1 George Goodno Communications Director for State Policy, International Affairs and Intellectual Property BioForward 2014 Bioscience Vision Summit October 8, 2014

2 Biotechnology companies Academic institutions State biotechnology centers Related organizations Over 1000 Members across US and more than 30 other nations involved in research and development of technologies in: Healthcare Agriculture Industry and Environment Biotechnology Industry Organization

3 Heal, Fuel, Feed the World Health & Medical Industrial & Environmental Food & Agriculture

5 Defining the Bioscience Industry: 5 Major Subsectors Reflect the Breadth of Bioscience Opportunities

6 Bioscience Industry: A Signature Performer for the U.S. Relative to Other Technology Sectors *Battelle/BIO State Bioscience Industry Development 2014

7 Since the Recession, Biosciences Job Growth Mixed, But Economic Activity Continues to Rise *Battelle/BIO State Bioscience Industry Development 2014

8 Broad National Footprint with Widely Shared Growth Across Many of the States *Battelle/BIO State Bioscience Industry Development 2014 Change in Bioscience Employment by State, 2007– states had overall bioscience industry job gains from Only 12 states had significant job losses of 1,000 or more

9 Bioscience Industry a Source of High-Wage Jobs Average wages for Bioscience industry workers $88,000 in 2012 Bioscience wages were nearly $40,000 more, or 80% greater than for the average private sector worker Bioscience wages have grown at a much higher rate vs. private sector; inflation- adjusted Bioscience wages up 15% since 2001 vs. 5% for private sector

10 Broader Impacts of the U.S. Bioscience Industry

11 A Growing Engine of Innovation— Patent Activity in the Biosciences

12 Signs of Stress? Bioscience VC Investments Down U.S. Bioscience Venture Capital Investments, ($ Millions)

13 Signs of Stress? NIH Funding More Challenging National Institutes of Health Funding, 2009–2013 ($ Billions)

14 Trends in U.S. Bioscience and Private Sector Employment, 2001–2012 (Indexed: 2001=100) While Impacted by the Great Recession, Bioscience Industry Weathered it Far Better than Overall Private Sector Industries *Battelle/BIO State Bioscience Industry Development 2014

15 Wisconsin’s Bioscience Industry Continues to Expand *Battelle/BIO State Bioscience Industry Development : 31,758 Total Jobs

16 Since 2007, over 10% growth in jobs in Medical Device and Diagnostic Companies Over 21% growth in jobs in Drugs and Pharmaceuticals Over 20% growth in Research and Testing jobs Below average in Distribution and Ag biotech Nice Chart… But Doesn’t Tell the Whole Jobs Story

17 Wisconsin’s Bioscience Employment Bioscience- Related Distribution: 10,296 Medical Devices & Equipment: 10,912 Research, Testing, & Medical Laboratories: 5,132 Agricultural Feedstock & Chemicals: 1,316 Drugs & Pharmaceuticals: 4,103 Total Bioscience Industry Employment: 31,758 Direct-Effect Employment Multiplier: 4.7 Total Employment Impact: 148,833 Average Annual Wage (2010 dollars) $72,604 Total Bioscience Industry Employment: 31,758 Direct-Effect Employment Multiplier: 4.7 Total Employment Impact: 148,833 Average Annual Wage (2010 dollars) $72,604

18 Deeper Dive Milwaukee: Largest bio industry across the metros, 13,365 jobs 2 specialized industry concentrations: Medical Devices (6,745 jobs) Bio-related Distribution (3,600 jobs) Madison: Large, impressively varied, 7,748 jobs Highly specialized/concentrated region One of only 8 US metros with a specialized employment base in 4 of 5 bio subsectors and the 5th is just under the specialization threshold Sheboygan:439 med device jobs Racine:254 med device jobs Janesville:294 Bio-related distribution jobs

19 Leading Metro Areas Metropolitan Statistical AreaTotal Biosciences New York-Northern New Jersey-Long Island, NY-NJ-PA117,281 Los Angeles-Long Beach-Santa Ana, CA81,878 Boston-Cambridge-Quincy, MA-NH66,147 Chicago-Joliet-Naperville, IL-IN-WI61,650 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD53,334 San Francisco-Oakland-Fremont, CA42,060 Minneapolis-St. Paul-Bloomington, MN-WI40,776 San Diego-Carlsbad-San Marcos, CA35,491 Miami-Fort Lauderdale-Miami Beach, FL30,937 Dallas-Fort Worth-Arlington, TX28,226 Washington-Arlington-Alexandria, DC-VA-MD-WV25,533 Indianapolis-Carmel, IN25,193 San Jose-Sunnyvale-Santa Clara, CA24,833 Houston-Sugar Land-Baytown, TX19,320 Atlanta-Sandy Springs-Marietta, GA17,620

20 $934 million in bioscience academic R&D in 2012 –70% of all academic research –61% is the national average Wisconsin Universities are Focused in the Biosciences State inventors have been issued 3,048 bioscience related patents since 2009

21 As industry changes the future is in discovery and development partnerships. Partnerships with Universities and emerging companies are critical for larger company success. Your strategy fits nicely with the new model and should accelerate job growth and investment in Wisconsin Positioned for the Future

22 Looking Ahead Importance of biosciences as an economic driver continues with a bright future in helping to “feed, fuel and heal the world” But the growth of the biosciences depends upon innovation and its future success cannot be taken for granted Enlightened state development approaches and national policies have made an important difference in growing the biosciences in the U.S. and will continue to be important for the future in creating a high-quality business environment for biosciences industry to grow

23

24 June 15-18, 2015 | Philadelphia, PA

25 Thank You!! BioForward