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Wednesday, October 21, 2009
How I See It
Increasing NIH funding means jobs and reputation for New England
MHT's Julie Donnelly: Life science startups finding investments
MHT's Marc Songini: Technology to keep seniors healthy
MHT's Efrain Viscarolasaga: Tech companies may have to wait for stimulus funds
After five years of stagnant funding, the federal government recently began re-establishing the world’s leading catalyst for medical research — the National Institutes of Health — as a spending priority. Doing so recognizes the dual benefit of NIH funding, which pumps billions of dollars into our economy as it strengthens the nation’s health, fights disease and saves lives.
A 4.2 percent increase in the NIH’s 2009 budget, and another $10.4 billion included in this year’s economic stimulus bill, set the tone for this shift in attitude. It was encouraging to see more aggressive funding, similar to the period of 1998 to 2003 when NIH budgets were boosted an average 6 percent each year.
However, for 2010, the U.S. Senate and President Obama have proposed a $30.8 billion budget, a boost of less than 1 percent.
The New England Council will continue to push for more robust funding. At the very least, we urge adoption of the U.S. House of Representative’s proposed $31.3 billion appropriation, both for its impact on the nation’s well-being and the considerable economic benefit it brings to New England.
The NIH estimates that its grants support some 325,000 research jobs across the nation at hospitals, universities, medical centers, research institutions, medical device companies and other organizations. The impact on employment is multiplied when factoring in related positions such as maintenance workers and administrative staff. As work advances in fields studying heart disease, stroke, asthma, vaccines and other illnesses, positive long-term economic ripples are generated through patents, infrastructure and equipment investments and innovations.
The government recognized this impact when including NIH funding in the economic stimulus package, which requires some recipients to submit reports detailing the number of grant-created jobs. The organization Research!America has estimated the NIH’s portion of the stimulus bill could create 70,000 jobs nationwide.
University of Chicago economists Kevin Murphy and Robert Topel have estimated that a 10 percent reduction in deaths from cancer and heart disease would add around $10 trillion to the nation’s GDP each year.
Massachusetts acknowledged the importance of research funding when enacting last year’s 10-year, $1 billion life sciences bill. Rhode Island enacted the Biotech Jobs Growth Act in 2006, which gives tax incentives to companies that build or expand biomanufacturing facilities. In 2007, Maine voters approved $50 million in bonds to finance technology companies and research organizations, which benefits biotech initiatives, among others. And just this month, a new economic plan proposed by Connecticut Gov. Jodi Rell would create “angel investor” tax credits for individuals or companies that invest in sectors such as biotechnology.
The six New England states collectively received more than $3 billion from the NIH in 2008. As of this month, we have received more than $325 million more for research through the stimulus package. In Boston, Beth Israel Deaconess Medical Center’s NIH-supported prostate cancer studies extend treatment options for patients, while The Jackson Laboratory in Maine is expanding an investigation into the effects of alcohol in the womb. Programs like these bolster New England’s reputation as a life sciences center, a position that attracts biomedical companies, leading researchers and students. Without proper support from the NIH, this advantage could quickly disappear.
The NIH is an efficient economic engine, but one that must be nurtured. If it continues to be neglected, as it was between 2003 and 2008 when yearly appropriations did not even cover the cost of inflation, New England’s place in the vanguard of the life sciences industry could be in jeopardy.
James Brett is President & CEO of The New England Council, oldest regional business organization in the U.S.
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