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Florida Biotech
Financial Lifeline for Biotech Companies in Florida
The federal government funds the startup research of most biotechs. After that, private investors step in with R&D funding.
The Public Sector: It's All About the Feds
[Photo: Jason Nettle] "If you look at states we are competing with like California and Massachusetts, many of them have identified biotech as an industry they would like to cultivate and have a long list of programs supporting these businesses at an early stage. The state of Florida doesn't have much at all." — Ray Johnson, president, Cytonics |
As with most biotech companies, however, the basic research that underlies AxoGen's technology was funded by the federal government. Some $1.4 million in grants from the National Institutes of Health paid for the research that produced the technology that AxoGen licensed from the University of Florida.
While private companies continue to fund the lion's share of research and development activity in the U.S., only about 4% of private R&D funding goes for basic research. The federal government funds nearly 60% of basic research in the U.S., with foundations (10%), colleges and universities (10%) and state and local governments (3.5%) accounting for much of the rest. State government provides some funding through special programs aimed at research or companies in their earliest stages ["State Programs"].
Last year, NIH — the federal agency that accounts for more than half of all federal spending on basic research — awarded $493 million to scientists at Florida universities, research institutions and businesses, a 26% increase over 2010 and a 35% increase since 2007.
Top Florida Recipients of NIH Funding (2011) | ||
1 | University of Miami Miller School of Medicine, Miami | $118,731,107 |
2 | University of Florida, Gainesville | 108,629,959 |
3 | University of South Florida, Tampa | 81,337,599 |
4 | H. Lee Moffitt Cancer Center and Research Institute, Tampa | 41,810,382 |
5 | Florida International University, Boca Raton | 19,621,969 |
6 | Jaeb Center for Health Research, Tampa | 19,592,591 |
7 | Scripps Florida, Jupiter | 18,472,431 |
8 | Florida State University, Tallahassee | 17,524,805 |
9 | University of Miami-Coral Gables, Coral Gables | 10,226,325 |
10 | Mayo Clinic, Jacksonville | 9,262,254 |
Source: National Institutes of Health |
The growth in NIH funding largely reflects the recent presence of powerhouse research institutes in Florida, such as Jupiter-based Scripps Florida. Scripps alone saw its NIH funding more than quadruple from $4 million in 2010 to $18 million in 2011.
Despite the increases, Florida ranked 13th among states in NIH funding in 2011, trailing Texas, North Carolina and Illinois, as well as research powerhouses such as California and Massachusetts.
Going forward, competition for grants from the NIH and other agencies will likely grow more intense. After doubling in the five years up until 2003, NIH's budget has remained relatively flat over the last five years. And, says Harry Orf, former Scripps Florida vice president for scientific operations: "The number of people doing research and the number of grant applications has grown."
Top Florida Business Recipients of NIH Funding (2011) | |||
1 | Altor BioScience, Miramar | $2,504,093 | |
2 | Saneron CCEL Therapeutics, Tampa | 1,569,916 | |
3 | TissueTech, Miami | 1,121,882 | |
4 | Cytonics, Jupiter | 882,440 | |
5 | Optima Neuroscience, Alachua | 744,779 | |
6 | Banyan Biomarkers, Alachua | 646,640 | |
7 | Firebird Biomolecular Sciences, Gainesville | 644,620 | |
8 | Converge Biotech, Miami | 450,290 | |
9 | HeartWare, Miami Lakes | 385,813 | |
10 | Convergent Engineering, Newberry | 358,494 | |
Source: National Institutes of Health |
NIH Grants: U.S. vs. State | |||
Year | Nationwide | Florida | |
2007 | $23 billion | $365 million | |
2008 | $23 | $418 | |
2009 | $24 | $424 | |
2010 | $22 | $391 | |
2011 | $24 | $493 | |
Source: National Institutes of Health |