Analysis of the biotechnology clusters formation in North Carolina and Massachusetts

Biotechnology clusters in North Carolina and Massachusetts are landmarks of both states. Since 1980-s the two states developed biotech step by step, investing considerable financial and other resources in the industry. In 2012 there were more than 550 biotech companies in Massachusetts, which employed 56 462 workers. That year MA companies got 1,071 billion dollars in venture investment. Besides, the state received grants from National Institute of Health at the amount of 2,5 billion dollars. North Carolina keeps pace: biotechnology cluster counts more than 500 companies and more than 58 000 specialists. In 2012 NC received more than 1 billion dollars from NIH in venture investment. Analysis and comparison of the experiences of two states makes mechanism of regional innovation development policy in the U.S. more apprehensible. Strategies of two states were different though. Massachusetts relied mostly on natural development of innovation companies and universities. North Carolina, in turn, chose the way of active governmental participation in creation of biotech industry. NC started cluster building from nothing and used all options of state government and business, MA chose non-intervention strategy. MA had well-developed R&D labs and high-class universities. Besides, the state was famous for its' relatively negative environment for emerging businesses (high taxes, opaque regulations and etc.). Distinctive feature of biotech development in NC is that state government built innovation infrastructure first (strengthened positions of universities in US rankings, created institutions, made considerable venture investment) and then gradual cluster formation began. MA on the contrary had well-developed R&D infrastructure and already existing high-tech companies and started having wide fundamental basis. This circumstance also determined differences in cluster-building in the two states. Nevertheless, with development of biotech clusters, common features in practice of biotechnological business development in two states appeared. With aggravation of competition between biotech clusters a reverse metamorphosis occurred: MA started to pay more attention to government participation in biotechnology cluster formation, and in NC private initiative began to play greater role.

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