it can be seen, biotechnology is one of the fastest growing young
industries in the world. It has the potential to greatly impact
the economy and the people of North Carolina. However, with
such growth comes competition, and North Carolina will have to take
steps to ensure that the biotechnology industry remains strong in
this state. Policy can be established in the forms of legislation
and educational and organizational strategies and funding to ensure
that NC stays at the top of the game.
The following policy has been implemented in North
Carolina in an attempt to further the Biotechnology Industry.1
0-1% sales tax on R&D equipment and no sales
tax on manufacturing equipment.
5-year net operating loss carry forward for R&D
7% tax credit for qualified purchases of machinery
and equipment. 5% tax credit for R&D expenditures made in
Tax credits of $500 to $1000 for employees being
trained. Tax cuts of $500 to $12,500 for new jobs created
Low cost financing for renovation and facility
1981 - North Carolina was the first state to set
up a biotechnology center. The NC Biotechnology Center
is instrumental in bringing in new corporations as well as funding
job training, etc.
Implemented the placement of 2 new incubators
Set up a biotechnology office in the North Carolina
Community College System's Program for Job Training.
Offers a number of different training options
within the NCCCS, including helping companies design training
for newly created jobs. Also, has a special 128 hour course
specifically aimed at training former manufacturing workers
for the biotechnology industry.
NCCCS is the third largest community college system
in the country, and is consistently ranked very highly for job
Recommendations for the Future
North Carolina has been actively trying to stay competitive
in the global economy in the field of biotechnology. The policy
pursued thus far has been in an attempt to keep previously established
businesses here and to lure other major international corporations
to the area. This is the best course of action that North
Carolina can pursue. With other major manufacturing industries
declining in the state, this young, rapidly expanding industry could
provide many new jobs in the state. Thus, the best recommendation
is to continue along the exact same lines and keep supporting the
expansion of the industry by any means necessary.
Susan Seymour, director of the biotechnology training
initiative in the NCCCS, believes that the industry will expand
in clusters. In other words, as major companies set up in
North Carolina, smaller shipping, supply, and other companies will
set up around them to help support them. Thus, if North Carolina
can do a good job bringing in the major companies, a whole infrastructure
will develop around them that will help to root the industry firmly
in the state.