EMERGING GROWTH SECTOR: Life Sciences and Bioengineering Task Force Report October 16, 2013

1. EMERGING GROWTH SECTOR:Life Sciences and BioengineeringTask Force ReportOctober 16, 2013 Gene D’Amour Kenneth Eilertsen Don Gaver Eric Guilbeau Gus Kousoulas Laura Levy Quentin Messer Aaron Miscenich Joseph Moerschbaecher Sandra Roerig Joe Simmons

2. Economic Impact of Life Sciences and Bioengineering in Louisiana • National Institutes of Health funding to Louisiana totaled $141 Million in FY07, generated $288 Million in new business activity, and created and supported 2,754 new jobs at $38,746 average wage per new job created (“Global Health in Your Backyard, Families USA, 2008; http://www.familiesusa.org/assets/pdfs/global-health/in-your-own-backyard.pdf). • NIH funding to Louisiana totaled $168 Million in FY12. • Battelle reports $430 Million of life sciences and bioengineering research in Louisiana. Applying the above-referenced multiplier (2.05), this is predicted to generate $882 Million in new business activity and 8,399 new jobs. • Much of the research funding comes into Louisiana from out-of-state sources. It does not just circulate within the state, but is new money to Louisiana. • Life Sciences and bioengineering are major areas of employment focus in the state’s universities at all levels of staffing. Bioscience sector jobs pay a 75% higher average wage than non-bioscience jobs.

3. Economic Impact of Life Sciences and Bioengineering in Louisiana • The estimated economic impact of the downtown New Orleans BioDistrictalone over 15 – 20 years is 34,000 jobs, $3.3 Billion in economic activity, $2 Billion in increased personal earning, $1.9 Billion in state sales tax generated and $1.4 Billion in local tax generated. http://biodistrictneworleans.org/wp-content/uploads/2013/02/Executive-Summary-2013.pdf • Albemarle, located in Baton Rouge, is the country’s major producer of raw ibuprofen, also herbicides and pesticides. The company employs 4,000, serves customers in 100 countries and is traded on the NYSE. • In addition to health sciences, the agricultural sector is a major interface between university and industry in Louisiana. LA agricultural and natural resource industries contributed an estimated $11.4 Billion in 2012. • Competitive advantages of Louisiana in the Life Sciences and Bioengineering include strong chemical and agricultural industries, tax credit and facilitation programs, and quality of life/cost-of-living advantages.

4. Emerging Growth Sectors Higher Ed and Economic Development: Opportunities for Collaboration – emerging Growth Sector Initiatives

5. Emerging Growth Sectors Higher Ed and Economic Development: Opportunities for Collaboration – emerging Growth Sector Initiatives

6. Emerging Growth Sectors Higher Ed and Economic Development: Opportunities for Collaboration – emerging Growth Sector Initiatives

7. ACTION PLAN: LIFE SCIENCES AND BIOENGINEERING • Recommendations for Short Term: • LA BoR to establish Office of Life Sciences and Bioengineering to coordinate state-wide activities, including engagement of commercial vendor to provide databases. • Louisiana Innovation Council to develop mechanism for expanding regional programs and workshops following BioInnovationCenter model. • LED to support state-wide BIO Chapter including representation of universities and industry at BIO national meetings. • LED to formalize a state-wide, university-based Research and Technology Commercialization Council, through the aegis of the Louisiana Innovation Council, to interact with local and state economic development organizations. • LED, MPRAC, university Government Affairs staff, and others to aggregate plans and recommendations that require legislative action, and to develop a plan to build legislative consensus.

8. ACTION PLAN: LIFE SCIENCES AND BIOENGINEERING • Recommendations for IntermediateTerm: • University leadership to review, plan and promote graduate programs and technical certifications that support life science and bioengineering industry needs. • Improve communication and revision as needed of State ethics laws regarding involvement of university employees in commercial enterprise. Provide clear and well-communicated guidelines for COI management and industry engagement for university employees. • LED to publicize and promote the R&D Tax Credit Program and the Angel Investor Tax Credit Program, and to resolve inefficiencies in operation. • University leadership to review academic policies in support of research commercialization and technology transfer as metrics of productivity. • University leadership and LA BoR to develop state-wide rewards to recruit and retain faculty who excel in research commercialization and technology transfer. • LED and university research leadership to work together to exploit new industry opportunity of interest to healthcare IT companies.

9. ACTION PLAN: LIFE SCIENCES AND BIOENGINEERING • Recommendations for Long Term: • LED to work as a state-wide resource to mobilize development of venture fund for proof-of-concept support. Critical to identify management talent for the fund, perhaps in alumni networks. • Technology Incubators, BioInnovationCenters and LED to develop “graduation facilities” to be used as companies outgrow available services. Consider a state-wide technical assistance program to move technologies forward. • Expand and secure support for the statewide network of not-for-profit business incubators that focus on new bioscience start-up companies. • LED to consider opportunity lost by exporting materials manufactured in Louisiana to other states for production of health-related value-added products. Consider building opportunities for downstream processing in Louisiana. • Leadership of university comparative medicine programs and non-human primate centers, together with LED, to develop a strategic plan to tap unique capacity for drug and device development.