San Francisco Bay Area losing biotech grip- Industry, political leaders map strategy to retain dominance

The Bay Area has long been the most pioneering, innovative cluster of biotechnology companies in the world, but local industry leaders are hearing the footsteps of competitors gaining fast.

By Tim Simmers, Oakland Tribune BUSINESS WRITER

Biotechnology and life science clusters in Boston, Austin and North Carolina are expanding, and trying to grab a bigger share of the market.

That’s why biotech leaders here have joined forces with Gov. Gray Davis’s administration to create a strategic plan to retain the Bay Area’s cutting-edge position as biotech’s birthplace and the forefront of new ideas.

"There was a day when all you had to say was you’re the Bay Area, and everybody wanted to be here," said Sally DiDomenico, director of the Bay Area Science Infrastructure Consortium, which is part of the joint effort. "That day is over, and now you’re going to have to work for it."

The meeting was held at the new Genentech Hall at the University of California, San Francisco campus located south of Market.

The state, the Bay Area Council of business leaders and the Bay Area Bioscience Center unveiled a plan Friday that provides a roadmap with a clear set of milestones to preserve and grow the regional cluster here.

The group is creating a nongovernmental organization to promote the industry and optimize growth. One key charge is to improve the technology transfer process, which would help quickly move university research proj- ects from development into startup companies. That was one of the key industry problems voiced at a summit meeting last to December at SRI International in Menlo Park to determine what the industry needs to stay competitive.

Another important charge includes pushing to improve tax credits for companies that create jobs here and invest heavily in local research and development.

The group also will push to raise people’s awareness of the life science industry as a driver of the Bay Area economy. It also will promote the Bay Area as a center of innovation.

The Bay Area’s life science cluster contributed $12 billion to the regional economy, or 3.6 percent of the area’s gross metropolitan product. San Mateo County, the industry’s birthplace with the founding of Genentech 27 years ago, depends even more on biotechnology for its economic lifeblood.

The sector contributes $1.9 billion, or more than 5 percent, to the San Mateo County economy.

The industry contributes 80,000 jobs to the Bay Area’s economy and $900 million in annual research and development.

"It’s back to the future," said Sunne Wright McPeak, president and chief executive of the Bay Area Council, which is helping spearhead the so-called "action plan." "We want to showcase the region as a wellspring of jobs and innovation."

McPeak warned the group of political and private industry leaders that "if we don’t promote this industry, we will have a bleak future."

To keep companies from moving out of state and offshore, the strategy is to work to improve local education and traffic, and build more affordable housing.

The other growing biotech cluster areas have lower costs of living, better housing affordability and less gridlock than the Bay Area.

But the Bay Area has its strengths, too. And the aim is to improve those strengths, which include strong universities and research facilities, a wealth of top scientists and experts, and a huge venture capital industry. The group will be charged to encourage investors to put money into local life science companies. Such investment has dried up in the past few years in the down economy.

"Hundreds of millions of dollars are being invested by other clusters to try to take over this industry," said Nancy Michels, who helped conduct the research for the plan through the Monitor Group. "There’s significant competition from other regions, states and countries to capture some of this business."

The strategic plan is aimed at strengthening the local sector’s economy for not just five or 10 years, but up to 50 years, said Chris Campana, special assistant on Gov. Davis’ team.

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