Syracuse–based MedTech says it “applauds” what it says is Gov. Andrew Cuomo’s “bold” proposal to spend $650 million to grow New York’s life-sciences research cluster including public-private partnerships.
Jessica Crawford, president of MedTech, made the comments in a statement posted Dec. 29 on the MedTech website.
More than a week later, Cuomo provided details of the $650 million life-sciences initiative in one of more than 30 proposals in his State of the State agenda that his office released as he delivered regional speeches on the proposals that started in New York City.
The life-sciences initiative includes $250 million in tax incentives for new and existing life-science companies, Cuomo’s office said in a news release issued Jan. 9.
MedTech, which operates at Syracuse Technology Garden, “connects New York State’s bio/med industry through collaboration, education and advocacy,” according to its website. It describes itself as an “active association of pharmaceutical, biotech and medical technology companies, their suppliers and service providers, and research universities.”
Besides the tax incentives, Cuomo’s proposal also involves $200 million in state capital grants to support investment in wet-lab and innovation space; and $100 million in investment capital for early-stage, life-science initiatives, with an additional match of at least $100 million for operating support from private-sector partnerships.
In addition, the state will provide $17 million in capital funding to launch JLABS @ NYC, which Cuomo’s office describes as a “collaboration” between Johnson & Johnson Innovation and the New York Genome Center to build a 30,000-square-foot incubator with capacity for up to 30 life-science startups.
The New York Genome Center, located in New York City, is an “independent nonprofit at the forefront of transforming biomedical research and clinical care,” the governor’s release stated.
Cuomo discussed the life-sciences initiative during the first of his regional State of the State addresses held Jan. 9 in New York City.
The life-sciences sector includes the fields of biotechnology, pharmaceuticals, biomedical technologies, life-systems technologies, and includes organizations and institutions that “devote the majority of their efforts to the various stages” of research, development, technology transfer, and commercialization.
These firms are also making “significant advancements” in agricultural and environmental biotechnologies.
“The ever-evolving life science sector is discovering solutions to the most pressing problems of our time, helping to cure disease and save lives around the world,” Cuomo said in the news release. “New York is poised to be a global leader in this industry, and the new, vital incubator JLABS will be the catalyst that pushes our state into the forefront of this exciting field. I look forward to working with Johnson & Johnson and the New York Genome Center to build momentum in the life science industry and establish New York as the home of discoveries that will drive the economy and create a better future for all.”
MedTech support
MedTech, which operates at the Syracuse Technology Garden, “has long advocated for a comprehensive life sciences initiative and the governor’s initiative answers that call,” according to Crawford’s statement on the MedTech website.
Crawford cited a 2014 study that the association commissioned which estimated that the bioscience industry generates a total revenue impact of $62.6 billion in New York, including about $20.2 billion in upstate New York.
The bioscience industry employs more than 205,000 people, including 77,000 in upstate New York, according to the MedTech statement.
The average annual bioscience wage in 2012 was $71,900, which is about $30,000 more per year than the total private-sector average for our region.
MedTech calls them “highly skilled, highly prized jobs that contribute to the total economy of upstate New York.”
But Crawford notes that the Empire State faces threats from other states seeking to attract some of New York’s companies in the sector.
“New York … faces stiff competition to retain and grow the life-sciences industry here in New York from states which have advanced comprehensive life-science initiatives including Massachusetts, North Carolina and California, as well as from other countries. Competing states have poached researchers from our leading academic institutions and companies, offered generous tax benefits and created workforce development programs targeted to the needs of life sciences companies. A survey commissioned by MedTech of 21 bioscience and medical-technology executives indicated that for growth in this important industry, New York needed a more formalized statewide system of academic partnerships, greater access to capital for startup companies and access to a skilled work force and key job skills such as research engineers and scientists, quality assurance/control/validation positions and product development,” Crawford’s statement said.
Crawford contends that Cuomo’s plan addresses these needs and others, including the tax credits, capital, additional land, and the university partnerships involved.
Additional details
Cuomo’s proposal would include $250 million in tax incentives for new and existing life-sciences companies that are expanding research and development.
His office contends the state “must draw more capital to this sector” from early stage and angel investors “to better compete with other states actively poaching New York’s top life-science research talent.”
The additional capital would “make it more attractive” for existing and new firms in life sciences to “locate, invent, commercialize and produce” in New York.
Under Cuomo’s program, existing life-science businesses would be eligible for an annual allocation of $10 million in Excelsior tax credits.
New life-science businesses would also receive a 15 percent refundable tax credit on all new qualifying research and development expenditures. Small businesses in the life-sciences industry could be eligible for a 20 percent credit.
Additionally, angel investors would receive a credit of 25 percent of their investment, with a maximum of $250,000 per investor.
The proposal also includes spending $200 million in state capital grants over 10 years and offering more than 4.2 million square feet of space and 2,038 acres of developable land tax-free to “accelerate life-science innovation” at 62 colleges and universities statewide.
Cuomo’s proposal also has the state pledging $100 million for additional investment capital for early stage, life-science firms.
In addition, private-sector partnerships are also pledging matching funds for investment and operational support, bringing the total commitment to $200 million.
Part of the investment would include a new life-science launch competition, modeled on Buffalo’s 43North competition, which would “further support the growth of this sector,” according to the state.