Fall 2002

Biotech Industry Offers Possibilities for Jobs, Redevelopment

To foster a greater understanding of the biotech industry and what it might mean to the region, BMC chose Biotechnology: Its Future in Baltimore and the Region as the topic of its first 10th Anniversary Breakfast Seminar.  Approximately 75 people gathered at BMC on July 18th to hear two presentations about this emerging industry and its potential impact on the local economy .

Dr. Jeffrey Frank is president of Patton Harris Rust and Associates, a Northern Virginia engineering consulting firm which works on contracts for the National Institutes of Health and other health care related organizations.  Dr. Frank, who once worked for the old Regional Planning Council, recently completed his thesis on the economic geography of the emerging biotech industry at University of Maryland, College Park.  His dissertation research focused on the biotechnology industry’s growth nationally and within the Washington-Baltimore region.

The Baltimore/Washington region is the fifth leading center of biotechnology research and development in the US in terms of employment.  Maryland ranks first in the flow of federal biotechnology R & D grants, outpacing its nearest rival, California, by nearly 2 to 1.

Of some 1,600 biotechnology firms operating in the Washington-Baltimore area as of 1999, most were relatively young, small in size and generated little, if any, earnings.  Nearly 71 percent had been in business for less than 20 years. About one quarter had fewer than 10 employees and 71 percent had fewer than 100 employees.  A third of the firms had less than $1 million in annual sales, and 70 percent generated less than $10 million.  Four high-profile firms posted losses in the tens of millions of dollars.  Firms with operating losses depend on venture capital, license agreements with pharmaceutical companies or federal research grants to sustain their operations.

Ms. Laurie Schwartz, Deputy Mayor for Economic and Neighborhood Development, has taken a leading role in advancing the concept of an East Baltimore Bioscience Park adjacent to the campus of the Johns Hopkins Medical Institutions.

Ms. Schwartz noted that plans for the East Baltimore Bioscience Park are closely tied to the city’s overall economic development strategy.  The new market-driven plan is linked to the strength of Hopkins, the city’s largest private employer. Hopkins is recognized as a growing force in patents granted, licensing revenues, and companies being created based on its discoveries and developments.

The East Baltimore Biotechnology Park will include:

The East Baltimore Biotechnology Park will be feasible and viable with the commitment of Hopkins, the community, city and state.  A non-profit development organization has already been established, a human service plan is being completed and urban renewal legislation will be introduced in the Baltimore City Council this fall.

Posted: 10/15/2002