Fueling technology, and the economy

Sunday, December 26, 2004
What do you do with an engine that helps power the region's and state's economy?

You stoke it with as much fuel as you possibly can pump into it.

The fuel, in this case, is money. Birmingham is doing a great job among Southern cities of gathering fuel from the National Institutes of Health to power its research-based economy, according to a new Birmingham Regional Chamber of Commerce report. Researchers in Birmingham raked in nearly $280 million in NIH grants last year, trailing only Durham and Chapel Hill in North Carolina. Nashville and Atlanta rounded out the top five. Nationally, Birmingham ranked 18th.

The lion's share of Birmingham's $280 million - $248.9 million - went to UAB, which ranked third among Southeastern medical schools and 20th in the country in 2003. Southern Research Institute garnered most of the rest of the NIH money, $27.2 million, ranking it second in the Southeast and 17th in the country among research institutes. In UAB's case, the money funds studies in medicine, biotechnology and biomedical devices, while SRI spends its money on biodefense and infectious diseases. That money translates into thousands of good-paying jobs, higher local and state tax collections and more spending in the local economy.

"This economic engine will only get bigger as it continues to prosper in the area," said Michael Shattuck, the chamber's director of research. "But it's a hidden jewel that needs nourishment in order to flourish above the Raleigh-Durham region."

To help bolster this kind of research in Alabama, Gov. Bob Riley is getting ready to pony up lots of state money (a reported $50 million) for a new biotechnology research facility - in Huntsville.

Understandably, Huntsville officials are elated; Birmingham officials are wondering why in the world Riley would use state money to fund a project that would compete with Birmingham's biotechnology.

U.S. Sen. Richard Shelby was approached about steering federal dollars to the Huntsville project, but instead urged cooperation between the Huntsville group and UAB.

As scarce as state dollars are and as well-positioned as Birmingham already is in biotechnology, it's hard to argue with Shelby's stance.

UAB has announced an ambitious goal of cracking the NIH's top 10 list by 2010. SRI's NIH funding grew 134 percent from 2002 to 2003. Birmingham is home to promising biotechnology companies such as TransMolecular and BioCryst Pharmaceuticals.

Birmingham's biotechnology engine is running well and, with more fuel, will continue to pick up speed. So why use precious state government fuel to help build an engine anywhere else?


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