Infatuation with the economic power of new knowledge can be a dangerous thing.

bizjournals notes that states and cities are salivating to attract biotch, on the theory that it is "next big thing." But one economist points out:

Unlike information technology, for example, biotech advances "are not systematically cheaper than the things they replace," he says. New drugs, for example, tend to be expensive. Biotech also won't produce economywide productivity improvements like computers have.

In addition, . . . controversies over stem cell research, therapeutic cloning and bioengineered foods could hamper biotech just like environmental concerns stymied nuclear power.

The article continues:

As of last year, there were only 1,444 biotech companies in the United States, according to Ernst & Young. These companies employed just 200,000 people. The 330 publicly traded biotech companies in America lost a net $4.3 billion last year. The number of profitable biotech companies can be counted "on a partially severed hand," says [Rob DeRocker, executive vice president of Development Counsellors International].

Link from Infectious Greed.

posted by James DeLong @ 2:19 PM | Biotech

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