Michigan’s developing stem cell industry is primed to grow and is expected to attract startup companies along with high-paying jobs in the research and medical fields over the next few years.
The industry has been building slowly since Michigan voters in November 2008 approved an amendment to the state constitution to allow for embryonic stem research. Much of the industry is centered at the state’s premier universities, but a handful of private entities also have emerged.
Economic officials are hopeful the three-day World Stem Cell Summit, which starts today in Detroit, will spark more interest in Michigan. Some 1,200 scientists, industry leaders and advocates from around the world are attending.
While commercializing stem cell research is in its infancy in Michigan, experts and economic officials say the constitutional protection of embryonic stem research, the return of federal funding, and incentives to help startups should help the industry grow here.
“Michigan has set itself up really nicely to really take advantage of this industry,” said Michael Hagen, business development manager, biosciences, for the Michigan Economic Development Corp.
“We’re really poised to take advantage of this economically as a state.”
Stem cells are those which — unlike, say, a heart cell or brain cell — are undistinguished and may be induced scientifically to grow as needed for medical therapies, such as replacing a diseased organ or for testing the effect of drugs.
Other states, such as Maryland and California, have seen economic growth in the stem cell industry and regenerative medicine in recent years, after their voters approved funding for research.
The U.S. Department of Health and Human Services estimates that the market for regenerative medicine — in which living tissues are used to repair or replace tissue or organs and can include stem cells — could reach $500 billion by 2020. Michigan hopes to capture a significant piece of that.
“If Michigan can place itself well here now, it could be a huge business in the future,” said James Eliason, executive director of the newly opened Great Lakes Stem Cell Commercialization Center at WSU’s TechTown in Detroit. The center serves as an incubator for stem cell companies.
Numbers on how many are employed in the field are hard to come by, according to state officials and experts. Michigan’s stem cell industry now is centered at the state’s large universities, mainly the University of Michigan, Wayne State University and Michigan State University.
At U-M, for example, there are more than 30 labs involved in stem cell research, involving more than 100 staff and faculty members, a U-M representative said. On Sunday, the university announced that it has developed Michigan’s first human embryonic stem cell line from a donated embryo.
Stephen Rapundalo, president and CEO of MichBio, estimated there are four private stem cell companies in Michigan, and they employ up to 60 Michigan workers.
At TechTown business incubator and research park, MitoStem and ApoLife have entered the field. ApoLife produces human proteins in yeast, a less costly way to produce proteins needed for stem cell research. MitoStem develops technologies to help with stem cell research and regenerative medicine.
The latter received a federal grant and is expanding, said Eliason, who is president and CEO of MitoStem.
The center too, has piqued the interest of several Israeli-based companies that are interested in locating there, he added.
Growth in the industry likely will occur through such incubators at and around the state’s universities. “Certainly it’s possible something could emerge in Kalamazoo or even in Oakland County,” said Rapundalo.
Wayne County, meanwhile, is using $1.5 million to create a stem cell lab in Plymouth called the Michigan Center for Regenerative Medicine.
The state has been trying to boost and attract life sciences-related companies as it diversifies its economy. There are more than 550 bioscience firms in Michigan and more than 50,000 life sciences industry workers, earning an average salary of about $70,000.
In 2009, U-M, MSU and Wayne State brought in about $1.6 billion in research and development funds, with more than $1 billion of that in life sciences.
“I would think given the amount of research expenditure that’s been taking place … that you would expect over time we’ll see more companies being started and more people being employed within this space,” said Jeff Mason, executive director of Michigan’s University Research Corridor.
The Detroit News