Latest on The Biotech Community Leaders

In the race to generate high-paying jobs and underwrite local prosperity, regional leaders from across the U.S. are fighting hard to lure what many believe is the economic growth industry of the 21st century – biotechnology.

According to this study, only a handful of metropolitan areas have succeeded on a scale necessary to ensure industry sustainability. At the top of that list is San Diego, followed closely by Boston and the Raleigh-Durham-Chapel Hill metro area. Another nine are in the running.
“Clusters of existing and emerging science-based technologies are crucial factors in shaping the economic winners and losers of the first half of the 21st century,” the authors state in the report.

“To create international comparative advantage in a knowledge-based economy, clustering innovative activity is imperative.”

According to the study's Biotech Index, the top 12 metros (and their composite scores) are:

1. San Diego (100)
2. Boston (95.1)
3. Raleigh-Durham-Chapel Hill (92.5)
4. San Jose (87.8)
5. Seattle-Bellevue-Everett (83.8)
6. Washington, D.C. (79.4)
7. Philadelphia (76.5)
8. San Francisco (75.8)
9. Oakland (74.3)
10. Los Angeles-Long Beach (66.5)
11. Orange County, CA (54.1)
12. Austin-San Marcos (47.8)

The rankings are based on two broad factors:

The biotechnology innovation pipeline – infrastructure that allows a metro to capitalize on its biotech knowledge and creativity, such as the quality of its workforce and amount of research and development dollars it receives; and

the current impact assessment – an area’s success in bringing ideas to the marketplace and creating companies, jobs and products.

More here.

Automotive Project Incentives

Got an auto project and need information about incentives to make the deal?

There is a great review of auto-related project incentives here. Nice overview of what has been used recently and what appears to be needed by auto companies.

Nanotech for Economic Development 101

For a decade, biotechnology has been the industry most coveted by state and local economic development officials eager to get in on the ground floor of a burgeoning sector that holds the promise of million of dollars in revenues. According to experst, in the next decade, nanotechnology might rival biotechnology as that industry.

What is it? Nanotechnology refers to the ability to manipulate individual atoms and molecules, making it possible to build machines on the scale of human cells, or create materials and structures from the bottom up with novel properties.

Nanotechnology could change the way almost everything is designed and manufactured, from automobile tires to vaccines to objects not yet imagined.

How might it be applied? Applications of nanotechnology are likely to include:

- Information technologies such as quantum computing and computer chips that store trillions of bits of information on a device as small as the head of a pin.

- Medical advances, including improved drug and gene delivery, biocompatible materials for implants and sensors for disease detection.

If the biotechnology industry is in its infancy, then the nanotechnology industry is still embryonic in many ways. There is plenty of research and development in the pipeline but commercial applications are limited.

More here.

The New Chrysler Way

Chrysler has a new eight-year agreement that has the potential to radically change the way Chrysler--and all automakers--build vehicles, finance their factories and manage labor. The main idea: Let others shoulder the capital and labor costs of building a car.

ather than buy parts and the machinery to assemble them into vehicles, Chrysler will outsource 60% of the production responsibility for a new Jeep Wrangler--and many of the factory jobs--to its suppliers. Those companies will have to put up the capital for machinery and pay the workers. By enlisting suppliers as partners, Chrysler will shed one-third of the $900 million capital investment for the new Jeep factory.

The idea is based on the premise that when suppliers are left to themselves they will design, build and operate a factory more cheaply than their customers can. "If you ask them to do it for themselves, you'll be surprised how much the price comes down," says Chrysler Group Chief Executive Dieter Zetsche. It's the same reason a housing contractor is likely to design his own home with more care and for less money than he would charge others.

My question is: "What does this really mean?"

Read more here.

Who is the World's Best Training Provider?

The American Society for Training and Development has rated Indian IT major Infosys Technologies Ltd as the world's best in employee training and development.

Praising the training practices at Infosys's Global Business Foundation School, the ASTD gave the 'Excellence in Practice Award 2003' to Infosys.

The award, which recognizes training practices aligned to organizational goals, is a testimony to Infosys' commitment to providing added value to its clients through high quality and trained workforce, said a media release.

The Global Business Foundation School is a structured programme to enhance technical and behavioural competencies of fresh engineering graduates.

More here.

Dem Convention No Economic Boost for Boston

Initial reports indicate that the Democratic National Convention may not have had the desired local economic impact that Boston officials had hoped.

Once again, be wary of promises of major economic impacts of these and other types of events. Go with the conservative numbers. You will thank yourself that you did.

Read more here.

Corporate Social Responsibility

Where do we go beyond Enron? Here is an interesting article discussing the importance of corporate social responsibility (CSR) to the business bottom line. It's a worthwhile read for economic developers. Go here.

San Antonio Debates Convention Center Merits

Like many communities, San Antonio is trying to figure out the best thing to do with respect to its convention center facilities.

This is a pricey game, especially for the public sector. Is it worth a big public subsidy? Many say it's not. A study by the Southwest Research Institute for the San Antonio group says growth is not a forgone conclusion and the facilty could face financial problems.

Here to read more.

Community Says No to Wal-Mart

Centerville, Utah is not convinced that Wal-Mart is right for the community. Read more about the steps the community is taking to hold the line on the "Wal-Mart Invasion.)

New Orleans Builds Its Leadership Base

Forty four people from throughout the New Orleans area have been selected to participate in the sixth class of the New Orleans Regional Leadership Institute, a partnership with Greater New Orleans, Inc. Chase Bank is also a major sponsor of the Institute.

The mission of the New Orleans Reigonal Leadership Institute is to promote regional collaboration by providing a forum for the exchange of diverse viewpoints, a network of relationships and leadership skills development.

The business and civic leaders will participate in a nine-month course of intense study that begins in September. In two overnight retreats and seven monthly seminars, the group will address issues of concern to the entire New Orleans region.

A variety of topics will be addressed including economic development, diversity, workforce development, education and public safety.

More here.

Arizona Does Detailed Local Economy Research

A series of state reports posted on the Internet this month details who is working where in Arizona and how that affects the economy of Arizona's cities.

The Arizona Department of Commerce for the first time assembled detailed data regarding industries and employees to prepare community economic analyses for all 84 Arizona cities and towns.

Very interesting and useful analysis.

Learn more here.

Gartner Looks at the Myths and Realities of Offshoring

 IT research and analysis provider Gartner has questioned the negative coverage about offshoring in a report presented during its sourcing and IT services summit.

The Myths and Realities of Offshoring report by Gartner analyst Bob Hayward discusses the better side of offshoring and disputes the common negative beliefs of people in the industry regarding the issue.

Hayward said he admits that some people in service-oriented roles in developed economies will lose their jobs to offshore services and that offshoring may not always be the best option to reduce costs or gain efficiencies in service-oriented processes.

More here.

Closer Deal Analysis in Wichita

Wichita is considering the use of a "formula-driven incentive matrix" to help target incentives to businesses that can do the most good for the community, said Dave Wood, vice president for economic development with the Wichita Area Chamber of Commerce. The Greater Wichita Economic Development Council recently presented the matrix idea to a joint meeting of the Wichita City Council and Sedgwick County Commission.

Why use this tool?  Because better front end analysis of deals is important to ensure that an incentive investment is justified.

More here.

World's Most Powerful Business People

This is another list you should browse if you are setting your sights on the men and women behind the world's biggest companies.

Get it here.

Christian Capitalism

Is it growing in your area? Could it be the next growth industry for your area?  What can I say but "Christianity still sells!." Read the article.

Russia's 100 Richest People

For those of you working on making in-roads with Russian businesses, this list is one you will want to review. It's the 100 Richest Russians list published by Forbes. Get it here.

Personal Technology

All of us have become more dependent upon PDA's, laptops, cell phones, and lots of other devices. For those really into this stuff, take a look at this issue of Economist Magazine. There is even an article about "blogging" in business.

China and U.S. Seen as Growth Engines

The two big economies that are going to drive the global economy in the next few years are China and the U.S. So says Daniel C. Chung, president and chief investment officer of Fred Alger Management, who, along with Zachary Karabell, Fred Alger's senior economic analyst, run the China-U.S. Growth Fund. They see growth stocks as the place to be in the market.

The fund was launched last January to invest in a basket of companies all over the world that stand to benefit from the Chinese economy's dynamic growth, which they estimate at 7% to 9% a year. The fund's top holding is Microsoft (MSFT ). Chung and Karabell also project above-average earnings growth for companies such as Yum Brands (YUM ), whose casual style of dining is taking off in China, and Wynn Resorts (WYNN ), which is about to open a casino in Macao.Holdings of the fund are roughly 50% U.S. and 50% Asian -- from China, Hong Kong, Japan, and Korea. The Asian stocks are managed out of Hong Kong by JF International Management, a subsidiary of J.P. Morgan Chase (JPM ).

More here.

Biotech Prospects in Wisconsin

Wisconsin sees an advanced manufacturing niche for itself in the biotech business.

Click here to read a recent article discussing these prospects.

Nanotech Investments Growing

The year 2003 saw some $304 million in venture capital funding for nanotechnology, a 42% increase over 2002.

Although this represents a small portion of total venture capital funding, just over 3%, it is an increase over the 2% fraction in 2002. The composition of venture funding in nanotechnology is also changing.

In 2001, some 75% of nanotechnology deals were startup and early stage rounds. By 2003, more than 60% of the deals were for expansion and late stage rounds. This in part accounts for the increased level of investment, and it is an indicator of progress in executing business plans, or at least progress toward a liquidation event.

Public offerings are in thr works. For example, in April, 2004, Nanosys, Inc., which garnered a $38 million late stage investment in the second quarter of 2003, has filed a registration statement in anticipation of an initial public offering.

More here.

Public Views of Nanotechnology

Despite lacking concrete knowledge about nanotechnology, most Americans hold a generally positive view of the emerging science and believe the technology’s potential benefits outweigh its perceived risks. At the same time, most Americans do not trust business leaders in the nanotechnology industry to minimize potential risks to humans.

Those are some of the key findings of a study conducted by North Carolina State University researchers in the first nationally representative survey designed to gauge the public’s perceptions about nanotechnology. The telephone survey polled a random sample of 1,536 adults in the continental United States in the spring of 2004 and is part of a larger research project studying public perceptions of nanotechnology that is funded by a $135,000 grant from the National Science Foundation (NSF).

More than 80 percent of those polled indicated they had heard “little” or “nothing” about nanotechnology, and most could not correctly answer factual questions about it. However, despite knowing very little about the science, 40 percent of respondents predicted nanotechnology would produce more benefits than risks. Another 38 percent believed risks and benefits of nanotechnology would be about equal, and only 22 percent said risks outweigh the benefits.

More here.

Nano Fest in Singapore

After successful international events last year in Washington, D.C. and London England, the World Nano-Economic Congress will be launching its first event in Asia with the World Nano-Economic Congress (WNEC) Singapore (http://www.world-nano.com).

The WNEC Singapore, which is jointly produced by the Economic Development Board of Singapore and Cienfitica, is co-located with Singapore's largest technology trade event, the Global Entrepolis @ Singapore Exhibition and Conference event scheduled for October 11-15, 2004.

More here.

London Olympics Bidders Hope Events Pay Off

London Olympic bid leaders hope new research showing the economic benefit of staging major sporting events will convince doubters that hosting the Games in 2012 will not be financial burden to the country.

A report by researchers at Sheffield Hallam University shows in nine of the 16 major sporting events they studied, additional expenditure of more than £1.45million was generated.The events covered a wide range including golf, judo, athletics, swimming and cricket. Most of the extra income came from spectators, who spent an average of just under £50 per day, though the highest spenders per head were the media, who registered an average daily outlay of £100.

More here.

Researcher Says Most Sports Facilities Not Worth Public Incentives

Andrew Zimbalist, a leading sports economist, argues in a May 1 study on the New Jersey Nets that: "The general conclusion that comes out of the academic literature on this subject is that a city, county or state should not anticipate a positive economic or fiscal impact from a new sports facility. ... In a typical case, a community builds a facility to retain an existing team or attract a new team. In either case, the lion's share of the money spent at the new arena is diverted from existing local expenditures."

This finding largely reflects the fact that families and individuals who spend money to attend a professional sporting event spend less on other forms of entertainment than they would in the absence of an arena or stadium. Other reasons for the minimal impact of a sports facility on local economies include the facts that:

* Sports teams are modest-sized businesses relative to the size of the regional economy.
* A considerable fraction of the revenues attributable to a private sports franchise - those attributable to players' and managers' salaries and owners' profits - are spent out of the immediate area.
* There is a negative impact on the local economy associated with the diversion of public funds from other investments and services.

More here.

Cincinnati Getting Tourism Attention

Cincinnati is getting a flood of recognition from national travel and arts publications for the first time since it started trying to improve its image after the 2001 race riots.

In the past few months, the Zagat Survey, AmericanStyle magazine, the American Automobile Association and other groups have cited the quality and affordability of Cincinnati’s arts, entertainment, shopping, dining and lodging, and its success as a family-friendly tourist destination.

Several attractions received high marks in the recent U.S. Family Travel Guide published by Zagat Survey in association with Parenting Magazine. The ratings resulted from a poll of more than 11,000 travelers who were asked to rate family-oriented attractions on child appeal, adult appeal, public facilities, service and cost.

More here.