Alternate formula: the biotechnology industry needs workforce development, research partnerships and entrepreneurs to continue its powerful contributions to the state economy.

• Position: BIOTECHNOLOGY ROUND TABLE

Nearly every aspect of our lives is touched by biotechnology. Many of its discoveries and products are made in North Carolina, where it contributes $59 billion to the state's economy each year--second only to agriculture--and supports 237,000 jobs. It has established an important role, but economic and political changes have affected how the industry's business gets done. What role will biotech play in North Carolina's future? What does it need to get there? Business North Carolina recently gathered a panel of experts to answer these and other questions.

PARTICIPANTS:

Steve Butts, president and chief operating officer of Morrisville-based Aerial BioPharma LLC

Lawrence DeGraaf, director of worldwide business development transactions for England-based GlaxoSmithKline PLC

James Hayne, shareholder and technology and life-sciences practice leader at Greenville, S.C.-based accounting and consulting firm Elliott Davis LLC

Phil Hodges, manager of Nano Ventures LLC and founder of Greenville-based Metrics Inc.

Machelle Sanders, vice president and general manager of Cambridge, Mass.-based Biogen Idec's manufacturing plant at Research Triangle Park

Kenneth D. Sibley, shareholder at Raleigh-based law firm Myers Bigel Sibley & Sajovec P.A.

Eric Tomlinson, chief innovation officer at Wake Forest Baptist Medical Center, president of Wake Forest Innovation Quarter and physiology and pharmacology professor at Wake Forest University School of Medicine

Michael Weeks, U.S. registration manager at Bayer CropScience, which is part of Germany-based Bayer AG

E. Norris Tolson, president and CEO of the North Carolina Biotechnology Center and moderator of this discussion

It was hosted by the center, which joins Biogen Idec, Elliott Davis, GlaxoSmithKline, Myers Bigel and Wake Forest Innovations as gold sponsors. Denmark-based Novozymes AS also provided support. The following transcript has been edited for brevity and clarity.

How does being in North Carolina benefit biotech companies?

Weeks: N.C. State University is one of the top U.S. land-grant universities doing agricultural research, and there are two other fine universities in the Triangle. They produce the skilled workers that companies need. Bayer CropScience works with many Tar Heel growers who are eager to use its innovations in their fields and businesses. North Carolina also is a fantastic place to live, making it easy to recruit and retain talent.

Sibley: The universities support many disciplines. The ag-biotech industry isn't just plant biotechnology; it covers many industries. The veterinary school and entomology programs are important, too. Durham-based Advanced Animal Diagnostics Inc,, for example, needs workers trained in chemistry, biology, animal science and computer science.

Sanders: Biogen Idec started its operations here largely because of opportunities to partner with universities and the talent they provide. Since it opened in the 1980s, the North Carolina Biotechnology Center has made the state a leader in the industry. It is the No. 3 employer in the state. North Carolina is where companies collaborate and innovate. With the right policies, the industry will develop further.

Hodges: I started Metrics in Greenville in 1994 after leaving Research Triangle Park-based Burroughs Wellcome Co. Many people asked if I could be successful there. I believed I could. East Carolina University trains a workforce there just as Triangle universities do for RTP. But I had Greenville mostly to myself. Workforce was key.

DeGraaf: Just like most companies have over the past few years, GSK has examined its costs, searching for efficiency. We want to collaborate with innovative companies that do things smarter, quicker and cheaper than GSK. To do that, we develop partnerships with North Carolina-grown companies. There are plenty of them. The world--specifically science--is changing quickly. We recognize that we don't know everything. There are many smart scientists with better ideas out there.

What do biotechnology companies need to keep growing?

Butts: The first need is attracting and developing more operators, people who can start and grow companies. I see them most often on the West Coast and in the Northeast. Operators could help scientists here translate their research into businesses. But they need funding. Folks usually ask about funding first, but I think funding follows good ideas, good operators and good management teams. The second is the Qualified Business Venture, a state program that allowed investors to...