http://www.nu-tekbioscience.com/applications/nu-tek-bioscience-pea-peptones/
THE BIOSCIENCE CLUSTER IN OHIO
P R E PA R E D BY: C A N D I C LO USE A N D Z I ONA AU ST RI A N , P H . D.
Levin College Research Conference
August 20, 2015
9/10/2015
1
Motivation for the Research
 Goals:
 Develop a common definition of the industry between Bio
Enterprise and Jobs Ohio
 Track the economic performance of the industry
 Better understand how it helps to revitalize the urban core
and the region as a whole.
The research is being conducted for BioEnterprise and
JobsOhio
Research is derived from interviews with industry
experts from around the state of Ohio and analysis of
data.
http://www.cleveland.com/pdgraphics/index.ssf/2011/05/clevelands_healthtech_corridor.html
9/10/2015
2
Defining the Industry
Bioscience
• applies knowledge of the way which plants, animals, and humans function with the goal of developing new
treatments, therapies, and processes and involves a grouping of diverse industries with a common link – the
application of biological scientific knowledge.
Battelle/BIO, State Bioscience Industry Development, 2012.
Life Science
• “…a diverse and robust industry from
pharmaceuticals to medical devices to
agricultural biotech, laboratories, and
health information technology
enterprises.”
BioCrossroads, 2013
• Includes: healthcare delivery, medical
manufacturing, and
bioscience/biotechnology.
ProDev Associates, 2005
• Not a separate industry, but
companies that are focused on life
processes.
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NJ Department of Labor & Workforce Development,
2013
Biohealth
• … is a subset of bioscience but is
often used synonymously with the
term. …. a cluster of industries
including biotechnology, biopharma,
medical devices, healthcare services,
health IT, e-health, mobile health,
electronic medical records, health
informatics, and biohealth cyber
security.
•Economic Alliance of Greater Baltimore, 2013
Agricultural Biology
• …involves bio-based raw material
production on farms, in aquaculture
and forests, in the conversion of that
raw material into useable feedstocks,
and feedstock use for food and health
goods production, biofuel and energy
production, and biomaterials
production.
Bush Consulting Group, 2013
3
Bioscience Framework
 The bioscience cluster is difficult to measure
because:
 It crosses over many different industries and
involves many players.
 Many companies working in bioscience are
classified under a broader industry definition due
to the primary nature of their work.
The Bioscience Framework presented here is
based on:
 Literature review
 Interviews and meetings with industry experts.
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4
Supplier industries produce goods
and services required for the
production undertaken by the core
biohealth industries.
The Core or Driver Industries
represent the companies whose
central business is in biohealth.
Downstream Industries provide
specialized wholesale, distribution,
and packaging services.
End Users range from health care
delivery to retail functions.
Specialized Industry Infrastructure
supports the industry and is critical
to continued advancement in
innovation, product
commercialization, and business
growth.
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Components of the Biohealth Industry
Biohealth Supplier Industries
Research, Design, and
Development
541711 Research and
Development in
Biotechnology
Clinical Trials
622110 General Medical and
Surgical Hospitals*
Select Manufacturing
31-33 Manufacturing*
541712 Research and
Development in the
Physical, Engineering, &
Life Sciences (except
Biotechnology)
NAICS Code
* Only select companies are biohealth, and thus these subcategories cannot be used to track trends in the biohealth industry.
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Enabling Information
Technology
511210 Software Publishers*
541511 Custom computer
programming services*
541512 Computer systems design
services*
541513 Computer facilities
management services*
541519 Other computer related
services*
6
Components of the Biohealth Industry
Biohealth Core/Driver Industries
Products
Health IT
Services
511210 Software Publishers*
541380 Testing Laboratories
325414 Biological Product (except Diagnostic)
Manufacturing
333314 Optical Instrument and Lens Manufacturing
541511 Custom computer programming
services*
621511 Medical Laboratories
334510 Electromedical and Electrotherapeutic Apparatus
Manufacturing
334516 Analytical Laboratory Instrument Manufacturing
541512 Computer systems design services*
621512 Diagnostic Imaging Centers
325411 Medicinal and Botanical Manufacturing
325412 Pharmaceutical Preparation Manufacturing
325413 In-Vitro Diagnostic Substance Manufacturing
334517 Irradiation Apparatus Manufacturing
339112 Surgical and Medical Instrument Manufacturing
541513 Computer facilities management
services*
339113 Surgical Appliance and Supplies Manufacturing
339114 Dental Equipment and Supplies Manufacturing
541519 Other computer related services*
339115 Ophthalmic Goods Manufacturing
339116 Dental Laboratories
* Only select companies are biohealth, and thus these subcategories cannot be used to track trends in the biohealth industry.
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NAICS Code
7
Components of the Biohealth Industry
Biohealth Downstream Industries
Distribution & Wholesale/Central Pharmacy
Packaging
423450 Medical, Dental, and Hospital Equipment and Supplies Merchant
Wholesalers
454113 Mail-Order Houses*
424210 Drugs and Druggists' Sundries Merchant Wholesalers
532291 Home Health Equipment Rental
424910 Farm Supplies Merchant Wholesalers (not included in original Battelle
definition)
NAICS Code
423460 Ophthalmic Goods Merchant Wholesalers
* Only select companies are biohealth, and thus these subcategories cannot be used to track trends in the biohealth industry.
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Components of the Biohealth Industry
Biohealth Specialized Infrastructure
Legal, Consultants, & Other
Professional Services
Universities
611310
Colleges and
universities*
541110 Offices of Lawyers*
541211 Offices of certified public accountants*
Claims
Management
524291
Claims Adjusting*
541310 Architectural services*
541330 Engineering services*
541360 Geophysical surveying and mapping
services*
541420 Industrial design services*
541430 Graphic design services*
541490 Other specialized design services*
541611 Administrative management consulting
services*
541612 Human resources consulting services*
541613 Marketing consulting services*
541618 Other management consulting
services*
541620 Environmental consulting services*
541690 Other technical consulting services*
9/10/2015
524292
Third Party
Administration of
Insurance and
Pension Funds*
State & Local
Government Funding &
Regulation
921190 Other general
government support*
923120 Administration of
public health programs
924110 Air, water, and waste
program
administration*
926110 Administration of
general economic
programs*
926140 Agricultural market
and commodity
regulation*
926150 Licensing and
regulating commercial
sectors*
Venture Capital,
Private Equity &
Other Funding
Sources
Professional
Organizations
& Societies
Intermediary
Organizations
523910
813920
813910
Miscellaneous
Intermediation*
Professional
organizations*
Business
associations*
NAICS Code
* Only select companies are biohealth, and thus these subcategories cannot be used to track trends in the biohealth industry.
8
Components of the Biohealth Industry
Biohealth End Users
Health Care Delivery:
Hospitals
Health Care Delivery:
Physicians' Offices
622110 General medical and
surgical hospitals
622210 Psychiatric and substance
abuse hospitals
622310 Other hospitals
621111 Offices of physicians, except
mental health
621112 Offices of mental health
physicians
621210 Offices of dentists
621420 Outpatient mental health
centers
621491 HMO medical centers
621310 Offices of chiropractors
621492 Kidney dialysis centers
621493 Freestanding emergency
medical centers
621498 All other outpatient care
centers
621991 Blood and organ banks
621999 Miscellaneous ambulatory
health care services
621320 Offices of optometrists
621330 Offices of mental health
practitioners
621340 Offices of specialty
therapists
621391 Offices of podiatrists
621399 Offices of miscellaneous
health practitioners
621410 Family planning centers
Long Term Care
Home Health
623110 Nursing care
facilities
621610 Home health
care services
623210 Residential
disability
facilities
621910 Ambulance
services
623220 Residential
mental and
substance
abuse care
623311 Continuing
care
retirement
communities
NAICS Code
* Only select companies are biohealth, and thus these subcategories cannot be used to track trends in the biohealth industry.
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Infusion Centers
621498 All Other
Outpatient
Care Centers
Retail
446110 Pharmacies
and drug
stores*
10
BioHealth is a Small Industry
 BioHealth is small industry in the U.S., accounting for 3.5% of total GDP and 1.9% of total
employment
 BioHealth is even smaller in Ohio, accounting for 2.7% of GSP and 1.6% of employment
 The industry employed a total of 79,000 people in 2014 and accounted for a GSP of $15.1 billion.
 However, BioHealth grew faster in Ohio
 Between 2011 and 2014, BioHealth employment grew by 3.8% in Ohio compare to 2.6% in the U.S.
 Between 2010 and 2013, BioHealth GSP grew by 8.8% in Ohio compare to 5.7% in the U.S.
 In Ohio, BioHealth GSP (8.8%) grew faster then all industries combined (7.0%), however, BioHealth
employment (3.8%) grew slower than all industries combines (4.2%)
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Largest BioHealth Industries
Among the biohealth core products, the largest industries are Pharmaceutical Preparation
Manufacturing and Surgical Appliance and Supplies Manufacturing, each with about 4,800
employees.
 The largest biohealth core services include Testing Laboratories (~6,000 jobs) and Medical
Laboratories (~5,700 jobs)
 The largest biohealth supplier industry is R&D with 13,200 employees
 The largest biohealth downstream industries are Medical, Dental, and Hospital Equipment and
Supplies (~8,500 jobs) and Drugs, Druggists’ Sundries Merchant Wholesalers (~6,650 jobs)
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The Advantages of Ohio
Derived from interviews with industry experts
from around the state of Ohio
 Workforce
 Quality of life in Ohio and ability to hire talent from
outside the state
 Cooperation with colleges and technical schools
Finances
 The Ohio Third Frontier Program
http://jobsohiowest.com/
Manufacturing Legacy and R&D Capacity
 Proximity to necessary parts of the supply chain
 Supporting infrastructure
Existence of World-class Hospitals, Notable
Companies, and Innovation Districts
 Cleveland Clinic
 Invacare and Gojo
 Cleveland’s Health Tech Corridor
9/10/2015
http://www.freshwatercleveland.com/features/bioenterpriseausten102212.aspx
13
Industry Transitions & the Future of Biosceince
 Rapid Changes




Decreasing work with animals
Rising Costs
Growing innovation
Working across even more disciplines and industries
The Role of Wellness & Education
 Fee-for-service model shifting to a fee-for-value model
 “Gamification” of the health industry
 Improvements in retail healthcare in small settings
Shifts in Research from Laboratory to Bedside
 Working directly with healthcare professionals to look
for new ways of delivering care and new technologies to
improve treatment
 Increased use of technology allowing for large datasets
to be analyzed for improvements in treatment
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A surgical simulator at Simbionix, a startup and part of a growing
bioscience industry in Cleveland.
http://www.cleveland.com/business/index.ssf/2014/07/cleveland_helping
_to_power_a_g.html#incart_related_stories
14
Policy Implications
 Proximity to large teaching and research hospitals
and other research institutions is important to
Biohealth companies
 Creates the foundation for startups
 Clinical trials
 Being a small industry, location of companies in
close proximity is preferred to being spread out
 Example, the Health Tech Corridor in the City of
Cleveland
 Incubators for Biotech startups
 Having state and regional support to help small
biohealth companies is critical
 Public sector
 Economic development intermediaries
 Angle funds and venture capital
A view of the Euclid Avenue portion of Cleveland's Health-Tech Corridor,
looking west toward downtown from the area near the Cleveland Clinic.
(Plain Dealer file)
http://www.cleveland.com/business/index.ssf/2014/08/health-tech_corridor_gains_fir.html
9/10/2015