02/22/2008: "New Medical School Could Benefit All Texans"
The past decade has seen enormous expansion in many industries that were virtually nonexistent before that time. Biosciences and biotechnology are expected to be key economic drivers in the decades to come, and exponential growth is anticipated in life sciences industries which are only now beginning to emerge.
If Texas were able to gain a leading role in these rapidly expanding fields, there is every reason to believe the state could develop into a much more notable site for the biosciences. A medical school is an important component of this development. Recognizing that Texas has a unique window of opportunity and taking advantage of it to establish a position at the forefront of these industries could help ensure the future prosperity of the state.
Currently, the biotechnology industry is concentrated within nine of the nation’s 51 largest metropolitan areas, none of which are in Texas. These regions account for 75% of the nation’s largest biotechnology firms. A major reason for this success is that these urban centers fulfill two essential requirements for industry growth: strong research capacity and the ability to convert research into successful commercial activity. The availability of pre-commercial medical research has also been cited as an important factor.
The Lone Star State has identified the biosciences cluster as one of its key targets for future economic development. Significant success in this area requires the creation and development of an outstanding group of medical schools and research facilities as they can dramatically alter economies.
Research-intensive medical schools tend to generate a sizable number of discoveries with significant commercial potential. In areas ranging from genomics to nanotechnology, new discoveries can rapidly develop into spin-off companies, which is many cases can become quite large in a relatively short period of time. Moreover, spin-off activity can arise in virtually any industry.
Unfortunately, Texas currently lags behind many other regions in the volume of major external research funding, as well as the presence of biomedical industries, especially those with outstanding medical schools and university collaborations. A more focused research and clinical program could enhance the state’s competitive position in this sector which exhibits virtually unlimited growth potential. The industry is also a key element of the convergence of various technologies that is expected in the future.
Medical schools are important research resources for not only their faculties, but also for other sciences both in the public and private sector. Expansions in health-related sectors tend to be concentrated in areas with high quality educational institutions. Given likely future patterns in health-related technology and demographics, this phenomenon will likely become even more pronounced.
Most of the top schools of medicine in the US are located proximate to large universities. According to the Association of University Technology Managers, research expenditures generated from universities with nearby medical schools are significantly higher than those of universities without medical schools. In a nationwide study, the Association of American Medical Colleges ranked Texas fifth among all states in the economic impact generated by its members, despite the fact that Texas is the second most populous state.
The development of a new medical teaching facility in Texas in conjunction with a top-tier research university could bring substantial gains in business activity through its operations, student spending, and so on. It could also foster research in a broad spectrum of areas associated with health care. Furthermore, such an operation could contribute to the development of related industries such as the life sciences cluster and other sectors involving nanotechnology applications.
One excellent opportunity lies in locating a medical school in Austin in conjunction with The University of Texas. Chief among the advantages of this strategy is the wealth of knowledge and research capacity at the University of Texas at Austin and the presence of several large and well-respected hospitals with myriad areas of expertise in the Austin area.
The University of Texas currently has over 100 research units, many of which are cutting-edge science research programs. Initiatives already in place at the hospital facilities, as well as the thousands of knowledgeable staff, will further enhance the potential of a new medical school.
Austin is also a significant center for electronics, software, and several other technology sectors, as well as notable private research entities. Many local firms and other enterprises are engaged in activities that have enormous potential for commercialization in conjunction with future health-related advances and applications. The convergence of various disciplines will only escalate these prospects.
The joint presence of the excellent scientific research programs at the University of Texas at Austin with a major medical school would greatly expand competitiveness in this arena. The strong base of technology-oriented companies adds yet another potential source of synergies.
According to a recent study by my firm, ongoing operations of a major medical school in Austin would generate some $2.38 billion in yearly spending in the regional economy ($2.92 billion in the state) and 19,307 jobs (21,484 in the state). Economic development effects stand to be much higher if such a facility helps Texas achieve a market presence in the biosciences similar to that of other states with outstanding medical school and university collaborations. Moreover, enhanced health care outcomes may reasonably be expected to generate more than $11 billion annually in net social benefits.
A University of Texas Medical School in Austin could be a central factor in positioning the state more prominently as a competitor for the biosciences cluster and improving the health and well-being of all Texans.