Competition Heats Up for Slice of Biotech Industry

Citing cheaper labor, bargain land prices and lower taxes, Gov. Ruth Ann Minner touted Delaware as a cut-rate alternative to California, home to the world's largest biotech companies, Amgen Inc. and Genentech Inc. In fact, she was one of eight governors personally promoting their states at the convention, called BIO 2003.

Minner's pitch: "We have four seasons, none of the traffic that goes with big cities and outstanding corporate laws."

She hosted a reception aboard the Kalmar Nyckel, a replica of the tall ship that first brought Swedish settlers to Delaware. Guests nibbled on smoked salmon and crab cakes as the ship's crew sang old sailing songs.

Missouri's boosters took over Washington's International Spy Museum, where state VIPs talked business amid displays of sleuthing devices. The Pennsylvania contingent threw a party at the Library of Congress. Virginia bused 300 prospects to Mount Vernon, where they dined on roast beef and Virginia ham.

Wisconsin got help from its former governor, Health and Human Services Secretary Tommy Thompson. Now the drug industry's top regulator, he worked the crowd at a reception featuring polka music and Wisconsin cheese. "I may be the secretary, but I'm still Badger Red," he said, referring to the University of Wisconsin mascot.

Why such ardent pursuit of a relatively small industry that isn't creating many new jobs?

Aiming to diversify, states reliant on manufacturing and agriculture are romancing new industries. Biotechnology looks promising as a sector because it stands ready to supply high-tech medicines for an aging population and disease-resistant crops to feed the world's hungry. Many states think they can tap the expertise of their universities to form clusters of start-up firms.

In Virginia, for instance, Gov. Mark Warner envisions clusters near the University of Virginia, George Mason University and Virginia Tech. "We're at the dawn of the life sciences decade," he said as he strolled the convention floor.

Europe, Asia and Australia also sent recruiting missions to the convention. Scotland -- which gave the world Dolly the cloned sheep -- held a malt whiskey-tasting reception. Singapore unveiled a scale model of an elaborate biotech center whose tenants include Swiss pharmaceutical company Novartis. Japan marked its first appearance at the event by cracking a cask of sake.