Interim Report of VA Governor's Technology Subcommittee

Technology Subgroup Interim Report: After hearing presentations and reviewing materials, subgroup members determined that the Commonwealth has many programs in place to help small businesses, but it lacks significant programs and policies directed specifically at early stage high growth, tech-based companies. These are the type of 21st Century companies that will drive innovation and future economic growth, and sustainable jobs, in the Commonwealth.

Presentations from VEDP/SRI and material from the Commonwealth Innovation Index being conducted by the ten Regional Technology Councils and CIT identify unique and common industry clusters. For instance, energy and green technology industry clusters are being pursued in about all of the regions, while an industry like bioscience has greater emphasis and opportunities in Richmond and Charlottesville because of the early investments in those areas. At the same time, each region has a unique opportunity for many of the same reasons. For instance, the Lynchburg area, or Region 2000, is focused on the nuclear and wireless industries. Again, these studies are exploring many innovative opportunities within these clusters; however, they are also surfacing many gaps that are impeding these regions, and in turn, the Commonwealth, from taking full advantage of the greater benefits of a tech-based Innovation Economy.

The two primary gaps that need to be addressed are the access to capital, including investments and tax credits, and commercialization of research and technology, the two areas in which the subgroup is investing most of its time discussing. The aforementioned industry clusters, coupled with the economic downturn or transformations in some areas, are attracting energetic entrepreneurs of early stage, innovative, high growth companies. These are companies with unique intellectual properties on the early stage of the innovation continuum between an angel investment and more serious institutional, or Series, investments. Because of their unique nature, even in good economic conditions, these entrepreneurs have difficulty finding seed investments from the private and public sectors in Virginia. Today, the flat economy and frozen capital markets have only exacerbated the problem.

Vision Strategies:

Virginia must deploy existing and develop new technology industry and resources to position itself to create future technology-based economic development opportunities that spur sustainable job growth. We must promote the use of technology to help us solve many of the challenges we face as a Commonwealth, such as smart transportation solutions, a cleaner environment, more efficient health care delivery and increased educational opportunities for all citizens and the lasting effect on long-term economic stability.
Approach:
I. This subgroup will examine existing programs and initiatives currently offered within the Commonwealth, while analyzing potential changes and enhancements, using best practices from industry and other sources inside and outside the Commonwealth.
II. This subgroup will focus their evaluations and recommendations in those areas that foster innovation and technology-based economic development strategies.

Strategies:
I. Reaffirm financial support for sustainable or increased funding for CIT GAP Fund and tax credits for early stage companies.
II. R&D Strategy - look at ways to establish a statewide research and development strategic plan that clearly articulates the research direction, investment requirements, expected quantitative and/or qualitative returns and obstacles to resolve.
III. Assess which sectors of biotechnology and information technology Virginia is currently positioned to develop and consider strategies to maximize opportunity within those sectors.
IV. Accelerate Broadband Deployment: Update the Commonwealth Broadband mapping and
development plan to address the gaps in coverage in all localities.

V. One major area that can and will lead to job creation is the implementation of electronic medical records. This is a major initiative that should be considered to see how Virginia can position itself to take full advantage of updating these records.
VI. Consider how we can attract advanced technology early stage investors to Virginia.
VII. Examine how Virginia can implement a refundable R&D tax credit targeted at advanced technology companies, especially those that sponsor research with Virginia universities.
VIII. Increase the number of investors who apply for the Angel Investor Tax Credit through effective marketing of the program.
IX. Consider how increase biotechnology infrastructure including additional Bioscience "wet-lab" development.
X. Examine the Technology Business Commercialization Programs (Business Incubator Program).
XI. Streamline and simplify the technology transfer process at Virginia institutions.
XII. Provide outline for all-up Chief Executive marketing/public relations campaign to promote Virginia’s assets around job creation and viability for formation of new, organic businesses.
XIII. Modeling and Simulation: Examine ways to grow the modeling and simulation center at Old Dominion University, review opportunities and complementary research that will expand additional centers throughout the Commonwealth.



Initial Ideas and Recommendations:

Capital Formation

The Commonwealth has some limited programs with limited funding available to assist these entrepreneurs, but the subgroup agrees that it needs to do more. Specifically, members are reviewing:

• A refundable R&D tax credit targeted at advanced technology companies, especially those that sponsor research with Virginia universities. This tax credit is used in 38 states.
• An advanced technology jobs convertible loan fund for high-growth, advanced technology companies based in the Commonwealth.
• Increase the angel investor’s tax credit.
• Increased funding for the CIT GAP Funds, which has invested $3.8 million since 2004 to help 39 companies that then attracted another $51 million in private investments – a 13 to one leverage.
• A “VentureVirginia” program to increase venture capital investment that generates funds with tax credits to insurance companies that expedite payment of their state taxes due in 2015. The concept is being advanced in Maryland, Tennessee, and Texas, and is similar to the Small Business Investment Company Credit offered by Delegate Merricks in the 2010 Session.
• Programs to attract advanced technology early stage investors to Virginia by investing in a special life sciences, clean energy, medical devices, or other technology services venture capital fund or “fund of funds” that would be matched by private venture capital.
• A relocation fund to attract innovative, high growth technology companies from other states to Virginia.
• The need to audit and improve existing marketing programs to increase the number of applications for the Angel Investor Tax Credit.
R&D Strategy, Commercialization and Tech Transfer
In addition to addressing the capital formation “gap,” the subgroup is also focusing on the need to improve the Commonwealth’s Research and Development strategies and investments, as well as the commercialization of university research. In 2008 Virginia ranked 16th nationally in R&D expenditures. To improve this national rank, Virginia must execute on its recent decision to develop a long-term strategic R&D plan that is integrated with a capital investment plan that is not limited to just new facilities, as has been done in the past. For instance, as the Commonwealth’s Chief research Officer, the Secretary of Technology must establish a comprehensive strategy that includes
• The work being conducted by the Innovation and Entrepreneurship Investment Authority to establish a statewide research and development strategic plan.

• Streamlining university developed intellectual property licensing and commercialization to reduce inherent barriers to university/industry collaboration.

• Establishing an immediate emphasis on energy research, commercialization and new company formation.

• Coordinating existing transportation-sector initiatives and encourage development of alternative product and service offerings through research, commercialization and new company formation.

• Reprogramming and investing in the Commonwealth Research and Commercialization Fund (CRCF) to serve as an incentive for new and improved commercialization programs.

As this new approach to R&D planning generates innovation and marketable solutions, the Commonwealth will need to improve technology commercialization to enhance the transition of these discoveries from the research lab to the market place. Specifically, the subgroup is reviewing:
• The need to streamline and simplify the technology transfer process at Virginia institutions by creating incentives that reward policies and programs that simplify contractual and financial negotiations while providing reasonable remuneration for researchers and value based pricing for industry.
• A Virginia version of “San Diego CONNECT” to link entrepreneurs, capital, talent and technologies available for commercialization in the Commonwealth.
• A strong focus on research and investments in alternative energies and green technologies, and the expansion of modeling and simulation activities across the Commonwealth.
Wetlabs and Incubators
Another primary focus of the subgroup is the expansion of wetlabs and incubators has long been supported by previous state commissions and policy groups to enhance Virginia’s competitiveness in life sciences. It recognizes the unique profile and nature of this industry, its specialized facility needs and reality that without state participation to mitigate risk, Virginia will be unable to create the product (i.e., commercial facilities) necessary for creating viable life science industry clusters. Expanding wetlabs would allow Virginia to attract companies by having product “in place” rather than just showing prospects raw land which will add 12-15 months to the occupancy timeline. It also allows Virginia to compete with other states implementing various types of loan and lease guarantee or grant programs for biotechnology facilities.
The subgroup is also reviewing the idea of a comprehensive program to create a network of “knowledge-based” industry incubators and commercialization centers around the Commonwealth – both university-affiliated and independent. Oftentimes, knowledge-based businesses are often founded by scientists, engineers and other technology-oriented individuals who may have had little or no experience in starting a business or in dealing with business challenges. This is frequently in contrast with companies started out of general business incubators which often are founded by individuals who have either started businesses before, or who have been in the business world for some time. While the recommendations and principles advocated apply to both types of incubator programs designed to foster high technology business formation and growth in the Commonwealth, subgroup members strongly recommend targeting any new funds to those incubators with sound business plans that demonstrate a strong return on investment.
Broadband
To get to the Innovation Economy, broadband access is crucial. While there continues to be a focus on Southside and Southwest Virginia, the Virginia Tobacco has invested more than $100 million for broadband infrastructure build out in those areas. In addition, recent grants from the America Recovery and Reinvestment Act (Stimulus Funding) will expand broadband infrastructure in Allegheny, Page and Nelson Counties, Blacksburg and Bedford, Buggs Island Telephone, and the Mid-Atlantic Broadband Cooperative in Southside Virginia. Currently, CIT is investing $1.8 million of stimulus funding in broadband data collection and mapping activities and $500,000 for broadband planning activities over a two-year period in Virginia, bringing the total grant award to approximately $2.3 million. CIT is the designated entity for the state of Virginia. Twenty-six proposals have been submitted to the National Telecommunications and Information Administration for Round II funding. The subgroup will continue to work with Karen Jackson, Deputy Secretary of Technology, to determine additional recommended actions.
Health IT
The subgroup fully supports recommendations by the McDonnell Administration transition to invest more in health information technology. According to transition documents, a first step is to begin to digitize all medical records. As a start, the Governor should require that all state employees’ health records be digitized. This would send a signal to the private sector that Virginia is ready to engage in public-private partnerships to expand the use of health IT, lowering the cost of healthcare delivery while creating economic development opportunities and jobs.
Already, an initiative is underway to expand the use of electronic health records (EHR). Earlier this year, the Virginia Healthcare Quality Center and CIT won a $12 million co-operative agreement from the U.S. Department of Health and Human Services and its Office of the National Coordinator for Health IT to implement the expansion of electronic health records (EHR) for nearly 2300 priority primary care providers in Virginia by February 6, 2012. These providers are defined as urban and rural practices with less than 10 healthcare providers. Currently in Virginia these practices have less than a 10% adoption of EHR. This program will help improve healthcare and reduce costs in Virginia, while creating Health IT jobs across the State.

On June 15, Virginia HIT, the federally designated Regional Extension Center for Virginia, in partnership with the Center for Innovative Technology, announced its preferred partners to work with primary care physicians across the Commonwealth (including pediatricians and obstetricians/gynecologists). These three partners — Allscripts, athenahealth, and MDLand — will provide a Software as a Service (SaaS) solution to approximately 2,300 physicians to meet EHR certification requirements for Meaningful Use. Additional services will include education, technical, and implementation resources.
As important as this initiative is, the subgroup strongly believes that the Commonwealth should pursue so many of the other opportunities inherent in a strategic health IT program. Given the cluster of many large and small businesses, as well as non-profit organizations, that are engaged in health IT, coupled with their proximity to and strong contractual relationships with federal agencies, Virginia is well positioned to be a leader in this field. To further explore this area, members will consult with the Secretary of Health Services, VEDP and others on additional health IT and telemedicine initiatives and opportunities, such as personalized medicine, point-of-care diagnostics, computational technologies, data interchange and other innovations that are revolutionizing the healthcare industry.
Modeling and Simulation
The subgroup recommends the continued development of modeling and simulation technologies in the Commonwealth. Since its founding in 1994, the industry has seen significant growth take place, becoming a $640 million industry employing over 5,000 people with an average salary of $83,000 each year. The subgroup advocates a number of action items, such as examining opportunities for pilot and/or demonstration projects using modeling and simulation with Virginia state government agencies as well as working to attract a federal Modeling and Simulation Lab in Virginia.
Marketing
Although the subgroup is advocating these additional measures, members agree that much more needs to be done to market existing tools to entrepreneurs and investors. Members will recommend suggestions on ways that the Governor’s office can celebrate entrepreneurs and innovation, and also initiate an audit of existing materials and tools to enhance their efficacy.
At its last meeting on July 9, the subgroup heard reports from officials from VEDP and the Secretary of Technology’s office on programs and initiatives covering tech-based economic development and broadband.

Members also reported on areas in which they were charged with developing ideas, again, primarily capital formation; R&D and commercialization; wetlabs and incubators; health IT and broadband; and marketing. The initial ideas and recommendations are mentioned above, and the group agreed to further refine ideas in the coming weeks.

Next Steps:

In addition to honing overall ideas and recommendations, the subgroup agreed that more information is needed in the areas of Health IT and broadband access. In addition, the subgroup began discussing the use of local technology zones that use tax breaks and other incentives to attract innovative high growth technology companies. Qualified businesses locating or expanding operations in a zone may receive local permit and user fee waivers, local tax incentives, special zoning treatment or exemption from ordinances. Once a local technology zone has been established, incentives may be provided for up to 10 years. Each locality designs and administers its own program.

A preliminary review shows that technology zones have been adopted in the counties of Arlington, Bedford, Caroline, Culpeper, Frederick, Halifax, Henry, Roanoke, Rockingham, Russell, Smyth, Spotsylvania, Stafford and Warren; the cities of Buena Vista, Charlottesville, Falls Church, Franklin, Fredericksburg, Harrisonburg, Lynchburg, Manassas, Newport News, Roanoke, Suffolk and Winchester; and the towns of Front Royal in Warren County, Kilmarnock in Lancaster County and Marion in Smyth County. Members and staff will conduct additional research into the use of the technology zones and how they can be linked to other federal and state programs, and consult with staff from the Secretaries of Health and Technology to determine what needs it can best address in the areas of health IT and broadband. These issues will be the primary points of discussion at the subgroup’s next meeting on August 11.

The four members of the subgroup are:

• Anne Gavin - State Government Affairs Regional Manager, Microsoft
• Mark Herzog - Executive Director, Virginia Biotechnology Association
• Caren Merrick - Co-founder, Webmethods
• Bob Skunda - President and CEO, Virginia Biotechnology Research Park

Since the initial meeting of the Commission, members have met twice – June 2 and July 9 in Fredericksburg - to review transition and other documents that outlined statewide technology-based economic development programs and gaps. They also heard more detailed presentations from VEDP, CIT, and the office of the Secretary of Technology on the history and status of broadband activities across the Commonwealth. The subgroup identified several areas on which to focus that will have the greatest impact on tech-based economic growth. Members are very cognizant of the economic and budgetary challenges facing the Commonwealth, and therefore, they are reviewing existing programs that need greater coordination, marketing, and enhancement. The Subgroup is also reviewing successful tech-based economic development programs from other states that could be adopted for use in the Commonwealth.

Subgroup members also recognize the value of reaching out to stakeholders for comments, and have identified the following organizations:

The Virginia Technology Alliance and the Ten Regional Technology Councils; Virginia Biotechnology Association ; Association of University Technology Transfer Managers (AUTM); Virginia Business Incubation Association; Virginia Active Angel Investor Network; Mid-Atlantic Venture Association; National Venture Capital Association

VCU's MDx Lab May Debut Next-Gen Sequencing in One Year

The molecular diagnostics lab at Virginia Commonwealth University is about a year away from using a next-gen sequencing platform on clinical samples, according to its director.

Andrea Ferreira-Gonzalez, who is also chair of the school's Division of Molecular Diagnostics, Department of Pathology, said the lab is "working with" Illumina, and is testing certain clinical applications of the Roche 454 FLX platform installed at VCU's DNA Core Facilities.

Speaking after her presentation at this year's AACC annual meeting, held here this week, she said her lab is researching Illumina's Genome Analyzer for targeted re-sequencing applications by studying 50 genes linked to cardiomyopathy.

She also said the lab is using Roche 454's pyrosequencing-based instrument to genotype infectious diseases, noting she is keen on the platform "because you can sequence longer fragments" of DNA.

Saying her lab is "still working on issues like quality control," Ferreira-Gonzalez said she thinks it will begin running patient samples on the machines in one year — "with luck."

She noted that "we can use next-generation sequencers to perform whole-genome scans in the laboratory today, but we have nowhere to store" the data such machines are notorious for yielding.

The lab, based in VCU's Richmond, Va., campus, currently uses a pair of capillary electrophoresis platforms — an ABI 310 and 3100 — which she said can be used to confirm mutations detected by other methods and are the "gold standard" for mutation detection and histocompatibility typing (though she did quip that the 310 "belongs in a museum").

"DNA sequencing is undergoing a revolution … [but the 310 and 3100] are bread-and-butter technologies that we use every day," she said during her presentation.

Ferreira-Gonzalez also said she predicts that third-generation sequencers will make their way into clinical labs in three to five years.

"The technology is moving very fast, and I think it's going to take some time for us to catch up," she said.

Greg Tsongalis, director of the molecular pathology lab at Dartmouth College's Hitchcock Medical Center, agreed. Tsongalis, who presented at the same session, told me after Ferreira-Gonzalez's talk that his own lab isn't ready to invest in a second-generation sequencer because technologies continue to evolve.

"You don't want to spend that kind of money if something better may be around the corner," he said.

By Kirell Lakhman
Genome Web

Funds Hard To Come By On Proposed Tech Tax Break

Funds hard to come by on proposed tech tax break
By Bill Flook, Washington Business Journal

Rep. Chris Van Hollen, D-Md., and four other members of Congress are proposing to carve out a new tax break for investing in government-funded technology startups — the latest in a series of local, state and federal incentives meant to steer private money toward technology and biotechnology ventures.

Van Hollen’s bill, introduced July 15, would provide a 25 percent credit for an equity investment in a company that has already qualified for a federal research and development grant program for small businesses. Under the legislation, the credit’s value would be limited to half the size of the Small Business Innovation Research award, and capped nationally at $500 million.

“Clearly there is a big appetite for this around the country,” Van Hollen said. “I think it’s going to be very well received because it’s targeted at areas that need a boost right now and can add significant value.”

But the bill — like much of the new legislation that spends federal tax dollars — could run afoul of a growing aversion to Congress for new spending that’s not balanced by cuts. That fear of adding to the deficit has played out in several high-profile struggles on the Hill, most recently over extending the stimulus package’s jobless benefits. And finding those needed reductions or revenue is tougher after the passage of the health reform bill, which gobbled up what were considered to be most readily available offsets.

“We will identify an offset,” Van Hollen said.

Reps. Dutch Ruppersberger, D-Md., Allyson Schwartz, D-Pa., Betty McCollum, D-Minn., and Jared Polis, D-Colo., joined Van Hollen in introducing the bill — dubbed the Innovative Technologies Investment Incentive Act. It is pending in the House Ways and Means Committee, on which Van Hollen sits.

Linking the tax break to the SBIR award is smart, said Don Rainey, a general partner with Vienna-based venture capital firm Grotech Ventures, “because it takes all those federal dollars that will be spent anyway, and causes more private dollars to complement that investment.”

“Startups tend to create more startups, particularly successful ones,” he said. “People go into a startup, see its success, learn what you need to do and they start companies.”

The legislation is modeled partly off Maryland’s highly sought-after biotech tax credit, which state lawmakers increased to $8 million this year. Montgomery County also put in place an analogous local tax credit based on the state program, and — like Van Hollen — remains unsure of how to pay for it. Gov. Martin O’Malley wants to raise $100 million in venture capital funds for biotechnology by offering deferred tax credits to insurance companies.

In Virginia, lawmakers this year passed a bundle of tech-friendly tax breaks. The largest, a new long-term capital gains tax exclusion, will mean that investors who back tech startups within the next three years will be exempt from paying state capital gains once that company is sold or goes public.

The venture capital world is slogging through a time of uncertainty, with fewer dollars flowing into venture capital funds, but with more, and bigger, deals taking place.

Nationally, venture capitalists invested $6.5 billion in the second quarter of 2010, up from $4.2 billion in the same period the year before, according to a quarterly report from PricewaterhouseCoopers LLP. Clean tech, biotech, information technology and software investments all showed signs of recovery. Still, venture capital funds raised a dismal $1.9 billion in the second quarter, the lowest level since the third quarter of 2003.

Read more: Funds hard to come by on proposed tech tax break - Washington Business Journal

BIO Podcast with VaBIO Director Mark Herzog

Podcast with Mark Herzog, Executive Director of Virginia Biotechnology Association

BIOtech-Now recently spoke with Mark Herzog of VaBIO, check out the podcast here. Additionally, Herzog shared the latest on biotech in Virginia in the Q&A below.

The Virginia Biotechnology Association (VaBIO) is the premier statewide non-profit organization that promotes the scientific and economic impact of the life sciences industry in the Commonwealth of Virginia. More than 300 biotechnology, equipment, pharmaceutical and medical device companies are based in Virginia, mainly clustered around universities in Blacksburg, Charlottesville, Richmond, Norfolk and Northern Virginia. VaBIO will be co-hosting the 2011 BIO International Convention in Washington, DC on June 27-30.

What areas of bioscience are currently most active within your state?

Herzog: The greatest concentration of companies, approximately 34%, is located in Northern Virginia. The greater Richmond region is second with 30%, the Charlottesville area with 15%, Western Virginia with 14% and the balance located in Hampton Roads. Based upon surveys conducted of Virginia’s biotech companies, 47% are focused on therapeutic products and 14% on diagnostics. The focus of the remaining companies is divided among areas of concentration such as biodefense, bioinformatics and agricultural biosciences.

Are there currently any state-level legislative barriers to economic development you are working to overcome?

Herzog: Access to capital and wet-lab space for commercialization activities. Thanks to bipartisan support from our new Governor Bob McDonnell, the Senate Democrats and the House Republicans, Virginia took bold steps in 2010, despite a massive budget deficit. The Governor will be signing new legislation that will exclude from capital gains taxes all income from investments in biotech and device firms in Virginia. We also were successful in winning $3 million to incentivize the development of commercial wet-lab space. Funding was also made available to increase the Angel Investor tax credit and recapitalize the “Gap Fund” that invests taxpayer dollars in technology companies. The total bioscience package is nearly $30 million for the biennium.

Is there another state or specific initiative that you look to as a model for your efforts?

Herzog: North Carolina has been a great role model. They built a broad consensus before attacking the issues and that paid off for them. We in Virginia have been trying to follow that approach—start with the foundation of bipartisan legislative support, build on small successes and then use the momentum to go after the big initiatives.

How is your organization engaging in social media to educate and engage audiences?

Herzog: Yes, we have always been able to connect with our CEOs but seemed to miss the opportunity to connect with individuals at all levels in our industry. Social media has provided a great tool to connect with everyone from the bench to the C-Level Suite.

When is your annual meeting? Anything new or exciting you’d like to promote?

Herzog: We will be holding our 6th annual joint conference with Maryland at the 2010 Mid-Atlantic Bio Conference, October 27-29 at the North Bethesda Marriott. We are very excited to be working on the final details to have the opening activities on campus at the National Institutes of Health (NIH). It will be a fantastic new offering to our attendees.

PA Borrows $30M for Vaccine Center

$600 million allocated for Pa. economic projects
Wednesday, July 07, 2010
By Tom Barnes, Post-Gazette Harrisburg Bureau

HARRISBURG -- An $830 million vaccine-producing "biodefense center," to be built somewhere in Allegheny County, is getting a $30 million boost from a statewide capital construction bill that Gov. Ed Rendell plans to sign today in Pittsburgh.

Legislation for an additional $600 million in borrowing for economic development projects, known as the Redevelopment Assistance Capital Program, was enacted last week as part of the new state budget for fiscal 2010-11. The bill contains $30 million to help the University of Pittsburgh Medical Center compete with other states to create a vaccine-producing center, which the bill calls a "state-of-the-art biologics manufacturing facility."

Mr. Rendell is coming to the Connelley School today to sign the economic development bill. All of the RACP projects are legitimate uses of state funds and will be matched with private money, he said Tuesday as he signed the new $28 billion state budget for 2010-11.

Rendell spokesman Gary Tuma said the federal biodefense contract involves "development of an on-demand flu vaccine."

"We will be competing with other states," he said. "It will mean quite a few jobs for the region if it comes" to Allegheny County. One possible site is the old Pittsburgh airport terminal.

"It was important for the state to show support for the project and put in some state money," he added.

The $30 million is just a small start for the proposed UPMC biodefense center, which would need $580 million in federal funds plus $250 million from UPMC itself. It would be overseen by the federal departments of Defense and Health and Human Services.

Last summer UPMC made a pitch to a congressional panel to create such a large-scale vaccine production center. Federal officials think the development of such vaccines is a necessary step in defending America against bioweapons attacks by terrorists. The proposed center would have eight vaccine-producing units, with staff and resources to develop vaccines to counter various threats from hazardous bioweapons.

Mr. Specter and U.S. Rep. Jason Altmire said UPMC would have a "unique advantage," since it's one of the nation's largest medical centers and is close to the University of Pittsburgh, which has a Center for Vaccine Research. The center would likely create 1,000 well-paid, high-tech jobs and another 6,000 spinoff jobs.

A number of Allegheny County Democratic legislators are listed as sponsors for the biologics facility, including state Sens. Jim Ferlo, Wayne Fontana and Jay Costa, plus Reps. Jake Wheatley, Dom Costa, Chelsa Wagner, Dan Frankel, Joe Preston, Paul Costa and Harry Readshaw.

"All the projects in the RACP bill that governor will sign today are important and some will create hundreds of high-paying jobs," said Jay Costa. "While the state's $30 million investment pales in comparison to the federal and private investment, these state capital dollars will leverage three to four times of the investment and create new jobs."

Read more: http://www.post-gazette.com/pg/10188/1070851-454.stm#ixzz0t5LX1opu

Pfizer might get incentives to keep research center in Richmond

Pfizer might get incentives to keep research center in Richmond
By Staff Reports | Times-Dispatch
Published: June 29, 2010

City officials are planning to offer incentives to Pfizer Inc. for keeping its research and development center with more than 300 jobs in Richmond.

Executives with Pfizer and city officials reiterated the company's decision to maintain the facility in Richmond at a news conference this afternoon.

Peter Chapman, Richmond's deputy chief administrative officer and interim director of economic and community development, said city officials will present a package of incentives to City Council for approval within a few weeks. He declined to provide financial details but described the incentives as "modest and measured."

He said Pfizer also would preserve a certain number of jobs as part of the deal.

Pfizer announced in May that it would end production at its Henrico County manufacturing plant in two to three years, eliminating about 550 local jobs.

Production of over-the-counter health products such as Chap Stick, Dimetapp, Robitussin, Anbesol and Preparation H will be moved elsewhere, but the company said it planned to keep its consumer research center on Sherwood Avenue in Richmond.

Bode Technology Launches RFID System to Track DNA Evidence

Bode Technology, one of the world's largest DNA analysis firms, is piloting an RFID system it developed to manage DNA evidence as it passes through a supply chain, that includes storage and analysis in the laboratory. If the pilot—held at the company's Virginia lab—goes well, Bode Technology plans to deploy the system for 50,000 or more pieces of evidence annually as they move through the company's facility. To date, says Randy Nagy, Bode's sales and marketing VP, the system is reducing the time spent manually recording information about the specimens and their movement through the site, and provides a better, more accurate record of where each specimen has been, and who has been handling it.

The company is marketing the system, known as Bode-RFID, to law-enforcement agencies, for use in tracking physical evidence such as weapons, as well as DNA evidence. This, Nagy says, is being done in order to create and maintain an electronic record of a sample's movement from a crime scene through testing and storage, with data that could be used in a courtroom if the courts, for example, required proof of where the evidence had been, and when. The system is designed to be flexible (it can be set up to track evidence at specific locations chosen by a user, such as at a crime scene or storage area, or in off-site labs). What's more, it can act as a module to the existing Laboratory Information Management (LIM) system Bode sells, which stores and manages data regarding evidence for municipal, state and federal agencies.

When evidence is gathered, it is typically placed in a paper bag, box or DNA kit, and a unique reference number is assigned to that specimen, either printed in the form of a bar code on an adhesive label attached to the bag, or manually written on the bag using a marker. Approximately 40 percent of law-enforcement agencies currently employ bar-coded labels, while the rest utilize the manual, handwritten method. Often, a law-enforcement official creates a paper manifest with the same reference number, along with details related to that specimen. That manifest then accompanies the specimen when it is shipped to a forensics company, such as Bode, or to an in-house laboratory. The law-enforcement official at the crime scene—and, afterward, the agency or lab staff members handling the evidence—typically put their initials on the paperwork to provide a trail documenting which personnel worked with those samples. Multiple pieces of evidence are often recorded on a manifest, in order to link specimens from the same crime scene, such as several articles of blood-stained clothing. This system is time-consuming, however, and in the case of handwritten reference numbers, there is always the risk that an agency employee creating the manifest could transpose the numbers or otherwise make mistakes.

Another shortcoming with the manual system, according to Andrew Singer, Bode Technology's senior product manager, is that workers handling the sample may fail to add their initials to the evidence or paper manifest. Consequently, it is not always clear who has been handling a particular sample. In other cases, a piece of evidence can go unnoticed—in the trunk of a car, for instance—but if an RFID system were used at the time that evidence was collected, that type of error would be documented electronically, because a record would be stored in the back-end system indicating the date and time a specimen was gathered, along with any subsequent procedures that may have occurred, including receipt into storage or movement to a lab for testing.

Bode Technology watched RFID technology prices drop, and the demand for such a solution increase, until last year, when it determined that an RFID solution would be saleable. At that point, the firm developed Bode-RFID, which includes the company's existing LIM system, as well as its RFID-based software (developed in partnership with RFID Global Solution), to interpret RFID numbers as they are read, along with the location and time of read events—all of which is then stored in the LIM system. Bode-RFID will also provide hardware such as tags, readers and printers, according to customers' specific needs.

Bode Technology decided to first test the system at its own site in Virginia, in order to gather time-saving metrics. Last week, employees began tagging and tracking all new evidence coming from a handful of customers—government agencies that agreed to have their samples tagged and tracked while at the company's facility. Initially, only Bode Technology will use the RFID read data for its own purposes—to automate the tracking of each specimen's arrival, testing and storage, as well as who handled that evidence at any given time. However, that information could also be requested from the agencies in the event, for instance, that it is required for a trial.

When specimens arrive, they contain a printed reference number or a bar-coded ID number, along with information about the specimens printed as text on the paper bag or box in which they are contained. Bode's staff have several options for storing that data in the back-end system. In some cases, an agency sends an electronic manifest to the company prior to the samples' arrival. When that occurs, the electronic manifest provides Bode Technology with details regarding the sample, including the case number, a list of other pieces of evidence linked to that case, the agency that had sent it, and the specific testing required. Workers can then open the electronic manifest on the LIM system and enter information about the carrier (such as Federal Express) and the time and date of its arrival, or scan the carrier's bar-coded label on the item's packaging using a handheld Motorola MC9090 to create a record of that item being received.

In either case, an Avery Dennison ultrahigh-frequency (UHF) Gen 2 RFID tag is then printed and encoded with a unique ID number on a Zebra Technology printer, and attached to the paper envelope or box in which the specimen is stored, thereby linking the RFID number with the sample it is attached to. If no electronic manifest is sent to Bode Technology before the sample's arrival, the company's staff inputs all of the information printed on the packaging or paper manifest accompanying the specimen, again encodes an RFID label and affixes it to the specimen's envelope or box. If the agency had used an RFID-enabled handheld device at the crime scene, attaching an RFID tag to a piece of evidence as it was gathered, and then reading the tag at the scene, Bode's employees could simply read that tag when the specimen arrives at the facility. Bode-RFID software enables a user to read the RFID tag, view an electronic manifest of the evidence, and then follow instructions in a drop-down box to indicate the event that is occurring, such as receiving the specimen from the carrier.

The sample is then moved into the evidence room, where it is stored while not being tested. As it passes through the doorway into the evidence room, it passes through a portal built by Jamison Door and containing an Impinj RFID reader. The ID number is transmitted to the LIMS on Bode's back-end server via a cabled connection, indicating it has arrived at the evidence room. LIMS can then determine the direction in which the tag is moving, based on its location and the data related to its last read. All information is automatically exchanged between the Bode-RFID software and the LIMS, Nagy says.

In addition, each employee wears an RFID-enabled badge, the ID number of which is also read, thereby indicating which employee brought a particular item into or out of the evidence room.

When an item is checked out by a DNA analyst, it again passes through the evidence room's portal and is then taken to the laboratory, where a desktop or handheld reader is used by the staff each time the evidence changes hands. If there are multiple bags of evidence connected with a specific case number, information about the additional evidence related to a specific item is also stored in the LIMS. All of these pieces of evidence are tied together in both the RFID software and the LIMS.

If a DNA analyst goes home for the day before finishing with a particular piece of evidence, he or she can take it to the temporary evidence room within the laboratory, where another RFID reader portal captures the ID numbers of the specimen's tag and the employee's badge, indicating when it was moved into the storage area, and by whom. This security measure, Nagy explained, is intended to track which individuals had the evidence when it came and went, as well as track which personnel had access to specimens stored in the room while it was there. The sample can then be removed again the next morning for further testing.

If Bode's staff require a specific piece of evidence, they can utilize the Motorola handheld reader that they carry into an evidence room or through the lab, and receive an audible alert when it comes within range of the ID number being sought, with the alerts getting louder and more frequent as the reader approaches the tag in question.

Prior to using the RFID system, Bode Technology's staff would manually input data in order to create a record of each item's arrival. The company maintained a written record of what occurred for such events as a lab worker analyzing the specimen, or an item being placed in the evidence room. Seeking specimens was more time-consuming, Nagy says, since they had to be searched for visually, without the aid of the handheld reader. "RFID will save a few seconds in completing each transfer," he states, "and records will be more legible, including the records provided to our customers, which will look more professional."

The electronic data stored for each specimen as it moves through Bode Technology's facility, Nagy says, "will better show who had access to all evidence during the time that it was at Bode. The expectation is that this will help improve the already high level of trust our customers have in Bode, and how we handle their evidence."

To date, Bode has incorporated the portal system only in its primary evidence room, as well as in the room within its lab used for temporary evidence storage. However, Singer says, other forensics companies or agencies could have the technology incorporated throughout their facilities, to track movement through the buildings and between departments.

Eventually, Nagy says, as the time-savings and improved accuracy are proven, Bode Technology hopes to begin tagging all evidence upon arrival, and then track each specimen as it moves through the evidence rooms and laboratory.

Although there are currently no agencies using this system, Nagy notes, Bode Technology is in discussions with many agencies about the prospect of doing so. This fall, as funding is granted to many agencies from the federal government to increase efficiency, Nagy hopes Bode will begin installing the solution with some of the company's customers. The system is commercially available now, he says, and can be used to track not only evidence, but also case files related to that evidence.

By Claire Swedberg
RFiD Journal

Biologists Tackle Cells' Identity Crisis

Ever since biologists learned how to grow human cells in culture half a century ago, the cells have been plagued by a problem of identity: many commonly used cell lines are not actually what researchers think they are.

Cell-line misidentification has led to mistakes in the literature, misguided research based on those results and millions wasted in grant money. Last year, Nature described the situation as a scandal.

But a universal system for determining the identity of cell lines may now be in view. Next month, a working group led by the American Type Culture Collection (ATCC), a nonprofit biological repository based in Manassas, Virginia, that stores 3,600 cell lines from more than 150 species, plans to unveil standardized protocols for verifying the identity of cultured cells using DNA fingerprinting. Labs worldwide — including repositories such as the ATCC itself — would use the protocols to determine whether a breast-cancer line, for instance, did come from breast tissue. The group also plans to create a public database, which the National Center for Biotechnology Information in Bethesda, Maryland, has agreed to host, to store DNA profiles of validated lines, allowing researchers to compare their own cell cultures with the ATCC's reference lines.

"I really think it's fantastic progress," says Rolf König, director of the Tissue Culture Core Facility at the University of Texas Medical Branch in Galveston.

Misidentification can happen when faster-growing cells contaminate cultures of slower-growing cells in the same lab, or when researchers simply mislabel a specimen. One particularly robust cell line called HeLa, the first human cell line grown in the lab, has contaminated dozens of other lines without researchers' knowledge2, and there are many other examples where melanoma cells and ovarian cells, for example, have been mistaken for breast cells. In this month's Nature Reviews Cancer3, the ATCC consortium notes that one group has published around 20 papers since 1988 in which they incorrectly use a line called Int-407 as a model of normal intestinal cells.

The working group, composed of representatives from academia, government and industry, as well as from other cell repositories, advocates verifying cells' identities by comparing their DNA in regions where short stretches of three to five bases are repeated. Closely related cells are likely to have the same number of repeats; comparing these snippets at several different positions in the DNA sequence provides an overall estimate of relatedness.

Forensics applications, such as paternity testing and identifying crime victims, already use the technique. But cell lines often come from tumour tissue, in which DNA mutates at a higher rate than normal, making a 100% match between cells unlikely. Instead, the consortium suggests, cells that match at 75% or above can be considered to be the same. The group has now developed and tested a standardized procedure for extracting DNA from cells, doing the fingerprinting and interpreting the results.“Without policing, many investigators may not be motivated to do the necessary tests.”

Many researchers already use DNA fingerprinting to test their cell lines, notes Steve Oglesbee, director of the tissue-culture facility at the Lineberger Comprehensive Cancer Center of the University of North Carolina in Chapel Hill. The ATCC and other repositories have already established fingerprints for some of the most commonly used lines. "We're recommending that investigators authenticate from the beginning, and do it at least at the very end, and if they feel the need even during the work process," he says. Having a universally accepted approach will allow different facilities to compare their cell lines with each other, he adds.

Fingerprinting has its limits, cautions Michael Johnson, a cancer researcher at Georgetown University in Washington DC. "Just because a cell fingerprints out as the same [as another cell] doesn't mean they will behave the same," he says, noting that a cell's properties can also be affected by the way it has been grown, the number of times it has been cultured anew and small genetic changes that wouldn't show up in a fingerprint test. One classic example, he notes, is an immortalized breast cell line called MCF10A, which can form organized hollow structures similar to those found in mammary tissue; MCF10A cells currently distributed by ATCC do not do this nearly as efficiently.

Cell Solution

He worries that, useful though it would be, a database such as the one ATCC proposes "in some sense creates a false sense of security" about the "official version" of a cell line. Being able to keep track of a cell line's lineage — where it was derived — could be as important as ascertaining its DNA fingerprint, he adds.

Others note that researchers will probably need an extra push to embrace the ATCC protocols. About half a dozen journals, including Wiley's International Journal of Cancer and journals published by the American Association for Cancer Research, have begun demanding that researchers authenticate their cell lines before they publish their work. And Nature has endorsed efforts to make verification easier and cheaper for researchers, pledging to require it once funders acknowledge the need and provide the necessary financial support1. "Without the policing by journal editors and granting agencies," says Gertrude Buehring, a virologist at the University of California, Berkeley, "many investigators may not be motivated to do the necessary tests to authenticate the cell lines used for their research."

Alla Katsnelson
Nature News

RichTech Honors the Area’s Greatest Tech Firms and Folks

RichTech held its 15th Annual Awards Gala this evening, honoring the best local companies and leaders that drive Central Virginia’s technology-based economy.

“During the last year we’ve watched the economy turn brighter, and so too have Central Virginia’s technology companies. Businesses are stronger and more efficient, good talent is getting hired, and clients locally and nationally are being well-served by the slick tech companies that call the Richmond area home,” said Chip Farmer, Executive Director of RichTech.

“Altogether, the companies that make up RichTech have come together and strengthened our organization as one that stimulates and connects innovative, creative and technical people.”
During the past year, RichTech – formerly the Greater Richmond Technology Council – has revamped its brand, logo and website. It has also updated its membership structure to allow more individuals to join, and reached out to peer groups across the region to promote the cause of supporting innovation and creativity throughout the local technology community.

More than 500 people attended the Technology Stars gala, held at the Greater Richmond Convention Center. The awards are structured in a way that recognize individual accomplishments, corporate wins, non-profit success stories, innovators in their field, and small business triumphs.

“This is RichTech’s 15th year of celebrating innovation, perseverance, and investment in the future of our region and beyond,” said Margaret E. “Lyn” McDermid, Senior Vice President of Information Technology and Chief Information Officer at Dominion and RichTech Chair. “It has been exciting and encouraging to watch our companies grow and strengthen. Tonight we honor the value of technology in our community through these very deserving nominees and award winners.”

The award winners are:

IBM Community Catalyst Award: Mark Herzog This is Herzog’s 10th year as executive director of the Virginia Biotechnology Association. Through his work at VaBIO and the organizations that support it, new technology discoveries are being made in Virginia in medicine and healthcare, the environment and energy. The award recognizes an individual or organization that has made a significant impact on the growth of technology in this region, and/or the advancement of Greater Richmond as a center for technology innovation.

Computer Resource Team Educator Award: Richmond Area Program for Minorities in Engineering (Virginia State University & Virginia Commonwealth University) This pre-college program prepares "new-century engineers" to to gain experiences and target a conceptual understanding of science and technology topics in order to develop workforce skills. The award recognizes an educator or school program that provides exceptional technology leadership and encourages students to pursue higher education or training in engineering, math, and the sciences.

Cherry Bekaert & Holland Emerging Company Award: TBL Networks TBL Networks designs, implements, and supports Cisco IT systems as well as data center infrastructure. The company also provides ongoing troubleshooting, support, and maintenance. The award recognizes a local technology company that has demonstrated recent growth in revenues and/or employees - a company whose recognized accomplishments and prospects demonstrates the ability to achieve commercial success.

The PLANIT Technology Group Technology Builder Award: Altria Client Services Information Systems (IS) team ALCS Information Services provides the full range of IT services and solutions as an internal shared services organization. The group was ranked by Computerworld in its “100 Best Places to Work in IT” survey, ranking No. 1 in Virginia and No. 26 nationwide in 2009. The award recognizes an institution or organization that delivers technology solutions and/or services to internal or external clients that drive business or operational efficiencies.

The VACO Technology Innovation: Financial & Professional Services Award: Capital One Capital One is a diversified bank that offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. A Fortune 500 company, Capital One has approximately 44 million customer accounts and is one of the nation's most recognized brands. The award recognizes a company or organization whose use of new or existing technology in finance and professional services vertical creates or significantly enhances new processes, methodologies and/or services for their or others benefit.

The Cisco Systems & Packet360 Technology Innovation: Healthcare Award: MedVirginiaMedVirginia has deployed cutting-edge health information exchange technology in a national manner and is garnering headlines across the U.S. for its ability to expedite the Social Security disability determination process. The award recognizes a company or organization whose use of new or existing technology in the healthcare vertical creates or significantly enhances new processes, methodologies and/or services for their or others benefit.

The CSC Leasing Technology Innovation: Manufacturing, Distribution and Retail Award: Owens & MinorOwens & Minor, Inc., is a leading distributor of national name-brand medical and surgical supplies. The company serves its 4,500 healthcare provider customers from 55 distribution centers located strategically throughout the U.S. Owens & Minor's customers include acute-care hospitals, group-purchasing organizations, integrated healthcare systems and the federal government. The award recognizes a company or organization whose use of new or existing technology in manufacturing, distribution and/or retail creates or significantly enhances new processes, methodologies and/or services for their or others benefit.

2010 RichTech Chairman’s Award sponsored by Altria: Scott McKay, CIO and Senior Vice President, Genworth FinancialThrough his steadfast involvement with not only RichTech but VirginiaFIRST, the Science Museum of Virginia, and the Virginia Technology Intern Program, McKay continues to leave a long-term positive impact throughout our community. By working on all of these programs, he engages young people at every stage—from their years in early education through to their years in a university, inspiring them to pursue high-tech careers. The Chairman’s Award is presented annually to an individual or organization that has made a significant impact on the growth of technology in this region, and/or the advancement of Greater Richmond as a center for technology innovation. The award recognizes results that are the product of great leadership, great execution, great process implementation, great innovative ideas, and great talent.

RichTech

McDonnell puts jobs commission to work

Virginia can't rest on its pro-business reputation and must be more aggressive in marketing its assets and competing for jobs, state leaders said Wednesday.

"This is a top priority for what faces our people right now," Gov. Bob McDonnell told members of his Economic Development and Jobs Creation Commission.

McDonnell called the state's 7.4 percent unemployment rate "absolutely unacceptable" and said: "It's nice that it's a couple of percentage points below the national average, but that doesn't make you feel good when you go to Martinsville and see 20 percent of the people unemployed."

McDonnell's 64-member commission is charged with making recommendations on improving the state's business climate, improving economic development programs and incentives, and considering additional legislative and policy changes.

The full commission will hold public meetings in July and September before delivering recommendations to McDonnell in October. The commission is co-chaired by Lt. Gov. Bill Bolling and Bob Sledd, the governor's unpaid senior economic adviser. The panel includes Cabinet members, legislators and business leaders.

McDonnell won legislative support for a package of economic development incentives that he said will give him "more tools than any other governor has had to tell the Virginia story."
Additional steps are needed to keep Virginia competitive with other states and other countries, administration officials said.

"The reality is, we became a little bit complacent," said Sledd, adding that Virginia lags behind other states in attracting jobs in growing industry sectors such as biotechnology and advanced manufacturing.

The Roanoke Times© May 6, 2010
By Michael Sluss

Free Lance Star: VA State Senator Houck Fights PDL for Mental Health Drugs

HOUCK FIGHTS CHANGE TO MEDICATION CATEGORIZATION
By Chelyen Davis
The Free-Lance Star

Once again, mental health advocates are fighting against a governor trying to save money on psychotropic medications.

One of Gov. Bob McDonnell's proposed budget amendments would add psychotropic medications--such as antidepressants and anti-anxiety medications--to the state's "preferred drug list" for Medicaid.

The term "preferred drug list" pretty much means "cheaper drugs." It's a set, limited list of medications that doctors under the program are supposed to prescribe--such as generic versions of brand-name drugs. Any drug not on the list isn't supposed to be prescribed to a patient unless a doctor can show that the patient has already tried a drug on the list with poor results. But mental health advocates argue that when it comes to mental illnesses, those poor results can be as extreme as suicide.

Sen. Edd Houck, D-Spotsylvania, and Del. Riley Ingram, R-Hopewell, held a press conference yesterday in Richmond with mental health advocates to say they will oppose that amendment when lawmakers return to Richmond tomorrow to deal with the governor's amendments to bills.

McDonnell isn't the first governor to propose this: Governors Tim Kaine and Mark Warner before him also did so. Houck said he fought those proposals as well.

"We've had this same battle, seems like each governor listens to his budget people and fails to really hear the voices of people who advocate or treat mentally ill patients," Houck said.

When Kaine proposed it, it was estimated to save the state $1.5 million a year. McDonnell's version would save about $1 million a year.

McDonnell proposes grandfathering in current Medicaid patients who are receiving psychotropic drugs, so the change wouldn't affect them. But Houck said that's not good enough.

"It's always put in terms of cost savings to use the drugs on the PDL list," he said. "What they fail to realize is the real, tragic results that can come from trying patients on a medication to see if it works. With mental illness, it can have life-ending affects, and that's just not acceptable."

Houck said there aren't that many psychotropic medications out there, and the cheaper ones also tend to be the older, less-effective ones. Newer drugs are more effective but are costlier.

"There's a whole new generation of psychotropic medications," he said. "In fact, the treatment of mental illness has changed over the years because the medications have improved so much."

Fredericksburg Free Lance Star
http://fredericksburg.com/News/FLS/2010/042010/04202010/542270

Governor McDonnell Names Biotech Appointees to Jobs Commission

Three bioscience industry representatives, all members of the Virginia Biotechnology Association, were named by Governor McDonnell to his Economic Development and Jobs Creation Commission: R.J. Kirk, CEO of Third Security; Robert Skunda, CEO of the Biotech Park in Richmond and Mark Herzog, executive director of VaBIO.

Governor McDonnell Announces Members of Governor’s Economic Development and Jobs Creation Commission

RICHMOND – Virginia Governor Bob McDonnell today announced the members of the Governor’s Economic Development and Jobs Creation Commission created by the his Executive Order Number One, issued moments after he took the Oath of Office on January 16th. Keeping in mind the unprecedented economic difficulties facing Virginia families and businesses, the highest unemployment rate in decades and the ever increasing competitiveness of the global economy, the Commission will work to put forth bold and innovative ideas addressing these significant challenges. The Commission is scheduled to have its first meeting in May, and will complete its initial report to the Governor by October 16, 2010. Lieutenant Governor Bill Bolling, who serves as Virginia’s first-ever Chief Jobs Creation Officer, and Bob Sledd, the Governor’s Senior Economic Advisor, will serve as Co-Chairs of the Commission.

“The foremost priority of our Administration is job creation. Economic opportunity and free enterprise are the bedrock of a stable and prosperous Commonwealth. Virginia is home to abundant resources, fiscal responsibility boundless human potential and the entrepreneurial spirit instrumental to a robust economic recovery,” said Governor McDonnell. “The work of this Commission is to create more opportunities for good paying work for all Virginians. I look forward to the ideas and solutions that this Commission will put forward to help create new jobs, spur economic development and ensure this is a ‘Commonwealth of Opportunity’ for all Virginians.”

Lieutenant Governor Bolling remarked, “Governor McDonnell and I have been clear in our commitment to do everything we can to get Virginia’s economy moving again and create jobs. We accomplished a great deal with part one of our Jobs and Opportunity Agenda during this year’s legislative session, but there is more work to be done. Over the coming year, the Governor’s Economic Development and Jobs Creation Commission will help us craft part two of our Jobs and Opportunity Agenda. By looking for additional ways to make Virginia a more competitive state and invest in proven economic development and job creation programs, we can strengthen our reputation as the most pro-business state in America, and secure the capital investment and jobs we need to provide the people of Virginia with greater economic security.”

Bob Sledd, the Governor’s Senior Economic Advisor, noted, “I took this job to help create good jobs for Virginians. That is the focus of this Administration and the work of this Commission. Every state and every nation is engaged in a fierce competition to attract capital, jobs and economic development. As Virginians we cannot afford to lose. The private sector creates jobs, but public policy plays a major role in creating an environment that makes job creation easier or tougher. Our goal is to put in place the policies that will free our job-creators and entrepreneurs to grow and be successful, to innovate and expand. When they can do that, Virginians will find the good paying jobs that they deserve and upon which our future prosperity depends.”

Members of Governor’s Economic Development and Jobs Creation Commission
Co-Chairmen:
Lieutenant Governor Bill Bolling
Bob Sledd, Governor’s Senior Economic Advisor

Members:
Jim Cheng, Secretary of Commerce and Trade
Todd Haymore, Secretary of Agriculture and Forestry
Lisa Hicks-Thomas, Secretary of Administration
Gerard Robinson, Secretary of Education
Ric Brown, Secretary of Finance
Doug Domenech, Secretary of Natural Resources
Jim Duffey, Secretary of Technology
ean Connaughton, Secretary of Transportation
Don Banker, CEO & Owner Banker Steel, Lynchburg
Steve Baril, Partner, Williams Mullen, Richmond
John Biagas, CEO, Bay Electric, Newport News
Tom Brock, Retired Vice President, General Electric, Roanoke
Del. Kathy Byron, Co-Owner of B&B Presentations, Bedford
Mel Chaskin, Chairman, Virginia-Israeli Advisory Board, Clifton
Christine Chmura, President, Chmura Economics and Analytics, Richmond
Del. Barbara Comstock, McLean
Dr. Deborah DiCroce, President, Tidewater Community College, Chesapeake
Helen Dragas, President and CEO, The Dragas Companies, Virginia Beach
James W. Dyke, Partner, McGuireWoods LLP; Chairman, Greater Washington Board of Trade
Joe Funkhouser, President, Coldwell, Banker and Funkhouser Realtors, Harrisonburg
Lisa Gable, Executive Director, Healthy Weight Commitment Foundation, Fauquier
Anne Gavin, State Government Affairs Regional Manager, Microsoft, Reston
Tom Godfrey, President, Colonna’s Shipyard, Norfolk
Julia Hammond, State Director, National Federation of Independent Business, Richmond
Ann Heidig, President, Virginia Wineries Association, Spotsylvania
Mark Herzog, Executive Director, Virginia Biotechnology Association, Richmond
Del. Matthew James, Director, Peninsula Council for Workforce Development, Portsmouth
Donna Johnson, President, Virginia Agribusiness Council, Richmond
Kenneth S. Johnson, Founder, Johnson Inc., Richmond
Pat Jones, Vice-President and General Manager, Kings Dominion, Richmond
Quintin Kendall, Director of Government Affairs, CSX Transportation, Richmond
Del. Terry Kilgore, Chairman of the Tobacco Commission, Gate City
Andrea Kilmer, Vice President, ESG Enterprises, Virginia Beach
Randall Kirk, Chief Executive Officer, Third Security, Radford
John Langlois, President, Tele-Video Productions, Virginia Beach
Bob Leber, Director, Workforce Development, Northrop Grumman, Newport News
Chris Lloyd, Sr. Vice President, McGuireWoods Consulting, Richmond
Frank Longaker, President, National Business College, Roanoke
John Luke, CEO, MeadWestVaco Packaging, Richmond
Bengt Lundgren, Manager, Swedwood, Danville
Del. Danny Marshall, Danville, Small businessman
Mike Melo, President, ITA International, Newport News
Caren Merrick, Co-founder, Webmethods, Reston
Donna Morea, President, US, Europe and Asia, CGI and Chair, Northern Virginia Technology Council
Christofer Mowry, President, Babcock and Wilcox Nuclear Energy, Lynchburg
Dakshay Patel, Managing Member, American Enterprises, Richmond
Julien Patterson, CEO, Omniplex Worldwide, Chantilly
Sen. Phil Puckett, Vice President First Bank & Trust Company, Tazewell
Harold Pyon, Supervisory Patent Examiner, U.S. Patent and Trademark Office, Fairfax
Mike Quillen, Founder and CEO, Alpha Natural Resources, Abingdon
Daphne Reid, TV and Film Actor, Co-Owner, New Millennium Studios, Petersburg
Brenda Robinson, President and CEO, Environmental Solutions, Inc., Richmond
Richard Sharp, Managing Director, V-Ten Capital Partners, Richmond
Sudhakar Shenoy, Chairman and CEO, IMC, Fairfax
Bob Skunda, President and CEO, Virginia Biotechnology Research Park, Richmond
Steve Smith, CEO, Food City, Bristol
Don Storey, Owner, Quality Tech Services, President and CEO, govtips.biz, Norfolk
Bruce Thompson, CEO, Gold Key/PHR Resorts and Hotels, Virginia Beach
Fred Thompson, Chief Administrative Officer, Thompson Hospitality, Herndon
Brett Vassey, President and CEO, Virginia Manufacturers Association, Richmond
Sen. Frank Wagner, President and CEO, Davis Boat Works, Virginia Beach
Michel Zajur, President, Hispanic Chamber of Commerce, Richmond

Responsibilities of Governor’s Economic Development and Jobs Creation Commission

Identify impediments to and opportunities for job creation; Review how other states and foreign countries are attracting jobs and how Virginia could replicate and improve upon those initiatives; Review the agencies’ role in job creation and make recommendations on how those efforts can be better coordinated to ensure unparalleled efficiency and effectiveness; Make recommendations on new investments and changes to the tax and regulatory environment in the Commonwealth to maintain and increase the Commonwealth’s standing as the best place to do business in the United State of America; Evaluate the current programs and investments designed to develop the workforce and attract and retain businesses in Virginia, and make recommendations on their effectiveness and need for improvement; and Assist the Cabinet and the Virginia Economic Development Partnership to identify and target industries and businesses to recruit to Virginia.

Ignite Institute loses major funding partner

Ignite Institute for Individualized Health, a medical center startup hailed to be an economic development coup for Fairfax County, has lost one of its biggest sources of funding after Inova Health System’s board voted to pull out of the partnership.

But Ignite Institute’s founder said Inova’s decision doesn’t detract from his effort to launch the ambitious medical research institute, which was touted to bring nearly 500 world-class scientists to a newly built campus in the next five years to study personalized medicine.

“Ignite is absolutely going to launch and we’re on track to do so,” said Dietrich Stephan, president and CEO of Ignite Institute and originator of the idea.

Inova, which was one of the founding partners of the institute, said it could no longer back the venture after it ran into delays in raising additional funding.

“The money that they needed for the scope and scale for what was being proposed for the Ignite Institute was challenging at best,” said Tony Raker, a spokesman with Inova. “With the economic conditions, it became more of a challenge.”

Ignite had said it needed at least $150 million to start construction on a new campus. Inova had committed to pitch in $25 million, and Virginia had bestowed another $3 million from its Governor’s Opportunity Fund in an incentive grant. Just this week, Virginia Gov. Bob McDonnell signed into law another measure that frees $22 million for such a research institute, so long as it creates 415 jobs, through $5.5 million annual chunks available starting July 2011.

Ignite had said it planned to hire its first 100 scientists by the end of this year. It’s taking up temporary quarters in the Center for Innovative Technology building, while longer-term lab space is being built out in the next wing of the Herndon building.

Inova leaders had said the original plan to invest the $25 million in the institute was also based on Ignite’s ability to assemble a total $100 million, including the state commitments. Stephen M. Cumbie, Inova Health System board’s chairman, had said the team had come close to another potential $25 million grant from a national technology company that he wouldn’t name.

“But there was a change of CEOs and a pullback, and again a lot of this was being driven by the economy,” Cumbie said. “That and other prospects didn’t materialize.

“We were certainly concerned about starting down that road without the capital being raised,” Cumbie added. “The plan we felt great about. Dietrich is a world-class scientist, there’s no question about that. We had a lot of faith in him.”

With a key medical center partner leaving the table and a brutal economy still leaving wide budget deficits in its wake, Fairfax County leaders said they also can no longer support a multimillion-dollar bond that they had been considering to help locate Ignite Institute in a permanent residence in the county.

“Fairfax County has never before entertained even the idea of purchasing a building in partnership with an institute,” said Sharon Bulova, chairwoman of the Fairfax County Board of Supervisors. “For us, this was a very major consideration and therefore for us, there was a lot of risk associated with it, especially during this time. … Unfortunately, it just turned out not to be possible.”

But Stephan said he’s still collecting a syndicate of national partners and funders for the venture, describing these latest moves as a “reshuffling.” Ignite recently bought new gene sequencing equipment, making it the largest concentration outside of Asia to help scientists decipher through genes a patient’s predilection toward certain diseases.

“It’s mission-critical to maintain momentum,” Stephan said. “This is the future of medicine. Literally. Personalized, preventative medicine is the solution to our health care crisis today. It needs to be in the greater Washington area because of policy decisions. It will absolutely happen.”

Though, these are serious setbacks in an initiative that was grandly announced in mid-November at a press conference with two governors and a host of state, county and Inova leaders as an “accelerator” of the county’s infant biotech sector.

“I’m really disappointed that this didn’t work out, but I’m hopeful that something will come back, maybe in a different iteration,” Bulova said. “Everyone was very excited, very optimistic, and really thought that it could happen. And the harsh reality is that it was just a rough time to try to do something as ambitious as the Ignite proposal.”

Vandana Sinha
Washington Business Journal

Washington region bets big on biotech

State and local leaders are betting billions of dollars in subsidies, tax breaks, loans and grants to biotech capitalists in the hopes of cashing in on a worldwide bio-boom.

But the industry's volatility has some worried that taxpayer dollars are being gambled on a dangerous roll of the dice.

"It's very much a crapshoot -- even with great science," said John Carroll, executive editor of FierceBiotech, a daily Web newsletter that monitors the industry. "On the upside, of course, biotechnology provides a great number of great jobs at high pay. And that's why so many economic development officials are eager to attract them."

Governments on both sides of the Potomac River are doubling down on life science research.

With the National Institutes of Health, the Food and Drug Administration and Johns Hopkins University calling it home, Maryland is consistently ranked as one of the top five states for biotech research. Virginia has rolled millions into the sector for more than a decade.

In 2008, Maryland Gov. Martin O'Malley promised to set aside $1.1 billion for the industry. This year, the General Assembly is weighing legislation that would require the state's pension fund to invest in Maryland bioscience companies.

Montgomery County, the fertile crescent of Maryland biotech, is lobbying for a law that would allow the county to buy biotech stocks with taxpayer money. The County Council approved a new tax credit for biotech firms, and Executive Ike Leggett has created a task force to expand the county's research industry. Nearly one-quarter of the county's economic development funds are dedicated to the life sciences industry.

County officials are considering a multibillion-dollar "Science City" project in the Gaithersburg-Potomac-Rockville area that promises to bring up to 76,000 biotech jobs to the area.
Some officials are worried that it's too many eggs in a fragile basket.

"If we invest in a company and they fall flat, we lose," said state Sen. Rob Garagiola, D-Poolesville.

Virginia Gov. Bob McDonnell signed legislation giving tax breaks to biotech investors. And he approved awarding $22 million in grants to the Ignite Center, a genetic research center that being built in Fairfax County.

The potential rewards are endless.

In the first decade of this century, the biotech industry saw more than $295 billion worth of mergers and acquisitions, according to Carroll's FierceBiotech. Among the big winners was Gaithersburg's MedImmune, which AstraZeneca acquired for more than $15 billion in 2007.
But the perils are just as big.

"For every person who goes down the right path, there's going to many more that went down the wrong path," said Andy Bauer, a regional economist with the Federal Reserve Bank of Richmond. "Whenever you have an industry driven by innovation, it's going to go in fits and starts."

Of the decade's mergers, only 18 percent of the targeted companies were making money, FierceBiotech analysts found.

In the first three months of the year, drug companies alone cut more than 26,000 jobs, according to analysts at Chicago outplacement firm Challenger, Gray & Christmas.

Last week, GenVec, a Gaithersburg biotech firm, saw its stock lose three-quarters of its value when it said it was canceling trials of a drug that was supposed to help fight pancreatic cancer. Its shares closed at 73 cents on Nasdaq Thursday, after a months-long run-up to $3.35. GenVec had borrowed $125,000 from Montgomery County.

For some, that's a bad sign.

"Since when is our county government serving as the chump of last resort for businesses too shaky to get off the ground through conventional means?" Montgomery County Civic Federation leader Peggy Dennis asked.

By: Bill Myers
Washington Examiner - Staff Writer
April 4, 2010

Obama Admin Seeks Input on Commercialization of University Research

The Office of Science and Technology Policy and the National Economic Council have issued a request for information (RFI) on how best to encourage the commercialization of university research and on whether proof of concept centers are an effective tool in early-stage commercialization. The RFI asks for models, strategies and metrics that can help universities contribute to economic development. Responses are due by April 26.
Read the request for information:http://www.gpo.gov/fdsys/pkg/FR-2010-03-25/pdf/2010-6606.pdf

Governor Signs Bioscience and Technology Bills

From 2010 Bioscience Legislation Bill Signing

Flanked by Democratic and Republican lawmakers and Northern Virginia technology and business leaders, Governor Bob McDonnell today signed into law a number of bills from his successful "Jobs and Opportunity" legislative agenda that received broad bipartisan backing in the recent General Assembly session. The signing ceremony was held at the Center for Innovative Technology and Northern Virginia Technology Council in Herndon.

McDonnell's "Jobs and Opportunity" legislative agenda consisted of measures designed to spur job creation and promote economic development in Virginia. The bills signed today included tax deductions on capital gains derived from investments in technology, energy, biotech and science-based companies operating in the Commonwealth; granting temporary business licenses to individuals who already have a business license or certification from another state; broadening the allowable uses of the Governor's Development Opportunity Fund to assist in attracting major employers to the Commonwealth; designating the head of the Virginia Economic Development Partnership as CEO; and establishing a biotech research performance grant program.

Speaking about the bill signing, Governor McDonnell stated The number one job of our Administration is to help create good jobs for the citizens of Virginia. We will do that by investing in proactive policies that help private sector companies expand and grow in the Commonwealth. The states that help lead this country out of this economic downturn will be those that move aggressively to promote job creation and make it easier for entrepreneurs and business owners to be successful. That is what we are doing in Virginia. The bills we are signing today gained broad bipartisan support because job-creation and economic development are bipartisan objectives. I thank the legislative leaders from both parties who helped carry this legislation, and the members of the Virginia technology and business communities who advocated effectively for its passage."

McDonnell also used the bill signing to comment on budget amendments successfully advanced by the Administration to further assist in the job-creation effort, "We also successfully promoted changes in the introduced budget to invest more in critically important economic development tools. These include the CIT GAP Fund which will provide critical and immediate first financing for 20 new early-stage companies, and position Virginia as a leader in next-generation company formation in the areas of technology, biosciences, and energy. We expanded funding for Virginia's wet labs so that they can increase lab space to the benefit of growing biotechnology companies. And working together we continued to fund the Virginia Leaders in Export Trade (VALET) Program and provided additional funding for the DBA Loan Guarantee Program which helps finance small businesses at a time when credit markets are tight."

Lawmakers joining the Governor this afternoon included Senator Mark Herring (D-Loudoun); Senator Janet Howell (D-Fairfax); Senator Walter Stosch (R-Henrico); Delegate Dave Albo (R- Fairfax); Delegate Tom Rust (R- Fairfax); Delegate Tim Hugo (R- Fairfax); Delegate Barbara Comstock (R- Fairfax); Delegate Mark Sickles (D- Fairfax); Delegate Rich Anderson (R-Prince William); Delegate Joe May (R-Loudoun); Delegate Jackson Miller (R-Prince William) and Delegate Mark Keam (D-Fairfax). Among the many leaders from the Northern Virginia technology and business communities in attendance were Bobbie Kilberg, President and CEO of the Northern Virginia Technology Council; Pete Jobse, President and CEO of the Center for Innovative Technology; Mark Herzog, Executive Director of the Virginia Biotechnology Association; John Backus, Managing Partner of New Atlantic Ventures; Spencer Williamson, President and CEO of Intelliject LLC; and Michael Grisham the President of GPB Scientific.

Speaking about his bill to grant an income tax deduction for capital gains derived from investments in technology, science-based or bio-tech start ups in Virginia, Senator Mark Herring remarked, "This legislation tells Virginia investors that if you support the entrepreneurs in this dynamic sector of our economy, state government will support you. Science, technology and biotech-based jobs are good-paying and fast-growing, and we must take every action possible to make sure they are created in the Commonwealth. This legislation will encourage more investors to put their private capital to work creating good work for Virginians."

Medicare agency adds ex-Va. official, plans reorganization - The Hill's Blog Briefing Room

Virginia's Marilyn Tavenner Joins CMS...

Medicare agency adds ex-Va. official, plans reorganization
By Jeffrey Young
The Centers for Medicare and Medicaid Services (CMS) has tapped a former top health official from Virginia for a senior leadership position and plans its first structural reorganization in nearly 10 years.

Marilyn Tavenner, who was secretary of Health and Human Resources in the administration of then-Virginia Gov. Tim Kaine (D) from 2006 until Gov. Bob McDonnell (R) took office this year, has joined CMS as principal deputy administrator, a newly created position that makes Tavenner the second-ranking official at the agency -- and the Obama administration's most senior appointment to the agency.

Prior to her tenure under Kaine, Tavenner was a nurse and an executive at the Hospital Corporation of America, where she ran two facilities in suburban Richmond and served as chairwoman of the Virginia Hospital Association and a trustee at the American Hospital Association.

Obama, however, has yet to nominate anyone to serve as administrator of CMS. The agency has not had a confirmed chief executive since Mark McClellan resigned in Oct. 2006. President George W. Bush's last nominee for CMS administrator, Kerry Weems, served on the job in an acting capacity for more than a year but the Senate never took action on his confirmation. Since Obama took office, CMS's chief operating officer Charlene Frizzera, a veteran civil servant, has been acting administrator.

Medicare agency adds ex-Va. official, plans reorganization - The Hill's Blog Briefing Room

Delegate Steve Landes Wins “Virginia Bioscience Legislative Leadership Award”

Richmond, VA--- The Virginia Biotechnology Association (VaBIO), today announced that Steve Landes, a member of the Virginia House of Delegates from Augusta County, won the Virginia Bioscience Legislative Leadership Award for his exemplary efforts on behalf of the biotechnology and medical device industry in the Commonwealth.

“Delegate Landes receiving this award will not surprise anyone who knows Steve or is familiar with his legislative achievements in support of economic development and job creation,” said Mark A. Herzog, executive director of VaBIO. “Our members are generally small start-up companies that are attempting to turn a discovery in a lab into a usable treatment for disease or suffering. These companies face huge challenges and it helps to know that we have a legislator like Delegate Landes who understands the challenges small technology businesses face every day.”

The Virginia Biotechnology Association has only recognized a handful of state legislators with this special distinction.

“The technology industry in Virginia knows that Steve Landes takes the time to understand the complexity of the development process for new drugs or technologies,” continued Herzog. “If it means new, high growth jobs for the community, Delegate Landes always goes above and beyond the call of duty.”

The Virginia Biotechnology Association (VaBIO) is the statewide non-profit organization that promotes the scientific and economic impact of the life sciences industry in the Commonwealth of Virginia. Approximately 300 biotechnology, pharmaceutical and medical device companies are based in Virginia, mainly clustered around universities in Blacksburg, Charlottesville, Richmond, Norfolk and Northern Virginia.

According to a recent study by Archstone LLC, the bioscience industry has a profound impact on the state’s economy:
• According to a study in 2006, the bioscience industry supported nearly 80,000 direct and indirect jobs in the Commonwealth.
• The value of the industry’s products and services was approximately $12.6 billion in 2006.
• The biopharmaceutical industry grew by 8.1% between 1996 and 2006.
• The industry paid employees about $1.8 billion in wages in 2006, resulting in $81.6 million in state taxes and $433.3 million in federal taxes.
• Biopharmaceutical employees paid, on average, $4,091 in state taxes, compared to the much more modest $1,501 paid by the average worker.
• In 2008, Virginia’s biomedical researchers conducted nearly 1,900 clinical tests of new medicines, including 678 trials for cancer drugs, 102 tests for heart disease medicines, 232 rare disease treatment trials and 80 tests for HIV/AIDS drugs.

For more information, please visit www.vabio.org.

US House GOP Whip Eric Cantor on Biotech

"Simply put, we have to stop borrowing and spending so much money! As government shrinks, the private sector will grow, creating droves of new jobs. Think of the biotech park right across the street and the growth engine it has been for our region, and think of the potential there that remains untapped."

Capital Gains Exclusion on Technology Investments Goes to VA Governor

The Virginia Biotechnology Association's (VaBIO) legislation to provide incentives for investments in biotech and other advanced technology companies is on the way to Governor Robert McDonnell's desk for signature. VaBIO and NVTC, the Northern Virginia Technology Council, are encouraging the Governor to amend the bill with an "emergency clause" so that it will take immediate effect upon his signature. Otherwise, there would actually be an unintended disincentive to invest until July 1st.

This legislation will make Virginia the most welcoming home for advanced technology companies seeking capital for growth. The new law will exclude capital gains from state taxes for all investors--private, angels, venture funds, and corporations, as long as the investment was made in a qualified, biotech or advanced technology firm. Our congratulations to the Virginia Bioscience Legislative Caucus for championing this legislation and to our two chief patrons, Senator Mark Herring (D-Loudoun) and Delegate Sam Nixon (R-Chesterfield). The concept was also highlighted by Governor McDonnell's Transition Team before taking office. Here are the details:

Bill Summary: Income taxes; recognition of income from capital gains. Grants an income tax deduction for any income taxed as a long-term capital gain for federal income tax purposes or any income taxed as investment services partnership interest income, on or after January 1, 2011, that is related to a qualified investment in a technology and science start-up business having a principal office or facility in the Commonwealth and less than $3 million in annual revenues in the fiscal year prior to the investment. The deduction would relate to investments made between July 1, 2010, and June 30, 2013.

HB 523 (Delegate Nixon)
http://leg1.state.va.us/cgi-bin/legp504.exe?101+sum+HB523
SB 426 (Senator Herring)
http://leg1.state.va.us/cgi-bin/legp504.exe?101+sum+SB428

DNA Co. Intrexon Raises $17.4M

Biotech company Intrexon Corporation raised $17.4 million in Series D shares, according to an SEC filing. A group of 40 investors took part in the equity offering.

Housed at the Virginia Tech campus in Blacksburg, Va., Intrexon is developing DNA control systems to enhance the safety and efficacy of existing and emerging biological therapeutics.
Named in the filing were executive officers Randal J. Kirk, chief executive officer and chairman of the board; Thomas Reed, Ph.D., founder & chief science officer; Sunil Chada, Ph.D., senior vice president, translational medicine; Rick Sterling, chief financial officer; Ronald B. Herberman, M.D., chief medical officer - oncology; and Robert Beech, senior vice president, corporate development & communications. Directors named were Cesar L. Alvarez; Steven Frank; Larry Horner; Dean J. Mitchell; and Burton Sobel M.D.

While specific investors are not identified in the filing, Intrexon has reported $35 million in Series C-2 investment in previous years from New River Management, managed by Third Security, LLC., and NewVa Capital Partners, LP.

SEC filing: http://tinyurl.com/ye5lkq6.

By Citybizlist Staff'
Citybizlist Washington D.C.
March 5, 2010