of total research dollars spent by industry.

• Oregon attracts less than 1% of the nation’s venture capital investment, ranking 19 ^th nationally.

• Oregon’s colleges incubate fewer new companies, with 10 start-ups launched in 2007.

• Oregon is home to fewer fast-growing technology companies, with only one company on the 2008 Deloitte Technology Fast 500 list.
  
  

Goals of the 2009 Oregon business plan economic innovation initiative

Shimer praised the Oregon biotechnology audience in looking for ways to innovate and collaborate through organizations such as the OBA and the Oregon Innovation Council (InC). The Oregon Innovation Council seeks to facilitate the commercialization of innovative research, create new businesses, help retain existing jobs, ensure opportunities for both rural and urban communities and to plant the seeds that grow into the next generation of family wage jobs.

What Oregon can learn from the New York State Task Force Report

According to Shimer, the states of New York and Oregon possess many of the fundamentals required to become a universally recognized world-class center of innovation. However, to realize their potential and achieve such a distinction, they need to develop an innovative ecosystem that efficiently and effectively unites universities, industry and capital.

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Shimer compared the biotechnology field in New York and Oregon and cited a New York State Task Force Report called Taskforce on Diversifying the New York State Economy through Industry-Higher Education Partnerships, Final Report, December 14, 2009.

Shimer said, “We need to recognize that competitive, high-performing regional economies are essential to a strong national economy. Oregon needs to follow recommendations summarized in this report, including transforming university, industry and state practices, improving access to capital, creating critical mass in strategic areas, and developing communications networks.

“There must be regular, public reporting of metrics and intellectual property (IP) and policies must be repeatable and easy to use. Universities must take a different approach to monetizing research to turn it into commercialized products. Industry financing and venture capital funding must be available to create new biotechnology-related companies.”

Challenges to the Oregon biotechnology industry

Shimer challenged the audience by asking, “Can the Oregon biotechnology community agree on a research agenda, one you are willing to invest in? You must bridge the valley of death by creating regional business hubs and create critical mass in key areas with cluster development. Finally, companies should proactively communicate their research and technology needs to university researchers. In this way, researchers can respond directly to market forces and companies can establish broad-based relationships with universities, thereby maximizing communication and promoting effective, long-term collaboration.”

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Shimer’s complete presentation is available here.

Linda Barney is the founder and owner of Barney and Associates, a technical / marketing writing, training and web design firm in Beaverton, Oregon that provides writing and web content for the high tech, government, biotechnology, medical, sustainability and scientific communities. Linda writes articles for the Software Association of Oregon, the Oregon Bioscience Association, the Clean Technology Alliance, and the Supercomputing Conference. Contact Linda at linda@barneyassoc.com.