Making the impossible possible.

1 Best Practices in State and Regional Economic Development Initiatives 1 WherebreakthroughsbeginMakingtheimpossib lepossible. Driving the Bioscience Economy Forward During the COVID-19 Pandemic: Best practices in State and Regional Economic Development InitiativesDriving the Bioscience Economy Forward During the COVID-19 PandemicTABLE OF CONTENTS1 State and Regional Focus on the Biosciences Ecosystem3 2021 National Trends for State Bioscience Growth5 Phases of Development Regional Policy Support Mechanisms8 Dynamic Bioscience Workforce Development Measures10 Advancing Biomanufacturing with Supportive Measures12 Public Private Partnerships Matter in Bioscience Development14 Early-Stage Funding Actions17 Glossary of Terms19 Economic Development Guide ConclusionBest Practices in State and Regional Economic Development Initiatives 1 With a seemingly ever-changing viral pandemic, the growing threat of extreme weather and greenhouse gas emissions, and the impact both challenges have on future human, animal, plant, and economic health.

2 The world is counting on the bioscience industry for solutions. And it s meeting the , in 2021, the bioscience industry represents a unique confluence of characteristics essential for addressing these challenges and realizing societal and economic progress: extraordinary innovation that s saving and improving lives through advancements in biomedical, energy, and advanced food and industrial technologies, along with an expanding mix of employment opportunities with incomes that support a quality standard of living. The industry is at the forefront of a host of major global challenges related to diagnosing, treating, and curing disease especially COVID-19 and other infections with pandemic potential. The industry is also ensuring that the world can rely on a safe, affordable, and more sustainable food supply to feed a growing population, as well as developing biobased fuels, chemicals, and other industrial products to help us address climate change.

3 Because of a growing national sense of the social and economic value of the biosciences in our daily lives, the industry continues to be a preferred technology sector for company creation and growth by states and regions for several reasons: First, in an environment of increasing and sustained international competition, the industry is a vital component of the durable goods manufacturing sector of the economy. Many states have a strong bioscience-manufacturing presence that produces some of the highest quality products in the global marketplace. Second, the biosciences create highly skilled jobs that diversify the economy and support the creation of improved living standards and state and local taxes to support K-12 education , public safety, and other budget priorities. This is especially important as states focus on efforts to rebound from the COVID pandemic. Third, the industry is intertwined with technology transfer efforts of universities, workforce training at community colleges, and inflow of federal and private research grants for both invention and workforce training funds to match employer needs and employee and Regional Focus on theBIOSCIENCES ECOSYSTEMThe bioscience industry has continued its impressive growth trend, generating high-paying, quality jobs and significant economic impacts for the nation.

4 2 Driving the Bioscience Economy Forward During the COVID-19 PandemicAnd as with other advanced industries, there is a growing understanding of the pivotal role that partnerships play in successfully moving bioscience research and development efforts forward. Examples of partnerships that are helping the bioscience ecosystem capitalize on resources and workforce include: Public and Private Research Centers: Fostering collaborative partnerships between academic research centers and companies has been critical to sustaining invention and innovation, especially during a pandemic. The increasing volume and accelerated pace of knowledge creation has transformed the research process to the point where no one scientist or institution can sufficiently conduct wholly independent research programs. State and Regional Policymakers: The need for a stable and supportive public policy structure is pivotal to bioscience companies, large and small.

5 It is almost impossible for any state to ignore the need for selective infrastructure and development incentives to either hold existing companies or attract new enterprises. Industry Participants: Industry collaboration with universities and policymakers continues to be the hallmark of the vibrant technology industry growth over the past three decades. During that time period, industry became an active participant in public policy creation by providing insights into its needs for sustained growth. In the following report, the biotechnology Innovation Organization (BIO), in partnership with the Council of State Bioscience Associations (CSBA), highlight noteworthy public policy strategies and programs to assist policy leaders, academic research and training organizations, and their bioscience industry partners in identifying new and innovative measures that enhance the future of our industry in their states and regions and in turn, enhance the future of our industry wages now reach nearly two times the overall average the average bioscience worker earns more than $107,000, or $50,000 more than the nation s private sector average.

6 Best Practices in State and Regional Economic Development Initiatives 3 Every state in 2021 is still feeling the effects of the economic downturn from COVID-19, and driving new funding mechanisms for biosciences industry growth will continue to be challenging in the 2022 state legislative sessions. 2021 National Trends for STATE BIOSCIENCE GROWTH As with past economic slowdowns, the bioscience industry has been resilient. Experience has shown that the following seven principal strategies are helping states large and small to create, grow, and retain their bioscience industry clusters. 1. States are building career pathways for future biosciences talent. Attracting and retaining a continuous flow of educated ( , MS, BS, AA) and technically-proficient workers is essential for a state that aspires to strengthen its bioscience industry. In this global economy, nearly every competitor has access to breakthrough technologies and to the equipment and capital to produce standardized products.

7 States and regions have come to understand that human capital with its wealth of insights and competencies provides an enormous competitive advantage when it comes to creating and retaining States and regions are implementing an overall supportive regulatory climate to ensure predictable and stable regulatory treatment of biosciences firms. A supportive public policy framework is vital to industry firms, large and small. It s impracticable, and ill-advised, for any state, city, or municipality to ignore the importance of selective incentives to either hold existing bioscience companies or attract new have become increasingly aware of the unique challenges facing bioscience companies, such as high costs of research and the long development timeline to bring a new bioscience product to market. State partners are increasingly allowing companies to monetize earned R&D and net operating loss credits, sales tax exemptions for the purchase of R&D and manufacturing equipment, and investment tax credits to drive angel capital investment in the bioscience States and regions are focusing on developing their agricultural, industrial, and environmental bioscience sectors in addition to their biomedical and health sectors.

8 After two decades of approvals of biotechnology medicines, the first biotechnology -enhanced crop finally entered the marketplace. Now, scientists are using bioscience technologies to improve manufacturing processes, chemical synthesis, and production, while a number of states and regions are focusing on the opportunities this presents for their economies. These sectors are taking advantage of new research to provide both jobs to rural America and more sustainable and environmentally friendly practices to Physical infrastructure and facilities remain a priority. Investing in basic and applied research facilities at universities and life sciences-related institutes is an essential step in the innovation process. Because the industrial applications of the industry have dramatically changed in the past 10 years, state-of-the-art research demands modern facilities. State governments, academic research centers, and private developers are increasingly integrating these physical facilities into the long-term vision and strategy for economic development by providing physical space to leverage public-private partnerships, in particular for early-stage commercialization efforts.

9 4 Driving the Bioscience Economy Forward During the COVID-19 Pandemic5. Universities and other research centers technology transfer efforts are better understood by public agencies. Thanks to a coalition of industry and university technology transfer groups across the nation that have provided strong support for enhanced federal legislation including the Bayh-Dole Act of 1980 and the 2011 Patents Act colleges and universities continue to lead the world in funding for cutting-edge basic are Making company formation a high priority in partnerships with universities, and include entrepreneurship as part of the technology transfer effort. In particular, policies that encourage full funding of basic research, predictability of patents, and flexible technology transfer, and that provide early-stage funding opportunities and incentives, will stimulate biotechnology Proximity to academic innovation is a driving influence.

10 Academic research anchors offer distinct features including the scale of their operation, extensive collaborations with other research institutions, and a multi-disciplinary approach that integrates complementary technologies to create a focus in a broad-based area of the biosciences. New partnerships that integrate entrepreneurship and industry involvement into the university research experience facilitate the path from research to commercialization and help innovative ideas reach the marketplace. 7. Increased focus on biomanufacturing is the future. Biomanufacturing is a type of advanced manufacturing that utilizes biological systems to produce commercially important biomaterials and biomolecules for use in medicines, food and beverage processing, and industrial applications. Because of current international supply chain challenges, there is a renewed emphasis on reshoring these important components of the innovation ecosystem, adding to the growing manufacturing presence of this segment of the industry in every state and Practices in State and Regional Economic Development Initiatives 5 Because of the lengthy commercialization timeline to success, the biosciences sector has three distinct phases of company creation, expansion, and manufacturing of products and services in health, agriculture, and the environment.