[Congressional Record Volume 143, Number 155 (Friday, November 7, 1997)]
[Extensions of Remarks]
[Pages E2194-E2195]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        SAN MATEO COUNTY, CA--CENTER OF THE BIOSICENCE INDUSTRY

                                 ______
                                 

                            HON. TOM LANTOS

                             of california

                    in the house of representatives

                      Wednesday, November 5, 1997

  Mr. LANTOS. Mr. Speaker, it is my privilege today to call to the 
attention of my colleagues in the Congress the significance of the 
biotechnology industry in San Mateo County, CA. A part of the impetus 
for my remarks today is the release of a recent report, ``Bioscience in 
San Mateo County: An Industry Study,'' which was prepared by the Bay 
Area Bioscience Center in cooperation with SAMCEDA, the San Mateo 
County Economic Development Association.
  The bioscience research industry in San Mateo County was ushered into 
our area in 1976, when the founders of Genentech, a pioneer and major 
biotech firm, rented space and began operations in the city of South 
San Francisco. Today, San Mateo County is home to nearly 100 bioscience 
companies employing over 10,000 men and women. In the past 15 years, 
San Mateo County has become one of the world's most important centers 
for the research and the commercialization of bioscience research and 
development.
  The economic benefit to our local communities from bioscience 
companies is significant. Bioscience companies pay high wages, provide 
steady employment, and are environmentally clean operations. The 
members of its work force are well-educated and involved in their 
residential communities.
  To win the benefits of this vibrant bioscience industry in our 
communities, economic development initiatives to support local 
bioscience companies have been undertaken by dozens of cities, 
counties, and States throughout the United States, as well as by Canada 
and many European countries. Often these recruitment efforts have 
targeted San Mateo County and other northern California companies with 
a variety of incentives. Although San Mateo County is the fortunate 
birthplace of the bioscience industry, there continues to be fierce 
competition for the industry's future growth.
  In the 1950's and 1960's, California's civic and business leadership 
advanced the State economically by anticipating and encouraging the 
growth of the aerospace and the electronics industries. The basic 
elements of that long-term technology development strategy helped 
create a prosperous Silicon Valley and, more recently, benefited our 
State's growing bioscience industry.
  According to the report ``Bioscience in San Mateo County: ``An 
Industry Study,'' few foreign countries and only one other State 
(Massachusetts) can match the extent of San Mateo County's booming 
bioscience activity. From industry leaders like Genetech and PE Applied 
Biosystems Division to promising young companies like Tularik and Arris 
Pharmaceuticals, the county has established itself as a locale of 
choice for bioscience companies. One of the principal reasons for this 
success is the high quality of life that we enjoy on the San Francisco 
Peninsula.
  Ironically, this same success of San Mateo County in establishing its 
preeminence for the bioscience industry has also created challenges to 
county leaders in the effort to maintain preeminence in the bioscience 
industry. This report is a blueprint to assist local officials, 
business leaders, and the citizens of San Mateo County in considering 
what steps should be taken to ensure that the county can benefit from 
the continued growth of this valued industry.
  Mr. Speaker, I ask that the executive summary of this report be 
placed in the Congressional Record. I think that it will be useful for 
our colleagues in the Congress to examine this report because it 
provides an excellent example of cooperative local efforts to deal with 
the problems of attracting industry for the benefit of a community. It 
is my hope that the information and recommendations contained in this 
report can provide a focus for discussion as well as a working tool for 
economic development by San Mateo County officials, public utilities 
companies, development authorities, and the national bioscience 
industry.

                           Executive Summary

       During the last fifteen years, Sam Mateo County has become 
     a locale of choice for the economically promising bioscience 
     industry. To help ensure that the county maintains its 
     prominence, the San Mateo County Economic Development 
     Association (SAMCEDA) and several local bioscience companies 
     asked the Bay Area Bioscience Center to conduct a Bioscience 
     Business Environment Survey and to offer recommendations for 
     maintaining the competitive advantages currently afforded the 
     industry by the county.
       This first-ever look at the scope of the dynamic and 
     growing bioscience industry in San Mateo County comes at a 
     time when the country's business community is implementing a 
     county-wide economic development strategic plan for the 
     retention, expansion and attraction of business through 
     public/private partnerships. The information and 
     recommendations contained herein are intended to provide a 
     focus for discussion as well as a working tool for economic 
     development efforts by county officials, public utilities, 
     developers and the bioscience industry itself.
       Selected information and recommendations are summarized on 
     the following pages:


                               Employment

       Forty survey participants expect to create 1,100 new jobs 
     in 1997. This expansion represents a highly impressive 
     overall employment growth rate of 15 percent.
       The total operating budget of 32 bioscience companies in 
     1995 was more that $1.4 billion, including an estimated $470 
     million in salaries and benefits.


                      Real Estate and Construction

       More than 3.7 million square feet of office, laboratory and 
     distribution space is currently being utilized by the 
     surveyed firms.
       The rental expense incurred in San Mateo County by survey 
     respondents for the years 1996 and 1997 is expected to be $71 
     million, a 48% increase over the $46.7 million two year total 
     for 1994 and 1995.
       Survey participants invested $138 million in new 
     construction in San Mateo County for the two years 1994 and 
     1995, not counting tenant improvements paid for by landlords. 
     The same companies plan to devote $186 million for 
     construction spending in 1996 and 1997, an increase of 35%.
       Facilities growth is not limited to a few large companies: 
     More than 70% of the survey respondents planned to expand 
     their facilities in the two year period 1996 and 1997, 
     pending favorable financing and regulatory conditions.


                            Recommendations

       Develop an incubator initiative in San Mateo County to 
     assist bioscience entrepreneur in their startup operations. 
     The high cost of doing business, and in particular the 
     challenge of finding affordable wet-lab space, is a 
     significant deterrent to new bioscience company formation in 
     the county. A life sciences incubator would help ensure the 
     county's continuing preeminence in bioscience for years to 
     come.
       Conduct a comparative analysis of the county's tax and 
     regulatory policies vis-a-vis other leading bioscience 
     counties in California and the nation, and initiate reforms 
     as appropriate.
       Establish within SAMCEDA a bioscience industry liaison 
     position that will oversee all issues related to the growth 
     of a strong bioscience industry in San Mateo County, and help 
     implement the recommendations in this report.

[[Page E2195]]

       Support continued efforts in education reform, particularly 
     in improving the math and science curricula.
       Work with high schools and community colleges to develop a 
     school-to-work initiative such as a tech-prep or 
     apprenticeship (work-based learning) program to train entry-
     level bioscience technical.
       Expand the county's existing community and four-year 
     college efforts to train bioscience laboratory technicans, 
     with particular emphasis on providing minority students with 
     access to the high-growth bioscience industry.
       Work with the scientific, academic and industrial 
     communities to increase teachers' familiarity with commercial 
     applications of science and science-related careers for 
     students, especially in bioscience and biotechnology. This 
     may be done in many ways, including workshops for teachers, 
     teacher education programs or career-oriented video 
     presentations.
       Promote lifelong training for local bioscience workers in a 
     manner that is accessible to the workers and that offers 
     relevant courses developed in cooperation with bioscience 
     companies.

     

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