A PROMISING SECTOR IN A PROMISING STATE
The Netherlands Business Support Office (NBSO) -Texas provides assistance to Dutch companies interested in establishing or expanding their presence in the United States market. The NBSO acts as a liaison for such Dutch companies as it actively identifies and pursues opportunities to forge partnerships with Texas businesses. Additionally, the NBSO offers its clientele information on critical business legal issues and remains constantly aligned with the latest US business trends and models. This report aims to attract Dutch entrepreneurs, investors, expanding businesses and research facilities to look deeper into Texas Life Sciences opportunities.
Governor Rick Perry proclaimed Life Sciences to be one of six major industry clusters for Texas in 2004. The sector has since grown significantly and made a major leap toward becoming a leader in research and development worldwide. The traditionally welcoming climate for business, investment, education and R&D has fueled a strong and innovative Life Sciences sector. State government and various regional agencies make big efforts to combine policy, academic research and commercial success to have a positive impact on the sector, reaching far beyond the Texas borders and into the rest of the world.
NBSO-Texas has selected the Life Sciences cluster as one of the most promising for internationalizing companies who wish to expand into the state. This report aims to identify opportunities for Dutch exporters, investors and research facilities to gain a grasp of what is currently going on in the sector beyond US regions like Massachusetts, the Carolina triangle and California.
Attributes of the Business Environment
According to CNBC’s 2012 rankings, Texas is the number one state for business. Houston is ranked the second U.S. city for global trade and Austin within the top five cities for Start-Ups. With no state corporate income tax and no state individual income tax, it has one of the lowest tax burdens in the country. The overall cost of living in metro areas falls 15% to 20% below the national average. According to the U.S. Census, Texas has the most favorable business climate in the country. Texas leads the U.S. in exports at 192.2 billion in 2008 and is the second largest economy in the U.S.
Over the last 10 years, Texas has introduced a series of targeted initiatives to earmark resources to support innovation sectors including Life Sciences to attract R&D and new businesses. As part of this effort, the Texas Legislature created the Emerging Technology Fund (ETF) in 2005 to provide Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies. Grants are awarded in three areas: Commercialization Awards: funds to help companies take ideas from concept to development to ready for the marketplace. Matching Awards: funds create public-private partnerships that leverage the unique strengths of universities, federal government grant programs, and industry. Research Superiority Acquisition: funds for Texas higher education institutions to recruit the best research talent in the world.
In total, there have been $859.14 Million in ETF investments in Biotechnology and Life Sciences Projects in the state since 2005, and an average of $4 of private sector investment in ETF companies for every dollar awarded through the program. These awards are available to foreign entities that set up Texas ventures and demonstrate long-term commitment in the state and at least one major award has been given to an international partnership that targeted, competed, and won the selection process to conduct R&D and commercialization activities in the state.