North Carolina to Northern Ireland H. Martin Lancaster November, 2010

1. North Carolina’s Successful Bioscience Workforce and Economic Development Initiatives:NC BioImpact and NCCCS BioNetwork North Carolina to Northern Ireland H. Martin Lancaster November, 2010

2. Initiative Background • Workforce Development: Essential Part of NC’s Economic Development Strategies • NC’s Economic Development Approach Always Promoted Ability to Generate a Knowledgeable, Skilled, Productive Workforce • Economic and Workforce Development Over Time Merged into One Collaborative and Strategic Message that Capitalized on the Strengths of Both by Offering: • Broader Portfolio of Incentives • More Effective and Efficient Alignment of Education and Training to Support Industry Competitiveness

3. Initiative Background NC Community College Critical Role • State Supported Customized Training for New and Expanding Industry Operated by NC Community Colleges Presented as a Significant NC Industrial Recruitment Incentive for Over Fifty Years for Inward Investment and Expansions of Existing Companies • Key NCCCS Representatives Participated in Economic Recruitment Activities with NC Department of Commerce • International Industry Recruitment Trips • Workforce Presentations During Corporate Site Visits to North Carolina • International Trade Shows

4. 1958 Research Triangle Park 1984 Nation’s First GovernmentSponsoredBiotechnology Center 9 Research Universities with 20+ Years of Biotechnology Research 3rd largest CC System in US, Nationally Recognized for Customized Training Well Established Biotechnology Cluster by Early 2000- NC Ranked in Top 5 States in US for: Contract Research Organizations BioAgriculture Research & Development Bioprocess Manufacturing Pharmaceutical Products NC Built A Strong Foundation for Biotechnology

5. Biotechnology Opportunities by 2002: Industry Evolving from R&D to Product Manufacturing • More than 370 Biotechnology Drugs and Vaccines in Clinical Trials in the US • Over 1,000 Additional Biopharmaceutical Drugs in Worldwide Pipeline • Existing Manufacturing Sites Saturated • North Carolina Positioning to Compete as Prime Location for New Production Facilities, Investment and 21st Century Knowledge-Based Jobs

6. NC Bioscience Industry Needs Triggered Initiative Selection Specific (Demand-Driven) Needs • New Product Lines/Processes • Additional Well-trained Workers • Upgraded Incumbent-worker Training NC Partnership/Leadership Organizations Responded to Support Industry Growth • Biotechnology and Life Science Industry • NC Community College System and CCs • UNC System and Universities (NCSU & NCCU) • NC Department of Commerce • NC Biotechnology Center • Golden LEAF • NC Governor and NC Legislature

7. Bioscience Industry Growth Needs for Expansion/Investment • Recruitment of New Companies • Expansion of Existing Companies • Ongoing NC Company Workforce Needs Response Strategy • Comprehensive, Statewide, Collaborative, Demand-Driven, Seamless Education Bioscience Workforce Development Initiative

8. 2003 NC Biotechnology Research Study and the NCCCS Strategic Plan • Provided a Clear Picture of the Industry Composition, Location and Plans for Expansion • Indicated Workforce Needs at the Various Levels of Education/Training • Proposed Strategies for Workforce Development to Position the state to Become the Location of Choice for Business Development and Innovation • Provided Basis for Workforce Development Resource Requests

9. The Need NC BioImpact in 2003 • Pipeline of Biotech Graduates Insufficient for Industry Needs • Access to Most Biotech Programs in Research Triangle and Triad Areas • Community Colleges Needed Equipment Funding for Hands-on Worker Training • Workers Needed Soft Skills and GMP Training • Public Unaware of Biotech Training and Employment

10. Critical Requirements forEducation and Training Scientist and Engineers • Research /Development • For Industry Operations and Innovation Production Workers • 67% Require less than a Baccalaureate Degree and Appropriately Trained at the Community College Level New Entrants to the Workforce Upgraded Skills • Incumbent and Workers Made Redundant

11. Essential Concepts of the Model • Collaboration with Industry, Education, and Government • Seamless Education and Training • Workforce Development as an Economic Development Catalyst • Recruitment, Retention, and Growth of Biotechnology Business Across NC

12. NC Implementation and Timeline • Selection of Targeted Sector/Cluster Extremely Important • Implementation Did Not Happen Overnight • Divided into Three Phases • Study and Planning (6 Months to 1 Year) • Startup (24 Months) • Enhancement and Scale up (Ongoing)

13. NC BioImpact Model • Community Colleges – BioNetwork -Statewide Biotechnology Initiative Networking local Community Colleges • NC State University – BTEC -Biomanufacturing Training and Education Center- Pilot Plant • NC Central University – BRITE -Biomanufacturing Research Institute & Technology Enterprise

14. NC BioImpact Seamless Education Biotechnology Career Pathways, STEM K-12 Teacher Training, Career Fairs, Supported K-12 Curriculum Development Community Colleges Articulation Agreements • Between Community colleges 1+1 • Universities and Community Colleges 2+2 University Undergraduate/Graduate Programs

15. Additional Model Components Industry Advisory Boards and Panels • Statewide • Centers • Curriculum Programs • Grant Award Review Economic and Workforce Development Partnerships • NCBC, CED, ISPE, BIO, Universities, K12, NC Department of Commerce, State, Regional and Local Economic Developers • New and Expanding Company Recruitment

16. Initiative ResultsExamples of CompaniesThat Selected NC • GlaxoSmithKline - $92 Million Expansion, 200 jobs • Merck & Co. - $300 Million Plant, 200 Jobs • Stiefel Research Institute - $50 million, 200 Jobs • Talecris - $127 Million Expansion, 150 Jobs • Novo Nordisk - $100 Million Expansion 80 Jobs • Novartis - $600 Million Plant , 400 new Jobs

17. Snapshot of NC Bioscience Industry Before and After BioImpact & BioNetwork Initiatives 2003 • 227 Bioscience Companies in NC • Industry Employed 34,500 2009 • 523 Bioscience Companies in NC • Industry Employed over 56,000

18. Reflections and Lessons Learned Identification of the Potential Growth Cluster, Workforce Study and the NCCCS Strategic Plan critical to the Design, Development and Implementation of NC’s Successful Biotechnology and Life Science Workforce Initiatives NCCCS BioNetwork Planned as the Foundation of NC’s Long-term Strategy to Grow Biotechnology and Life Science Business and Jobs Across the State The Seamless Education Approach Essential Industry Input and Leadership Critical

19. Educational Partners Important for Economic Recruitment Community Colleges Critical Economic Development Catalyst Because Training of Less Mobile Workforce NCCCS Workforce Development Experience and Strong Industry Relationships Benefit to Initiative Highly-committed Partners and Effective Leadership Critical to Initiative Success and Ongoing Initiative Funding Reflections and Lessons Learned

20. Reflections and Lessons Learned Continued Initiative Helps Attract, Expand, and Retain NC Biotechnology Business Reacts Swiftly to Local Labor Market Demands by Deploying Expertise, Curricula, and Equipment Provide NC Companies with a Global Advantage Lessons Learned Helped Further NC Aerospace Industry Workforce Strategies

21. H. Martin Lancaster mlancaster@smithlaw.com 919-821-6747 Susan Seymour saseymour@nc.rr.com 919-554-4878 For Further Information Contact