Jen Wichmann UPP 536 Final Paper December 9, 2011 A City of Chicago Employment Policy and Program Framework in the Biotechnology Industry Cluster The Chicago Metropolitan Agency for Planning’s (CMAP’s) Go To 2040 plan recently named biomedical/biotechnology1 as a key cluster to be fostered for the Chicago region’s future economic growth (CMAP, 2010). Biotechnology is a high-growth industry that is being targeted by regions across the U.S. for economic development. In order for Chicago to be competitive, it must identify regional strengths that will give the area an edge, and that strength is agriculture. Agricultural biotechnology (ag-bio) is a subsector that warrants increased attention in terms of funding, research and development (R&D), and workforce development. From 2001 to 2008, bioscience employment grew by 15.8 percent, outpacing national employment growth by a wide margin (Battelle, 2010a). In 2008, 1.42 million people were employed in the biotechnology industry in the United States. The industry has also weathered the recession better than most as evidenced by its continued growth, particularly among the larger companies. In 2008, Illinois ranked in the top quartile nationally for total employment and number of establishments in the bioscience industry (Battelle, 2010b). The state also ranked third in the number of higher education degrees in bioscience fields. However, Illinois’s expenditures on biotechnology R&D only ranked 7th and expenditures per capita landed the state in 23rd place nationally. This funding situation will need to be addressed if Illinois, and Chicago, hopes to be competitive in the biotechnology industry. Biotechnology and bioscience are umbrella terms for a wide range of activities and industries, from the development and manufacture of medical devices to new and improved biofuels. These industries share one thing in common: they utilize information about the functioning of plants, animals, and humans to develop and improve products (Battelle, 2010a). Agricultural biotechnology is defined by the United States Department of Agriculture (USDA) as “a range of tools, including traditional breeding techniques, that alter living organisms, or parts of organisms, to make or modify products; improve plants or animals; or develop microorganisms for specific agricultural uses” (USDA, n.d., para. 1). Developments that have come out of agricultural biotechnology include drought-resistant crops, ethanol, and animal vaccines. According to Battelle (2010a), the “agricultural feedstock and chemicals” subfield of biotechnology makes up approximately eight percent of the total bioscience employment. The employment outlook for agricultural and food scientists is good, with faster than average growth expected over the next decade (Bureau of Labor Statistics, 2010). This category includes a variety of employment opportunities with educational requirements ranging from a bachelor’s degree up to Ph.D. There are also employment opportunities available for individuals with less than a bachelor’s, such as lab technicians (College and Career Transitions Initiative, n.d.). The heightened public awareness of health and food safety will continue to drive demand for such positions into the future. 1 In this report the terms biotechnology, biotech, and bioscience will be used interchangeably. Illinois is one of the states with the largest and most specialized agricultural biotech economies in the nation, with a location quotient of 1.93 (Battelle, 2010b). From 2001 to 2008, the number of establishments engaged in the agricultural feedstock and chemicals subfield in Illinois increased 46.7 percent and employment increased 6.5 percent, compared to 16.0 percent and 1.9 percent nationally. In addition, the employment multiplier for these jobs is 10.34, which means that the 9,760 agricultural biotechnology jobs in the state support over 100,000 other jobs. The Vision for Illinois Agriculture (VIA) (2007) lists numerous strengths for Illinois, including an extensive research base and range of academic institutions, capital availability, access to global markets, and proximity to a large consumer base and regional partners. More specifically, the state is home to more than 440 corporate research and development facilities and more than 200 academic, government, and nonprofit research institutions (iBIO, n.d.). The Decatur, Illinois area is one of the metropolitan areas with the largest employment levels for the subfield nationally, however the Chicago metro area was among the metros with the largest employment levels in the “research, testing, and medical laboratories” subfield, which is an indicator of the immense educational and technological resources already located in the region. The Organisation for Economic Cooperation and Development (OECD) (OECD, 2011) identifies the Chicago metro region as being highly ranked among global cities for biotechnology patents. The OECD also notes that over the past 10 years, the Chicago metro area has accounted for 93 percent of deals and 99 percent of venture capital and private equity volume within the state, 34 percent of which went to biotechnology. Chicago is well-positioned to bring together the region’s strong agricultural base with the resources and knowledge economy workers that only a major metropolitan area can provide. The Illinois Biotechnology Industry Organization (iBIO) (iBIO, n.d.) is located in Chicago’s downtown loop area and is already a central actor for the biotechnology industry in the state, with some attention paid to agricultural biotechnology (OECD, 2011). iBIO is a life sciences industry association composed of a range of companies from start-ups to large international firms, investors, government contacts, service providers, and business professionals (iBIO, n.d.). Its mission is to turn the state and region into a life science center through public policy, supporting business creation and attraction, and providing education and training. iBIO also provides a career center with job postings and runs the iBIO Institute, which has two programs focused on innovation and education (iBIO, n.d.). Much of the state’s academic strength is concentrated in the Chicago region. The Illinois Institute of Technology (IIT) offers undergraduate and graduate degrees in biology and is home to the Institute for Food Safety and Health. At the community college level, Harold Washington College offers an advanced certificate in agricultural biotechnology and Truman College offers an Associate in Applied Science degree in biotechnology. Northwestern University and the University of Illinois at Chicago have medical biotechnology master’s programs and related undergraduate programs. Finally, the University of Chicago has numerous biotech-related programs and a student biotechnology association to provide support for students interested in the field. Although they are not all agriculture-related, these programs are good starting points for growing the city’s ag-bio workforce. Finally, there are a number of companies involved in agricultural biotechnology already located in Chicago. One example is Chromatin, a company that is currently working on developing specialized sorghum feedstocks for the bioprocessing industry (Chromatin, n.d.). There are also a number of public and private funding mechanisms for biotechnology as well as facilities and incubator space needed to support new and growing businesses. Within the past five years, there has been increasing interest in the ag-bio field and as a result there are existing frameworks for building the sector, with reports from the Illinois Workforce Investment Board’s Agriculture Task Force (IWIB) (2009) and VIA (2007). The present framework will focus specifically on innovation and workforce development within the agricultural biotechnology subfield, with recommendations focused on shoring up financial resources to support innovation; encouraging business development; identification of and outreach to the potential ag-bio workforce, including disadvantaged populations; taking advantage of the growing urban agriculture movement; and improved information dissemination. Innovation Both the IWIB and VIA reports emphasize the importance of entrepreneurship and innovation in boosting the agricultural biotechnology sector in the state through targeted programs for students and farmers, as well as utilizing business incubators to support start-up companies. The chief roadblock for innovation does not appear to be a lack of ideas, but a need for further funding. VIA notes that research dollars are increasingly coming from private sources. However, bioscience-related venture capital investments have dropped significantly during the recession starting in 2008, with the majority of those investments going to medical biotechnology (Battelle, 2010b). Venture capital availability also declined nationally from 2008 to 2009 (Battelle, 2010a). As a result, the numerous states that are working to grow their biotechnology sectors are competing for a smaller pot of money while the public sector is facing major budget shortfalls across the country. Academic R&D expenditures have provided some capital; in 2008 funding for the agricultural sciences totaled $89,321 for the state of Illinois, pennies compared to $401,007 for biological science and $715,798 for medical sciences (Battelle, 2010b). Clearly, new sources of funding will need to be located to support the growth of the industry. The Illinois Science and Technology Coalition (ISTC) could play a role. ISTC works to build financial resources for R&D initiatives based in Illinois (OECD, 2011). Biotechnology is one of its targeted sectors, making it a potential partner for increasing investments to the agricultural subfield. iBIO could also act as a booster for the industry in order to garner further investments from its partners. In addition to funding, facilities and business support services must be in place for scientists and entrepreneurs to start the next generation of innovative agricultural biotechnology companies. Presently, iBIO’s PROPEL Center provides support for formation-stage and earlystage life sciences companies through a variety of training, coaching, and networking services (PROPEL, n.d.). To date, the program has helped 41 companies raise over $40 million in capital, grants, and loans; created nearly 200 jobs; issued 17 patents; and filed over 110 patent applications. Of those companies, 85 percent are located in the Chicago region, however only 10 percent of all the companies are in agricultural and/or industrial biotech. With closer attention paid to the agricultural subsector, that percentage could be increased. There are several facilities located in and around Chicago that are able to host agricultural biotech companies, though none target the industry specifically. The PROPEL website provides an extensive list of facilities, funding sources, and other organizations relevant to the biotechnology industry. Few appear to be directly targeting agricultural activities, but IIT’s University Technology Park is currently home to at least one agricultural biotech company. With IIT’s food science program, the university is a prime candidate for a partnership focusing on growing the ag-bio sector. The second piece of the puzzle is a qualified workforce. IWIB (2009) notes that the state is expected to face a major shortage in agricultural scientists and related technicians in the future, making the support for workforce development an integral part to building the agricultural biotechnology cluster in Chicago. Workforce There are three populations of potential agricultural biotechnology workers that need to be targeted in order to increase the workforce within Chicago. They are: 1) individuals outside of the region with skills and interest in agricultural biotech who are unaware of possibilities in the Chicago area; 2) individuals already in Chicago with backgrounds in biology and biotech who are unaware of agricultural applications; and, 3) individuals already in Chicago who are looking for a career with growth opportunity that may not otherwise know about the possibilities within agricultural biotechnology, including disadvantaged populations. Tailored outreach campaigns to these three groups will increase awareness of available ag-bio career opportunities in the Chicago area. The first group is best reached through networks within the state and the Midwest region, particularly universities. For example, the College of Agricultural, Consumer, and Environmental Sciences at the University of Illinois in Champaign-Urbana or further afield through Iowa State University’s Office of Biotechnology, which provides information on the full range of biotechnology-related majors at the university. The second group- those skilled workers already in Chicago- need to be similarly targeted through the university programs and professional organizations that already exist in the area. The iBIO Career Center does specifically list agriculture science jobs, but more visible outreach could draw more attention to the subfield. The aforementioned university and community college programs are also excellent starting points for recruitment. The third and final target group includes those individuals who are in search of a career, whether they are students still in school or adults looking to transition into a new industry. There are currently resources available through the Illinois Department of Commerce and Economic Opportunity’s (DCEO’s) workforce and career resources website, Illinois workNet Center. However, the site lists biotechnology solely under its healthcare resources and agricultural biotech opportunities are all listed separately where they would not easily be found by an individual with a general interest in biotechnology. This is not uncommon because the sector straddles the two arenas of agriculture and biotechnology, on any given website the relevant information might be found under a variety of categories. Most often, however, biotechnology is associated with healthcare and similar opportunities in agriculture are not linked or acknowledged. An effort needs to be made to make the connection more explicit. Another example is the City Colleges of Chicago (CCC) program website. The website provides a listing of the programs offered at all seven of the network of schools located in Chicago. The agricultural biotechnology program at Harold Washington College is not even listed under the category of “Agriculture, Food, & Natural Resources” but rather “Science, Technology, Engineering & Mathematics.” The biotechnology program at Truman College is listed under “Health Science.” These disconnects make it difficult to locate information on programs, even in a targeted search. The connection between agricultural biotech and what is traditionally thought of as biotechnology is extremely important to reach those people who are not familiar with the subfield.2 One specific group that could be targeted for ag-bio careers are immigrants, particularly Hispanics. This is a group of people that may have interest in and previous experience with farming and agriculture. A bridge program could be developed in concert with Harold Washington College to prepare Hispanic immigrants for agricultural biotechnology jobs while simultaneously addressing any deficiencies in English language skills in addition to math and science. Lastly, targeted outreach should be implemented to attract K-12 students who have not yet chosen a career path but exhibit an interest in agriculture either through enrollment at the Chicago High School for Agricultural Sciences or involvement in the growing urban agriculture movement. For example, the Chicago Botanic Garden runs two youth programs: Windy City Harvest trains young adults in greenhouse and outdoor growing practices at Richard J. Daley College and Green Youth Farm hires high school students to work on a farm over their summer vacation (Chicago Botanic Garden, n.d.). By partnering with these and similar programs, the industry can build interest in the agricultural biotechnology industry. Recommendations iBIO is already a strong advocate for biotechnology in Illinois, which positions it to be the central actor in the growth of the agricultural subsector within the Chicago region. As such, iBIO is called upon to spearhead the following action items, which are intended to build on the recommendations put forth by IWIB and VIA by creating small but specific next steps for changes and improvements in the current agricultural biotechnology cluster framework: 2 Funding. Increase funding for R&D, innovation and new business start-ups in partnership with ISTC. Business Support. Work through PROPEL to increase the number of business support and incubator facilities that have ag-bio tenants. Information & Outreach. Address information mismatches by acting as an advocate for the ag-bio subsector. Work with DCEO and CCC to adjust how their information is presented. o Targeted Outreach beyond Chicago. Initiate outreach campaigns across the Midwest and in downstate Illinois to attract qualified workers. o Targeted Outreach in Chicago. Partner with universities and industry organizations to improve the visibility of agricultural biotech careers. Reach out to the Hispanic population and create a bridge program that allows them to put previous agricultural experience to use in the ag-bio sector. Target the urban agriculture movement for recruitment. As an additional note, the wider agricultural biotechnology industry is difficult to pinpoint in the industry clusters used by the Chicago Metropolitan Agency for Planning (CMAP) and the Cluster Mapping Project (http://data.isc.hbs.edu/isc/). For example, it is not immediately clear whether agriculture biotechnology belongs in CMAP’s “biomedical/biotechnology” cluster or in “agriculture, food processing, & technology.” Further investigation shows that R&D activities, which are the focus of this report, are included under biotechnology. Additionally, the Cluster Mapping Project uses different cluster definitions but does not provide the documentation needed to determine which is the best fit for ag-bio. By pursuing these recommendations and utilizing the partners mentioned throughout the report, the Chicago metro region can become the center for agricultural biotechnology for the United States. References Battelle (2010a). Battelle/BIO State Bioscience Initiative. Retrieved from http://www3.bio.org/local/battelle2010/Battelle_Report_2010.pdf Battelle (2010b). Illinois. Retrieved from http://www.bio.org/sites/default/files/battelle2010/ILLINOIS_profile.pdf Bureau of Labor Statistics (2010). Occupational Outlook Handbook: Agricultural and Food Scientists. Retrieved from http://www.bls.gov/oco/ocos046.htm#outlook Chicago Botanic Garden Website (n.d.). Retrieved from http://www.chicagobotanic.org Chicago Metropolitan Agency for Planning (2010). GO TO 2040 Plan. Retrieved from http://www.cmap.illinois.gov/2040/download-the-full-plan Chormatin Website (n.d.). Retrieved from http://www.chromatininc.com/ City Colleges of Chicago (n.d.). CCC Academic Catalog. Retrieved from http://www.ccc.edu/Student/ProgramMain.asp College and Career Transitions Initiative (n.d.). Agriculture, Food, and Natural Resources: Plant Systems. Retrieved from http://www.careertech.org/careerclusters/resources/plans/agriculture.html iBIO Website (n.d.). Retrieved from http://www.ibio.org/ Illinois workNet Center Website (n.d.). Retrieved from http://www.illinoisworknet.com Illinois Workforce Investment Board (2009) Agriculture Task Force Report: Findings and Recommendations. 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