http://www.nu-tekbioscience.com/applications/nu-tek-bioscience-pea-peptones/ THE BIOSCIENCE CLUSTER IN OHIO PREPA R ED BY: CANDI CLOUSE AND Z IONA AUSTRIAN, PH.D. Levin College Research Conference August 20, 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
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 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 Not a separate industry, but companies that are focused on life processes. NJ Department of Labor & Workforce Development, 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.
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.
5 Components of the Biohealth Industry Biohealth Supplier Industries Research, Design, and Development Clinical Trials Select Manufacturing Enabling Information Technology 541711 Research and Development in Biotechnology 541712 Research and Development in the Physical, Engineering, & Life Sciences (except Biotechnology) 622110 General Medical and Surgical Hospitals* 31-33 Manufacturing* 511210 Software Publishers* 541511 Custom computer programming services* 541512 Computer systems design services* 541513 Computer facilities management services* 541519 Other computer related services* NAICS Code * Only select companies are biohealth, and thus these subcategories cannot be used to track trends in the biohealth industry.
6 Components of the Biohealth Industry Biohealth Core/Driver Industries Products Health IT Services 325411 Medicinal and Botanical Manufacturing 325412 Pharmaceutical Preparation Manufacturing 325413 In-Vitro Diagnostic Substance Manufacturing 325414 Biological Product (except Diagnostic) Manufacturing 333314 Optical Instrument and Lens Manufacturing 334510 Electromedical and Electrotherapeutic Apparatus Manufacturing 334516 Analytical Laboratory Instrument Manufacturing 334517 Irradiation Apparatus Manufacturing 339112 Surgical and Medical Instrument Manufacturing 339113 Surgical Appliance and Supplies Manufacturing 339114 Dental Equipment and Supplies Manufacturing 339115 Ophthalmic Goods Manufacturing 339116 Dental Laboratories 511210 Software Publishers* 541511 Custom computer programming services* 541512 Computer systems design services* 541513 Computer facilities management services* 541519 Other computer related services* * Only select companies are biohealth, and thus these subcategories cannot be used to track trends in the biohealth industry. 541380 Testing Laboratories 621511 Medical Laboratories 621512 Diagnostic Imaging Centers 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.
9 Universities Components of the Biohealth Industry Legal, Consultants, & Other Professional Services 611310 541110 Offices of Lawyers* Colleges and 541211 Offices of certified public accountants* universities* 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* Biohealth Specialized Infrastructure Claims Management 524291 Claims Adjusting* 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 523910 Miscellaneous Intermediation* NAICS Code Professional Organizations & Societies 813920 Professional organizations* Intermediary Organizations 813910 Business associations* * 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 Long Term Care Home Health Infusion Centers Retail 622110 General medical and surgical hospitals 622210 Psychiatric and substance abuse hospitals 622310 Other hospitals 621420 Outpatient mental health centers 621491 HMO medical centers 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 621111 Offices of physicians, except mental health 621112 Offices of mental health physicians 621210 Offices of dentists 621310 Offices of chiropractors 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 623110 Nursing care facilities 623210 Residential disability facilities 623220 Residential mental and substance abuse care 623311 Continuing care retirement communities 621610 Home health care services 621910 Ambulance services NAICS Code 621498 All Other Outpatient Care Centers 446110 Pharmacies and drug stores* * Only select companies are biohealth, and thus these subcategories cannot be used to track trends in the biohealth industry.
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%)
11 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)
12 The Advantages 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 Derived from interviews with industry experts from around the state of Ohio 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 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 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