(The Center Square) – Pennsylvania’s universities – Pitt, UPenn and Penn State in particular – have big reputations, and to back them up, they spend big on research.
In fact, altogether, Pennsylvania’s colleges and universities rank fourth in the nation for life science research and development spending.
According to Gov. Josh Shapiro, that spending is a one-way street. The state only pulls 3% of the venture capital going into life sciences. He sees a major opportunity to claim the space left open beyond the major hubs of Boston and the California Bay Area.
The solution? For Shapiro, more spending. His most recent budget address unveiled a bold new plan to invest in industries across the state. Life sciences, along with energy, agriculture, manufacturing, and robotics and technology, are one of five pillars of his economic investment strategy.
The budget outlines a $65 million investment in innovation. Of that sum, $30 million is specifically allocated toward life sciences.
“In the last five years, Pennsylvania companies received 10,783 new life sciences patents.” said Shapiro. “That means we’re effectively doing the research but losing out on commercial opportunities to other states.”
He plans to use the funding to match investments from venture capitalists. He notes that in addition to advancing the commonwealth’s position within the industry, the move will open a door for “entrepreneurs who have historically lacked access” to this kind of funding.
Shapiro called out successful life sciences companies in the commonwealth, like Krystal Biotech in Pittsburgh and Spark Therapeutics in Philadelphia, both of which specialize in gene therapy. He said over 100,000 Pennsylvanians work in life sciences, and there are more jobs to come.
In October, Glaxosmithkline announced an $800,000 investment in upgrading its site in Marietta, Lancaster County. The new facilities will be used for manufacturing vaccines and other drugs. The project promises to create 200 jobs.
Shapiro spoke about B. Braun, a company that produces medical and pharmacy products and supplies. Last year, B. Braun reported $200 million in materials and equipment from Pennsylvania suppliers, demonstrating the impact of a single business across the state.
The industry also has a broad reach into other fields, particularly agriculture. Shapiro noted that the number one purchaser of eggs from Pennsylvania poultry farmers is Sanofi Pasteur. The eggs are used to produce the influenza vaccine.
Adjacent agricultural investments include $2 million to maintain the state’s animal testing laboratory. The facility provides testing services to farmers, which check livestock for diseases, like the avian flu, that have devastated poultry and egg production nationally. They have tested 207,000 poultry samples and 17,000 milk samples since November of last year.
Shapiro also hopes to invest an additional $13 million in the Ag Innovation fund, which awards grants for new farming tech and practices.