VITAL STATISTICS

Success by degrees

SEACOAST VENTURES: How has biotechnology emerged as an economic factor or powerhouse in the Northeast?

PETER FRANCESE: It’s because of our high levels of educational attainment and presence of so many major universities. Seven of the top 10 states in terms of percent of adults with advanced degrees are Northeastern states: Massachusetts, Connecticut, New York, New Jersey, Vermont, New Hampshire, Rhode Island. Massachusetts ranks first and New Hampshire ranks ninth in the nation in that key measure of high-tech skills.

SV: With other states offering various financial incentives for biotechnology companies — some offer in the millions and billions of dollars — does New Hampshire have to target the industry with some new initiative?

FRANCESE: It certainly does. States in the South and West offer both a warmer climate and a warmer welcome to recent graduates with advanced degrees. We must offer tax incentives (such as R & D tax credits) to the start-up firms as well as affordable work-force housing for their young professional workers. If we do neither we will lose out in this vital sector.

SV: Is a strong technology sector one of the unsung heroes in securing and retaining a skilled work force in New Hampshire?

FRANCESE: It has been in the past, but I am very concerned that with the high out-migration of young adults we are losing our advantage in that regard. Any skilled work force must be constantly refreshed with newly minted PhDs and other young people who have the most cutting-edge technical skills. But it is becoming clear that most New England towns do not welcome such young people because they are perceived as high-cost residents.

SV: Why New Hampshire or Maine? What is it about the states’ business and regulatory climates that attract prominent biotechnology and medical technology companies, especially considering Greater Boston is only about an hour away?

FRANCESE: In the case of New Hampshire, it’s low tax structure and consequently lower cost of office space. Maine does not have as low a tax structure, but the cost of both housing and office space are significantly lower than in southern New England. The better quality of life in both Maine and New Hampshire is also a factor to be considered.

SV: What does a healthy biotechnology or technology sector mean for the economy at large? There are more than 50 biotechnology companies, some with thousands of employees, in each state. Will the sector, by its sheer size and diversification, be able to weather economic ups and downs?

FRANCESE: It probably will not be any more insulated from economic cycles than any other high-tech industry. Its rapid growth, however, will provide many very good jobs to workers who have the required skills. But the most important point is that this industry holds the promise of major breakthroughs in health care and chronic disease mitigation, which is of critical importance considering how fast our population is aging. This promise of biotechnology is hugely significant to us since Maine and Vermont are the two oldest states in the nation and New Hampshire is the sixth oldest (in terms of the age of the population).