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The concept of biotechnology as an economically viable industry sector brought a mix of intrigue and excitement to would-be innovators. The industry grew with ideas flourishing, investments being made, and collaborations forging all around us.

New Jersey and Pennsylvania, of course, became magnets for the burgeoning biotech industry. World class academic institutions producing the very best scientific minds and many of the major pharmaceutical companies headquartering here have made the region ripe for biotechnological discovery.

In New Jersey, the hot biotech cluster areas are in the Route 1 corridor between Princeton, and New Brunswick. Other areas, according to the experts, are destined to become clusters. The Rt. 130 Corridor -- from Trenton and North -- has been seeing amazing growth because of access to the N.J. Turnpike and Rt. 130 itself. Additionally, growth is expected in the Camden area due to the N.J. Economic Development Authority’s new Waterfront Technology Center. Finally, Somerset is ready for more growth in this area. It's already a popular spot for life science companies – both pharmaceutical and biotech – to locate and it's expected to grow even more.

In Pennsylvania, the wealth of biotech companies is spread out due to the sheer vastness of the Commonwealth. The Southeast region of the state, predominantly the greater Philadelphia area with its strong incubator system, is one big cluster. Pittsburgh boasts a wealth of research institutions and a strong community of medical device and diagnostic companies. And, finally, a third biotech Pennsylvania cluster is emerging in the Lehigh Valley.

The biotechnology sector, like many industries, survives and thrives best in communities. In addition to New Jersey, information software/technology companies, for example, have found homes in Silicon Valley, the Route 28 Corridor in Massachusetts and the Research Triangle in North Carolina. Biotechnology clusters are not only important, they are necessary, for growth of this sector. The development of the super-cluster of the New Jersey/Pennsylvania Region allows us to compete effectively with the nation’s leading technology corridors.

"Biotech companies tend to cluster together and their needs are great. New Jersey has all the components that a cluster desperately needs. N.J. has supportive government programs that have evolved with each and every administration," says Debbie Hart, president of the Biotechnology Council of New Jersey (BCNJ). "Biotech depends on collaboration, labor and research. Having all the big pharmaceutical companies here brings the opportunity for collaboration. Availability of skilled labor is strong; we have a tremendous depth for biotech labor here. And, we have great research universities right here in New Jersey as well as across the two rivers into New York and Philadelphia."

BCNJ, in fact, reports that 80 biotech companies called New Jersey "home" in 1998. In 2003, that number grew to 124 and, in June 2006, it was 226.

Founded in 1994, the Biotechnology Council of New Jersey (www.biotechnj.org) was chartered with a three-pronged mission: to formulate and advocate policy positions to elected officials and regulators, to acquire and coordinate resources and provide services to members regarding issues critical to building successful biotechnology enterprises, and to enhance awareness and appreciation of New Jersey's biotechnology industry.

A similar strategy exists across the Delaware River. Dennis M. (Mickey) Flynn, president of the Pennsylvania Bio Association, agrees that clusters and communities, especially the kind fostered by organizations like his own, as well as BCNJ and the New Jersey Technology Council (NJTC), are vital to the growth and survival of young biotechs.

The Pennsylvania Bio Association (www.pennsylvaniabio.org) serves as a catalyst for the bio sciences industry to keep the global spotlight on Pennsylvania. It does that, says Flynn, by bringing all the total continuum together along with all of the support organizations – finance, legal, contract manufacturers and contract researcher organizations -- to represent bio companies on behalf of the industry.

One Message, One Voice OK, so clusters are important for biotechnology companies. But, is membership in a trade association? The answer is a resounding "yes."

First of all, it's all about networking if you are going to survive in the world of business today. It doesn't matter what type of business you are in. You have to get out there – see and be seen, trade some business cards and "do lunch." Packed event calendars like those of the BCNJ, NJTC, and Pennsylvania Bio – with conferences and breakfasts and tech tours, educational panel discussions and more – offer unlimited potential for eager networkers.

Perhaps the single most important thing joining a trade association does for biotech members — opening doors to potential partners, clients, advisors, financing – and even government economic resource.

"There is strength in numbers. Belonging to a membership association is key for companies because we ensure that the voice of the industry is spoken with one message. We speak on their behalf which means smaller companies now have the strength and resources to do what they need to do to be successful," Flynn says. At the NJTC, where government affairs and advocacy top the list of the membership organizations goals, President and Founder Maxine Ballen explains that the best way for growing companies to prosper in an ever increasing competitive marketplace is to make sure elected officials understand their needs.

Ballen says associations have collective bargaining power – the ability to mount successful grassroots initiatives and consistent contact with decision-makers on the national, state and local levels.

She adds that one of the country's only technology related political action committees – the NJTC Good Government Fund – also allows all 1,150 members to back their message with financial support to those elected officials who understand the needs of the technology community.

While associations like the NJTC, BCNJ and Pennsylvania Bio keep lobbying on behalf of their members high on their list of business priorities, the organization leaders agree that the programs available through both New Jersey and Pennsylvania government agencies go a long way toward helping companies to find the supportive programs and financial resources needed to grow a biotech company. In both states, net operating loss programs are like money in the bank for companies who apply to sell their NOLs. Low cost loans and business employment incentives also make locating in this region attractive to startups, growing companies and the more established, mature firms. (Check out the article on page 5.)

Access to Collaboration, Capital and Education "When it comes to working together, there can always be more. But, people are talking to people in ways that they weren't 10 years ago," BCNJ's Hart says. "The New Jersey Commission on Science & Technology (CST) has really been looking at ways to increase collaboration and discussion and they have been successful through programs like the a post-doc program that pairs post doctoral students with technology companies."

The CST's many programs, New Jersey incubator facilities are a breeding ground for collaboration. Many offer access not only to lower-cost office and lab space, but also the ability to join a mini-cluster of likebusinesses in the same building. Moreover, incubators are often associated with the region's very best colleges and universities which offer access to potential technology transfer opportunities, not to mention the best and brightest scientifically-minded labor force.

NJTC's Ballen adds that one of the main benefits of belonging to a technology trade organization is that membership opens doors. "By joining us, companies get access to potential partners – in both the business and educational sectors – with whom they can collaborate to grow their enterprises."

The NJTC, (www.njtc.org) which, in 2006, celebrated 10 years supporting New Jersey's myriad tech sectors including biotech, has held many events such as Tech Transfer and Procurement conferences designed to foster innovative collaboration between companies, colleges and nonprofit organizations. These are just some of the more than 100 programs and events held each year by the NJTC, which serves over 1,100 members through its government affairs program, industry and peer network groups and financing conferences.

Financing
There are venture funds from around the country that have invested in New Jersey, including the NJTC Venture Fund and the Garden State Life Sciences Venture Fund, but access to financing options still remains one of the biggest challenges for biotech companies. Membership associations, again, are on board with trying to open doors with financing conferences.

"It takes a lot of money and work to bring a drug to market - $800 million and 15 years of work," BCNJ's Hart says. "The biotech industry needs help from government in the way of programs such as the Edison Innovation Fund to ensure that venture capital is invested in this region."

Pennsylvania Bio's Flynn said that offering access to financing opportunities is an important component of trade association membership. Where else can you join with like-minded people who are all focused on the same goals – making money and helping mankind through biotechnological endeavors?

To that end, Biotech 2006, co-hosted by Flynn's group and BCNJ in October attracted over 800 people plus an additional 900 for a career fair. The event included business development forums, industry-wide luncheons, dinners and plenty of focus on important financing such as "how to secure financing" and "how to meet and work with venture capitalists."

The NJTC holds an annual Capital Conference as well as an extremely successful NJ Venture Conference to bring together entrepreneurs and the would-be financiers. "It's the very best of what a trade organization can offer its members – environments where information is exchanged and access for collaboration abounds," Ballen says.

Creating Community
Trade associations definitely offers advantages for members that far outweigh membership fees, the presidents say. Access to government leaders and the economically advantageous programs they enact are only a small piece of the puzzle. Organizations encourage discussion, foster ideas and, literally, create community.

NJTC's Ballen says that all tech trade organizations share a similar, important goal – to raise visibility regionally, nationally and globally. "The only way to achieve that goal is to support your membership with the things they need to grow and prosper."

Of course, access to financing resources is vital. Helping companies make connections through networking so they can meet their next partner or client is vital. And, recognizing the success of members who stand out -- through awards programs, for example -- are also critical for the success of an organization and business community, at large.

"Community is critically important. Biotech companies want to be where other ones are. They can cross collaborate," Hart says. "Pharma, for example, has pipeline challenges and they can look to biotech. The idea of development-through-tocommercialization is less likely intracompany, so the need for collaboration is more pronounced."

"Of course, in this global marketplace, collaboration can be done remotely. But when there is a community there is more for everyone – more labor, more ideas, more opportunity and more to share overall."