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Overview

 
   
 

The Empire State Development-Industry Cluster Reports
Biotechnology and Pharmaceuticals

The biotechnology and pharmaceutical industries are among the fastest growing and most research and development intensive in the United States. Changes in demographic characteristics have increased the demand for products that remedy or alleviate medical problems associated with aging, while rapid advances in knowledge of underlying biological and chemical processes have resulted in a revolution in the development of medical diagnostics and treatments.

New York's exceptional research infrastructure has contributed to the state's strong position in the bio/pharma industry. The State ranks second in biological research and development expenditures at universities ($1.2 billion in 1997), with three institutions in the top 20 and 11 in the top 100. Similarly, the State's is a leader in industrial pharmaceutical research, ranking fourth nationally.

All this has contributed to a large and vital industry within the State. 1997 data shows that more than 720 bio/pharma firms across the New York State employ more than 40,000 workers. New York's bio/pharma employment is 9% of the nation's total, significantly more than would be expected based on the state's population.

The industry is widespread, through virtually every region of New York State. While about 65% of New York's bio/pharma employment is located in three regions (the Mid-Hudson, New York City and Long Island), the 1997 data shows that a majority of regions in the State have greater than expected concentrations of employment compared to the nation, including the North Country, the Capital Region, the Mid-Hudson Region, Long Island, Central New York, and Western New York.

The report also includes an analysis of smaller (under 500 employees) companies in New York State. These smaller companies are often the engines of growth in industry sectors. ESD's research showed that employment in these smaller firms was growing at a significantly faster rate than for the State as a whole, or for the nation. In particular, smaller producers of pharmaceutical preparations (20% growth from 1994 to 1997), biological products (69%) and commercial research enterprises (16%) are showing fast growth in New York State.

Regional Profile

Notable findings relating to regional activity in the bio/pharma industry as reported in the Empire State Development Industry Cluster Report.

Capital Region
This region showed the second greatest regional specialization in bio/pharma of any region in New York State. The region has seen significant growth in employment in its smaller bio/pharma firms in the areas of pharmaceutical preparations (45%) and commercial research (111%) from 1994 to 1997. The State University of New York was one of the top 20 biological research institutions in the nation, based on 1997 R&D spending. Albany Molecular Research, Inc., which provides contract research and development, has been recognized by Inc. magazine for the last two years on its list of 500 fastest growing companies in the United States.

Central New York
This region shows a strong concentration of companies in the bio/pharma industry, with more than 50% more employees than would be predicted from its population. Significant growth was seen among smaller companies in the region among noncommercial research firms. Bristol-Myers Squibb has more than 1,000 employees in the Central New York area, primarily engaged in manufacturing pharmaceuticals. The National Science Foundation reported that the SUNY Health Sciences Center in Syracuse spent nearly $8,000,000 on biological R&D in 1997.

Finger Lakes
The region has more than 1,000 employed in the bio/pharma sector. Significant growth was seen among smaller companies in the region among manufacturers of pharmaceutical preparations and laboratory analytical instruments. Major bio/pharma companies, including Bausch and Lomb, Genencor, and Medeva Pharmaceuticals have operations in the region. The University of Rochester ranks among the top fifty universities in the country in biological sciences, based on the National Science Foundation's rankings of university research and development expenditures for 1997.

Long Island
Long Island is home to at least 30% of New York's firms in each of biotechnology, medical devices, pharmaceuticals technology and life-systems technology. Long Island stands alone as the only region which dominates the state in all four sub-sectors of bioscience technology. Of the 273 bioscience technology firms in New York state, Long Island is home to:

  • 34% of all Biotechnology firms
  • 38% of all Medical devices firms
  • 35% of all Pharmaceutical technology firms
  • 33% of all Life systems technology firms
40% of the total bioscience technology employment in New York State is on Long Island. Between 1990 and 1996, Long Island experienced:
  • a 68% growth in the absolute number of biotechnology firms located there
  • a 220% increase in the number of local industrial biotechnology jobs
  • a doubling of its share of intra-state biotechnology industry employment from 20% to over 40 percent.

Long Island has added substantially to New York's population of biotechnology firms and to its total biotechnology employment levels, and it has improved its position vis-a-vis other regions in the state by both of these measures (job growth and firm growth). Long Island has also achieved this record through both sustained local entrepreneurship and internal business growth.

The region is home to a significant number of companies in the industry, including Del Laboratories, NBTY, Inc., Pall Corporation, and E-Z-EM, Inc. SUNY- Stony Brook is among the top fifty universities in the country in biological sciences, based on the National Science Foundation's rankings of university research and development expenditures for 1997.

Read about ...
LI new $15.7M STAR Center
Long Island Life Sciences Initiative (LILSI)

The Mid-Hudson Region
The region has more than 8,000 workers in the bio/pharma industry, which is more than twice as concentrated in the region as it is nationally. Significant growth was seen among smaller companies in the region from 1994 to 1997 among producers of laboratory apparatus (35% growth) and commercial research enterprises (13%). The region is home to operations of major bio/pharma companies such as Bayer Diagnostics, Wyeth-Ayerst, Novartis, Cultor Food Science, Barr Laboratories, and Regeneron. New York Medical College, in Valhalla, is among the top hundred universities in the country in biological sciences, based on the National Science Foundation's rankings of university research and development expenditures for 1997.

New York City
New York City is home to nearly 200 businesses in the bio/pharma industry, employting more than 10,000. Major companies, such as Bristol-Myers Squibb and Pfizer have New York City locations. New York has world class biological research at centers such as: Rockefeller University, which was second in the nation in biological R&D spending in 1997, according to the National Science Foundation. Columbia University, which ranked in the top 15 in R&D spending according to the NSF Memorial Sloan-Kettering Cancer Center, which is frequently ranked as the top cancer research and treatment center in the nation. Cornell University's medical and biological research programs, which ranked in the top 25 in the country in biological R&D according to NSF. Mount Sinai School of Medicine, Yeshiva University and the State University of New York Health Science Center in Brooklyn also rank among the top centers for biological R&D according to NSF.

The North Country
The North Country showed the greatest specialization in bio/pharma of any New York region, with more than 1,700 employees. Fast growing sectors among smaller bio/pharma in the region between 1994 and 1997 were pharmaceutical preparations (34%) and non-commercial research (20%). Wyeth-Ayerst Division of American Home Products has two locations in the North Country: Rouses Point, employing about 1,200, and Chazy, employing about 150. Clarkson University offers strong training in the biological sciences.

Western New York
Western New York had about 1,400 employees in the Bio/Pharma industry. Major companies such as Westwood-Squibb Pharmaceuticals and Mentholatum have operations in the Region. Roswell Park Cancer Institute is one of the nation's premier centers for cancer research and treatment. SUNY-Buffalo ranks in the top 40 nationally in biological research, based on NSF data on 1997 university R&D expenditures.

 

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