Learning From Indianapolis'
Bioscience Development Efforts

Most things in life offer us both intended and unintended learning consequences. That is the case in looking at Indianapolis' efforts to strengthen its position in the bioscience field.

A recent Indianapolis Business Journal article told the story of how both Indianapolis and San Diego have developed as bioscience centers. San Diego, which is one of the top three such centers nationally, may be in part thankful to Indianapolis-based Eli Lilly. Indianapolis's role in the field is clearly owed to Eli Lilly.

Here is the essence of the story. Nearly two decades ago, Eli Lilly and Co. bought Hybritech Inc., then a San Diego-based medical device maker. Lilly spent $300 million to buy Hybritech. In 1994, Lilly spun off several of its medical device subsidiaries and formed Guidant Corp. Then, in 1996, it unloaded Hybritech on California-based Beckman Instruments Inc. for less than $10 million. In the meantime, Hybritech’s founders reinvested their $300 million in new San Diego-based life science firms. Those investments begat other investments. That money found a way of recycling itself. People saw both the financial returns and the product progresses made there, and tended to do it over and over again. The rest is history.

Ok, the intended lesson here is that it is really the businesses, and the decisions and investments they make, that drive industry growth. Pay closest attention to what companies and investors are doing, not to just what the brilliant research centers are saying. Yes, we need to work on the research part of the equation, but it is the business part of the equation that will make the bioscience dream real.

As the race really heats up across the U.S. and the world, it is important to know how developments like this actually happen. Too often, communities approach economic development with stars in their eyes and their leaders forget the realities of not only getting into the race, but growing your role in the industry. Success is predicated on sustainability.

Unless your area has major concentrated "business" strength in an industry, such as bioscience, it is really hard to grow your cluster. All the research and technology in the world will not grow your cluster unless strong commercial momentum exists. Here is another important point. All firms, including YOUR local firms, belong more to their customers than they belong to your local bioscience club (association or consortium.) Why? Because they must to survive and grow. That is the unintended lesson here--and one all economic developers should pay closer attention to.

You may sit back and say, yes, I know that. Know it you may, but you need to do something about it. What can your area do? It can begin working together with other bioscience centers nationally and internationally to knit global networks around your bioscience center. If you do it right, the companies in your local or regional cluster will help you do it. These networks will ensure that your cluster is "connected" to the right people, businesses, money, technology and markets.

Despite several smart studies, all done by the same 2 or 3 consulting firms, that say the biosciences are knowledge and technology-driven, to be successful, ultimately they must be "business-driven." Then, you have a successful cluster.

By the way, it is important for your area to keep some notes on how it develops its new clusters. You may feel as though you are too busy growing the cluster to write about it, but please work on that case study. It will teach you and others some valuable lessons that will benefit you in the future. I'll help you. That is in part what this web journal is all about.