Illinois Programs & Initiatives Advancing the Biopharmaceutical Industry

Transcription

1 Illinois Programs & Initiatives Advancing the Biopharmaceutical Industry Key Programs & Initiatives The opportunities generated by the biopharmaceutical sector as a leader in innovation and high quality job creation are not limited to just a few states, but have a substantial national footprint. States proactively pursue the development of the biopharmaceutical sector because it represents: a large-scale, geographically dispersed supply chain spanning R&D through to production and distribution; a key driver of the economy including the recent economic recovery; and a sector paying high wage rates in quality jobs. States are deploying a range of programs and initiatives to support and grow the biopharmaceutical industry, including: comprehensive state development strategies; investments in R&D and related infrastructure; programs to boost venture capital, entrepreneurship, and innovation development; advanced manufacturing; economic incentive initiatives; and programs working to advance STEM education and training. Illinois stands out in its focus on bioscience commercialization, its network of place-making research parks and associated business accelerators and incubators, and its broad-based STEM education initiatives. Quick Guide: Illinois Programs & Initiatives Advancing the Biopharmaceutical Industry Comprehensive State Strategies to Support Biopharmaceutical Development: Illinois Science and Technology Coalition Roadmap Biosciences Infrastructure Development: Illinois Science and Technology Park University Technology Park Chicago Technology Park Research Park at the University of Illinois at Champaign-Urbana Peoria NEXT Innovation Center Illinois Jobs Now! Initiative Venture Capital, Entrepreneurship, and Other Innovation Related Programs and Initiatives Regional Proof of Concept Matching Fund Program Innovation Challenge Grants Innovation Fund of University of Chicago PROPEL Entrepreneurship Center Chicago Innovation Mentors Illinois Angel Investment Credit Program Invest Illinois Venture Fund Program IllinoisVENTURES Economic Incentives: R&D Tax Credit STEM Workforce & Education: TalentSparks! Stellar Girls Science Career Investigation R&D STEM Learning Exchange Biotechnology/Bioscience Training Investment Program Impacts Innovation Fund of University of Chicago Fund has awarded over $1.5M to 23 projects with two projects then raising $2 million each. PROPEL Entrepreneurship Center As of February 2014 PROPEL has worked with over 90 companies since its launch and active companies have raised nearly $110M in capital, grants and loans and received more than 70 patents. Chicago Innovation Mentors By the end of 2014, CIM had a network of more than 180 mentors and mentored over 125 venture teams. IllinoisVENTURES During the past ten years, IllinoisVENTURES has led or collaborated on the initial funding of over 75 new ventures, including many bioscience companies. Illinois by the Numbers 2.5% 2.6% R&D as a Share of GSP, % 4.6% Persons in S&E Occupations as Share of all Occupations, 2012 Patents per 1,000 people in S&E Occupations, % 8.8% High-Tech Establishments as a Share of Total, 2010 Impacts continued on next page Source: National Science Foundation, Science & Engineering Indicators Patents 20.3 Patents

2 2 Illinois State Profile Impacts, continued TalentSparks! Since 2007, TalentSparks programming reached over 800 teachers and, through them, over 70,000 students. Evaluation shows significant improvement in knowledge of STEM concepts and careers with average gains of 9 percentage points on both science and math assessments. Stellar Girls Significant gains recorded in teacher best practices and gains of an average of 19 percentage points on science content tests by 5th and 6th grade Stellar Girls and 13 percentage point gains for 7th and 8th grade girls. Science Career Investigation -- Nearly 2,000 teachers, administrators and students directly participate in outreach presentations annually. Comprehensive State Strategies to Support Biopharmaceutical Development Illinois has had an active focus on maintaining the state s competitive position in biosciences development as part of its state economic development strategy. A 2014 Illinois Science and Technology Roadmap issued by the Illinois Science and Technology Coalition identified medical biotechnology as one of the state s leading technology areas involving drug discovery and diagnostic platforms as well as advances in neurological diseases, oncology and optical medical devices. The Coalition serves as a convening and leadership organization for technology development as authorized by state statute in 1989, and involves over 75 members drawn from the leadership across technology industry, research universities, federal labs and civic organizations. This focus on innovation and technology development is likely to be sustained and deepened in the years to come with the announcement in 2015 of the creation of the new Innovate Illinois Advisory Council, with the charge to develop an agenda to grow the state s innovation economy, including developing high-growth industry clusters, attracting resources, developing and retaining top talent, and fostering collaboration among all the parties in the state s technology and innovation community. Illinois has one of the most active bioscience industry councils, known as ibio, with over 500 members drawn from across the various sectors of the biosciences. ibio stands out in its efforts for biosciences development through its ibio Institute, formed back in 2003, which is involved in direct program activities for STEM education and the entrepreneurial development of bioscience companies. Another state level organization that plays a key role in advancing biosciences development is the Illinois Department of Commerce and Economic Opportunity, which is actively engaged in technology development efforts through its own programs as well as funding support for partner organizations. Programs and Initiatives to Build Bioscience Infrastructure Illinois has helped nurture a network of research and technology parks associated with universities statewide. The parks that emphasize the biopharmaceutical sector include: Illinois Science and Technology Park in Skokie, a 26-acre, 2 million square foot project being privately developed by Forest City Enterprises on land that formerly belonged to the G.D. Searle unit of Pfizer. University Technology Park, a 1.5 million square foot project with a 33,000 square foot wet-lab incubator on the campus of the Illinois Institute of Technology in Chicago. Chicago Technology Park, in the multi-institutional Illinois Medical District near the University of Illinois at Chicago (UIC), including a new Health, Technology, Innovation 12,000 square foot facility to serve as a proof of concept center to validate biosciences research innovations, convert innovation into products, and accelerate projects to venture readiness. Research Park and EnterpriseWorks incubator at the University of Illinois at Champaign-Urbana Peoria NEXT Innovation Center incubator near the Peoria branch campus of the UIC Medical School Illinois has provided substantial funding to construct university biomedical research buildings. In recent years the Illinois Jobs Now! initiative, passed in 2009, has been a key source of capital and infrastructure funding for higher education. As originally planned $1.5 billion of its total $31 billion over six years was targeted for higher education, including nearly $800 million for public universities and $300 million for private universities.

3 Illinois State Profile 3 Venture Capital, Entrepreneurship, and Other Innovation Related Programs and Initiatives Innovation Development Regional Proof of Concept Matching Fund Program. The $500,000 fund, supported by the Illinois Department of Commerce and Economic Opportunity and the Illinois Science & Technology Coalition, is focused on accelerating the commercialization of basic research conducted at Illinois universities and federal labs by helping to de-risk the technology. The program was launched in October 2014 with a network of institutions that includes Argonne National Laboratory, Illinois Institute of Technology, Northern Illinois University, Northwestern University, Southern Illinois University, University of Chicago, University of Illinois at Chicago, and University of Illinois at Urbana-Champaign. Through a competitive grant process, this initiative amplifies the efforts of these research institutions to accelerate the commercialization of new technologies, providing 2:1 matching funding to help them achieve important commercial milestones. In its initial round of funding a total of $125,000 in grants for five projects at three Illinois universities were made. Innovation Challenge Grants. A program of the Illinois Department of Commerce and Economic Opportunity that provides up to 50% matching for Phase I Small Business Innovation Research/Small Business Technology Transfer (SBIR/ STTR) awards as well as Phase 0 technical assistance grants to help companies pursue SBIR funding. Innovation Fund of University of Chicago. This proof-ofconcept fund at the University of Chicago to validate the commercial potential of basic research discoveries was launched in Outcomes: The Fund has awarded over $1.5 million to 23 projects with two of these funded projects then raising $2 million each. Entrepreneurial Development PROPEL Entrepreneurship Center. PROPEL is a commercialization assistance program targeted specifically at raising the success rates of life science startups in Illinois. PROPEL are peer-based entrepreneurial coaching, panels to sharpen business plan presentation, CEO roundtables, connections with professional service firms, a variety of workshops, and technical assistance. PROPEL provides Entrepreneurship Center Matching Grants of about $5,000 to help life science entrepreneurs obtain professional services for comprehensive business planning. PROPEL is a partnership of ibio and its affiliated ibio Institute, launched through corporate donations from Abbott Labs, Astellas Pharma, Baxter International, and Takeda Pharmaceuticals and has received funding support from the Illinois Department of Commerce and Economic Opportunity (DCEO). Outcomes: As of February 2014, PROPEL has worked with over 90 companies since its launch and its active companies have raised nearly $110 million in capital, grants and loans and received more than 70 issued and international patents. One quarter of its assisted life science companies are led by women and slightly more than one-third are led by minorities. Chicago Innovation Mentors. Founded in 2010, this effort founded by ibio Institute and a consortium of universities and federal labs, including the University of Chicago, University of Illinois, Northwestern University, and Argonne National Laboratory, supports university-based and local new technology innovation venture development through the use of mentor teams. Outcomes: By the end of 2014, CIM had a network of more than 180 mentors and mentored over 125 venture teams, a third of which have graduated the program. Venture Financing Illinois Angel Investment Credit Program. Offers a 25% tax credit for investments into early-stage, innovative companies throughout Illinois. From , the Angel Program is allocated $10 million in tax credits annually, awarded on a firstcome, first-served basis. The Department of Commerce and Economic Opportunity (DCEO) administers the Angel Program. While the tax credit cannot be sold or otherwise transferred to another person or entity, unused credits may be carried forward by investors for up to 5 years. Investment must be invested into a registered qualified new business venture principally engaged in innovation, with fewer than 100 employees, has not received more than $10 million in private equity investments and been in operation less than 10 years.

4 4 Illinois State Profile The maximum amount of an investment that may be used toward the credit is $2 million per investment and must remain in the qualified new business venture for at least 3 years. There is also a limit of $4 million of investments that qualify for tax credits for any qualified new business venture. Invest Illinois Venture Fund Program (IIVF). This is a venture capital program to support young, innovative companies and is part of a suite of capital access and credit investment programs available through the $78 million Advantage Illinois, administered by the Illinois Department of Commerce and Economic Opportunity and made possible by the federallyfunded State Small Business Credit Initiative. Typical awards made under IIVF are under $1 million and/or 25% equity. IllinoisVENTURES. Launched by the University of Illinois, this seed- and early-stage technology investment firm is focused on research-derived companies in information technologies, physical sciences, life sciences and clean technology. It has been consistently named by Entrepreneur magazine to its national list of the top 100 venture capital firms. Outcomes: During the past ten years, IllinoisVENTURES has led or collaborated on the initial funding of over 75 new ventures spanning a broad spectrum of scientific and technological innovation, including many bioscience companies. Economic Incentives R&D Tax Credit. Illinois R&D tax credit is a non-refundable tax credit of 6.5% of qualifying research expenditures using the federal definition to determine qualifying research expenditures. Businesses calculate their credit based on their average expenditure on R&D for the latest three tax years. STEM Workforce & Education Programs and Initiatives The ibio Institute s EDUCATE Center connects Illinois classrooms with the real world of biotechnology and sciencebased industry, hands-on biotechnology lab activities, tours of industry research and development facilities and authentic, interdisciplinary problem-based learning experiences. As teachers and districts develop new curricula to meet the Common Core State Standards, the ibio Institute s EDUCATE programs bring cutting-edge science from regional bioscience companies to develop world-competitive educators and inspire student interest in science. Specific program efforts include: TalentSparks! A teacher professional development workshop that focuses on raising the confidence and skill levels of teachers across the State of Illinois. It provides intensive teacher professional development workshops designed to assist teachers in aligning curricula and implementing Common Core and Next Generation Science Standards (NGSS) through real-world, problem-centered, hands-on learning and connections to experts in Science, Technology, Engineering and Mathematics (STEM) fields. TalentSparks workshops are organized around life sciences sectors. Outcomes: Since 2007, with financial support from Illinois life sciences industry and a grant from the Illinois State Board of Education, TalentSparks programming has reached over 800 teachers and, through them, over 70,000 students. Independent external evaluation shows that TalentSparks teachers and their students significantly improve their knowledge of STEM concepts and careers with average gains of approximately 9 percentage points on both science and mathematics content assessments. Stellar Girls. Stellar Girls, an after-school program developed with support from Astellas USA Foundation, inspires girls in grades 3-8 to enter into STEM (Science, Technology, Engineering and Mathematics) careers. Stellar Girls activities exemplify Next Generation Science Standards and Common Core State Standards. Activities are woven into 20 lessons that provide authentic problem contexts and student-centered investigations. EDUCATE staff provide program training during summer professional development sessions.

5 After-school Stellar Girls lessons are led by school instructors or community members, with scientists and engineers from industry and higher education assisting with instruction of select lessons to provide additional insight and career connections to the topics. Outcomes: Measurable program outcomes include significant gains in teacher best practices in science education and significant gains of an average of 19 percentage points on science content tests by 5th and 6th Stellar Girls and 13 percentage point gains for 7th and 8th grade girls. SCI : Science Career Investigation. A comprehensive database of over 250 career opportunities in science industries. SCI is a unique data source that helps teachers, parents and students understand the requirements and benefits of a career in the science industries. Outcomes: In addition to the online resource center, nearly 2,000 teachers, administrators and students participate in SCI outreach presentations annually. R&D STEM Learning Exchange. This is a coalition of 50+ cross-sector partner organizations dedicated to educating, recruiting and retaining the next generation of STEM talent for Illinois industry research and development (R&D). Baxter and Takeda Pharmaceuticals are among the industry partners. It involves industry posing research projects for the R&D STEM Challenge that reflect current research issues facing industry that students can tackle. It also features a web-based mentor program that connects Illinois high school students and their teachers with STEM professionals in the workforce to help guide students through student-led research involving classroom-based independent research, R&D STEM Challenges and science fair projects at RDLE partner schools. Finally, it hosts an R&D Resource Repository where the coalition members contribute resources for teachers, students and parents. Biotechnology/Bioscience Training Investment Program (BioTIP). The Illinois Department of Commerce and Economic Opportunity administers this program to provide state funded grants to companies to cover training costs for graduate students who find part-time employment as lab technicians/ engineers in the biotechnology sector as well as additional training to students to enhance their practical skills. Under this program, employers are reimbursed for up to 50% of the costs for training for graduate student employees. Prepared for PhRMA to accompany Driving Innovation and Economic Growth for the 21st Century: State Efforts to Attract and Grow the Biopharmaceutical Industry, by TEConomy Partners, LLC. Information prepared in 2016.