The Federal Reserve Bank of San Francisco recently took an in-depth look at the impact that providing research and development tax breaks and biotech specific tax incentives has a direct impact on the quality of scientists in the region that move towards innovation in addition to providing economic benefits for the the local area. Biotech clusters in the United States, including Boston/Cambridge, San Francisco, San Diego, New Jersey, Washington DC and Raleigh all have strong economic benefits for focusing their innovation and research in the region.
To incentivize the development of biotech development, states have also reached beyond typical tax credits and extended benefits to tax exemptions in buying the equipment needed for biotech, low interest loans and grants towards biotech activity. They also identified that number of biotech partners, star biotech employees, was a key part, and the number coming into a specific region, were key to identifying the success of a biotech. What their research found was that the benefits of providing benefits to innovative biotechs in the region did spill over into other sectors. Read the full report here.
This January, we’ll be heading to one of the strong biotech regions – San Francisco – for Biotech Showcase™. Many biotechs will be on hand to share their latest work and seek investment to further their innovative research.