A Novel Proposal to Reinvigorate the Economically-Troubled Life Sciences Industry
In the February issue of Genetic Engineering and Biotechnology News, J. Leslie Glick a former CEO of Genex and veteran of the biotechnology industry put forward a novel solution to financial crisis that is currently gripping the life sciences industry and the rest of the US economy. Dr. Glick proposed that the US government ought to consider injecting taxpayer monies into venture capital firms (VC) which, he believes, would foster creation of new companies, create more jobs, stimulate the ailing economy and also provide the government with an outstanding return on its investment.
According to Dr. Glick, “historical results reported by the National Venture Capital Association for the 20 year period ending December 31, 2007, show an annualized return of 16.7% to investors in some 1,860 U.S. venture capital and private equity partnerships. If the U.S. government had made annual investments of $10 billion in VC firms throughout the U.S. during that 20year period, the $200 billion total investment would have yielded a total return of almost $1.5 trillion.” Further, he asserts that according to the International Trade Administration of the Department of Commerce, from 1970 to 2000, U.S. VC firms invested over $270 billion in more than 16,000 companies. In 2000, the surviving VC-backed companies employed 7.6 million people, representing 5.9% of all U.S. jobs, and generated sales of $1.3 trillion, accounting for 13.1% of the U.S. GDP.
This financial upside sound enticing but who is going to keep track of the money and keep an eye on how and what the VCs are investing in? Dr. Glick proposes creation of a non-partisan funding mechanism, possibly overseen by an independent panel of business people that would disburse $10 to $25 billion annually of taxpayer’s dollars to vetted and certified VC firms. Because of its investment, the US government would become a limited partner in these firms and could direct them to invest in technologies that would help to reduce health care costs, develop energy alternatives or improve food production capacity. While this proposal is unprecedented and controversial, we are living in extremely uncertain financial times that may necessitate innovative and out-of-the-box solutions to restore normalcy to the US economy. That said, all proposals—no mater how unconventional or outrageous—ought to be carefully evaluated and vetted to determine whether or not they have merit to help overcome our deepening recession.
Kudos to Dr. Glick!
Until next time,
Good Luck and Good Investing!!!!!!
Pertaining to Dr. Glick and out-of -the-box solutions . .
Since we're also talking about being more creative during this economic slump, why not think outside the box of looking for another job in the first place? (This from a guy who has been working from home since March of 1996).
I'm rather amazed that there are plenty of skill sets that are for whatever reason not "conventional" enough to be taught in schools, but the mastery of which would lead to more autonomy.
Most of us are trained to be employees- nothing wrong with that, but I'm convinced that thinking that way is a kind of tunnel vision that keeps many from learning skills that would allow them to carve out there own path to income.
One of them is as close as the computer in front of most of us. For the first time in history, we are 3 feet in front of the world, yet few learn how to use it in a way to render 1) value to others and 2)income for themselves.
Once someone learns how to market a product on it, can even make (no kidding) income.
leavethejobbehind.com