National Center for the Biotechnology Workforce The Making of a Biotechnology Workforce in the Piedmont Triad Region & Forsyth County, NC Russ H. Read Executive Director National Center for the Biotechnology Workforce Forsyth Tech Winston-Salem, NC October 24, 2005

Knowledge-based Industry Biotechnology a complex knowledge - based technological approach:

2002 Brookings Institution Report Requirements for Success Biomedical Research infrastructure Economic Development support Venture capital Entrepreneurs

Biotechnology’s Potential “Vast and Imaginative” Food & agriculture Medicine Environment Information Other Photograph by: Steve Brown & Carl A. Sharif - NYT Pictures

US Biotechnology Industry Companies Sales ($B) Employees United States 1,466 $30 194,600

US Biotechnology Industry First Tier States & Regions

North Carolina Rankings Recognized Globally as a Leading Life Science Community NC # 3 US biotech state (Ernst & Young, 2004) Research Triangle #3 biotech metro area (Milken Institute, 2004) # 1 in Biotech Human Capital & Biotech Workforce

Biotechnology A Natural Fit for North Carolina Economy based on living organisms Outstanding research universities Four medical schools World’s largest research park (RTP) Progressive tradition

North Carolina’s Biotech Future Statewide Strategic Plan for Biotechnology “New Jobs Across North Carolina” 54 strategic recommendations Three immediate priorities: Recruit and expand biomanufacturing companies Create more start-up companies Spread biotechnology statewide

Biotechnology Industry Characteristics Small Highly Regulated Young and Still Developing The biotechnology industry is regulated by the U.S. Food and Drug administration, the Environmental Protection Agency, the Department of Agriculture, and in certain areas, the Department of Homeland Security. With this in mind it is not uncommon for the development of drug, product, vaccine or device to take 15-20 years to make it to commercialization. The first biotechnology company (Genentech) was established in 1976, went public in 1980 and saw its first product approved in 1985. So while the industry is grounded in scientific practices that date back hundreds of years, the industry itself is still young and developing The industry in the United States has still not reached an overall level of profitability and may do so within the next 10 years. In a 2003 study conducted by Ernst &Young, only 15 percent of the nation’s biotechnology companies reported being profitable in one of the past three years (1999-2002)

Biotechnology Occupational Characteristics Specialized Skills High Level of Education Higher Wages Unlike many other industries that have been at the heart of recent regional and national workforce development efforts, the biotechnology industry does not have one key occupation or one set of core competencies that can frame the industry’s workforce development challenges (i.e. there is no equivalent to the nursing shortage within the healthcare industry or the issue of an aging and retiring workforce that needs to be replaced). It is not uncommon to meet with a dozen biotechnology human resources professionals who will have a dozen different sets of workforce development needs and challenges. These needs and challenges are often as specialized as the company itself. From Associates Degrees to Ph.D’s, this is an industry where education matters and where hands on laboratory and internship experiences go hand-in-hand with classroom instruction. Along with specialized skills and heavy educational requirements comes higher wages and greater opportunity for professional growth. A 2001 study in the San Diego region showed that the median salary for entry-level employees within he industry was roughly $40,000 and that the median salary for experienced employees was roughly $70,000. Various regional studies have shown that these wages have continued to increase over the last four years.

Employment Projections 2002-12 Industry Scientific research, development & technical services: 70% Pharmaceutical & medical manufacturing: 23% Occupations Life, physical & social scientists: 17% Biological scientists: 19% Biological technicians: 19% With these caveats, it is possible to get a sense of the projected growth in areas of the biotechnology industry. Between 2002 and 2012: Scientific research, development, and technical services is projected to grow 70 %, though some parts of this industry segment are probably outside of the biotechnology industry. Pharmaceutical and medical manufacturing is projected to grow 23 %. Probably all of this segment would be classified in the biotechnology industry, but it is only a part of the industry. Looking at a few of the more industry-specific occupations we see that: Life, physical, and social scientists are projected to grow 17 %; Biological scientists, a subset of life, physical, and social scientists, are projected to grow 19%; and Biological technicians are projected to grow 19 %. There are probably some individuals being counted in all of these occupations that are working outside the biotechnology industry.

Long & Short-Term Solutions Community Colleges Hold the Key Community colleges are critical to the sustainability and growth of the biotechnology workforce. From associate’s degrees, to industry certifications, to customized and just-in-time training courses, the community college system is flexible and experienced in reacting to and meeting industry needs. The focus on lifelong learning and the constant need to retrain workers within the industry makes the broad array of affordable community college courses attractive to employers and employees alike.

Demand-Driven Process

Diverse Training Needs Similar type of Biotech job positions exist across the country There are emerging biotechnology specializations Examples: research & development, bioprocessing/biomanufacturing and bioinformatics Russ

Skill/Education Requirements Discovery Research Technician or Assistant Description: Perform research tasks & experiments Analyze & interpret data Write experimental protocols, reports, & summaries Handle & purchase lab equipment and supplies Entry- Level Position: Associate degree in science with related experience with annual salary of $25,000+ Sonia Discovery Research Technician or Assistant Biotechnology depends on two crucial processes, research and development (or R & D). Laboratory Technicians or Assistants are so key that it’s difficult to imagine the work of experiments being done without them. These trained workers perform a wide variety of research laboratory tasks and experiments, from making detailed observations of the experimental process to analyzing and interpreting data. They may also write reports, summaries and experimental guidelines known as protocols. In addition, they often troubleshoot and calibrate lab instruments and equipment and can be experts in purchasing lab equipment and supplies. An entry-level assistant position requires at a minimum an associate degree in science and some related experience, like an internship. R&D includes several new positions that are linked to the exciting area of bioinformatics. Bioinformatics Associate The bioinformatics associate uses online research techniques to study how genes and proteins look and act. They can search on private and public databases for genes responsible for certain diseases. The software used makes routine jobs faster and easier, and allows them to find and study massive amounts of data. The associate stores the data collected on its own database. The bioinformatics associate works closely with research scientists to prepare software design specifications or applications. They will routinely use Unix and NT systems, Oracle and Access database programs, and programming languages in Java, C++ and Perl. The entry-level position requires a B.S. in life science field with 0-2yrs computer science experience or A.S. in computer science with biotechnology/bioinformatics certificate

Piedmont Triad Area Location- 60-90 miles from Charlotte and Raleigh (RTP) 1,517,790 Population 1,517,790 Largest Industry in terms of employees - Health Care Forsyth per capita income $25,000

Manufacturing Employment 2000 - 2004 Piedmont Triad Manufacturing Employment 2000 - 2004 2000 2001 2002 2003 2004 147,000 116,000 100 110 120 130 140 150 160 Manufacturing Jobs (000s) CoreNet Global Deal o the Year

Piedmont Triad Layoffs/Closings Between 2001 and 2004, there were 361 reported closings affecting over 16,760 people, and 191 layoffs affecting over 12,996 people. Major layoffs or closings at: RJ Reynolds, Lexington Home Brands, Sara Lee, Thomasville Furniture, Pillowtex, Unifi, Wachovia The case for diversification of the region’s economy

Biotech Opportunities ? Necessary Behaviors Vision / Leadership / Desire Collaboration Volunteerism Entrepreneurialism Basic Ingredients

Biotech Research & Development - the Piedmont Triad Biomedical Research Infrastructure FTCC WFUSM WSSU UNC-G NC A&T

Piedmont Triad Capital Possibilities Capital & Entrepreneurial Activity Angel capital & Local Venture - Piedmont Angel Network Inception Micro Angel Fund Knowledge & Environment - Piedmont Triad Entrepreneurs Network - Wake Forest Babcock Business Incubator - Nussbaum Incubator Seed Stage Advisory Winston - Salem Technology Council

“New” Economic Development Groups in the Piedmont Triad Strong, Cooperative Organizations Two active research parks being built Piedmont Triad Entrepreneurs Network (PTEN) Piedmont Triad Partnership Chambers 3, Triad Action Greensboro Winston - Salem Chamber’s Technology Council NC Department of Commerce NC Regional Biotechnology Office Piedmont Triad Biotechnology Advisory Board (schools universities, for profits) Life Sciences Executive Round Table

Inventory Biotechnology Industry - the Piedmont Triad 49 Life Sciences Related Companies 12 medical device manufacturers 8 medical service providers 4 clinical laboratories 9 biotechnology companies 16 pharmaceutical companies 33 support/service companies

Piedmont Triad Life Science/BT Employment Wake Forest University/Baptist Medical Center-3,800 Medical research and education Laboratory Corp Of America- 3,200-Clinical and anatomical laboratory services Spectrum Laboratory Network- 1,000-Laboratory services for physicians offices and hospitals Procter and Gamble Co. -765-Manufactures consumer products Syngenta Crop Protection -740-Agricultural biotechnology Banner Pharmacaps -566-Manufactures soft-gel capsules and caplets Carolina Biological Supply Company 530- world-class support for science & math Arrow International Inc. 500-Manufactures heart catheters ConvaTec 325- Manufactures ostomy care, skin care and advanced wound care products Ventlab Corp. 300-designs and manufactures critical care and emergency medical devices Wilson-Cook Medical Inc. 260-manufactures medical and surgical equipment Ciba Specialty Chemicals Corp. 256-Produces specialty chemicals Shionogi Qualicaps, Inc. 180-Manufactures empty two-piece capsules and encapsulation equipment TriPath Imaging Inc- 160-Diagnostics; cervical cancer screening Novartis Animal Health US Inc. 150-develops and manufactures veterinary pharmaceuticals Physicians Laboratories -130-Makes Revival Soy-based products Targacept – 90- drug discovery and development Transtech Pharma- 80- drug discovery and development  13,000 jobs- Critical People Mass & Bio-Cluster Formation

Forsyth County Winston-Salem- Biotech Cluster Leverage Infrastructure PTRP – a 200-acre research park (planning to be one of largest urban research parks in U.S.) NC Biotech Center’s Triad office – the Center’s first satellite office WFU School of Medicine - #32 nationally in NIH funding; Dept. of Public Health Sciences ranked #1 Wake Forest University Baptist Medical Center – #1 in licensing revenue among NC’s universities; $170 million in research grants and awards (FY 2004) Globally recognized Institute of Regenerative Medicine

Piedmont Triad Biotechnology Advisory Board Acting on 21 Top Initiatives Assessment/Inventory will show trends, resources, gaps Identify projects, goals, vision in three timelines Short Term Projects: ex: Assessment, Economic Index, Events Workforce Mid Term Goals: ex: Marketing, wet-lab incubator, pilot scale mfg Longer Term Vision: ex: International Business Incubator, Biomanufacturing facility recruitment

Environmental Assessment Reveals BT Workers at the technician level are a high need for the present & future “ You train them they will have jobs ”

The Biotech Program Process

Possibilities Collaborative models Articulations with: -K-12 -Colleges -Universities -Employers/employees -Others

Vision premiere BT program in R&D in the Southeast now considered nationwide to be a Center of Excellence and Expertise in R&D Training specialization in training & retraining candidates for the workforce for biotech (Piedmont Triad) job placement job placement at companies, universities or medical center research labs closely partnered with Schools K-12, WFUHS, colleges, universities and Life Sciences companies

Outcomes Recipient of Multiple Grants from Golden Leaf and DOL: Largest BT training program in NC 2004 - 7 graduates: 100% employed 2005 - 18(100%) did summer internships 250 currently enrolled in program Provider of second year BT education for 8 area wide community colleges Articulation with all Triad State university 4 year LS programs & WSFCS Recognized nationally as a site for the National Center and R&D Training expertise

“love the BT grads, competent and very hands on” Partner’s feedback “love the BT grads, competent and very hands on”

Future Workforce needs are dynamic Collaborative spirit New opportunities evolve Infrastructure extends itself to novel ideas www.reallysmartpeople.org

US DOL Employment and Training Administration $5M grant to enhance capacity for biotechnology training by region; to develop, implement, and disseminate curricula; to define technician skill standards for biotechnology sectors; make resources of curriculum available throughout the country.

For information please visit the following web sites: www.workforce3one.org www.biotechworkforce.org Please visit a DOL/ ETA webinar on the Biotechnology Workforce originally broadcast 9/14/05 by connecting to either of these sites Thank you!