TESTIMONY
by Kathryn Wylde President and C.E.O.,
Partnership for New York City
PARTNERSHIP FOR NEW YORK CITY and the NEW YORK INVESTMENT FUND

New York, New York
November 2, 2005

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New York City Health and Hospitals Corporation Public Hearing on the East River Science Park

Thank you for the opportunity to testify in support of the development of the East River Science Park (ERSP) on the Bellevue Campus. This project is designed to be the catalyst for significant growth of the commercial bioscience industry across New York City, generating thousands of new jobs and substantial investment in the local economy, while simultaneously helping to sustain the quality and vitality of the city’s health care industry. Through its history, Bellevue has consistently been a force for innovation, a center of excellence in medical care and a magnet for bringing top talent to this city. The East River Science Park will continue that tradition.

On behalf of the business community, the Partnership for New York City and the New York City Investment Fund have worked with public officials over the past five years to advance New York’s status as a world class center for the bioscience industry. New York has tremendous health care assets, including 25 academic medical research institutions, more than 70 hospitals and over 40,000 physicians. But we lag far behind cities like Boston, San Francisco, and San Diego, when it comes to attracting business and jobs in the life sciences sector.

Dozens of companies are created on the basis of research that is done in New York. In the 1990’s, our institutions created more biotechnology-related patents than any other metropolitan area in the nation (6,800 versus 3,991 in San Francisco and 3,007 in Boston). But companies formed on the basis of this research typically do not stay here. A primary reason has been a lack of laboratory and office space. The city has only two business incubators for biotech companies – one in Washington Heights and another in Brooklyn -- and both are currently full. When companies are successful and outgrow these incubators, they cannot find appropriate facilities in the city to move into. Providing space for companies that are born in New York but end up leaving when they become successful is one purpose of the East River Science Park.

Alexandria Real Estate Equities, the developer selected to build the city’s first science park, has the credentials required to produce a first class facility. Their development plan calls for the creation of state-of-the art laboratory buildings in a campus environment that is fully integrated with Bellevue Hospital. Their investment will compliment Bellevue’s recent modernization program, in particular the new ambulatory care pavilion.

The talent and attention attracted to the science park will enhance the mission and visibility of Bellevue and the city’s Health and Hospitals Corporation in the international business and investment community and generate increased recognition for the role our public institutions play in health care, research and in the economy. Some of the benefits for the City, its health care institutions and its patients that will come from the East River Science Park are the following:

• The ability to recruit top talent - The presence of a strong commercial sector will assist the city’s academic medical institutions and hospitals to attract and recruit top talent. Because of proximity, this is likely to be of particular benefit to Bellevue.
• Retention of talent – On average, approximately 30 bioscience companies are created at New York City institutions each year, but very few of these remain in the city. Very often, companies that leave will take scientists and clinicians with them. Therefore, the city suffers two losses—the commercial company and the source of the underlying intellectual capital, the scientist/clinician.
• Expanded job opportunities – Companies at the East River Science Park will be hiring employees with a wide range of skills—from managerial and financial to research and clinical to lab technicians. These new companies will provide new jobs for graduates of the city’s medical schools, as well as science-focused graduate and undergraduate programs.
• Opportunities for collaboration – Commercial bioscience companies at all stages include research collaborations with the academic and clinical world as part of their business model. Having a cluster of local companies will increase the opportunities for New York scientists and clinicians to establish research collaborations, to take on consulting assignments and to participate more fully in cutting edge development of the next generation of cures.
• A growing entrepreneurial sector - The developer’s plan for East River Science Park includes a number of resources and services that are particularly focused on early stage companies. As a result, it may encourage more of the scientists and clinicians to think about and start commercial ventures, which could accelerate the development of novel therapeutics and drugs that improve patient outcomes and increase the quality of healthcare.

The Partnership’s confidence in this project is demonstrated by the commitment of $10 million from our New York City Investment Fund to support its development. In addition to funding, we have organized a consortium of leading medical school deans, research professionals, venture capitalists and other investors to support the planning and marketing of the Science Park and to help companies that commit to become its tenants.

New York City is ripe for a major expansion of our bioscience sector. Our academic research centers and health care institutions make us both a prime host and a major beneficiary of this emerging industry. Similarly, HHC is well positioned to contribute to and benefit from playing a leading role in this industry’s local expansion. Through its five year, $1.3 billion initiative to improve public hospitals and equip them with state-of-the-art technology, HHC has demonstrated a commitment to remain at the forefront in providing quality health care. By committing a portion of the Bellevue Hospital campus to the East River Science Park, HHC will play a critical role in jumpstarting the development of a commercial bioscience sector in the city. New York’s business community thanks you for your support of this project and is prepared to work with you to insure its success.