Few people were surprised when James Thompson was among three stem-cell scientists to be awarded the 2008 Massry Prize, seemingly a precursor to winning the Nobel Prize. For about 10 years since Thompson’s work successfully isolated human embryonic stem cells, Wisconsin has seen its bio-tech sector flourish. Last year, Thompson, a scientist with UW-Madison and a Japanese scientist were the first to turn human skin cells into stem cells without using embryos. The two shared the Massry Prize with a scientist from the Massachusetts Institute of technology.

Today, even in a recession, there are signs, both political and economic, that the sector will continue growing, perhaps quickly and in a big way. Among the trends:

• A poll conducted in September by Wisconsin Stem Cell Now, a group of physicians, business people and those whose lives have been touched by disease, found that among Southeast Wisconsin residents, more than 87% said they believe stem cell science and technology has the potential to produce economic benefits and job growth in the state, demonstrating widespread public support. In fact, more than 86% of respondents believe Wisconsin could be a worldwide leader in stem cell technology.

• The most recent quarterly Wisconsin Biotechnology Index, released in October and measured by the Wisconsin Biotechnology & Medical Device Association and others, showed that nearly 75% of respondents believe overall prospects for his or her company are good. There was a 25% decline in the percentage of respondents who said the outlook is excellent. The main concern was the availability of capital.

• The advent and success of education programs tailored to the sector. UW-Madison is emerging as the leader in developing such programs. A sampling includes: The UW College of Engineering and Small Business Development Center (SBDC) have launched a biotech process-improvement program, working with NeoClone in Madison, Catalent in Middleton and Invitrogen in Milwaukee. While biotech companies are highly successful at the science side of their business, many lack the experience and skill set required to design an effective process that will take their discoveries from the lab to the marketplace. The College of Engineering and SBDC are seeking two additional companies to participate in the pilot program. A 5-year-old graduate program at UW-Madison is teaching technology commercialization and seeks to create well-rounded company leaders for the biotech sector. The university has also developed a course to help executives speed their products to market.

• Public funding is also increasing, enabling state companies to collaborate more and increase research and development efforts. Examples include: Last August, a team of researchers at UW-Madison was awarded an $8.9 million research grant from the National Institute of General Medical Sciences to study over five years the ability of stem cells to morph into all the cell types making up the human body. In October, Governor Doyle announced the Wisconsin Genomics Initiative, a collaboration between the Marshfield Clinic, Medical College of Wisconsin in Wauwatosa, UW-Madison School of Public Health and UW-Milwaukee to advance the field of personalized health care to proactively address disease.

• Wisconsin’s investor tax credits law took effect four years ago, has been cited as a national model in magazines and other media, has had improvements suggested by supporters. With 25% percent credits spread over two years, the Act 255 investor tax credits program has helped to nearly triple early stage investments by angel investors and venture capitalists in Wisconsin companies, according to the Wisconsin Innovation Network.

• The advent of the I-Q Corridor, the 400 miles that connect the Twin Cities on the northwest to Chicago in the southeast. Innovation, intellectual property, investment and, of course, interstate make up the “I” and quality of workforce, education and life in general form the “Q,” according to Tom Still, president of the Wisconsin Technology Council.

To round all this out, add in nationwide health care reform, less regulation and increased national funding of stem cell research, “big pharma’s” quest to join the biotech revolution and consolidation in the biotech sector as a result of more companies chasing fewer dollars, and 2009 could be a banner year for Wisconsin’s biotech companies.

By Bob Warde