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Like Boston, San Francisco suffers from high cost of living and labor costs. In addition, water and power shortages plague the area. One of the most obvious differences between San Francisco and the cities along the East Coast that host biotech companies is that there are virtually no major pharmaceutical headquarters in the Bay area. This may be due to the dis tance from biotech centers in Europe, or simply that the liberal California environment doesn t appeal to the conservative corporate types. San Francisco also enjoys support for biotech research from the state government. For example, in a move that resembles the formation of Re search Triangle in North Carolina, the state of California committed $100 million toward the building of the California Institute for Quantitative Biomedical Research or QB3. The institute, which is intended to foster col laboration between academics and industry, will be staffed primarily by scientists from U.C. Berkley, U.C. Santa Cruz, and U.C. San Francisco. Infrastructure In each of the six core infrastructure areas information technology, legal-regulatory, intellectual property, labor, education, and public attitude the United States scores either fair or good, as sum marized in Figure 7.3. In the area of information technology, the United States has a good rating because of the abundant networked computa tional power available, ongoing research into supercomputers, grid com puters, and other systems that have applicability in biotech. The downturn in the dot-com economy following the peak in 2000 also resulted in an overabundance of highly skilled computer professionals, many of whom, as mentioned previously, turned to biotech computing for a new career. The legal-regulatory infrastructure of the United States has a fair rating because of a curious combination of restrictions on core technolo gies combined with technological rsts. Consider that, in the area of agri cultural biotech, the world s rst cloned mule was born in 2003 in the United States. This achievement is viewed as a huge economic and ecologi cal win because it portends a future in which it will be possible to clone champion gelding racehorses and endangered species, for example. How ever, only a few months before the birth of the mule, the U.S. House of Representatives passed a bill banning all human cloning, with a $1 million ne and a prison sentence of up to 10 years for violators. While regulations regarding stem cell research in the United States have been in turmoil, re searchers in Asia have been busy at work with stem cell technology, unfet tered by the government. The intellectual property infrastructure in the United States has a good rating from a business perspective because of the protection af forded pharmaceutical rms for drug patents. Patients, taxpayers, and those with medical insurance pay for this protection, however, in the form of higher drug prices, higher taxes, and higher insurance premiums. The
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UNITED STATES Area Infrastructure Information Technology Rating Good Note
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Legal-Regulatory Intellectual Property Labor Education Public Attitude Financing Industry Government Universities and Colleges Nonpro t Institutions Private Investors Venture Capital Strategic Alliances Biotech Industries Pharmaceuticals Agriculture Military Computing Medicine Biomaterials
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Fair Good Fair Good Fair
Internet and computers ubiquitous; supercomputer and grid computer in development Restrictions on core research including stem cells and cloning Protection for pharmaceuticals and genomic data Educated, but expensive in the centers of excellence World-class universities and collaborators Moral and religious beliefs often at odds with scientists Strong industry nancing Declining, with the exception of military spending Relatively constant, but a minor contributor Several funds available for training and research, but low level Primarily through funds and retirement packages Support for later stage companies with products Increasingly important in a challenging economic environment World leader, with good prospects in the pipeline Limited by European rejection of GM crops Highly funded activity since the war on terrorism declared Abundance of high-speed computing, networks, and computer professionals Growth outpaces that of the general economy Immature market
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