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The East
Bay represents the third largest concentration of bioscience firms
in the San Francisco Bay Area. Fifty percent of the East Bay's bioscience
firms are located along the I-80 corridor. The Bay Area Council
projects significant future growth over the next five to
ten years, with bioscience employment growing by 32% in Contra Costa
alone. The prerequisites for growth are here: an existing critical
mass of biotechnology firms, an available supply of developable
land, the presence of major universities and research centers, and
a skilled workforce.
Why
Biotechnology?
Biotechnology
is one of the leading edge technologies that will propel the emerging
knowledge-based San Francisco Bay Area economy into the 21st Century.
Over the past 25 years, the number of bioscience firms has grown
steadily into a large critical mass of companies with an increasing
number of products and product sales. More than 300 bioscience firms
have located or been started in the San Francisco Bay Area supporting
more than 15,000 jobs. The Bay Area leads the nation's bioscience
industry in terms of the number of companies, productivity, R&D
expenditures, and employment growth. According to a study of California's
emerging new economy by PG&E, "The biotechnology industry
in particular holds significant potential as a leader in (the Bay
Area's) economic growth and expansion."
What
is an incubator?
A Business Incubator is
an institution that provides affordable space, support services,
and business assistance programs to small entrepreneurial companies
during the early stages of their growth. While incubators have existed
in the United States for more than 30 years, it has only been since
the late 1980s that state and local governments recognized the incubators'
potential to combat recession and foster economic vitality.
With downsizing prevalent
among Fortune 500 companies, most new jobs are now created by small
business—and that trend is expected to continue into the next
century. According to the Small Business Administration, only 20%
of business start-ups survive beyond the first five years. Companies
that get their start in incubators, however, have an 87% success
rate in the same period.
Advantages
for emerging Biotechnology firms
To attract
tenants, the Bioscience Incubator will provide:
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Affordable
wet lab space and equipment |
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Furnished
office space with flexible leases |
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Assistance
and support in business development, strategic planning, financing,
FDA regulatory assistance, and product commercialization |
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Introductions
to business resources, including financial institutions, investment
capital, accounting and legal services, and vendors offering
discounts to tenants |
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Educational
programs, including seminars, conferences and one-on-one mentoring |
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Opportunities
for networking and collaboration with other businesses and potential
joint venture partners |
The tenants within the
Incubator benefit from the synergy and interaction with like-minded
entrepreneurs. The concentration of emerging biotech firms in a
single location will attract the attention of larger companies and
investment capital, which is often difficult for start-up firms
to do individually.
What
is the Management structure?
The Contra
Costa Bioscience Incubator will be a 501(c)(3) nonprofit corporation.
Cash and in-kind donations to support the development and operation
of the Contra Costa Bioscience Incubator will be tax deductible
for organizations that desire to support the Incubator.
The Board of Directors,
made up of founders and interested stakeholders, will oversee the
Bioscience Incubator and participate in qualifying and assisting
Incubator tenants.
How
is it funded?
The Incubator
is funded from three sources: public investment, private sector
sponsors, grants and fees paid by the Incubator tenants.
Who
are the tenants?
Incubator tenants
will include new start-up and early-stage companies from the East
Bay and adjacent counties that are located within a 20-mile radius
of western Contra Costa County. The majority of the entrepreneurs
will be individuals with advanced degrees and experience in various
industries that make biotech products or utilize biotechnology as
a process to make products.
Other sources include
academia with spin-offs from existing companies. A market feasibility
study completed in February 1998 estimated that the potential demand
for the proposed biotechnology incubator at between five and 23
firms during the initial two-year lease-up period. The tenant base
would grow by one to nine firms annually over the next ten years.
Each business in the
Incubator will be a for-profit biotechnology business. Businesses
enter the Incubator on a month-to-month basis and are expected to
remain for a period of two to three years. Start-ups looking to
complete proof of concept research might stay for a shorter period.
How
do I get involved?
Contact the Contra Costa
Economic Partnership
Linda
Best
Executive Director
925-957-2501
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