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Wisconsin cannot afford to take a pass on Doyle’s biotech plan

The response has been less than overwhelming to Governor Jim Doyle’s proposal to invest nearly $750 million in public and private money in Wisconsin’s biotechnology future. Budget-conscious members of the Legislature have choked on the price tag, opponents of stem-cell research have once again protested, and Milwaukee politicians have asked if they’re being shortchanged in favor of Madison.

Doyle should address all legitimate gripes about the specifics of his plan, but he shouldn’t back down a nanometer on the core idea behind it: Wisconsin has a chance to be a national leader in biotechnology, including stem cell research, and that opportunity won’t wait forever while we wring our hands.

The decision by California voters to spend $3 billion over 10 years on human embryonic stem-cell research may have forever altered the dynamics of research funding, at least in that emerging field. California voters have decided the potential for public good (and financial gain) from stem cell research is so great that they’re willing to spend their own money and bypass the restrictions that come with federal aid.

It’s a gamble that only risk-addicted Californians can easily take, and it illustrates the competitive nature of such research.

With $3 billion to build labs and hire top-flight researchers, California can essentially spend its way into world leadership. Even though human embryonic stem-cell research was pioneered at UW-Madison, California’s new Institutes for Regenerative Medicine could seize the advantage within a matter of years.
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For legislators who recall what it meant to the Wisconsin economy to be overtaken by California in dairy production, the comparison ought to be painful.

To be sure, Wisconsin won’t lie down and play dead. The Wisconsin Alumni Research Foundation, which is the private patent and licensing arm of UW-Madison, holds patents on the world’s premier stem-cell lines. In order for California researchers to conduct world-class work, they’ll need agreements to use those lines. There are only a few states that can hope to compete with the go-go Californians, and Wisconsin is among them.

Wisconsin cannot compete, however, if state lawmakers fail to see the value of the investment, if stem cell opponents are allowed to block ethically conducted research, and if the another tiresome “Madison versus Milwaukee” squabble takes our eye of the reality of much larger competitors.

Doyle’s proposal includes:
  • $375 million to build an interdisciplinary research center on the UW-Madison campus. The center would be called the Wisconsin Institute for Discovery and would encompass research on stem cells, biochemistry, nanotechnology and computer engineering.
  • $134 million for an Interdisciplinary Research Complex near the University of Wisconsin Hospital and Clinics dedicated to innovation and rapid transfer of medical science discoveries into clinical applications;
  • $132 million for a research facility at the Medical College of Wisconsin and Children's Hospital that will focus on infectious disease control, cardiovascular illnesses, and bioengineering;
  • $1.5 million annually to support a new Alzheimer's research initiative; and
  • Investments of $105 million over the next five years in research, education, and public health efforts at the UW Medical School and the Medical College of Wisconsin to make progress in areas such as regenerative medicine, stem cell research, molecular medicine, neuroscience, and cancer research.

    Half of the money would be private, but the public match must come first. The total investment would be spread over a number of years and would create 27,000 jobs, according to job multiplier estimates reported earlier this by the Wisconsin Technology Council. The U.S. Commerce Department estimates that 36 jobs are created for every $1 million in spending related to academic research.

    While a part of the proposal is tied to stem cell research, the bulk of the plan is built around other scientific disciplines and how they work together. Such interdisciplinary research has been a Wisconsin strength for decades – and the investment made over time has repeatedly paid for itself. This investment would be no different.

    Wisconsin policymakers can argue among themselves while California leaps ahead, or they can embrace Doyle’s vision and keep the state competitive. The choice should be obvious: Investing wisely now will secure a brighter future for Wisconsin.

    Still is president of the Wisconsin Technology Council and the Wisconsin Innovation Network. He is the former associate editor of the Wisconsin State Journal in Madison.

    The opinions expressed herein or statements made in the above column are solely those of the author, & do not necessarily reflect the views of Wisconsin Technology Network, LLC. (WTN). WTN, LLC accepts no legal liability or responsibility for any claims made or opinions expressed herein.
  • Comments

    John Biondi responded 4 years ago: #1

    Tom,
    Nice article. I hope your point of view prevails here, we need more investment in technology in this state and need to do whatever we can to maintain a lead in stem cell research and to be competitive in biotech. Keep putting the word out there.

    Best regards for the holiday,
    John Biondi
    nPoint

    Paul Zukowski responded 4 years ago: #2

    As you will see in our January issue, I used the current Texas hold 'em poker terminology to say, "California bets $3 billion, Wisconsin all-in with $750 million." I went on to write that Gov. Doyle reinforced Wisconsin’s commitment to life-science research by grouping new and existing projects into a $750 pile and pledging to back them in future budgets. There is actually not very much in current state tax money in the $750 million. Much of it is bonds and federal funds. One of the buildings is already planned and paid for. It may have been good PR for Doyle to pretend to ante $750 million, but it will take years for any of it to get built. Meanwhile, $300 million a year is what California plans to spend. Get ready to have all our best people bought out. *PZ

    Paul Zukowski, editor
    Corporate Report Wisconsin

    Mike Moser responded 4 years ago: #3

    I too am writing in support of the Governor's plan to increase investment in Biotech in WI. However, in my personal opinion, I would like to see at least of the money going to directly grow the Biotech industry in our state. In am not familiar with the details of the plan, but the overview presented in the article makes it look like the lion's share of the funds will go towards the University. This is as it should be to speed development of new technologies. The only problem with this plan is that the WARF itself has no mandate to keep the technologies developed at our great University within the state. I would like to see a provision that at least some of the new technologies developed at the UW with state monies be required to be licensed here in WI so that the 27,000 jobs are created in WI and not somewhere else. New businesses created in WI will provide the high income wages to keep the best people here so that they are not "bought out".

    Mike Moser
    EraGen Biosciences

    Henric Persson responded 4 years ago: #4

    First, if $750 million is spent and the result is the creation of 27,000 jobs, the total cost per job is $27,777. Why don't we just give 27,000 people that money to spend - that will create even more jobs, too. The job creation fallacy doesn't work.

    Second, I wish you had discussed how private companies could have funded all of this alone. Many people seem to think that if government does not fund research and development, it will never take place. Nothing could be further from the truth. It seems that Wisconsin tax payers are at the wrong end of the bargaining table: Tax payers provide money for R&D, but where is the real payoff? Are companies that benefit from this money going to pay the government back (beyond what's required in taxes)?

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