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Panel Suggests Incentives to Lure Life-Sciences Industry

Posted on: Friday, 12 August 2005, 21:01 CDT

Aug. 12--FRANKFORT - Kentucky should create an array of incentive programs to help lure the high-paying jobs offered by biotechnology and life-science companies, according to a report issued yesterday to Gov. Ernie Fletcher.

A committee of business and academic leaders hand-picked by the governor recommended that Kentucky use tax incentives, low-interest loans and grants to woo a cluster of companies focused on creating medical devices, health technology services, niche pharmaceuticals and natural products.

If approved by the Governor and funded by the state legislature, the initiative could cost more than $200 million.

At present, the state is about a decade behind other places that have successfully grown and attracted clusters of high-tech companies, Fletcher said in a press conference yesterday announcing the recommendations.

"Kentucky has the opportunity to become a world leader in specific niches of the life-sciences industry," Fletcher said. "The potential growth of the industry is staggering."

The Commonwealth ranks 48th among states in the Milken Institute's 2004 State Technology and Science Index.

Kentucky's per capita income, which the report calls a "true measure of wealth and prosperity," has remained largely unchanged in the state for more than three decades, ranking 42nd among states in 2004.

Specifically, the report calls for the state to create a tax-credit program that would guarantee a 3 percent return to those who invest in life sciences and biotechnology companies -- even if the companies fail to make a profit. That program could cost up to $116 million over four years.

Other proposals include a $100 million low-interest loan fund for life-science companies, $750,00 a year for a program to help commercialize technology created within the state, and $200,000 for a study of the state's existing ability to create, nurture and lure science-based businesses.

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Copyright (c) 2005, The Lexington Herald-Leader, Ky.

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Source: Lexington Herald-Leader (Lexington, Ky.)

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