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States Fight to Keep High-Tech Jobs

Competition is fierce among states to attract technology clusters and keep businesses from pulling up stakes.

TRENTON, N.J. (AP) -- Traditional science and technology powerhouses are scrambling to retain their most prized industries as state governments nationwide compete fiercely for biotech and pharmaceutical companies.

Many states are pouring millions into strategies to create a high-tech, high-pay economy of the future, raising the question of just how many science and technology hubs one nation can support.

"This is no longer a bicoastal phenomenon," with states including Utah, Iowa, Missouri and Wisconsin now battling for a piece of the pie, said Walt Plosila, head of the technology partner program at Battelle Memorial Institute, a nonprofit research and development contract center.

Forty states have made life-science businesses the centerpiece of grand visions of high-tech clusters, booming support industries, more university research and state-of-the-art health care, said Patrick Kelly, director of state government relations at the trade group Biotechnology Industry Association.

Lures such as worker-training grants, tax rebates and new research laboratories and offices for startup companies are among the most common.

A state's success hinges on whether it can develop synergy among pharmaceutical and biotech companies, university researchers, state agencies, federal grant programs and private investors, with those collaborations creating spin-off companies, new products and further growth.

"Some states are trying to figure out what their niche is" and focus on that strength, Plosila said.

States with little pharmaceutical or biotech base, such as Hawaii, face a tough battle, Kelly said. Budget constraints have forced some to scale down or postpone plans. Other states have surged ahead with money from their share of the national tobacco settlement and other sources.

In the pharmaceutical industry mecca New Jersey, Gov. James McGreevey is making the battle to keep high-tech jobs a priority.

Henry McKinnell, chief executive of the world's biggest drug company, Pfizer Inc., said success is only likely in the states that already have a strong life sciences industry and the business climate and programs to encourage the industry. That includes New Jersey, where Pfizer employs 3,500 people and is about to acquire Pharmacia Corp.

With more scientists per capita than any other state, New Jersey is home to three-quarters of the top pharmaceutical companies, dozens of medical device makers and about 120 biotech companies. Together, they employ more than 100,000 people and have an economic impact approaching $25 billion annually.

The state also is home to Bell Labs, technology incubator Sarnoff Corp. and research universities including Princeton and Rutgers.

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