Medical Device Link.

Governor Patrick: A $1 billion boost.

Earlier this month, Massachusetts Governor Deval Patrick unveiled his proposal for a 10-year, $1 billion investment to further strengthen the state’s position in product research and development in the life sciences. He made the announcement at the annual convention of the Biotechnology Industry Organization (Washington, DC), which was held May 6–9 in Boston.

The proposal, which is expected to be approved by the Massachusetts legislature, would provide funds to support life sciences research, set up a state stem cell bank, establish fellowship grants, and foster the development of life sciences centers to promote technology transfer and product development across the state.

“Our Massachusetts life sciences initiative will strengthen our competitiveness, not just in the United States, but in the world,” Patrick said. “State government has the opportunity to be an active partner in helping grow ideas into cures, bring new jobs to Massachusetts, and secure our global leadership in this important industry.”

MassMedic’s Sommer: A seat at the discussion table.

The provision for a stem cell bank was opposed by the previous administration of Governor Mitt Romney, now a Republican candidate for president. Romney’s restrictions were rejected by the legislature, which approved an initiative permitting embryonic stem cell research, but provided no state funding. Keenly aware of the potential for controversy, Patrick avoided presenting his new proposal as a stem cell initiative. Instead, it was carefully crafted and promoted as benefiting all life sciences disciplines in the state.

Such an approach seeks to avoid problems similar to those that have arisen elsewhere in the country in regard to stem cell research. California’s $3 billion stem cell initiative soon became bogged down with court challenges shortly after it was approved by voters in 2004. Following a ruling by an appeals court this past February, funds have finally begun to flow to the intended programs. However, opponents may still appeal to the state’s supreme court.

Before the Massachusetts life sciences initiative was announced, the state’s medtech industry had an active seat at the discussion table. Tom Sommer, president of the Massachusetts Medical Device Industry Council (MassMedic; Boston), said, “Along with representatives from other life sciences sectors in the state, we were actively involved in reviewing the proposal—and will continue to contribute to the complete package as it unfolds.”

Sommer also stressed that the governor’s proposal was not a stem cell initiative. “This proposal benefits the medical device, pharmaceutical, and biotech industries in the state,” he said. “There’s no one overriding focus here. On the medical device front, the initiative is expected to provide incentives to both retain and expand the current base while attracting new players to the state—particularly early-stage companies, which will be assisted in developing and commercializing new technologies.”

Giovannetti: A valuable contribution.

Independent of the new life sciences initiative, MassMedic recently released the results of a study which found that Massachusetts medtech companies generate $8.3 billion in economic activity annually, directly employ more than 20,000 individuals, and account for 10.5% of the state’s total exports.

Describing the medtech industry as “demonstrating robust growth and increased productivity,” the report notes that Massachusetts produced 9% of all U.S. medtech exports in 2006 while receiving 11% of the industry’s venture capital funds.

“The fact that Massachusetts received 11% of national venture capital funding for medical device firms last year is a testament to the industry’s ongoing upward movement and continued strength,” said Glen Giovannetti, medical device and biotechnology leader with Ernst & Young Ltd. (London). “The value and contributions of many young, innovative medical device companies in the state, which have enormous strategic importance, played a role in that.”

Goodman: An important growth driver.

Michael D. Goodman, PhD, director of economic and public policy research at the University of Massachusetts Donahue Institute, characterized the Massachusetts medtech industry as “an increasingly critical component of the commonwealth’s world-class life sciences industry cluster.” He added, “Rising global demand for the products produced by Massachusetts medical device firms, fueled in part by globalization and an aging population, makes it likely that this sector will remain a critically important growth driver for the Massachusetts economy for many years to come.”

In terms of employment and annual payroll in the medical device industry, Massachusetts currently ranks third among all U.S. states.

© 2007 Canon Communications LLC

Return to MX: Issues Update.