This is making headlines across the country this morning. Many are comparing Governor Deval Patrick’s proposed $1 billion life sciences initiative to California’s $3 billion for stem cell research, although the Massachusetts plan is a lot more than just a stem cell plan. Here’s how the Globe describes it today:
>Over 10 years, the state would issue $500 million in bonds to pay for capital investments at public institutions and other facilities. It would also spend $25 million a year on direct research grants and offer $25 million annually in tax credits to biotech companies that promise to create jobs in Massachusetts.
>The administration, however, has not determined how much money would be dedicated to different areas of research or how much would be available to the private sector.
So it’s not clear yet how much of that money would be for stem cell research. But overall, it’s meant to make up for the shortfall in NIH funding and spur more commercialization of research. Some of that money would be grants to young researchers, hit hard by the downturn in NIH funding.
In addition to the $1 billion in state funding, the plan calls for $250 million in matching funds from the private sector.
Patrick said yesterday the money could start flowing by next summer.
When interviewed on WBUR this morning, Patrick said that this initiative could create more than 100,000 new jobs in Massachusetts.
A key aim, he said, is to spread the life science/biotech wealth to other parts of the state, beyond just Boston, such as UMass Amherst and Worcester. UMass will probably collect about $100 million, including the establishment of the MA Stem Cell Bank, estimated to cost $66 million. The Globe said eight MA hospitals and universities, including Harvard, have already pledged to deposit their stem cell lines. The goal, Patrick said, is to make this stem cell bank the biggest in the world. UMass Worcester would receive $38 million for a new RNA interference research center, headed up by Nobel Laureate Craig Mello.
The plan has already been endorsed by state legislative leaders. Both the Senate and House speakers were standing alongside Patrick when he made his announcement at BIO yesterday.
Scientists, fearing competition from other states that are also pouring money into stem cell/life science research (and some have lower costs of living too), are applauding this move.
Outside of the scientific community, reaction seems to be mixed. The head the MA Taxpayer Foundation said this is “an economic bet” and that the money could be spent elsewhere, although he did say that the state could afford it, despite its high debt.
Oddly, the owner of the New England Patriots and other non-bio businesses, Jonathan Kraft, was at the press conference yesterday to support the plan. He said MA lost its dominance in information technology to California and doesn’t want to see the same thing happen in the life sciences.