Georgia's life sciences sector is an economic engine, yet a lack of financing and experienced managers throttles its momentum, a new report says.
The life sciences industry — which includes a broad swath of industries including health care, agriculture and energy — had a $16 billion statewide economic impact and generated more than 62,000 jobs in 2007, according to the Georgia Life Sciences Industry Analysis 2009 released April 23.
The report, produced by The University of Georgia's Selig Center for Economic Growth in the Terry College of Business, was timed to coincide with the 2009 Biotechnology Industry Organization (BIO) International Convention to be held in Atlanta May 18-21.
One out of every 68 jobs in Georgia owes its existence to either the life sciences industry or to life sciences research and development, the report found.
Life sciences "is an industry we think of as a growth industry ... maybe as a vehicle for future jobs," said economist Jeff Humphreys, a co-author of the study. "The bottom line is, there are a lot of jobs in this industry already."
Medical and diagnostic laboratories, surgical appliance and supplies manufacturing, and life sciences research and development drove life sciences job growth, the report noted. Pharmaceutical manufacturing also contributed to job growth, but at a slower pace.
The growing clout of Georgia's life sciences sector is underscored by Atlanta's hosting of the BIO International Con-vention, the largest biotechnology convention in the world, said Mike Cassidy, president of the Georgia Research Alliance.
"That they chose to come here says that we are showing up on the map," Cassidy said. "It certainly positions us to send a strong message about our intentions to grow the industry in the Atlanta region and Georgia."
Areas of weakness
Forty eight percent of survey respondents said access to capital is critical or very important. And, 44 percent said Georgia lacked in it.
While the majority of respondents considered the quality of life a strong point in Georgia, the availability of specialized managers was identified as a weakness.
The dearth of funding and experienced managers can be linked to a common issue — Georgia's lack of a track record of major life sciences successes, said Lee Herron, vice president of commercialization at the Georgia Research Alliance.
Georgia's relatively young life sciences industry has not produced blockbusters like Boston'sGenzyme Corp. or South San Francisco's Genentech Inc.
Recruiting experienced talent to Georgia is a challenge in the absence of a major life sciences cluster.
It's risky for a life sciences CEO to uproot his family and move to Georgia, Herron said, because if the job doesn't work out, the executive has few other employment options in the area.
Georgia's national reputation is more as a hub for life sciences research thanks to Emory University, Georgia Tech, The University of Georgia and the Centers for Disease Control and Prevention, than as a hotbed of commercial activity, Herron noted.
Georgia's life sciences firms tend to be small — with 39 percent of responding companies having fewer than 10 employees, the report noted.
Companies employing more than 50 account for 23 percent of surveyed companies.
Twenty seven of the 47 companies responding in 2008 said they planned to create a total of nearly 250 jobs, mostly in sales, marketing and office support.
That marks a shift from prior years, where life sciences companies primarily hired scientists and technolog
By the numbers
In 2007, Georgia's life sciences industry generated:
- $16 billion in sales
- $6.2 billion in state GDP
- $3.6 billion in labor income
- $517 million in tax revenue for state and local government
Source: Georgia Life Sciences Industry Analysis 2009
Reach Karkaria at ukarkaria@bizjournals.com.
