The United States is the leading nations in the world with the maximum number of biotechnology companies. Biotechnology makes use of cells and molecules to make products . It is used in a wide variety of fields ranging from agriculture to medical applications and crime prevention. Researchers consider that biotechnology when used in stem cell research would do wonders in the prevention of dangerous diseases like Alzheimer’s, Parkinson’s, cancer, sclerosis and many others . Many states in the United States have already spotted the economic potential of the biotechnology industry and are in the process of expanding the industry. One such state is Massachusetts. Biotechnology has emerged as one of the leading industries in the state of Massachusetts as the state has highly skilled labor force and the availability of venture capital. The state is already in the process of bidding, in order to retain existing biotechnology companies and attract new ones .
The state government of Massachusetts has actively contributed to the development of biotechnology industry in Massachusetts in order to improve the growth of biotechnology research through the support of educational institutions right from the level of secondary education through the state’s medical school in Worcester . The biotechnology industry has given employment to thousands of employees and in the field of research and development operations, as well as newer technologies on a global level. The Commonwealth Corporation of the state, with the help of public colleges has formulated training programs to facilitate the workers and high school students with the training and experience they require to achieve success in the field of biotechnology .
Massachusetts has taken best efforts to promote the biotechnology industry in trade shows and conferences. The state is taking necessary steps to overcome the issue of zoning and regulation. The biotechnology industry has been identified as the key industries for the development of the economy of Massachusetts and hence, the state has disposed sufficient land at better prices . The state has also disbursed funds to setup new biotechnology industries for the purpose of research and development operations, particularly in the field of stem cell research. The state government of Massachusetts has also extended its support to the biotechnology industry with the help of Public Works Economic Development Program (PWED), which covers the cost of transport and infrastructure adjacent to the biotechnology facilities .
The biotechnology industry has an impressive impact of on the economy of Massachusetts; however, it fades out in comparison to the prominent role it can play in maintaining and promoting the research and development operations . Though the state of Massachusetts is contributing its best to build partnership with big firms and expand the research operations, it is not able to succeed in terms of attracting new firms and retaining the existing firms, as the cost of research is relatively higher. Moreover, the biotechnology industries located in Massachusetts are small and medium size organizations that manufacture one or two core products. Hence, it is difficult for such small firms to afford funds and conduct research on new products, unless their existing products gain popularity in the market .
The economy of Massachusetts has an increasing trend in the employment sector of the state. The biotechnology industry provides job opportunities to several unemployed people, which proves to be a positive note on the state’s economy. As the important element in the field of biotechnology is research and development, the number of jobs available in this sector is higher than the number of jobs available in the manufacturing and wholesale sectors . The biotechnology industry estimates to provide high wages to its employees and hence, it is one of the booming sectors in the present time. From the available data, it is evident that the biotechnology industry not only benefits from the resources available in the state, but also contributes to the research infrastructure by being a dynamic player and by making substantial investments in science. Massachusetts has a rich availability of supply and service sector due to the presence of a huge number of local companies. The state is dominant with high class education and training programs in addition to technology transfer programs that have yielded fruitful results for several years .
In order to obtain the maximum benefit out of the biotechnology industry, Massachusetts should procure the industries right from the stage of development and manufacturing. Failure to do so will leave Massachusetts at a loss of over one million jobs. The state has also played a major role in bringing together the public and private research institutions. Biotechnology companies are more attracted to places near the institutions and centers of academic excellence and scientific research . The dense network of world-famous universities, dispensaries and research foundations of Massachusetts makes the state a reliable place to setup biotechnology companies. The state government is attempting to take advantage on the economy of Massachusetts related to biotechnology by investing in resources to support the industry. The efforts mainly target on the research and development of stem cells, which has become more dependent on the funds provided by the state and private institutions. Hence, there are strict limitations on the utilization of federal funds for the purpose of research .
Using a well- demonstrated economic model, the estimated impact of growth in the biotechnology industry on other sectors of the state economy is very high. According to the economic model, the growth in the number of jobs in the biotechnology industry is a direct impact on the economy. The indirect impact is that the income earned by the companies that purchase goods and services from the biotechnology companies lead to a high rate of consumption, which in turn result in the increase in the number of businesses and jobs in the state . Thus, each job in the biotechnology industry would indirectly support an additional job in the State. The new capital spending made by the biotechnology industry impacted hundreds of millions of dollars over a span of three years, bringing the total economic impact on the state of the biotechnology sector to over $2 billion per year . If the trend continues to be the same in the following years, it is likely that the scientific research will continue to play a vital role in the development of new products in the coming years. As more and more rare illnesses are identified, the expanding bounds of scientific knowledge, individuals and institutions will become more essential to the biotechnology industry than they are today.
With the help of profound discoveries in the research technologies, the disintegration of research is visible to a great extent. The competition between the industries is an indeterminate process and the favorable current state of affairs is by no means an end game. Hence, Commonwealth should explore ways and means to strengthen the evolving presence of the biotechnology industry . The economy of the state of Massachusetts has an equal impact on the public policies or investments that might be effective in ensuring the commitment for extended investment by the biotechnology industries into the institutions and infrastructure within the Commonwealth.
Massachusetts should also conduct a robust assessment to understand the pitfalls of the biotechnology industry. Future researchers should research indirect influences that may help to improve the economy of the state of Massachusetts as far as the biotechnology industry is concerned. Technology licensing and transfer is one such issue that deals with partnering out with other biotechnology companies to reduce the costs of research. In the present situation, only a few institutions and companies are showing keen interest while others are unable to participate due to the limitation of funds . The future research should explore effective measures to attract more and more institutions to participate in technology licensing and transfer in a coordinated manner to improve the economy of the state. Hospitals and dispensaries should participate in clinical trials as that would benefit both the economy as well as the health of the state . Right now, only a limited number of hospitals participate in clinical trials due to lack of awareness and ability to organize the procedures. A majority of the biotechnology plants in the state of Massachusetts are in the early stages of manufacturing.
The state should take high efforts to make sure that the existing plants establish their manufacturing units within the state only and not relocate to other low-cost states and countries. The role played by Massachusetts in the biotechnology industry in the future years depends upon the intensity of research in its institutions and universities . It also depends on the ability of the economy and the infrastructure of the state to support investments in the field of biotechnology. The impact of biotechnology companies on the economy of the state is highly influenced by the perception of the attractiveness to make investments in the state economy. On the whole, the productivity of the investments made by the individual biotechnology companies will decide the future of the economy of Massachusetts .
Works Cited
Breznitz, S. M. (2006). Manufacturing Biotechnology in Massachusetts. MassBenchmarks.
Hevesi, A. G., & Bleiwas, K. B. (2005). The Economic Impact of the Biotechnology and Pharmaceutical Industries in New York. New York: New York State Comptroller .
Sharma, D. A. (1999). Economic Impact of the Pharmaceutical Industry. MassBenchmarks.
