Writer: Dave Mayes, (979) 845-2803,d-mayes@tamu.edu
AUSTIN — The Texas economy has a golden opportunity to capitalize on the coming biotechnology revolution in agriculture, but the state has to play “catch up” to become a national leader in attracting these businesses, participants meeting on the future of biotechnology in Texas were told Thursday.
“In terms of fostering startup ventures in biotechnology, Texas is nearly a zero on a scale of one to ten,” said Mark Ellison of Dallas, a principal of Stonegate Food and Agribusiness Parters, which works to find venture capital for biotech enterprises. “This is true despite the fact that Texas ranks fourth among states in the amount of venture capital available, and that universities and industries here have large amounts of research and development funding.”
“But those dollars haven’t translated to support in the ag sector,” he continued, in part because the business environment for startup biotech enterprises in Texas is not encouraging, despite the state’s strong agriculture base.
Ellison chaired one of five subgroups that wrestled with how to develop a strategic plan to position Texas as a leader in biotechnology and allied life science technologies. The effort was the focus of a two-day meeting of the Summit on Biotechnology for Agriculture, Food, Fiber and Health, which attracted 130 scientists, investors, bankers, agricultural producers, policy makers, natural resources leaders and consumers.
“Biotechnology applications have a tremendous potential to reshape the Texas economy at a scale that’s revolutionary in scope,” Dr. Ed Hiler, vice chancellor and dean of the College of Agriculture and Life Sciences at Texas A&M University, told the conference.
Biotechnology is any technique that uses living organisms to make products, improve plants or animals, or develop microorganisms for specific uses. An explosion in knowledge about how plants and animals function at the cellular level is making it possible for scientists to improve all aspects of agriculture and to use living organisms as “factories” to turn out medicines and drugs, and even industrial materials such as plastics.
Not only can the coming revolution mean thousands of new jobs for Texas, but the new bio-based economy can provide new answers to long-vexing questions, Hiler said.
“We have a tremendous potential (with these new tools) to combat world hunger,” he continued, while here in Texas plants that can be genetically altered to conserve water — “the biggest economic limiter in this state” — offer producers ways to grow crops in dry areas.
Among other recommendations offered at the Summit were these:
*Improve the business climate for entrepreneurs by establishing a non-profit, statewide initiative that would pool the resources and cooperation of the state’s major universities, local and state government, trade associations. Encourage industry to take the lead in making this happen.
Such an initiative could provide seed money for new biotech enterprises and, using a business incubator model, offer such assistance as testing the commercial potential of specific innovations, lining up venture capital, and providing management and financial expertise during a formation period.
Dr. Norman Kaderlan, director of the Austin Technology Incubator, told the conference that the incubator concept works. In its 10 years of existence, he said, ATI has grown 50 computer-related business that have revenues exceeding $750 million per year.
He offered the assistance of ATI, which is affiliated with the University of Texas, in any statewide biotech effort.
*Seek to broaden the constituency for encouraging biotech businesses in Texas by involving major food processors and the medical industry.
*Significantly upgrade the science education programs in grades K-12 and create research training programs at the university levels to enhance workforce development in the bio-based economy.
*Change the climate at universities to encourage researchers to get involved in startup biotech businesses by eliminating red tape and disincentives..
*Help agricultural producers become more competitive by encouraging opportunities for partnerships and cooperatives in biotech enterprises.
*Consider major communications efforts that will help the general public better understand biotechnology issues.
Susan Combs, commissioner for the Texas Department of Agriculture, urged the group to follow through on its planning efforts.
“If we sit silent, we have only ourselves to blame,” she said.
Gene Nelson, head of agricultural economics at Texas A&M and chair of the summit, said work would begin immediately on developing action plans around the ideas presented Thursday. “The summit is not an end, but a beginning of activity,” he said, adding that first actions based on the recommendations likely will be taken within the next six to nine months.
The event was sponsored by the Texas Agricultural and Natural Resources Summit Initiative, an apolitical forum begun in 1993 for people concerned about the state’s food, fiber and natural resources, and founded on the principle that Texas can find workable solutions to any challenge. This is the forum’s eighth summit; previous sessions concerned such topics as the future of Texas agriculture, natural resources, forestry, the rice industry, and agricultural finance.
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