Introduction

The Biotechnology industry can be defined as the use of biological processes to solve problems and/or make useful products. The biotechnology industry includes firms that use cells and biological molecules for applications in medicine, agriculture, and environmental management.¹ It was about fifty years ago, in the mid 1950’s, that the state of North Carolina saw an opportunity to take part in this rapidly growing field. By investing many millions of dollars to create an area that was relatively cheap for companies to build facilities in, North Carolina has risen to the forefront of the industry. This biotechnology hub in North Carolina is a prime example of state sponsored innovation. One reason that North Carolina developed this region was to offset the decline of traditional industries such as, textiles and tobacco.² In order to help spur the region the state created tax incentives as well as creating a non profit organization, the Biotechnology Center, established in 1981, in order to attract new companies.³

North Carolina: Staying Competitive

Through collaboration with state universities, North Carolina was able to attract many high-tech firms to the Research Triangle Park. In order to make the area more appealing it was necessary for the state to receive government funding that could be used for research by the universities. Over the years, North Carolina has become very successful in this area by becoming the fourth in the U.S. in total research dollars awarded from the National Institute of Health, (NIH), and the National Science Foundation, (NSF), by attracting $469 million dollars in funds spurring an economic growth in the area.⁴ As well as attracting research dollars, the biological industry has also established the Biotechnology Center, which is in charge of helping new firms become stable in the area. In order to do this the North Carolina Genomics and Bioinformatics Consortium united about 80 companies, universities and service organizations.⁵

Recent Results

As of now, it is evident to see that all this planning and hard work has paid off for the state. Currently, North Carolina has about 150 biotechnology companies that generate about $3 billion dollars in annual revenue, or about 10% of the total world wide revenue generated. Along these lines, there are presently about 18,500 North Carolina residents that are employed and that represent an annual payroll of $925 million dollars.⁶ The region has become the second largest agriculture biotechnology region in the U.S., second only to California. The region has maintained a growth rate of 10-15% a year, which, according to a study conducted by former Gov. Jim Martin should create about 48,000 new jobs in the biotechnology sector in the next decade and about 125,000 total jobs by the year 2023.⁷ These projections can be justified due to the recent job additions. Between 1997 and 2001, North Carolina was the number one state in adding biotechnology and pharmaceutical jobs. As well as adding jobs, North Carolina has also been successful in attracting the leading firms in its industry to the state. Prestigious firms such as BASF, Bayer CropScience, and Syngenta have all established facilities in the state. These agricultural biotechnology firms are responsible for generating 13,500 jobs. North Carolina has also been successful in adding CRO testing companies to the state. North Carolina now has about 75 CRO testing companies stationed in the state that generate about $5 billion dollars and employ about 16,000 people.⁸

The Future

In order to maintain growth, North Carolina has begun making plans for the future by developing a long range plan to help guide future state investments in biotechnology. The North Carolina Biotechnology Center accepted this task due in part to a challenge issued by Gov. Easley in 2003. In order to maintain steady growth the Biotechnology Center has partnered with the Golden LEAF organization to create a statewide work force training network in the biotechnology industry.⁹ The state has also partnered with many of the universities in order to use their facilities as research centers. In the past couple of years there has been a surge in life sciences research by the universities. There are now almost 4,000 university researchers working in conjunction with many of the state firms in order to help with research. Along with partnering with universities the state has also continued to attract firms to the area. Just recently, in February 2004, Merk & Co committed to build a 300 million dollar facility that would provide over 300 new jobs due to a $36 million dollar tax incentive.¹⁰ By remaining on this course of state sponsored investment and cooperation, North Carolina’s biotechnology sector will continue to grown and hopefully maintain the pace that will one day employ over 125,000 people.

Time Line of the Biotechnology Industry in North Carolina:

1919:  The word “biotechnology” is first used by a Hungarian agricultural engineer.

1928: Fleming discovers penicillin, the first antibiotic known to man.

1938: The term “molecular biology” is coined

1944: DNA is shown to be the material of substance of the gene.

1958: The Research Triangle Park and the Research Triangle Institute is created in North Carolina.

1967: The first automatic protein sequencer is perfected.

1974: The National Institute of Health forms a Recombinant DNA Advisory Committee to oversee recombinant genetic research.

1978: North Carolina scientists Hutchinson and Edgell show it possible to introduce specific mutations at specific sited in a DNA molecule.

1980: The U.S. Supreme Court approves the principle of patenting genetically engineered life forms due to the ruling on Diamond v. Chakrabarty.

1981: The North Carolina Biotechnology Center is created by the state’s General Assembly as the nation’s first state-sponsored initiative to develop biotechnology.

1984: The DNA fingerprinting technique is developed.

1988: Congress funds the Human Genome Project, a massive effort to map and sequence the human genetic code as well as the genomes of other species.

1991: Amgen develops Neupogen, the first of a new class of drugs called colony stimulating factors, for the treatment of low white blood cells in chemotherapy patients.

1992: Genetics Institute develops Recombinate, the first genetically engineered blood clotting factor approved in the U.S.

1993: Chiron’s Betaseron is approved as the firs treatment for multiple sclerosis in 20 years.

1996: Biogen’s Avonex is approved for the treatment of multiple sclerosis. The company builds a $50 million plant in Research Triangle Park, N.C., to manufacture the drug.

1997: Scottish scientists clone a sheep, Dolly.

2000: A rough draft of the Human Genome Project is Completed by Celera Genomics and the Human Genome Project.

2000: The Charlotte research institute is created to help spur the creation of jobs in the biotechnology industry.

2001: RTI  announces the first major breakthrough in thermoelectric research in 40 years by developing a new material that is 23,000 times faster than current technology.

2001: North Carolina is recognized as the fastest growing state in terms of adding jobs in biotechnology and pharmaceuticals.

2002: The North Carolina Genomics and Bioinformatics Consortium is created by the Biotechnology Center to unite 80 companies, universities and service organizations throughout North Carolina.

2003: Gov. Easley asks the North Carolina Biotechnology Center to develop a long range plan to help guide future state investments in biotechnology.

2004: Merck & Co committed to build a $300 million dollar facility that would provide over 300 jobs in the Research Triangle Park.