Life Science Economic Development Summit
March 26, 2015
Robert T. Skunda
Senior Consultant, Innovation Centers and Technology Parks
President Emeritus, Virginia Biotechnology Research Park

Virginia Biotechnology Research Park
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Joint initiative of the Commonwealth of Virginia, City of Richmond and Virginia
Commonwealth University
• Planning undertaken in 1992 as regional initiative
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State created political subdivision in 1993 (VBRP Authority)
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34 acres adjacent to VCU Medical Center
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1.5 million s.f. R&D/office space
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Employment center for more than 3,000 high technology workers
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 Formed in 1998 as subsidiary of McGuireWoods LLP
Top 20 National Law Journal’s “Influence 50” law firms
 Services include: o Infrastructure & Economic Development o Public-Private Partnerships o State & Federal Government Relations o Communications and Public Relations o Capital Market Strategies and Business Performance

• Site selection services for major clients in over ½ of
U.S. states
• Lead incentive negotiations
• Secure necessary legislative or regulatory changes
• Negotiate and finalize performance and incentive agreements

www.mcguirewoodsconsulting.com
 Introduction and Background
 Biotechnology Industry
 Life Sciences Economic Development
 Community Readiness
 Closing Comments
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“From Beer to Biofuels and
Human Growth Hormones ”
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“Healing, Fueling, Feeding and
Supplying the World”
• Agricultural Biotech
• Bio Defense
• Biofuels
• Biomanufacturing
• Vaccines
• Human Health
• Regenerative Medicine
• Nanobiotechnology
• Marine Biotechnology
NC Biotechnology Center
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Future of Biotech and Impact on our Lives
• Ag biotech now in 30 countries
• Growth surpassing traditional industries
 Regenerative Medicine 13%/yr
 Biobased plastics 20%/yr
 Industrial Biotech 85%/yr
• 2012 Biofuel production fell for first time since 2000
• Biotech is subject to market conditions just like traditional industries
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“Big Bang versus Incremental Approach”
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Factors for Creating Successful Biosciences Cluster
• Research magnet
• Venture capital
• Funding (federal/state) for research
• Specialized facilities & equipment
• Workforce & talent pool
• Entrepreneurial culture
• Create “critical mass”

“Big Bang” Strategy
Creating a Research Base and Industry Cluster in Unison
• Necessary in absence of an existing research magnet
• Also a major expansion of an existing research institution
• Can apply to greenfield and brownfield sites
• Common denominator:
“Lots of $$$”
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• Instituted in 2003 to attract satellite facilities of world class bioscience research labs
• Scripps, Max Planck, Sanford-
Burnham, Torrey Pines Institute among notable successes
• Public criticism about average cost/job ($1.4 M) to taxpayers
• Be careful of “Castle on the Hill” syndrome coming into play
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• Site of former Cannon Mills in Kannapolis, NC
• $1.5 B scientific and economic revitalization project led by David H.
Murdock
• Multiple institutions and private corporations on site with room for growth
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• Model most often used by most
U.S. research parks
• University partner usually will occupy space in initial phase(s) in addition to providing funding
• Organizational structure often a university foundation, 501-c-3, or government entity
• Mixed-use (live, work, play) is new emphasis in planning

Association of University Research Parks
• 175+ university-affiliated research parks in U.S. today
• 50% governed by affiliated institution
• Access to skilled workforce #1 reason tenants choose parks
• 64% of parks have programs to facilitate collaboration between industry and the university
2012 Battelle Survey
“Typical” U.S. Research Park:
• 119 acres
• 7 buildings/250,000 s.f.
• 25,000 s.f. incubator space
• 26 resident organizations
• 64% for-profits
• 24% university
• 850 average employment
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• 27,000 sf incubator and meeting center
• Constructed with $5 M grant from state in 1994
• 10 laboratory suites & 12 private offices for start-ups
• Over 70 companies formed at Center 1995-2013
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Biotech 1 & 2
Biotech 1
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100,000 s.f. multi-tenant building
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VCU Research Institutes
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Vice President for Research
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Private Sector Companies
Biotech 2
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131,000 s.f., $30 million project
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Build-to-suit project
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Virginia Division of Forensic Science
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Office of the Chief Medical Examiner
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Central Lab for Forensic Science
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• Wooster, OH (100 mi. from Columbus)
• Ohio Agricultural Research &
Development Center
• Research facilities and expertise for entrepreneurs and companies in Ag biotech
• Master Plan for 350,000 sf of business attraction and meeting space
• Adjacent to OSU Agricultural Research
& Development Center
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Sandia Science &Technology Park
• 300 acre park adjacent to Sandia
National Laboratories and Kirkland
AFB
• No higher-ed affiliation
• Government and corporate partnerships
• C3 Center for Entrepreneurship
• Multi-tenant space
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• Private company created by governments of Canada, Nova
Scotia, and agricultural industry
• Serves as agricultural extension and innovation center for crops and marine resources
• 25,000 s.f. Innovation Center offering extraction, research and scale-up of bio-based products
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• Medford, OR
• Equidistant from Portland and
Sacramento (300 mi)
• Greenfield site
• Goal is to retain talent and build technology base
• Major employers Harry & David and Rogue Regional Medical
Center
• “Highly risky real estate venture”
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Common Themes of Successful Innovation Centers
• Capitalize on indigenous strengths of the area (human, natural, institutional and business)
• Provide key resources necessary to transform intellectual property and ideas into viable businesses (sources of funding, mentoring, proof-of-concept, networking and market access)
• Places for bringing entrepreneurs and the support networks/resources together
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“If you don’t know where you’re going, you might end up someplace else”
Yogi Berra
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• 30 year investment in life sciences
• Over 600 life science companies
• Created NC Biotech Center
• Regional offices based on market segments and strengths
• Now ranked in “Top 5” states for biotech by every measure
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• Innovation is derived from collaboration
• Places don’t drive collaborationpeople do
• Our role: “build the framework to attract those who have the shared interest and innovative ideas and create the community
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(Innovation Quotient)
• Higher education institutions
• Major employers
• Research parks
• Community colleges
• Non-Profits and major health care providers
• Business leaders
• Commercial real estate agents
• Yes– even the local Starbucks!
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• Workforce skills and specialized expertise
• Educational resources
• Natural resources
• Access to specialized facilities and equipment
• Research collaborations
• Site (or facility) readiness
• Capital availability
• Marketing & business support
• Additional incentives
• Programs, events, venues that bring people together
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• Targeted to Israeli companies in
Virginia Biosciences
Commercialization Center
• $75 M locally-raised and based venture fund
• Selectively screen and recruit new companies into portfolio to commercialize technologies in
U.S. and headquarter in the
Biotech Park
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• Joint Initiative of 2 local gov’ts,
Biotech Park and public utility
• Initial focus on renewable energy
• Goal to create technology jobs in suburban county of Richmond
• Entrepreneur-in-Residence and technical support from Dominion
• Budget of ~$500K/yr.
• 2014- needed to change tech focus and location for budgetary and demand factors
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• Inventory of resources
• Identify needs and opportunities
• Meet with NC Biotech Center
• Develop strategic outline of plan
• Identify partners and approach to meeting needs
• Who will be the champion?
• Timetable and implementation strategy
• Set intermediate goals and benchmarks
• “Adopt a good dose of patience”
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“Winning isn’t everything, but wanting to win is”
Vince Lombardi
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• What are your unique strengths and resources?
• Are you starting from scratch or building on existing cluster?
• Where is innovation occurring?
• Are there unmet needs that are stifling innovation?
• Are there opportunities for stimulating life science innovation through strategic outside involvement?
• Who are potential partners and leaders?
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• Understand your strengths
• Think out of the box
• Formulate a vision and plan
• Assemble the resources and support to round out your toolkit
• Don’t be afraid to adjust your strategy as you move forward
• Don’t sit back and wait for the opportunities to come to you
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