Indiana Life Sciences

Our colleagues at BioCrossroads yesterday publicly announced the successful fundraising for Indiana Seed Fund II, an $8.25M venture fund aimed at promising early-stage companies in the life sciences sector.  This shows the continuing confidence and commitment of our state’s institutional investors in our entrepreneurial sector’s ability to innovate and commercialize scientific breakthroughs into successful businesses.  (BioCrossroads had already raised more than $135M in risk capital for life sciences ventures.  HALO, a network of angel investors organized by our TechPoint initiative, plays a similar role directing early-stage funding to high-tech start-ups.)

The ability to finance homegrown, high-potential businesses is of vital importance to our economic future.  As Indiana works to emerge from the shadow of the national recession, every effort must be made to attract new investment and jobs to the state as well as incentivize growth among our existing headquartered companies.  But ultimately, it will be our ability to encourage new businesses from the ground up that will yield the best returns in jobs, innovation and wealth creation.  (Start-up firms are responsible for all net job creation in the U.S. over the last thirty years, and the knowledge-intensive employment base created by fast-growing businesses in technology and the life sciences are critical to erasing Indiana’s per capita income gap.)

Legendary entrepreneurs like Colonel Eli Lilly, W.G. Irwin (of Cummins Engine) and Bill Cook helped reshape the Hoosier economy to this day.  Supporting their future counterparts through efforts like the Indiana Seed Fund is essential to building the economy of tomorrow.  Read more about the BioCrossroads’ announcement here.

Congratulations are in order for the team at BioCrossroads, which celebrates its 10-year anniversary this week as CICP’s initiative focused on the state’s life sciences sector. It’s been a decade of great success for the organization, ably led by David Johnson and the rest of his team – BioCrossroads was CICP’s first foray into launching subsidiary initiatives to catalyze growth in promising economic clusters, and it has established a model that has won national (even international) attention for how a cluster initiative should operate in pursuing new business opportunities and addressing broad challenges like human capital and risk capital needs.

To quote from BioCrossroads’ 2011 annual report:

“2011 was another milestone year for BioCrossroads and Indiana’s life sciences industry. More companies were formed and funded; more pharmaceutical and medical device products made their way from Indiana into the global marketplace; more and better data tracked the development of our sector; and more recognition came to our community as a regional hub of America’s life sciences industry – an industry with a $44 billion total impact on Indiana’s economy.

“For the first time, we identified, organized and analyzed a wide range of nationally significant indicators through a landmark study, authored by Walter H. Plosila, Ph.D., a globally recognized expert on developing life sciences clusters and initiatives, and based on data gathered by the Indiana Business Research Center at the Indiana University Kelley School of Business.

“The results illustrate a decade of substantial growth and measurable progress for Indiana’s life sciences sector, including the state’s rank as the third highest exporter of life sciences products in the U.S. ($9.1 billion), behind only California and Texas; a 21% increase in life sciences employment since 2002, adding more than 8,800 new jobs to the industry; and a total sector employing more than 50,000 workers across 825 companies…

“One of 2011’s most gratifying moments came in August, when the Wall Street Journal, in an article appropriately titled ‘Where the Action Is,’ singled out Indianapolis as one of seven “new industry hubs” for start-ups across the country – and the only one to make the list in the life sciences. Our sector is at last beginning to get the national attention it deserves.”

An excellent article in today’s Wall Street Journal about ‘hot spots’ for entrepreneurial activity in various economic sectors – validating the industry cluster approach that CICP has employed over the last decade in launching initiatives focused on particular industry opportunities.  And indeed, Central Indiana’s life sciences sector is recognized as a prime example of a growth cluster, supported by the activity of our BioCrossroads initiative.

See the full article here or read through the text below:

Where the Action Is

Across the country, new industry hubs are drawing entrepreneurs and investors—and offering start-ups support and safety in a turbulent economy

By EMILY MALTBY

Location matters.

·         Read the complete report .

It's a lesson that's all too easy to forget in a world driven by mobile devices, cloud computing and home offices. There are big benefits to setting up shop in the right spot—especially among lots of peers in the same field.

Just ask sports-gear makers in Ogden, Utah. Or health-care companies in Nashville. Or nanotechnology researchers in Albany, N.Y.

These cities, and others like them across the country, have become hubs for specific industries. Entrepreneurs are moving there and flourishing in the teeth of a bleak economy. The cities, in turn, are nurturing the entrepreneurs by giving them access to funding, mentors and facilities.

All in all, these clusters can be ideal spots for an entrepreneur in the field. Being there means getting access to a much wider range of suppliers, customers, employees and industry experts. What's more, industry peers are often willing to support each other as they get off the ground, sharing recommendations about staffers, potential sales leads and attractive office space, or giving each other guidance and insight about the industry.

Jeffrey Logsdon can attest to that. Five years ago, he moved his cybersecurity firm from Phoenix to San Antonio—a city that's seeing a surge in business for companies in the field. Company revenue doubled within three years of the move.

"I'd attribute a lot of our success to the location," he says. "I think the availability of cybersecurity talent and the low cost of doing business here has helped us. And because there are so many different cybersecurity companies, we have improved each other's business through partnerships."

As a hub grows, it brings other benefits to small firms. For one thing, even as businesses cooperate, they challenge each other to innovate—to come up with new ideas that make them stand out from the crowd. "Specialization in a region increases patents, business formation and higher wages," says Rich Bryden, director of information products at Harvard Business School, who's working with a team mapping industry hubs in the U.S.

Infomen

When businesses come together, they also catch the eye of big players with deep pockets—especially beneficial when the economy is weak and financing is limited.

"It's easier to be on the radar for investors when you're part of a critical mass," says John Fernandez, assistant secretary of commerce for economic development at the U.S. Economic Development Administration.

Hubs also catch the eye of government, says Dan Carol, senior fellow at the New Policy Institute think tank in Washington, D.C. A concentration of small firms in the same field is more likely to be recognized on the municipal level, where funding programs and policies can be created to stimulate their growth.

Here's a look at seven up-and-coming innovative centers. All have solid partnerships between the public and private sectors, a growing work force to fuel the industry and long-term strategies for development. And entrepreneurs say being there is vital to their success.

INDIANAPOLIS

LIFE SCIENCES

Indianapolis used to be the quintessential Rust Belt city. Now it's at the center of a statewide boom in the life-sciences business.

Endocyte

The state has added 8,800 jobs in the life sciences in recent years, and today some 825 medical-device companies, drug manufacturers and research labs call Indiana home.

Indianapolis, which is home to big names in the field such as Eli Lilly & Co. and health insurer WellPoint Inc., is leading the transformation. Corporations like these have added the lion's share of the state's new life-sciences jobs. Now they're helping smaller companies get off the ground, too—by spinning off new businesses as well as by backing independent start-ups. Eli Lilly, for instance, has contributed roughly $60 million to seed and venture funds that are supporting entrepreneurs.

That isn't the only way big companies are easing the way for small ones. With new firms arriving to supply the large drug makers, start-ups are getting access to a range of services at competitive prices.

"We have access to companies in Indiana where we can outsource functions like toxicology, analytics and clinical supply," says Ron Ellis, president and CEO of Endocyte Inc., a 65-employee firm that's testing a cancer treatment.

Many small firms, meanwhile, are helping others get off to a good start. David Broecker, president and chief executive of BioCritica Inc., an Eli Lilly spinoff, says his peers have referred employees, suggested work space and given information on tax and financial incentives.

It's just the environment he hoped for when he left the East Coast to build a company. He considered other spots but settled on Indianapolis because "it's all new and exciting here for these folks, so there is a hunger for doing this type of thing."

SAN ANTONIO

CYBERSECURITY

Washington, D.C., has usually taken the lead in creating Internet-defense systems. But the Alamo City is poised to give the Beltway a run for its money. There are more than 80 information-technology and cyber-related businesses in San Antonio, and that figure is increasing rapidly, according to the city's Chamber of Commerce.

Andrew Watson

Many entrepreneurs are anticipating a flood of government contracts from the new Air Force Cyber Command headquarters in town. The military chose San Antonio in part because the armed forces have always had a strong presence there—and many of the city's workers have security clearances from the Defense Department and the National Security Agency. Another big plus: a stream of skilled graduates from the Institute for Cyber Security at the University of Texas at San Antonio.

But not all the firms in town are counting on government contracts. The city has a growing group of businesses that cater primarily to the private sector, like MainNerve Inc., the company Mr. Logsdon moved to San Antonio. The firm helps health-care companies secure digital records and servers. "The quantity of people here allowed us to show more discernment in our hiring," says Mr. Logsdon. "It was the best place for us to find qualified and certified cybersecurity professionals—and it doesn't hurt that they have military experience."

ALBANY, N.Y.

NANOTECHNOLOGY

The capital of New York state is becoming a big player in a field that deals with small things—nanotechnology. The city now boasts more than 4,000 people in the industry, centered on the College of Nanoscale Science and Engineering at the University at Albany.

Mia Ertas/CNSE

The school has doubled in size during the recession to its current 800,000-square-foot complex. Dozens of nanotechnology companies have established a presence there to take advantage of research facilities and business incubators; since 2008, nearly 50 new start-ups have launched within its walls.

The build-out was part of a state plan, formulated years earlier, to revive the economy in upstate New York. Financing came partly from the state and partly from corporations like International Business Machines Corp., which now have offices there alongside entrepreneurs. That means companies can share the cost of equipment and labor—and start-ups get to associate themselves with big names.

"The prestige of being here and the credibility is amazing, which helps when you are talking with VCs and investors and large companies," says Primal Fernando, CEO and chief technology officer of Resource Management Technology Systems Inc., which moved to Albany from La Junta, Colo., last year. "And the equipment available here is not available elsewhere."

Many companies are launching off-campus, as well, in laboratories that are opening in once-vacant buildings. And financiers and other vital players have been moving in to be a part of the action.

"Venture capital has been growing to feed the innovation," says Alain Kaloyeros, a physics professor and senior vice president of the college. "Suppliers and law firms are moving to the region to support this ecosystem, so it will be quite an exciting venture to watch."

KANSAS CITY

INFORMATION TECHNOLOGY

Welcome to "Silicon Prairie."

Kansas City, straddling the Kansas and Missouri state line, is home to tech giants like Sprint Nextel Corp. and Cerner Corp., but its industry ranks have been swelling with smaller firms. In 2009, the number of tech companies rose by 5% to 2,900, trumping the growth rates of well-known hubs like Silicon Valley, Boston and Austin, Texas, according to a 2010 study published by the TechAmerica Foundation.

Dataworks, Inc.

Part of the lure for entrepreneurs: a high-speed fiber network from Google Inc., which chose Kansas City over 1,100 other cities to set up the service. Expected to roll out next year, the network will run 100 times faster than current broadband, which will likely bolster cloud-based technologies and pave the way for high-definition streaming services that will be hard to find elsewhere.

The Google initiative will be "an excellent platform for innovation," says Bryan Richard, founder of iCode Inc., a Web start-up that posts profiles of software developers. "Everyone in the technology business is talking about it here in town, and everyone wants to do something with it and maximize it."

Entrepreneurs who have relocated from the coasts also tout the friendly business environment. It's far less expensive to build a firm and develop technology, they say, and there are fewer state and city regulations to worry about. And, as in other hubs, many entrepreneurs are helping each other. "Numerous times people have asked me for things I have expertise in and there are times where I call competitors…for specific problems," says Donald Rossberg, president of Dataworks Inc., a technology-support and consulting start-up. "In the end, we all benefit."

ASHEVILLE, N.C.

BEER BREWING

Craft beer is a small industry, but it has a devoted customer base. One Southern town is going after those fans with vigor.

John Warner

Asheville, a Blue Ridge Mountain town of 75,000, has 10 breweries, with two on the way. That can't compare with the 40 in Portland, Ore., but it stacks up to other beer havens like Milwaukee and Boulder, Colo., which both have fewer than a dozen. "Asheville is definitely on the map and well recognized in the craft-brewing industry," says Paul Gatza, director of the Brewers Association in Boulder.

Entrepreneurs new to the area seek mentoring from the established brewmasters and the Asheville Brewers Alliance, formed to exchange ideas and promote the industry. They also tap Blue Ridge Food Ventures, an incubator for developing and commercializing products.

Competition among the breweries is a key driver of growth. "Every time a new brewery opens, it has to create its own creative edge, and then the other breweries have to be creative to become relevant again," explains Bill Drew, owner and brewmaster at Craggie Brewing Co. "So it's good when the new guys come in; it keeps the old guys on their toes."

In fact, the beer culture has permeated the town, with a host of businesses cooking up beer-flavored edibles and artists making tap handles and bottle labels. The environment gives brewers a place to source ingredients and fuel creativity. "By local companies teaming together, it's pretty much a win-win," Mr. Drew says.

NASHVILLE, TENN.

HEALTH CARE

Early last year, the federal government passed legislation calling for a host of health-care reforms. And Nashville is poised to benefit from the overhaul.

There are more than 250 health-care companies in the city, and their numbers are rising. Employment in nursing, hospital and ambulatory services jumped 16% between 2004 and 2008, for instance. That, in turn, provides fertile ground for companies that create medical devices and patient-care systems.

Shareable Ink

The entrepreneurial spirit "is infectious," says Leon Dowling, founder and chief executive of IMI Health Inc., which collects and organizes health records to give insight into the best patient-care practices. "Within 10 miles of my office, I can have more potential clients than any other city in America."

Last August, the city launched an entrepreneur center to spur innovation; two-thirds of the firms that have sought mentoring and financing are related to health care. State programs have also helped propel the industry. Recently, some $180 million in public funds has been made available to burgeoning firms.

It's an attractive spot for entrepreneurs like Stephen Hau, president and chief executive of Shareable Ink Corp. The company, whose digital pen records doctors' notes and transfers them to an electronic format, launched nearly three years ago in Boston and established a presence in Nashville last year. Today, 60% of the company is in Nashville.

"The community here is so well versed in health care that it keeps us plugged in to the key issues and how to resolve them," says Mr. Hau. "And in terms of the investment community today, people are careful about where they place their bets. Being here, [investors] see we are aligned with thought leaders."

OGDEN, UTAH

OUTDOOR SPORTS

Ogden, a small city some 40 miles north of the capital, packs a concentrated punch in the outdoor and recreation industry.

Goode Skis

Ogden made headlines in 2002, when it hosted events for the Salt Lake City Olympic Games. Those Olympic facilities, along with acres of pristine mountains, canyons and rivers, are the main reason outdoor-apparel and equipment companies have been moving to town: The site offers a perfect spot for testing new products, and it's easily accessible from a nearby airport that supports direct flights to Europe. What's more, business owners say, the growing base of competing companies in the area push each other to design the best equipment.

Utah has a relatively modest share of the industry; the state estimates it's home to about 5% of the outdoor-products firms in the U.S. Still, companies that expanded in or relocated to Utah have created at least 2,550 jobs in the past six years, according to the Economic Development Corporation of Utah.

Industry goliaths get partial credit for the surge in Ogden. Amer Sports Corp., the company behind Wilson, Atomic and other brands, consolidated its U.S. operations in 2007 and moved them to the town. Quality Bicycle Products Inc., a distributor based in Bloomington, Minn., set up its second location in Ogden in 2010.

Quality's founder, Steve Flagg, liked the growing retailer base, easy access to the West Coast and strong labor pool. But, he says, "the game changer was the transformation that the city was going through," as other companies moved in, and the local government actively recruited more.

Local leaders are also helping start-ups like Kahuna Creations Inc., a longboard, surfboard and landpaddle company, launch and grow. Kahuna founder Steve McBride says the mayor's office helped him land funding and find a low-rent facility in 2008. The company has grown 30% to 50% annually.

"You get a network of people who really want to help," Mr. McBride says. "We've been flourishing here."

Ms. Maltby is a small-business reporter in The Wall Street Journal's New York bureau. She can be reached at emily.maltby@wsj.com.

CICP’s BioCrossroads initiative released a report this morning detailing the remarkable growth of Indiana’s life sciences industry over the last decade.  “Indiana’s Life Sciences Industry: 2002-2010” was authored by Dr. Walt Plosila, who also led the development of CICP’s original economic cluster strategy with the Battelle Memorial Institute in 2000.

The study places Indiana’s $44 billion life sciences economy among a handful of national leaders in its concentration of jobs and diversity across a number of growing sub-sectors – pharmaceuticals, medical devices, and agricultural chemicals (with our medical testing and research sector poised to join the top tier as well).  This economic powerhouse is putting lifesaving medicines and devices into the global market at a rapid pace – Indiana ranks third, behind only California and Texas, in life sciences exports.

And during a decade of relatively flat job growth capped by a deep recession, Indiana’s life sciences sector continued to create thousands of new jobs – the state’s life sciences employment has grown an amazing 21% since 2002.  (And notably, the average wage of these jobs, at more than $80,000 a year, is nearly twice the average private sector job earnings for Hoosiers.)

In short, the life sciences continues to be a driver of economic growth for Indiana, and certainly BioCrossroads has contributed to this momentum over the last decade as the initiative has raised nearly $250M in venture capital and other funding to support promising life sciences ventures and partnerships across the state.  We encourage you to check out the report at www.biocrossroads.com or by clicking the image to the left.

The partnership between CICP and the Indy Partnership has served Indianapolis and the region well, connecting the regional business attraction and marketing aspects of economic development with the expertise of our industry-specific initiatives - this synergy will continue.  

But we’ve also never lost sight of our mandate to maximize every dollar we receive from our investors.  Since its launch four years ago, Develop Indy has grown into a robust and aggressive organization in its own right. So today we have two mature organizations with nearly identical structures and complementary missions – one bringing new business to the region as a whole, one focused on Indianapolis, the core of the region.

It simply makes sense to merge their  operations – marketing communications, accounting and administration, certain business development and research functions. In doing so, we’ll achieve significant financial efficiencies and drive a greater share of resources towards promoting ourselves as a destination for economic opportunities.  Simply put, the move allows us to be more competitive, even as we are outspent by many of our competitor regions (on a per capita basis) in economic development.

Here's the press release with additional detail:

Develop Indy, Indy Partnership to consolidate operations for more efficient, effective economic development effort

(INDIANAPOLIS, Ind – February 15, 2011)  Two of Central Indiana’s leading economic development organizations will formally join forces to create a more streamlined effort to maximize business attraction and marketing for Indianapolis and the greater region. 

 Indy Partnership, the regional group representing the nine-county Indianapolis metro area, and Develop Indy, the local economic development engine for Indianapolis/Marion County, will consolidate their marketing, fundraising and administrative operations to create a more efficient and effective enterprise.   The two groups will maintain their separate brand identities while pursuing their respective economic development missions.

Since 2001, Indy Partnership has promoted the Indianapolis region in partnership with local economic development organizations (known as “LEDOs”) in each of the metro counties.  Indy Partnership works to attract new businesses to the region, and provides research and project management support to the LEDOs for their local business development efforts.

Develop Indy was launched in 2007 as the stand-alone LEDO for Indianapolis/Marion County, and works primarily to help existing businesses grow and expand in Marion County.  It has grown its organizational capacity significantly over the last three years.

“We have two organizations pursuing similar missions – one representing the region, one representing Indianapolis, the core of the region,” said current Indy Partnership President and CEO Ron Gifford.  “It makes sense to bring them together in a more formal fashion to achieve our strategic goals, realize financial efficiencies, and give investors more ‘bang for their buck.’”

“We’re in a very tough competition for new opportunities, often going up against cities and regions that can’t match our business climate but do have more money to tell their stories,” said Scott Miller, Develop Indy’s President and CEO.  “This new model will allow us to maximize every dollar spent so we can aggressively pursue new job opportunities and investment from around the globe.”

The two organizations will combine operations in areas like marketing, fundraising, accounting, human resources, and IT.   Develop Indy will continue to focus on local Indianapolis business development issues, while Indy Partnership will continue focusing its marketing and business attraction efforts on behalf of the entire region. 

A new Indy Partnership Executive Committee, made up of private sector business leaders and representatives from each of the county LEDO partners, will oversee the regional effort.  The Develop Indy Board of Directors will serve as the legal governing entity for fiscal and administrative matters for both entities and will continue to oversee matters related specifically to Indianapolis/Marion County. 

Veteran economic development professional Scott Fulford will become the Executive Director of Indy Partnership, as current CEO Ron Gifford assumes the position of Executive Vice President for Policy for the Central Indiana Corporate Partnership (CICP), the regional alliance of CEOs and university presidents.  Gifford will also become a member of the Develop Indy Board of Directors.  Scott Miller will remain as CEO of Develop Indy.

“Since 2007, Indy Partnership has been part of CICP, and that relationship has fostered collaboration with CICP’s industry-specific initiatives – BioCrossroads [life sciences], Conexus [manufacturing and logistics], TechPoint [technology] and the Energy Systems Network [energy and clean technologies],” said Mark Miles, CICP’s President and CEO.  “We see this new alignment between Indy Partnership and Develop Indy as creating an even stronger regional platform to promote these clusters to new business prospects.  

“At the same time, we are committed to maintaining the synergies among these groups focused on economic growth in Central Indiana,” Miles continued.  “Ron’s new roles with CICP and Develop Indy will help ensure that industry expertise from the private sector is available on call to support economic development for the entire region.”

The new structure will also enhance regional efforts by giving the county LEDO partners a larger role in the expanded Indy Partnership Executive Committee, and by encouraging more direct participation in the region’s marketing and business attraction efforts.  A formal agreement on regional cooperation will also ensure that each member county has a fair chance to make its case to new companies looking at the region. 

“To companies located around the country, ‘Indianapolis’ is the brand that we’re all selling, whether we live in Marion County or not,” said Dax Norton, Executive Director of the Boone County Economic Development Corporation.  “By combining the marketing efforts of these two organizations, we can more effectively promote the region while giving every county a seat at the table.”

A joint fundraising campaign will take place for both organizations, ensuring that corporate supporters will not face multiple solicitations on behalf of the area’s business attraction efforts.

The consolidation of operations will become effective at the end of February.  Indy Partnership will share office space with Develop Indy in the Chase Tower in downtown Indianapolis.

Indiana has earned more kudos from economic developers across the country, according to a recent report by Area Development, a trade journal for business attraction and site selection professionals.  A national survey conducted by the magazine named scored Indiana 6^th among states (and best among Midwestern states) for business climate.

In a nod to our strong logistics infrastructure, the Area Development survey also ranked the state second in rail and highway accessibility.

Another recently-released report, the Milken Institute’s Best Performing Cities 2010, offers more cautiously optimistic readings for Central Indiana.  The Best Performing Cities index factors in a number of statistical measurements, including job creation, wage and salary growth, high-tech GDP growth, high-tech GDP location quotient (the concentration of high-tech industry as compared to the national average), and the number of high-tech industries with a GDP location quotient higher than the national average.

Using this data, the Indianapolis metropolitan area ranks 112^th, squarely in the middle of the pack among larger cities – but we did move up 13 spots (from 125^th in 2009).  We were better than average in job growth, and in a testament to the continued growth of our high-tech economy, earned the best sub-rankings in high-tech GDP growth (48^th) and concentration of high-tech industries (39^th).

And just to the southwest, Bloomington made a major splash in the Milken rankings, placing 16^th among the Best Performing (Small) Cities.  Using the same data, Bloomington ranked 8^th in job growth over the last year, and third in high-tech industry concentration. 

Combined with the continued vitality of our life sciences industry and steady improvement in venture capital investment, all indications are that Indiana’s pro-growth business climate is supporting an economic recovery that should see the state emerge with a stronger high-tech sector along with a solid industrial base. 

CICP’s BioCrossroads life sciences initiative received national recognition this week from the Brookings Institution, one of the nation’s most influential think-tanks on economic policy.

Brookings released a paper, “The New ‘Cluster Moment,’” reemphasizing the concept of industry clusters as a cornerstone of smart economic development planning.  Industry clusters are groups of inter-connected businesses and organizations that locate in close geographic proximity.  Clusters often start with some key competitive advantage (i.e. the presence of a major research university or large corporate headquarters) and grow as other firms seek common sources of innovation and human capital along with opportunities to form strategic alliances and streamline their supply chains.

According to Brookings, clusters are the building blocks of the ‘real economy’ – instead of driving growth through consumption and debt (as with the housing and financial bubbles), companies cluster together to drive productivity and maximize economic output. 

Clusters of firms also tend promote innovation and entrepreneurial growth, as knowledge flows more easily among companies and research institutions and more discoveries are ‘spun off’ into new business ventures.

“The New ‘Cluster Moment’” report cites Indiana’s life sciences sector as a model regional cluster, anchored by the presence of Eli Lilly and other major industry players, research institutions like IU and Purdue, and leading orthopedic device manufacturers.  It recognizes the efforts of BioCrossroads in identifying the critical needs (i.e. access to capital, encouraging industry connectivity and start-up opportunities) to maximize the growth of this cluster over the last eight years.

The BioCrossroads story was also told from a first-hand perspective this week by John Lechleiter, Chairman of Eli Lilly, in a keynote speech to the Regional Innovation Clusters Conference, sponsored by Brookings and other key public policy groups in Washington DC on Thursday.  Lechleiter, who supported CICP’s efforts in forming and setting the strategic course for BioCrossroads, discussed Lilly’s strategy for innovation and how building a life sciences ecosystem in Indiana has furthered these efforts.

He went further in asserting that the BioCrossroads model is one that should be replicated in our national effort to revitalize the economy:  “The successful effort to build a thriving life sciences hub in Indiana – in the face of some pretty strong headwinds in the state’s economy – is reason to believe that our country can overcome the economic challenges we face today.”

Read more excerpts from John Lechleiter's speech here, and view the Brookings Institution’s ‘Cluster Moment’ report here.

CNBC has released its annual Top States for Business rankings – while Indiana ranks a fairly pedestrian 21^st on the overall list, the sub-category rankings are more interesting, giving several reasons for optimism and at least one looming cause for concern.

The state continues to score high in costs of doing business, ranking 9^th among states (up from 13^th in 2009), and we continue to rank among the top handful of states (6^th) in transportation infrastructure, anchoring our strong logistics sector.

We made significant progress in access to capital, moving from the bottom third of states (36^th) in 2009 to the middle of the pack (26^th) this year.  This blog has covered Indiana’s progress in making venture capital available to promising start-up firms – the state has bucked national trends by growing equity investment over the last two years, even as the national venture market contracted during the recession.  We made a tremendous jump from 41^st to 20^th in venture capital investment per capita from 2008 to 2009.

We moved up five spots in the ‘Economy’ category (mainly a measure of economic diversity and success in attracting corporate headquarters) and stayed about the same in Cost of Living (a perpetual strength) and Technology/Innovation.

Our biggest challenge continues to be found in the Workforce arena, where we slipped ten spots from last year’s rankings, from 31^st to 42^nd.  CNBC considers the educational attainment of the workforce, union membership, available workers and the placement success of vocational training programs in arriving at this category.  While the exact conglomeration of data can be argued, the broader point cannot – certainly Indiana faces a shortfall in educated workers that must be addressed.

CICP’s initiatives are working against this daunting task – Conexus Indiana is collaborating with higher education partners to create ‘industry-approved’ training programs in manufacturing and logistics, and marketing these programs to young Hoosiers as the path to high-tech careers.  The BioCrossroads life sciences initiative has partnered with Purdue University, Notre Dame and others on programs like the I-STEM Network, a resource to improve math, science and technology education at the K-12 level, as well as expanding access to Advanced Placement coursework to ease the transition from high school to college.

It will take these efforts and the focused attention of policymakers, educators, corporate and civic leaders to climb the ranks of educated states.  But in today’s knowledge-based economy, no other area is as important in predicting our future economic success.

Read more about the CNBC rankings and view the state listing here.

October 27^th will be a hectic day for those who care about scientific and technological innovation and the future of Indiana’s economy.

On that day, CICP’s BioCrossroads initiative will host the Indiana Life Sciences Summit at the Westin Hotel in downtown Indianapolis, while our TechPoint initiative holds its annual Indiana Innovation Summit across the street at the Indiana Convention Center.

Both events highlight the bold strides Indiana has made towards a more diverse, knowledge-based economy.  The nearly a decade, Indiana has added life sciences jobs faster than the national average, annually ranking among industry leaders by groups like BIO (the international life sciences trade organization).

BioCrossroads has bolstered this growth, raising more than $150 million in dedicated venture capital focused on life sciences start-ups, and providing support services to nearly 250 Hoosier biotech companies.  The Life Sciences Summit provides a venue to explore new opportunities and discuss hot topics like financing scientific innovation, the impact of healthcare reform, and successful strategies in bio-focused economic development.

The Innovation Summit, formerly the Tech Summit, is now in its second decade of bringing Indiana technology executives and policymakers together for a similar purpose – sharing ideas, setting a common agenda for the industry, and building a community that encourages new business opportunities.  Rebranding the event as the Innovation Summit acknowledged that new ideas are the primary fuel for growth in all high-tech industries – and the event certainly has attracted a thought-provoking keynote speaker this year, in iconoclastic author Nicholas Carr.  (TechPoint President Jim Jay recently penned this piece in the Indianapolis Star on the power of innovation and Carr’s role at the Summit.)

The Innovation Summit also includes a heavy emphasis on how high-tech entrepreneurs can find venture funding in today’s market, as well as panel discussions on social media (Indiana is earning a reputation as a digital marketing leader), smart grid technologies (ditto for energy innovation), cloud computing and more.

We hope you’ll be a part of these great events – learn more about the Innovation Summit here, and about the Indiana Life Sciences Summit here.

J.K. Wall reports in the Indianapolis Business Journal that the flow of venture capital deals in Indiana’s life sciences industry has picked up considerably from this point in 2009:  Through the first 6 months of this year, nine Hoosier bioscience firms have attracted venture investment, up from just four venture-backed companies during the first half of 2009.

Wall notes that while the number of deals has increased, the amount invested per deal has dropped somewhat.  We are confident that total venture dollars invested in promising life sciences opportunities will continue to grow as dollars from BioCrossroads’ $58 million INext Fund are distributed to its partner venture funds to be leveraged into investments in specific companies.

The overall venture market in Indiana continues to be a bright spot in the general economic picture, and we hope a leading indicator of an entrepreneur- and innovation-fueled recovery.  From 2007 to 2008, total venture investment in Indiana grew 40%, and from 2008 to 2009 increased another 70%, while national VC totals decreased over the last two years.  From 2008 to 2009, the Hoosier State leapt from 41^st to 20^th among states in venture investment per capita.

Putting these trends together, it seems fair to predict that as more promising life sciences start-ups choose to seek private equity financing, the funds will be available to capitalize on our homegrown scientific breakthroughs and lifesaving innovations.  And for a state that’s already seen life sciences employment grow by more than 17% (outpacing the national average) since 2001, it’s a promising sign for continued success.

A recent report released by the major global life sciences trade organization provides further validation of our state and regional strength in the bio-economy.

The Battelle Institute and the Biotechnology Industry Organization (BIO) released their annual “State BioSciences Initiatives” report at the BIO International Conference in Chicago earlier this week.  The results show that the major life sciences firms headquartered in Central Indiana and across the state continue to thrive, and that the efforts of BioCrossroads and others are paying off in encouraging new opportunities and entrepreneurial growth.

Among the highlights – Indiana has outpaced the nation in life sciences job growth over the last decade.  Indianapolis ranks second in the nation in metropolitan employment in pharmaceuticals, leading other Central Indiana metros like Lafayette, Bloomington, and Columbus that also ranked among the leaders (adjusted for size) in this sector. 

The Bloomington MSA also ranked number one among smaller metros in the Medical Device and Equipment sector.  (The BIO report did not include Warsaw, Indiana, home to nearly a third of the global orthopedic device industry, because it did not rank among the metros ranked due to population.)

The report overall shows that Indiana’s life sciences sector demonstrates strength across a number of industry sub-sectors, displaying a healthy economic diversity and potential for continued growth.  It echoes a comment from the June 4, 2009 edition of The Economist that our colleagues at BioCrossroads are fond of quoting: “Though every state wants to be a hub for life sciences, Indiana really is one...”

Learn more about the BIO/Battelle report here.

Plotting a post-Rust Belt future for the Midwest

Carol D’Amico

What is the future of Midwest cities that have been heavily dependent on the automotive industry?  That was the issue we discussed at a White House symposium last week held at the U.S. Department of Labor in conjunction with the Brookings Institution, a Washington DC think tank.  Representatives from Ohio, Michigan and Indiana attended to discuss our common challenges as we seek to revitalize an economic base that’s traditionally reliant on automotive manufacturing.

A few observations from the day:  First of all, we should be very proud that our region still makes things for a living.  As one participant remarked, we have been and still are innovators.  Things we can't live without were invented in the Midwest - cars, refrigeration, air conditioning, and the bar code among countless others.  The Midwestern work ethic combined with our propensity to “tinker” and seek continuous improvement have helped us build a rich manufacturing heritage.  These traits can  continue to serve us well if we are smart about it.

What also struck me is we have common aspirations to diversify our dependence on the automotive industry and to be the leader in life sciences, alternative energy, logistics and bio agriculture.  We discussed common problems like difficulty in funding of start-up companies and the bias lenders have against manufacturing (too often dismissed as an industry stuck in the past, even as it invests more than any other U.S. economic sector in R&D innovation).  And perhaps the biggest issue of all, the challenge of up-skilling an older, entrenched workforce and shaking off our “rust belt” image to attract young talent to our landlocked states.

For that day we were in solidarity, confronting these common challenges and brainstorming solutions.  But outside the DC conference room,  we are fierce competitors when it comes to attracting new jobs and investment to our states.  It isn’t realistic to think that each of us can  be the leader of the new industries.  One of us is going to be better at it than the others.  So what will it take to stand out in this crowded field and how competitive is Indiana in the race?

First, the basics.  Indiana boasts a pro-growth tax climate.  Central geography and strong infrastructure.  Aggressive and well thought-out economic development efforts.  Enlightened and energized leadership.  All areas in which we excel.

We’ve also already made significant progress towards diversifying our manufacturing sector.  According to an analysis by Ball State University’s Bureau of Business Research, Indiana’s automotive and auto parts manufacturing industry employs more than 110,000 Hoosiers.  This is a tremendous number, but it represents just 16% of the state’s total manufacturing jobs.  Indiana also boasts strength in high-growth areas like pharma and medical device manufacturing, aerospace, HVAC and others.  And even within the automotive sector, we’re positioning ourselves as leaders in more cutting-edge areas like vehicle electrification.

Our Achilles heel in this race is the quality of our workforce.  A recent report that was done showed that we have 108,812 adults of workforce age who have less than a ninth grade education; another 273, 086 have less than a high school diploma.  This year over half the recipients of unemployment insurance lacked a high school diploma.  Unlike the old days, there are no good paying jobs for those adults.  Another 1,125,166 adults have only a high school diploma and no college.  These adults too have limited opportunities in the new economy we aspire to build. 

Until we get serious about addressing this issue our ability as a state to be the economic development leader among the Midwest states is problematic.  And it isn’t just the Midwest states that we compete with – it is all other states and the industrialized world. 

There are no easy fixes – this was the primary takeaway from  our event last week.  We need a more robust adult education system; a more effective K-12 system; colleges focused on graduating more adults within a reasonable period of time; and a modern, government-supported workforce development system instead of the antique we operate under today built in 1945 for a very different economy and era.  Indiana’s progress towards these goals will define our competitive advantage in manufacturing for generations to come. 

D’Amico is Senior Advisor to Conexus Indiana, the state’s advanced manufacturing and logistics initiative.

Featured today on Inside Indiana Business:

Hoosier students must graduate high school ready to succeed

Mark Miles

Last week, the Indiana Commission for Higher Education began providing a valuable new tool for Indiana high schools – specific reports that show how many of each school’s graduating class went on to college, where they enrolled, and how many required remedial math or English classes once they made it to campus.

I’m guessing that many, if not most, school districts are in for a rude awakening when they receive these reports.  Statewide data show that more than a quarter of all recent Hoosier high school graduates needed at least one remedial class as college freshmen.  Two-thirds of all community college students needed remediation.  We aren’t preparing our students at the K-12 level to succeed in higher education.

This creates a domino effect that eventually takes a steep toll on our economic competitiveness.  It places another burden on our higher education system, forcing these institutions to teach material that should have been mastered in high school.  The students who receive remediation start out behind and struggle to catch up – less than ten percent graduate from a four-year college program in six years or achieve a two-year degree within three.

These trends contribute to our generally dismal educational track record.  Just a third of Hoosier adults hold at least a two-year degree.  Indiana is mired in the middle of the pack in associates degrees awarded per capita, and we’re one of the least-educated states in the nation as measured by four-year college graduates in our adult population.

 In today’s economy, failing to complete some education beyond high school is tantamount to surrendering to a life of low wages, high unemployment and missed opportunities.  The days when a high school diploma served as a ticket to a good job at the local factory are long gone.  Indiana’s fastest-growing industries, like the life sciences and technology fields, demand a highly-skilled workforce.  In manufacturing, traditional assembly line jobs have disappeared at a dizzying pace, while new jobs (in areas like electric vehicles and aerospace) require advanced training.

At the macro level, a weakening workforce discourages new business investment in Indiana, as growing companies look to states and regions with strong human capital to locate and expand.

So what are some ways that can better prepare our young people to carry on their education after high school?

Many of our strategic economic initiatives are already working to address this issue.  BioCrossroads’ I-STEM initiative provides resources for K-12 teachers to better educate their students in the STEM disciplines – science, technology, engineering and math. 

Conexus Indiana is working to develop a high school curriculum that will prepare students to take advantage of high-tech careers in advanced manufacturing and logistics, leading them seamlessly into technical training and associate’s degree programs.  Conexus is also working with ‘champions’ (teachers and counselors) in 28 area high schools to promote careers in these industries to students, emphasizing technical education and the need for training beyond high school.

TechPoint has focused on alternative school models, sponsoring the New Tech High program at Arsenal Tech through its Foundation.  The New Tech program integrates technology and 21^st century learning strategies into the state curriculum, and is getting results.  Currently, the New Tech students’ passing rate for the Indiana Graduation Qualifying Exam is twice that of any other open-entry program on Arsenal’s Tech’s campus of 2,700 students.

We also have to recognize that the issues that hinder students from graduating from high school ready for college begin long before ninth grade.  During the legislative session, CICP was part of an effort to refocus our schools on early reading education, including a policy ending social promotion from 3^rd to 4^th grade unless students can read at grade level.  This is consistent with the Indiana Department of Education and State Board of Education, both of which have made reading education the top priority. 

It’s clear that students who have serious problems with reading early on continue to struggle throughout their academic careers – many drop out before graduating from high school, and their chances of completing a college degree are nearly nonexistent.  Making sure that these students get the extra attention they need starting in the critical K-3 years is an approach that will eventually lead to graduating classes more prepared to tackle post-secondary coursework.  Ultimately, the General Assembly empowered the Indiana Department of Education to enact this critical reform as part of a broader strategy for improving reading achievement.

There’s no ‘silver bullet’ strategy that will make every high school graduate ready for college or post-secondary training on day one.  But the data being generated by the Commission for Higher Education show that this is a challenge that demands our attention, part of the ‘big picture’ effort to raise our educational attainment and build a stronger workforce.  Being ready to continue one’s education after high school means being ready to succeed in our knowledge-based economy, and to be a valuable contributor to Indiana’s economic success.

Mark Miles is the President & CEO of the Central Indiana Corporate Partnership.

According to the State Science and Technology Institute (reporting on data from PricewaterhouseCoopers and the National Venture Capital Association (NVCA), 2009 was the worst year for venture capital investment in more than a decade.  The STTI story opens:

Last year venture investment decreased to its lowest level since 1997, according to the latest Moneytree Report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA).  A weak environment for exits and increasing caution on the part of investors contributed to a 37 percent decrease in investment dollars and a 30 percent decline in venture deals from 2008 levels. This marks the second consecutive year of declining venture dollars and deals.

While this is clearly bad news for the vitality of our ‘innovation economy’ nationally, it again points out the opposite trend that’s occurring here in Indiana. 

Back in ’97, the state was still largely regarded as ‘flyover country’ by venture capitalists; the NVCA tracked just $25 million in equity investment here.  By 2009, this had grown 600% to $150 million (and we’re aware of a number of sizable deals that appear to have been missed in the NVCA surveys).  Collaborative efforts like the BioCrossroads INext Fund (successor to the $72M Indiana Future Fund), a $58 million ‘fund of funds’ focused on life sciences start-ups, and the HALO angel investor network, which has invested $12M in ten high-tech Indiana start-ups over the last two years, are putting Indiana in the thick of the venture capital game…not relegated to the sidelines, as was often the case in the past.

As the economy starts to recover, signs point to a much stronger environment for risk capital investment – this time around, Indiana will be in position to take full advantage of this upswing, to the benefit of building a more diverse, entrepreneurial economy.

December brings gifts for our economic growth

We haven't had many weeks, in good times or bad, like the week of Dec. 14, one that saw nearly $120 million invested in Indiana's future as a life sciences community.

The Indiana University School of Medicine's announcement on Dec. 15 was first: a monumental $60 million grant from Lilly Endowment to implement a new Indiana Physician Scientist Initiative. This wonderful grant has many features, but at its heart the funding will allow the medical school to recruit, retain and advance a highly promising pool of talent, including 20 physicians who are researchers and innovators as well as practitioners. These current and emerging leaders in fields such as cancer, neurological and mental illness and diabetes will be looked to for discoveries that can transform health care 0 Comments »

As we’ve reported in this space (here, here and here most recently), Indiana is making progress in building a more entrepreneurial economy, as measured by that most pragmatic of indicators – the amount of capital that private sector investors are willing to commit to the success of promising young companies.

The life sciences sector has led the way in this regard, and earlier this week our BioCrossroads initiative announced another major milestone in this journey towards a more diverse and dynamic ‘bio-economy:’ the creation of the $58 million INext Fund, the successor to the successful Indiana Future Fund announced six years ago as one of BioCrossroads’ first major initiatives.

INext, like the Future Fund, is supported by major institutional investors  - Eli Lilly, IU and Purdue, the Indiana State Teachers Retirement Fund, the University of Notre Dame and the Fairbanks Foundation – and will function as a ‘fund of funds.’  That is, INext will not invest directly in start-up firms, but rather in local and national venture capital firms that will in turn focus on Indiana opportunities.  This strategy lessens the risk to the Fund’s investors, and also attracts a broader pool of capital to Indiana. 

The Indiana Future Fund has been a rousing success, and support for the INext Fund shows the continued commitment among  the state’s corporate, public and university investors for continuing the strategy.  Here is the full press release on INext:

Indianapolis, Dec. 16, 2009 - Capitalizing on the continued strong growth of Indiana's life sciences industry and an active venture capital market, leaders from BioCrossroads, Eli Lilly and Company, Indiana State Teachers Retirement Fund, Indiana University, Purdue University, the University of Notre Dame, Richard M. Fairbanks Foundation, and Credit Suisse today announced the establishment of the INext Fund, a $58 million venture capital fund of funds.

Organized through BioCrossroads, Indiana's initiative to grow, expand and invest in the life sciences, and managed by the Credit Suisse Customized Fund Investment Group, the INext Fund includes investments from Lilly, the Indiana State Teachers Retirement Fund (TRF), IU, Purdue, Notre Dame, and the Fairbanks Foundation. This fund of funds is a capital pool that will invest in venture capital funds that are focused on the life sciences, thus encouraging and facilitating direct investment in Indiana life sciences opportunities.

"Six years ago, we launched the Indiana Future Fund to stimulate and grow Indiana's venture capital sector, and we've made incredible progress building a market where VC firms, both local and out of state, are investing in our promising life sciences companies," said David Johnson, president and CEO, BioCrossroads. "Launching a follow-on fund like the appropriately named INext Fund is proof of concept of BioCrossroads' mission, and evidence of the substantial market opportunities here in Indiana to put private equity to work. Capital formation is a huge problem for every region across the U.S., but Indiana's institutional investors have once again proven ready, willing and able to build and maintain strong funding sources for our entrepreneurial companies."

Lilly, one of the original participants in the Indiana Future Fund (IFF), has committed an investment in the INext Fund.

"The INext Fund will be a catalyst for the continued growth of Indiana's life sciences. Our investment in the fund is smart not only from Lilly's business perspective, but we also view it as a part of a collaborative effort to strengthen our community," said Bart Peterson, Senior Vice President of Corporate Affairs, Eli Lilly and Company. "Lilly's investment strategy is to find the best opportunities, and we look all over the world to find them. It just so happens that some of the best innovations are happening in our own backyard."

The Indiana Future Fund, a $73 million fund, has been the life blood of 14 Indiana life sciences companies, and continues to provide the foundation for Indiana's venture capital growth. The IFF has also been a trailblazer in securing additional capital from beyond Indiana for Indiana companies, helping to bring over $160 million to Indiana start-ups from venture capital firms across the country.

"Given the current challenges in the U.S. economy, building a return-driven fund of this magnitude is very impressive," said Phil Belt of Credit Suisse's Indianapolis office. "Indiana's life sciences industry is full of both promise and opportunity, and progress continues to be made. This state is now a life sciences leader and is on the map for venture capital firms from the east and west coasts and points in between."

Indiana has seen an increase in the number of entrepreneurial life sciences companies, both university-based and private start ups, since the formation of the IFF. One of the investments that the IFF firms made in 2006 was BioStorage Technologies, an Indianapolis based biomaterials storage and inventory management company. Since that time, BioStorage has tripled its workforce, announced a $6.1 million investment in a new facility in Indianapolis and will add another 125 employees by 2012.

"We brought this group of industry, university and community leaders together with a common goal -- to generate good returns on investment while doing good for our community," said Darren Carroll, vice president, Lilly New Ventures and chairman of the INext Advisory Committee. "This is how public-private partnerships work -- giving Indiana's life science companies the opportunity to compete and win in the global economy."

 "We continue to see promising innovations from our technology transfer offices more than 170 patents and 50 companies have come through the Purdue Research Foundation over the last six years," said Purdue University President France Córdova. "Having a vibrant venture capital community and bringing in new dollars from outside the state to help these companies grow is imperative. This funding builds the companies that will advance the life sciences and improve the health of Indiana's citizens."

Indiana University is tapping investments and private contributions to stimulate Indiana's economy. No tax or tuition dollars are involved. In early December, IU announced the formation of the $10 million Innovate Indiana Fund. "With incubators cropping up all over the state and breakthrough research coming out of our university labs, there continues to be great discoveries in our life sciences," said Indiana University President Michael McRobbie. "The INext Fund provides us with another way we can direct capital to talented and innovative companies and gives them another funding resource."

"By investing in INext, Notre Dame is supporting the advancement of the life-sciences industry in Indiana and throughout the nation, with the hope that this support will lead to new applications that will benefit the lives of many and also create successful businesses. It is a good investment from many perspectives," said Thomas Burish, Provost, University of Notre Dame.

Along with corporate and university investments, the INext Fund has received an investment commitment from Indiana's Teachers Retirement Fund as well as the Richard M. Fairbanks Foundation.

'Indiana's robust life sciences industry is one of the key drivers of our economy, and investing in INext is expected to deliver investment returns by capitalizing on that strength," said Steve Russo, Executive Director of the Indiana State Teachers Retirement Fund.

"The Richard M. Fairbanks Foundation is participating in the INext Fund both because we believe it is a good investment, but also because it is supportive of our goal of strengthening the economic vitality of our community," said Leonard J. Betley, president of the Richard M. Fairbanks Foundation.

About BioCrossroads
BioCrossroads (www.biocrossroads.com) is Indiana’s initiative to grow, advance and invest in the life sciences, a public-private collaboration that supports the region’s existing research and corporate strengths while encouraging new business development. BioCrossroads provides money and support to life sciences businesses, launches new life sciences enterprises (Indiana Health Information Exchange, Fairbanks Institute for Healthy Communities, BioCrossroadsLINX, and Datalys Center), expands collaboration and partnerships among Indiana's life science institutions, promotes science education and markets Indiana's life sciences industry.

BioCrossroads has collected nearly $80 million through its two investment vehicles, the Indiana Future Fund and Indiana Seed Fund, and is putting it to work in promising new companies.  Here’s an announcement on the Seed Fund’s latest investment, FAST, which has commercialized a new diagnostic technology for the testing and treatment of acute kidney injuries: 

Indianapolis, IN, Oct. 19, 2009 --  BioCrossroads’ Indiana Seed Fund has made a follow-on investment in FAST, a rapidly growing, Indiana-based life sciences start-up.  FAST is using patent-pending technology to develop a tool for healthcare professionals treating acute kidney injury, a condition afflicting some 3.5 million Americans.  The percentage of patients hospitalized for acute kidney injury has increased 500% in the last twelve years.

 “We are thankful for BioCrossroads’ support,” said Joe Muldoon, CEO of FAST.  “The lackluster capital market has proven to be a challenge.  We have remained capital efficient, advanced product development and initiated the FDA approval process – all of which have been key components of our additional investor support.  We are very excited about our upcoming pre-clinical trials this year.”

FAST has had other recent fundraising successes, including an announced commitment by the Purdue Research Foundation/Purdue University Emerging Innovations Fund to invest $200,000 and a $1.1 million grant from the National Institutes of Health.  The company has also received significant follow on funding from its original shareholders and angel investors.

The FAST investment is part of a positive trend for seed and early stage capital investment in Indiana, which doubled from 2007 to 2008 based on deals tracked by the National Venture Capital Association, and is on track to grow another 40% in 2009 based on data available to date.  I should note that another CICP initiative, TechPoint, is also helping drive entrepreneurial growth in Indiana through its HALO angel investor network – this group has invested more than $10 million in high-tech start-ups since 2008.

It’s no secret that U.S. students are falling behind their international peers when it comes to math and science.  The latest Program for International Student Assessment (PISA) test scores shows our students performing below average among other industrialized countries in both math and science – indeed, our average scores rank us 24^th out of 25 industrial (OECD) nations.

Today, the latest National Assessment of Educational Progress (NAEP) math scores show progress has stalled nationally and here in Indiana – another bad sign.

But here in Indiana, our BioCrossroads initiative is tackling the need to improve science, math and technology education through its I-STEM (Science, Technology, Engineering and Math) Network, a resource for K-12 teachers designed to raise the level of STEM education in Indiana.  I-STEM, which brings together higher education institutions with private and philanthropic partners, offers curriculum ideas, professional development opportunities and other resources for educators.

Today, the Lilly Endowment announced its continues support for I-STEM – valuable aid in the battle to boost student achievement in these critical disciplines.  More details:

Investing in the future: $2 million Lilly Endowment grant to CICP Foundation will support Indiana Science, Technology, Engineering and Mathematics (I-STEM) Resource Network I-STEM's services provide rigorous and quality professional development programs  --  more than 6,000 teachers and counting

INDIANAPOLIS, October 15, 2009- The Indiana Science, Technology, Engineering and Mathematics (I-STEM) Resource Network announced today that a $2 million grant from Lilly Endowment Inc. to the Central Indiana Corporate Partnership Foundation will support the I-STEM Resource Network. The initiative was established in 2007 and partially funded by a $3.4 million grant from the Endowment.

The Network is a statewide consortium of 18 Indiana higher education institutions dedicated to measurably improving K-12 student achievement in the STEM disciplines.  Over the last two years, the Network has focused on providing research-based professional development for current Indiana math teachers to help meet statewide academic standards. More than 6,000 teachers, who work with more than 150,000 K-12 students throughout Indiana, have participated in I-STEM professional development programs.

"Lilly Endowment is pleased to support the I-STEM Network, which impressively marshals the intellectual resources of Indiana colleges and universities," said Sara B. Cobb, the Endowment's vice president for education. "This unprecedented collaboration should significantly help

K-12 teachers enhance the impact of their teaching in these STEM disciplines so critical to our state's future," added Cobb.

 While programs are being developed across all STEM disciplines, the I-STEM Resource Network has focused on statewide programs in mathematics, including coursework for middle level mathematics teachers and the development of the Indiana Algebra Readiness Initiative, a series of conferences and workshops led by nationally-recognized experts, to help teachers prepare students for success in algebra.

Algebra is a "gateway" course  and a focus for the teacher training because it is a critical building block for the more advanced mathematics courses. Math educators agree that learning algebra is absolutely critical if a student has any aspirations for a career in the life sciences.

"More than ever, algebra teachers need a variety of resources to help all students in Indiana improve their algebra skills. The Network provides those resources," said Bill Reed, past president of the Indiana Council of Teachers of Mathematics and algebra and calculus teacher at Hamilton Southeastern High School in Fishers. "It is imperative for teachers to continue to improve their knowledge and methodologies for teaching algebra."

"By providing Indiana's current teachers with easy access to rigorous and quality professional development opportunities in the STEM disciplines, I-STEM has provided the foundation for strategic, systemic change in STEM education in Indiana," said Anne Shane, vice president of BioCrossroads and one of the founders of the Network. Improving achievement in science and math will maximize students' opportunities to succeed in the future life sciences workforce. To nurture and help build this life science sector  is one of BioCrossroads' key initiatives.

 "Research shows that the most important factor in accelerating student achievement is teacher quality. The I-STEM Network provides access to professional development that allows teachers to brush up on their subject matter expertise in math and science that they need to be more effective in the classroom," said Tony Bennett, Ph. D., Indiana superintendent of public instruction.  "The programs are also a powerful tool to develop our future workforce and to encourage students to enroll in the STEM disciplines in postsecondary education." The Indiana Department of Education has been instrumental in the development of I-STEM.

Besides providing professional development tied to Indiana's academic standards, STEM Resource Centers at each partnering institution in the Network have been providing grassroots education opportunities for teachers in their regions and throughout the state.

The Math Matters program in Southeastern Indiana is a joint project that Indiana University-Bloomington's School of Education and a team from the Lilly Endowment-funded initiative in the region, Economic Opportunities

2015 (EcO15),  have  instituted to bring project-based learning into math instruction.

K-6 Teacher Science Institutes have been held at St. Mary's College and Integrated Math-Science Workshops (MS2) for teachers in grades 5-9 were organized at Notre Dame. 

PRISM and the Homework Hotline at the Rose-Hulman Institute of Technology, both also funded by Lilly Endowment, continue to provide support to teachers and students looking for information on how to teach and learn STEM subjects.

"Teachers just don't have the time to search online for quality resources to aid in classroom instruction. PRISM has done the research for us," said Diedre Adams, a science and math teacher at West Vigo Middle School in Terre Haute who was a 2008 Albert Einstein Distinguished Educator Fellow at NASA.  "The lessons and information it provides are invaluable in helping STEM teachers supplement classroom materials, locate the latest research, and find new and fun ways to motivate students in science and math."

The Network is also involved in building a strategic plan for science education reform with the Indiana Department of Education.  The development of new professional development programs to be offered through the I-STEM Network for science teachers is in progress.

"In its short history, the I-STEM Network has made significant progress in providing Indiana's STEM teachers with new professional training opportunities, and this additional funding will build upon that foundation," said Bill Walker, executive director of the Network.

"Instructors bring new ideas and energy into these professional development classes. This is good for the teachers and their students."

Purdue University provides day-to-day management for the I-STEM Resource Network.  The participating institutions are: Ball State University, Indiana University Bloomington, Indiana University Purdue University Fort Wayne, Indiana University Purdue University Indianapolis, IU Southeast, Marian University, Northwest Indiana Consortium for Teacher Education (Valparaiso University, Purdue Calumet, IU Northwest, Purdue North Central and Calumet College at St. Joseph), Purdue West Lafayette, Rose-Hulman Institute of Technology, University of Indianapolis, NISMEC (University of Notre Dame, St. Mary's College  and IU South Bend) and the University of Southern Indiana.

We’re pleased to announce that Antonio Galindez, President & CEO of Dow AgroSciences, has joined the Board of Directors of our BioCrossroads life sciences initiative, after formally joining the Central Indiana Corporate Partnership board last month.  Galindez succeeds Jerome Peribere, who provided exemplary leadership in the life sciences sector and broader corporate community in Central Indiana during his tenure at Dow. 

We look forward to working with Antonio; here’s the press release from BioCrossroads:

INDIANAPOLIS, Ind., September 25, 2009 —  BioCrossroads announces that the organization added Dow AgroSciences President and CEO Antonio Galindez to its board of directors. 

“Dow AgroSciences is a vital member of Indiana’s life sciences community, and has always been an ardent supporter of BioCrossroads’ efforts and initiatives,”  says D. Craig Brater, MD, Dean of the Indiana University School of Medicine and Interim Chairman of the Board of BioCrossroads.  “Antonio’s experience and energy will be a great resource as we continue to advance Indiana’s reputation for national life sciences leadership.”

Warsaw, IN, September 23, 2009 – The future of Warsaw, Indiana, the orthopedics capital of the world, received a significant boost today: the single largest private foundation grant ever awarded in the region.

“Indiana is indeed fortunate to be home to this extraordinary cluster of orthopedic companies in the Warsaw community,” said N. Clay Robbins, president of the Endowment.  “We are pleased that a promising plan and framework have been developed, after many months of deliberation and good effort, to secure and enhance the region’s competitive appeal to the orthopedic industry now and in the future.

The OrthoWorx initiative was created out of a comprehensive Endowment-funded study conducted by BioCrossroads, Indiana’s public-private collaboration for investment, development and advancement of the state’s signature life sciences strengths.  Released Sept.10, the report, "Warsaw, Indiana: The Orthopedics Capital of the World  -- An overview, analysis and blueprint for future industry and community growth", explores the sector's current assets and challenges and sets forth a series of action-oriented recommendations designed to secure and advance the community's current position as home to nearly a third of the world's orthopedic device industry.

For example, within a talent and workforce development initiative, OrthoWorx will engage the Indiana Department of Workforce Development, Ivy Tech, Grace College and other higher education institutions, to help identify gaps in training and associate and baccalaureate degree programs. They will then work to develop new educational programs through state and federal grants and other sources of funding to fill such gaps. OrthoWorx also will explore ways to enrich and expand K-12 options in the region and develop further the research collaborations among orthopedic companies and Indiana’s research universities. It also will build relationships with the human resources, management and manufacturing departments of the various Warsaw-based orthopedics companies to ensure that companies can get the specifically trained workers they need.

“Much as BioCrossroads has become the supporting brand for Indiana's broad field of life sciences assets, OrthoWorx will become the voice that promotes the presence and potential of the Warsaw-based orthopedics industry and the community that supports it,” said David Johnson, president and CEO of BioCrossroads.  “As the epicenter of the orthopedics industry, Warsaw offers both a unique industry and a unique community. OrthoWorx will bridge the two to put the best strategic opportunities into action.”

“While many have contributed to the development of this plan, we are especially impressed by the leadership and dedication of the president of Grace College, Ron Manahan; the executive director of the Kosciusko County Community Foundation, Suzie Light; and the leaders of the orthopedic industry and BioCrossroads. Without their tireless efforts we would not be here today,” Robbins added.