How Maryland plans to become MARYLANDmsa.maryland.gov/megafile/msa/speccol/sc5300/sc5339/... ·...

Issue Eleven ● 2004Putting Maryland on thenation’s bioscience map

Governor promotestourism in new ads

Department’s CapitalRegion supports biotechgrowth

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MARYLANDB U S I N E S S R E V I E W

Robert L. Ehrlich, Jr.Governor

Michael S. SteeleLieutenant Governor

Aris MelissaratosSecretary

A r e g u l a r p u b l i c a t i o n o f t h e M a r y l a n d D e p a r t m e n t o f B u s i n e s s a n d E c o n o m i c D e v e l o p m e n t

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How Maryland plans to becomethe biotech capital of the world.

MMaarryyllaanndd BBuussiinneessss RReevviieeww

Robert L. Ehrlich, Jr.Governor

Michael S. SteeleLt. Governor

Aris MelissaratosSecretary

Communications Office

Dyer BellExecutive Director of PublicAffairs

Andrea HarrisonPublic Affairs Coordinator

James R. MoodyDirector, BusinessCommunications

Karen GlennDirector, Public Relations

Production

James R. MoodyPublisher

CCoonnttrriibbuuttiinngg WWrriitteerrss

Edward Blakely, Fronda Cohen,Karen Glenn, Andrea Harrison,James Moody, Cynthia Schuster,Dean Storm and Toni Talbott.

OOnn tthhee CCoovveerr: A technician involvedin research at Baxter HealthcareCorporation in Columbia, Maryland.

(photo: Ed Whitman, LightstruckStudio)

The Maryland Business Review is publishedthree times a year by the MarylandDepartment of Business and EconomicDevelopment, 217 East Redwood Street,Baltimore, Maryland 21202.

Phone 1-888-ChooseMD or visitwww.ChooseMaryland.org.

This document is available in alternative for-mat upon request at 1-888-ChooseMD,TTY 1-800-735-2258.

The Governor’s Office of Business

Advocacy and Small Business

Assistance—GOBA—is an important part

of the state’s plan to ensure

that small and minority

companies thrive in

Maryland. For more

information about how

the state can assist

your business, contact

the GOBA team at

410-767-0545.

An Invitation to Smalland Minority Businesses

BY ROBERT L. EHRLICH, JR.GOVERNOR

One of my major goals when run-ning for Governor was to helpMaryland businesses grow and to

create jobs. Now that I am governor, weare well on our way to making that prom-ise a reality. Specifically, I have a budgetthat includes $54.6 million in operatingand capital funding for business develop-ment programs in the Department ofBusiness and Economic Development(DBED). These programs are focused onassisting small and minority businessesand in promoting technology-based busi-nesses.

The technology sector offers a huge eco-nomic potential for our state for both thenear and long term. Maryland tops thenation in research and developmentspending. We rank third nationally in thenumber of biotech companies, and theWashington-Baltimore metropolitanregion ranks second overall in the UnitedStates in terms of IT professionals certifiedin cyber defense technologies.

Soon after becoming Governor Iappointed a commission, chaired byGeorge Pappas of a prestigious Baltimorelaw firm, to help chart a framework forrevitalizing the state’s high-tech economy.The commission recently released itsreport recommending a mix of tax incen-tives, state aid and investment of state pen-

sion dollars to spur high-techbusiness development.

I intend to pursue the rec-ommendations of the PappasCommission. The good newsis that many of the elementsthat will lead to the success ofthe commission’s suggestionsare underway.

RReessoouurrcceess: Our workforce isabout the best you will findanywhere. A recent surveyreleased by the U.S. CensusBureau finds that Marylandranks first among the states in the percent-age of professional and technical workersin the workforce. And 37.2 percent ofMaryland's population age 25 and abovehave completed a bachelor's degree orhigher. Our unique concentration of labo-ratories, research facilities and institutionsof higher learning gives Maryland access tothe intellectual power of more than 200major research labs.

PPaarrttnneerrsshhiippss:: One of the best ways toachieve our goals is to form partnerships,particularly between the private and publicsectors. Maryland’s university system,along with other institutions of higherlearning, routinely join with regional tech-nology councils, federal labs and theMaryland Technology DevelopmentCorporation (TEDCO) to attain certaingoals.

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Maryland Department of Business and Economic Development

Governor’s Column

Putting Maryland on the nation’sbioscience map

TTeecchhnnoollooggyy TTrraannssffeerr: One major factor inMaryland’s success in the technology area isour ability to transfer technology from thelab to private business. Many potentiallysuccessful businesses begin in one of ourincubator systems which help take businesses

and productsfrom the ideaand testing phaseto the next levelof entrepreneur-ship.

IInnvveessttiinngg iinnTTeecchhnnoollooggyy: Theold adage that ittakes money tomake money istrue. That is whyMaryland is

investing collaborative research with univer-sities, the federal government and commer-cials partners. We have invested $10 million

to develop research centers at the Universityof Maryland, Baltimore and the University ofMaryland. Another $50 million has beenapproved for the expansion of the Universityof Maryland Biotechnology Institute’s state-of-the-art science laboratories to help bringto market leading edge technologies.

NNeeww LLeeaaddeerrsshhiipp//NNeeww IIddeeaass: Maryland’sDepartment of Business and EconomicDevelopment is under new leadership with astrong business and technology background.Aris Melissaratos is heading the effort with40 years of solid business experience and anational reputation as a visionary and moti-vational leader. DBED has been reorganizedto meet the new challenges with a team ofprofessionals dedicated to creating jobs andimproving Maryland’s economy.

BBoottttoomm lliinnee: Maryland is open for business.We have the workforce, the facilities and thefunding to be the technology capital of thenation.

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Maryland Business Review

One major factor in Maryland’ssuccess in the technology area isour ability to transfer technologyfrom the lab to private business.

Many potentially successfulbusinesses begin in one of our

incubator systems which help takebusinesses and products from theidea and testing phase to the next

level of entrepreneurship.

The Maryland Business Review goes electronic!

This issue marks the last Maryland Business Review that willappear in print format. Beginning in October, look for a newWeb-based version to arrive in your in box. Loyal readers willstill be able to trust the in-depth coverage of Marylandeconomic development issues they’ve come to expect from theMBR, but with much greater frequency. To subscribe, log ontoChooseMaryland.org and visit the press room page.

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Maryland Profile

BY DEAN STORM

Amid the light buzz and hum ofmachinery, employees sit upon foldedchairs in the heart of the venerable

Hedwin factory, waiting to hear presenta-tions about the future of their company.

Many have worked here for decades sincethe plastics manufacturer moved to its cur-rent location on the outskirts of Hamden in1951. In the audience is an even mix of justabout every demographic imaginable: black,white and latino; young and old; men andwomen; employees dressed in overalls andbusiness suits.

Today the factory is filled with opti-mism; but only a few weeks earlier, themood had been one of uncertainty andanxiety. Hedwin’s parent company, SolvayS.A. of Belgium, was on the verge of sell-ing the firm and there were real concernsthat the new owners would eliminate jobsand benefits, or even worse, move thecompany out of the state or country.

In a last-ditch effort to save employeejobs and pensions, company officialsattempted to buy the plant with an $8.2million machinery and equipment loanthrough an Employee Stock OwnershipPlan (ESOP). But the purchase price ofthe company exceeded what the bankcould give Hedwin.

Enter the Ehrlich administration andthe State of Maryland. Through theMaryland Industrial DevelopmentFinancing Authority (MIDFA) program,

the state was able to guarantee an additional$2.5 million for the loan, clos-ing the deal on Jan. 30 andsaving 300 Baltimore citymanufacturing jobs.

“We are delighted that wewere able to assist the new owners, theemployees of Hedwin Corporation, in theirpurchase of this company,” said GovernorRobert L. Ehrlich, Jr. “Hedwin has a long his-tory in Baltimore and we know that, with thefinancial commitment we are making, thecompany will have the opportunity to growand continue providing good manufacturingjobs for the community.”

Hedwin to keep more than 300 local jobs

Gov. Ehrlich addresses the employees and guests of Hedwin Corporationfollowing the announcement of the new ESOP plan that will save 300 jobs.

Hedwin Corporation is a recognized leaderin the design and manufacturing of plasticcontainers, liner products for pails and

drums, along with a host ofcustom plastic partsdesigned and produced byHedwin to meet the unique

requirements of customers from a wide arrayof industries. Hedwin’s Cubitainer® line wasthe first commercially available collapsibleplastic container and as a result they contin-ue to protect the proprietary nature of theCubitainer® technology and processes.

“Maryland’s manufacturing industry is astrategic industry sector for the state,” saidLt. Governor Michael S. Steele. “By support-ing this project we are ensuring that a valuedcompany stays in Baltimore City and contin-

ues to provide good paying jobs to the com-munity. We congratulate Hedwin’s employ-ees for their bold step in continuing the tra-dition of excellence and innovation that hasbeen this company’s hallmark.”

Hedwin Corporation was founded by TomWinstead, a local Baltimore inventor, in 1946and moved to its current location on RolandHeights Avenue in 1951. In 1958, the compa-ny was purchased by Solvay S.A., a Belgiancompany that is a global leader in chemicals,plastics, and pharmaceuticals. HedwinCorporation, which has manufacturing facil-ities in Baltimore and LaPorte, Indiana, alsomaintains two warehousing and assemblyoperations in Carson, California, andHouston, Texas. Hedwin Corporationemploys 308 people at its Baltimore head-quarters and an additional 72 people nation-wide.

“We are very grateful to Governor Ehrlich,Lt. Governor Steele and the State ofMaryland,” said David Rubley, President ofHedwin Corporation. “Without their loaninsurance it would have been impossible forHedwin employees to purchase the company.Stock in the employee ownership plan ispaid for by company profits and employeesincur no out-of-pocket costs and existingretirement plans are continued.” Rubley said.

Over 20 years of research from leadinginstitutions such as Rutgers University haveestablished that ESOP companies createmore jobs, provide employees with moreretirement benefits, and are more likely tosurvive, according to Ronald J. Gilbert, ofESOP Services, Inc.

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Governor Ehrlich and Lt. GovernorSteele pose with Hedwin employeesfollowing a meeting announcing theemployee-ownership plan.

In the News

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In the News

Back at the plant, the employees ofHedwin learn the details of their good for-tune. They will keep their jobs. They willkeep their pensions. They will have thepower to control their own fate.

They hear spirited speeches from Gov.Ehrlich, Lt. Gov. Steele, and Department ofBusiness and Economic Development

Secretary Aris Melissaratos, who announcedthat he worked at Hedwin briefly during thesummer of 1963 and called the employeepurchase “a new beginning for Maryland’smanufacturing.”

With all the excitement, the factory is boundto have a buzz around it for years to come,regardless of how loud the machinery is.

The Maryland Department of Businessand Economic Development and theMaryland Technology Development

Corporation both ranked at the top of anewly released national study for the largestnumber of investments in start-up/seed orearly stage companies.

In the July issue of Entrepreneur Magazine,DBED and TEDCO partnered on 27 fundingdeals in 2003, funding more start-ups thanany organization in any other state coveredin the survey. DBED provided start-up fund-ing for 12 companies and TEDCO providedfunding for 15 companies. The survey is partof the magazine's report based on the"MoneyTree Survey" fromPricewaterhouseCoopers, Thomson VentureEconomics and the National Venture CapitalAssociation (NVCA).

“The Entrepreneur Magazine rankingdemonstrates Maryland's commitment tothe state’s entrepreneurs as they work tobring new products and new technologiesinto the commercial marketplace,” saidGovernor Robert L. Ehrlich, Jr. “In fact, myadministration created the Governor's

Commission on Development of AdvancedTechnology Business—widely known as thePappas Commission—to provide specificrecommendations for further growth ofMaryland's technology economy, recommen-dations which include encouraging invest-ment in technology companies. I commendthese two agencies for their outstandingwork assisting start-up technology business-es to grow and create new jobs for theircommunities.”

“The award-winning Maryland VentureFund and TEDCO's various funding pro-grams fill an important gap for small busi-nesses and budding technologies, givingthem a better chance to succeed inMaryland,” said Secretary of Business andEconomic Development Aris Melissaratos.“With its wealth of federal research laborato-ries and university research laboratories, thestate realizes the importance of fosteringtechnology growth at an early stage. TheR&D performed in Maryland is typicallybasic or mission oriented, so the availabilityof seed stage funding is particularly impor-tant to our commercialization success.”

DBED, TEDCO Top List in VC funding

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In the News

Have tools, will travel

To convince them to visit the state, MarylandGovernor Robert L. Ehrlich, Jr., offers to dohousehold chores for out-of-state residents-atleast in a series of award-winning televisionspots.

Governor Robert L. Ehrlich, Jr., clad ina tool belt complete with a screw-driver, a paintbrush and caulking

gun, today launched a series of television adsthat have been promoting the state’s $8.8 bil-lion tourism industry by encouraging poten-tial visitors to take a break from householdchores to visit Maryland.

The ads, done in both 30-second and 60-second formats, feature Governor Ehrlich

visiting private homes and offering to finishvarious chores, like painting, caulking abathtub and installing a ceiling fan, so thehomeowner can "seize the day off " and visitMaryland.

“I had a great time shooting these ads andit is my hope that they truly encourage visi-tors to seize the day off and come toMaryland,” Governor Ehrlich said. “We haveso much to offer here—the beaches, themountains, our rich history and friendlypeople—and all of it is so easily accessible.”

The Maryland Office of TourismDevelopment, an agency of the MarylandDepartment of Business and EconomicDevelopment, worked with its new advertis-ing agency, gkv Communications inBaltimore, to craft the “seize the day off”tagline. The ads were developed after theagency's research showed many people spendtheir vacations doing work around thehouse. The campaign recently won recogni-tion in the prestigious Baltimore Magazine“Best of Baltimore” issue, which was pub-lished in July.

The ads began airing the week of April 5through mid-June on regional cable stationsand local channels in the Boston, Cincinnati,Cleveland, Hartford, New York, Philadelphia,Pittsburgh and Providence—all targetedbecause they are within an easy drive ofMaryland. More travelers are choosing todrive to vacation destinations following theSeptember 11 terrorist attacks.

“We are fortunate to have Governor

Caulking gun in hand, Governor Robert L. Ehrlich and technicianson a bathroom set prepare for a take during the filming of a series of“seize the day” ads.

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Launch of a new ad campaign: (clockwise from top left) Gov. Ehrlich and State Marketing DirectorDennis Castleman watch playback of the ads on a giant television screen; Castleman explains thead campaign to assembled members of the press; Secretary of Business and EconomicDevelopment Aris Melissaratos talks about the importance of the tourism industry to the state’seconomy; Gov. Ehrlich demonstrates his prowess with the hammer to Castleman.

Maureen KilcullenThomas Nappi

Maureen Kilcullen Thomas Nappi

Ehrlich's tremendous support to promotethis important industry—the fourth largestin the state and one of our greatest employ-ers and economic generators,” said Businessand Economic Development Secretary ArisMelissaratos. “The Governor has been a truechampion of our tourism industry and weare confident these ads will reach out to peo-ple and encourage them to visit Maryland.”

“This advertising campaign will meet sev-eral overall goals of the Office of Tourism

Development—to increase tourism expendi-tures and to increase our length of stay, bothof which are at their highest point in years,”said Dennis Castleman, Assistant Secretaryfor the Division of Tourism, Film and theArts.

Tourism is one of Maryland's fastestgrowing industries and largest economicgenerators. In 2002, more than 19 millionpeople visited Maryland, generating anestimated $8.8 billion in expenditures.

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In the News

DBED recently invested $225,000 fromits Maryland Venture Fund in Qovia,Inc. of Frederick, Maryland. The

investment is the second round of fundingthe company has received from the State fol-lowing matching funds of $50,000 in 2002and a venture capital investment of $500,000in 2003. Qovia, which was founded in 2002,is a pioneer in products that monitor andmanage Internet Telephone systems toensure voice quality. Internet Telephony israpidly replacing traditional telephone sys-tems across the U.S. and around the world.

“By investing in companies like Qovia andsupporting other Maryland entrepreneurialcompanies through the State’s award-win-ning venture capital fund, we are ensuring

the future of Maryland’s already strong tech-nology sector,” said Governor Robert L.Ehrlich, Jr. “This Administration believesthat technology is the future of the Marylandeconomy, and we will continue our modelprograms to nurture and support these earlystage entrepreneurial companies as theygrow and develop their products.”

Qovia, Inc. develops software that moni-tors and manages voice quality on Voice overIP (VoIP) telephone systems. VoIP phonesuse Internet technology to carry voice trafficand are regarded as the next generation ofphone systems. Monitoring and manage-ment are needed to ensure voice networkreliability and quality and will help Internettelephony gain further momentum as thecommunications medium of choice for busi-ness and residential users. Qovia’s voice qual-ity monitoring and management productsare already running on more than 100 net-works. Customers include Fortune 1000businesses, school districts, governmentagencies, law enforcement agencies, bankingand finance companies, call centers, voicecarriers and others.

“In just under 24 months, we have takenQovia from my basement to the point wherewe are providing more than 50 high techjobs in Maryland,” said Richard Tworek,Qovia’s CEO and co-founder. “And weexpect to add another 30 high-quality tech-nology jobs in 2004. That’s not somethingyou can accomplish without an outstandingteam. Our location in Frederick, Marylandhas not only let us attract an outstanding

Qovia, Inc. Receives Funding from theMaryland Venture Fund

Governor Robert L. Ehrlich, Jr., right, presents an investment check in theamount of $225,000 to Chief Technical Officer Choon Shim, left, and CEORichard Tworek

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In the News

Southern Business & Development maga-zine has named ChooseMaryland.org,DBED’s Web site, one of the 10 best

economic development Web sites in theSouth. The winners were profiled in a featurearticle in the Winter 2004 issue of the maga-zine.

“In today's high speed information world,an informative, up-to-date web site is anessential tool in our arsenal to inform andattract both businesses and visitors to thestate,” says Secretary of Business andEconomic Development Aris Melissaratos.The ChooseMaryland Web site is a wonder-ful opportunity for us to promote the manyoutstanding resources that are available herein the State of Maryland. I congratulate themany talented individuals at DBED whoparticipated in this venture and commend

them on this achievement.”

According to Trisha Ostrowski, SB&Dmanaging editor, the selection resulted froma continual monitoring of the Web site look-ing at it through the eyes of a site selector.The magazine looks for Web sites that areuser-friendly, visually appealing and thatexcel at delivering quality, up-to-date infor-mation.

“Choosemaryland.org is visually appealingand features beautiful pictures,” the maga-zine wrote. “Content ranges from orientationto the state to the various aspects of doingbusiness, business assistance and availablebuildings and sites. You can also hear testi-monials from Maryland companies andaccess live Internet support.”

ChooseMaryland in Southern BusinessDevelopment magazine’s top ten

internal team of professionals, but has givenus access to agencies like the MarylandDepartment of Business and EconomicDevelopment. DBED was there from thestart with matching seed funding that helpedus get off the ground and they continue tobe an integral part of the Qovia team.”

The Maryland Venture Fund makes directequity investments in emerging high tech-nology companies usually at the first roundof institutional financing. The Fund workswith emerging companies to move them intotheir next stage of development as a viablebusiness. A three-to-one co-investor match isrequired.

“Every year, our Maryland Venture Fundlooks at dozens of business plans and earlystage companies from across the businessspectrum. Qovia, with its clear technologyand product vision, experienced leadershipand solid support from the technology andventure capital communities, was an out-standing investment from the start,” said ArisMelissaratos, Secretary of the Department ofBusiness and Economic Development. “TheVenture Fund is just one of the reasons whyMaryland was ranked 4th in a recent 2004Milken Institute study that rates states’ abili-ties to succeed in the today’s technology-ledinformation age.”

See ChooseMaryland on page 13

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In a converted church-turned-conferencehall on the University of Maryland-Baltimore campus, the Southeast Asian

Business Forum could best be compared tothe diverse colors and shapes in the stainedglass windows that illuminate the hall.

Governor Robert L. Ehrlich, Jr., and the

State of Maryland are banking on that kindof diversity—on a global level—to keep theMaryland economy going strong. With morethan 550 million people and a collectivegross domestic product of $700 billion, theAssociation of Southeast Asian Nationsregion is one of the fastest growing and mosttrade-focused regions in the world.

The forum featured ambassadors and sen-ior diplomatic staff from 10 Southeast Asiancountries: Brunei, Cambodia, Indonesia,

Laos, Malaysia, Myanmar, the Philippines,Singapore, Thailand and Vietnam. Morethan 150 people attended the event, whichwas hosted by the Maryland Department ofBusiness and Economic Development andthe US-ASEAN Business Council. The eventoffered area businesses guidance on how tocapitalize on the latest opportunities anddevelopments in Southeast Asia.

Continuing the positive momentum creat-ed by DBED’s recent mission to Singapore,Gov. Ehrlich announced that he will lead aneconomic development mission to Asia inOctober. That mission will further build onthe relationships and contacts established inFebruary with a number of Singapore-basedventure capital firms that are actively seekinginvestments in the United States. Accordingto the latest data, Singapore is one of the topfour hubs of venture capital in the world,with about $4 billion to invest in 2004 and2005.

The decision to target Singapore came as aresult of findings by the Commission onDevelopment of Advanced TechnologyBusiness, which recommended thatMaryland narrow its international efforts tocountries with the best partnership potential.

“This trip is an important step towardexpanding Maryland’s reach in the globalmarketplace,” said Governor Ehrlich. “Thiswill be a great opportunity for me to con-vince Asia’s business leaders that Maryland isback open for business.”

As for the forum, Philippines’ Ambassador

Forum brings Southeast Asian countriesand MD businesses together

In the News

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to the United States, H.E. Albert Del Rosario,was pleased with the results.

“Governor Ehrlich has opened doors tonew commercial, economical and education-al compacts between our countries,” he said.

“We applaud Governor Ehrlich’s vision tointernationalize Maryland as we work tocapitalize on an unlimited number of oppor-

tunities that exist between Maryland andAsia,” said DBED Secretary Aris Melissaratos.“Our partnership with Asia is an importantcomponent to the Ehrlich Administration’sapproach to business.”

Deputy Secretary Chris Foster added:“Maryland and Asian countries have devel-oped technology-based economies and havemuch to share and learn from each other.”

In the News

ChooseMaryland.org was created to pro-vide information on Maryland's outstandingbusiness climate and the programs availableto businesses, both small and large, to ensuretheir success. Included on the Web site isinformation on financing, workforce train-ing, exporting and trade and small andminority business assistance. DBED’s Website underwent major changes in January2004 as part of the agency's reorganization.The overall look and feel of the revisedhomepage was created by G.1440 inBaltimore under the direction of an internalstaff committee drawn from various func-tional areas within DBED. The committeewas also responsible for reconfiguring thecontent management to reflect the new orga-

nizational structure. Much of the originalarchitecture, developed by eMagination, alsoof Baltimore, remains unchanged.

DBED's mission is to attract new business-es, stimulate private investment and createjobs, encourage the expansion and retentionof existing companies and provide business-es in Maryland with workforce training andfinancial assistance. The department pro-motes the state's many economic advantagesand markets local products and services athome and abroad to spur economic develop-ment, international trade and tourism.Because they are a major economic genera-tor, the department also supports the arts,film production, sports and other specialevents.

ChooseMaryland continued from page 11

Continuing to strengthen Maryland’sposition as one of the nation’s leadingresearch and development states for

the federal government, Governor Robert L.Ehrlich, Jr. signed a memorandum of under-standing with representatives from theNational Security Agency/Central SecurityServices to facilitate the transfer of mutuallybeneficial technologies between the

Maryland Department of Business andEconomic Development and NSA.

The signing ceremony took place in theGovernor’s Reception Room in Maryland’sState House on June 16.

“Maryland is looking forward to a closerrelationship with NSA,” said Governor

State, NSA sign memorandumof understanding

See NSA pact continued on page 39

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Cover Story

Maryland is recognized as one of the nation’sleading states in bioscience. TheEhrlich/Steele Administration is gunning forNumber One.

On a sunny morning in March, agroup of people have gathered at theheadquarters of the Greater

Baltimore Committee, overlooking the city’sInner Harbor. The 60 or so visitors, all localand state economic development profession-als, are here to learn about two of the state’slatest bioscience facilities: the University ofMaryland-Baltimore’s Bio Park and the EastBaltimore Life Sciences and TechnologyPark, to be located adjacent to the JohnsHopkins University Medical Center campus.

The two new facilities—which are slatedfor completion, at the earliest, at the end ofthis year—mark but the latest example of theabundance of bioscience activity taking placein the state.

It was not that long ago that one could eas-ily count the number of bioscience compa-nies in Maryland on two hands. (See sidebaron page 19 for an explanation of the term“bioscience.”) That was in the early 80s whenthe entire industry was still moving frominfancy to adolescence. Now, some 20 yearslater, Marylanders are beginning to enjoysome of the benefits that come with being aleader in one of the top economic industrysectors of the 21st century. Maryland’s steadygrowth is gaining national attention.

Ernst and Young and the United StatesDepartment of Commerce have rankedMaryland as second in the U.S. (behind onlyMassachusetts) in density of bioscience com-panies, relative to state population, and thirdoverall in the number of companies in-state.

In June 2002, The Brookings Institutenoted that three quarters of the nation’slargest bioscience companies established inthe past decade are located in a mere nine ofthe 51 largest metropolitan areas in the U.S.

“Biomedical research activity is now relative-ly widespread,” the report explains, “but thusfar only a few of the country’s 51 largest met-ropolitan areas have demonstrated the entre-preneurial and financial capacity required forconsistently generating significant numbers ofnew biotechnology-related businesses.”

Aiming to make Maryland the biosciencecapital of the world

The main building of the University of Maryland, Baltimore County’s tech-center@umbc campus. The 500-acre campus includes three buildings thatfeature 170,000 square feet of space, including 75,000 square feet of spe-cialized laboratory space. The incubator allows UMBC to tailor space fortechnology businesses, whether start-ups or mature R&D organizations.

James R. Moody

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BARC . . . . . . . . . . . . . . . . . . . . . . . . . .Beltsville Agricultural Research Center, U.S.D.A.DOE-OBER . . . . . . . . . . . . . . . . . . . . .Office of Biological and Environmental Research, U.S. Dept. of Energy - GaithersburgFDA . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.S. Food & Drug Administration - RockvilleFDA-CFSAN . . . . . . . . . . . . . . . . . . . .Center for Food Safety & Applied Nutrition, F.D.A.JHU . . . . . . . . . . . . . . . . . . . . . . . . . . . .The Johns Hopkins UniversityMDA . . . . . . . . . . . . . . . . . . . . . . . . . . .Maryland Department of AgricultureMDBED . . . . . . . . . . . . . . . . . . . . . . . .Maryland Department of Business & Economic DevelopmentMDBIO . . . . . . . . . . . . . . . . . . . . . . . . .MdBio, Inc.NCI . . . . . . . . . . . . . . . . . . . . . . . . . . . .National Cancer Institute, N.I.H.NIH . . . . . . . . . . . . . . . . . . . . . . . . . . . .National Institutes of Health, U.S. Dept. of Health and Human ServicesNIST . . . . . . . . . . . . . . . . . . . . . . . . . . .National Institute of Standards and TechnologySGLSC . . . . . . . . . . . . . . . . . . . . . . . . .Shady Grove Life Sciences CenterTEDCO . . . . . . . . . . . . . . . . . . . . . . . .Maryland Technology Development CorporationTIGR . . . . . . . . . . . . . . . . . . . . . . . . . . .The Institute for Genomic ResearchUMB . . . . . . . . . . . . . . . . . . . . . . . . . . .University of Maryland (UMD), BaltimoreUMBC . . . . . . . . . . . . . . . . . . . . . . . . .UMD, Baltimore CountyUMBI-CARB . . . . . . . . . . . . . . . . . . . .Center for Advanced Research in Biotechnology, UMD Biotechnology InstituteUMBI-CBR . . . . . . . . . . . . . . . . . . . . .Center for Biosystems Research, UMD Biotechnology InstituteUMBI-COMB . . . . . . . . . . . . . . . . . . .Center of Marine Biotechnology, UMD Biotechnology InstituteUMBI-IHV . . . . . . . . . . . . . . . . . . . . . .Institute for Human Virology, UMD Biotechnology InstituteUMBI-MBC . . . . . . . . . . . . . . . . . . . . .Medical Biotechnology Center, UMD Biotechnology InstituteUMCP . . . . . . . . . . . . . . . . . . . . . . . . .UMD, College ParkUSAMRIID . . . . . . . . . . . . . . . . . . . . .U.S. Army Medical Research Institute of Infectious DiseasesUSAMRMC . . . . . . . . . . . . . . . . . . . . .U.S. Army Medical Research and Materiel CommandUSDA . . . . . . . . . . . . . . . . . . . . . . . . . .U.S. Department of Agriculture - Riverdale Center

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Listed prominently among the nine is theBaltimore-Washington Metropolitan Area.

Likewise, the Milken Institute rankedMaryland 4th in the nation—behind onlyMassachusetts, California and Colorado—init’s “State Technology and Science Index,”published in March, 2004 (see sidebar, nextpage). The report ranked all the states in thenation after analyzing their “comprehensiveinventory of technology and science assetsthat can be leveraged to promote economicdevelopment.”

Maryland’s unique position

Maryland is a world center for solving themysteries of human disease. The humangenome was sequenced here—establishingthe foundation for a new class of individual-

ized therapeutics. Maryland companieshave over 40 drug candidates in clini-cal trials for the diagnosis and treat-ments of cancer and AIDS and otherdebilitating diseases. Whether it’s adiagnostic tool for cervical cancer, avaccine for staph, or a rapid anthraxdetection kit, Maryland companiesaffect our lives.

A key driver behind Maryland’s suc-cess is the critical mass of federal insti-tutions and agencies conducting cut-ting-edge research, such as theNational Institutes of Health, the Foodand Drug Administration, the NationalInstitute of Standards and Technology,the U.S. Department of Agriculture’sBeltsville Agricultural Research Centerand Walter Reed Army MedicalCenter.

Maryland is first, for example, in theamount of federal spending forresearch and development per capita,

receiving $9.4 billion annually. Another $1.6billion goes into research grants at The JohnsHopkins University and the UniversitySystem of Maryland.

This investment produces tremendous eco-nomic benefits—more than 100 biosciencecompanies have “spun out” from researchersassociated with NIH, Johns Hopkins, and theUniversity of Maryland. These companiesoccupy the full spectrum of bioscience activ-ity including biotherapeutics and diagnosticsdiscovery, biomanufacturing and bioprocess-ing, bioinformatics, genomics and pro-teomics.

The importance of the NIH in Bethesda asan engine of R&D in Maryland and the U.S.cannot be overstated. The institutes employ

Artist’s rendering of the University of Maryland, Baltimore’s BioPark. When com-pleted, the campus will include seven buildings on eight acres with a total of800,000 square feet of rental lab space. The BioPark site is located adjacent to theUMB campus. Building one, under construction, is slated to open in December.

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approximately 16,000 scientists, doctors, technicians and administra-tors who conduct research primarily in medical fields, but also inbioscience, computer science and engineering. The federal govern-ment employs more than 7,000 Ph.D scientists in Maryland, morethan in any other U.S. state.

Maryland’s universities, and most federal research centers, havebusiness offices that coordinate with private industry to develop,evaluate or transfer technology. Maryland businesses benefit fromdevelopment and evaluation services that are easy to access andwhich save program development time and expenses. These uniqueassets are distributed around the state in suburban, urban and rurallocations.

In addition, the Maryland Technology DevelopmentCorporation—TEDCO—a quasi-government agency established bythe Maryland General Assembly in 1998 that fosters the creation andgrowth of technology business in the state through technology trans-fer. TEDCO is governed by a 15-member board, composed of tech-nology leaders from the public, private and academic communities.

One of the three buildings (top) that are part ofthe techcenter@umbc included old, outdated

lab space (center). Renovation of the space isunderway, as evidenced by recently occupied

space (bottom). (Photos by James R. Moody)

“Maryland held its 4th-place position of 2002.Maryland’s most poignant strengths are in the life sci-ences and communications technology, two sectors withextremely bright long-term prospects, and where it hassome of the best and deepest talent in the nation.Maryland’s lowest position was 6th and all of its otherComposite Index scores are in the top five. Unless there isa serious deterioration in performance, these inputmeasures are likely to help raise Maryland’s concentra-tion and dynamism performance. A recent set of recom-mendations provided by Governor Ehrlich Commissionon Development of Advanced Technology Business is oneof the most forward looking roadmaps for technology-based economic development.”

—The Milken Institute’s “State Technology and Science Index,”March 2004

Leveraging a unique position

What does this all mean to Maryland?First, it means outstanding educationalopportunities for our children. Marylandeducational institutions have done a superbjob of meeting the needs of these high tech-nology institutions and companies. The stateis first in the U.S. in the percentage of ourworkforce with a B.A. or higher degree (38percent). In 2001, Maryland graduated morethan 250 students in associate and non-degree technical biotech programs. Another7,500 received bachelor’s degrees in biotechrelated fields. Nearly 700 received master’sdegrees and over 1,000 earned Ph.D.’s. In all,some 2,000 students per year receive degreesin bioscience related fields in Maryland. Inrecognition of this, the Progressive Policy

Institute’s New Economy Index for 2002named Maryland “First in

the nation in workforce education.”

Another benefit is more opportunities forhigh paying and desirable employment. Withinvestments in education and federal andacademic research, more than 57,000Marylanders work in biotechnology in thepublic arena. Another 43,600 work inbiotechnology for private companies.

Biotech business opportunities in Maryland

Maryland is a great place to start a bio-science company. DBED works within a net-work of associations and institutions tomake entrepreneurial dreams come true.Through its seed and early stage financingprograms, DBED carries a portfolio of over80 companies and leverages additional ven-ture capital in Maryland. More than 100investors saw potential companies presenttheir plans at a recent Bio Venture Forum.

Seven venture capital limited partnershipstotaling $11 million since 1995 have on

average 27 percent of their portfoliosinvested in Maryland companies. Italso makes Maryland a great place to

succeed as a biotechnology entrepre-neur. Of 41 companies receiving DBED’sEnterprise Investment, 75 percent are stillin business.

While there is no mistaking that thelion’s share of the state’s bioscience firmsare located along the I-270 “TechnologyCorridor” in Montgomery County, there

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The Center for Advanced Research in Biotechnology II—CARB II—is located on the University System ofMaryland’s Shady Grove Campus in Rockville. CARB II(shaded in darker brown in the elevation, left) is underconstruction adjacent to the first CARB facility. The newfacility, expected to be ready for occupancy in September,2005, will feature more than 139,000 square feet overfour floors with office and lab space for 250 scientists.

are truly assets spreadthroughout the state. Infact, there are approxi-mately 300 firms engagedin bioscience activities inMaryland, accounting forsome 17,000 jobs.

Preparing for the future

Headquartered inFrederick, MdBio is a non-profit corporation thatpromotes the commercialdevelopment of biosciencein the state. As spelled out on its Web site,www.MdBio.org, the organization takes amulti-pronged approach to achieving itsgoals, including programs geared towardmanufacturing incentives, business develop-ment, cost-sharing, education and workforcedevelopment and communications.

One of MdBio’s flagship programs aimedat the education and workforce developmentcomponent of their mission is MdBioLab(see photo above). A state-of-the-art bio-science lab built using an 18-wheeler as aplatform, it visits high schools throughoutMaryland—usually for a week at a time—toprovide many students hands-on experiencethat otherwise wouldn’t be available to them.The lab, which accommodates 32 students, isstaffed by two volunteer professionals.

The lab is a joint effort of MdBio, TheCenter for Genomic Research and theUniversity of Maryland BiotechnologyInstitute and received initial funding forequipment from Fisher Scientific Educationand the National Institutes of HealthFoundation. By the end of May, 2003, some3,500 students from 17 high schools in fourcounties had participated in the program.

With its tremendous wealth of assets and acommitment by the Ehrlich Administrationto even further enhance existing resources,Massachusetts, California and Colorado haveplenty to worry about.

James Moody and Cynthia Schuster contributed tothis report.

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BBiioosscciieennccee oorr BBiiootteecchhnnoollooggyy??

The “biotechnology industry” means different things to differentpeople. To some, it includes only those companies who use livingorganisms as factories to produce proteins. To others, it encom-passes any company whose products or services are rooted in mod-ern biology. The Biotechnology Industry Organization definesbiotechnology as “the use of cellular and molecular processes tosolve problems or make products.”

MdBio has elected to use a more inclusive term, “bioscience,” tominimize confusion and to be consistent with the definition weemploy in determining which companies are eligible for our pro-grams. …a bioscience organization is biology-driven, and its activ-ity substantially involves research, development or manufacture of1) biologically active molecules, 2) devices that employ or affectbiological processes, 3) biological information resources or 4) soft-ware designed specifically for biological applications.

—from “Bioscience in Maryland: Looking In, Reaching Out,” a 2003MdBio publication

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Maryland Career Clusters help highschools work smarter in today’scompetitive economy. Maryland

Career Clusters are driven by what studentsneed to know and do in order to graduatefully prepared for further education andcareers in the 21st-century global economy.Career Clusters provide important contextfor educational reform efforts as outlined in

the Maryland StateDepartment of

Education’sAchievement

Matters Most:Maryland’s Planfor EveryStudent and thePolicies andProcedures forCareer

TechnologyEducation pro-

grams. Under theleadership of MSDE,

Maryland business lead-ers organized the state’s

Career Cluster system.

Career Clusters have been embracednationally at both secondary and postsec-ondary levels. Maryland is a recognizedleader in successfully adapting the nationalframework to the state’s economy and schoolreform. Local school systems and schools areusing the Career Cluster system to organizeteaching and learning to meet the specificneeds and resources of their community.

Career Clusters also help enhance econom-ic development. As such, Career Clusters are

groupings of interrelated occupations thatrepresent the full range of career opportuni-ties. By connecting schools and businesses,they help ensure that Maryland has a high-quality workforce that attracts and retainsbusinesses to the state.

More relevant

At a time when the need for skills-driveneducation and high academic and technicalachievement is greater than ever, we’re losingmany of our high school students to indiffer-ence. Students are struggling to find the rele-vance that their high school courses will haveon their future. Often they turn off and tuneout. Too often students graduate from highschool not properly prepared for the rigorsof college and challenging careers. MarylandCareer Clusters promote student success byrelating high school to their future goals andaspirations. In turn, more students can reachhigh levels of performance, thus closing theachievement gaps.

More focused

Maryland high schools are changing tobetter prepare every student for successafter high school in higher education andchallenging careers. The MarylandCareer Clusters system directs studentstoward focused programs of study thatmake the high school experience moremeaningful. Not unlike choosing a sub-ject major in college, Career Clustersprovide students an opportunity to selecta field of interest while they are still inhigh school. They focus students andprovide a variety of career options to

Preparing a workforce for tomorrow’s jobs

Workforce Development

Aligns teaching and learning with students’ interests.

Helps students become more self-directed and focused on their future.

Relates classwork to students’ goals and interests.

Provides a framework for organizing high schools into smaller learning communities.

Aligns high school programs of study to college andworkplace requirements.Organizes career opportunities into 10 CareerClusters.

Anticipates and responds to changes in the economy.

Guides the continuous improvement of career andtechnology education programs.

Aligns course content to state standards.

When students are interested in what they’re learning, they stay involved and perform better.Students who set goals achieve greater success in high school and beyond.

Students are motivated to work harder, enroll in morechallenging courses and make better career choices.

Students receive more personalized instruction, advice and support.Programs of study ready students for college and eliminate the need for remediation.

Students, parents and advisors understand future careerpossibilities, thus facilitating career decision-making.

Business and community leaders continue to keep schoolsinformed on the changing requirements of the workplace.

Students gain advanced standing for entry into careers.

Student achievement increases and dropout ratesdecrease.

F E AT U R E S B E N E F I T S

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pursue. When students are interested andengaged, learning takes place.

More inclusive

Concentrated learning in a given subjectarea is not a new concept in Maryland. Manylocal school systems have in place focusedprograms of study, such as InternationalBaccalaureate; Performing Arts Magnets;Math, Science and Technology Signatures;and Finance Academies. Career Clusters are aresource for all high schools as they reorgan-ize into smaller learning communities.Instruction is organized around careerthemes, thus giving more students theopportunity to explore career choices whilestill in high school.

More prepared

Today’s knowledge-based economydemands continuous learning and innova-tion. It calls for a highly skilled and flexible

workforce with the ability to work in cross-functional teams with people from diversecultural and educational backgrounds. Thefocus is no longer on performing a single jobor task. To be successful, students must beable to:

❚ Understand the educational require-ments for success in college and theworkplace;

❚ Manage their own careers and their needfor continuing education in a constantlychanging environment; and

❚ Identify and seek career advancementopportunities.

Excerpted from Maryland Career Clusters. Formore information on the Career Clusters programor to receive a full copy of Maryland CareerClusters, call the Maryland State Department ofEducation at 410-767-0600 or visit their Web siteat MarylandPublicSchools.org.

Features and Benef i ts of Maryland Career Clusters

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BY SHARON S. KLOTS

What image do the words “biotech-nology corridor” bring to mind?The concentration of biotech

firms in and around Boston? San Diego?Perhaps Maryland’s own I-270 Corridor? IfBaltimore was not on your list, you may be

surprised to learn just how many firms—both well-established industry leaders andexciting new start-ups—call the Baltimoreregion their home.

According to MdBio, Inc., a private, non-profit corporation that offers programs toadvance the commercial development of bio-science in Maryland, there are more than 300biotechnology companies in the state.Eighty-five are located in the greaterBaltimore area. In fact, Maryland’s largestprivate sector bioscience employer, BDDiagnostic Systems, is located in Hunt Valleyin Baltimore County. At BD (formerlyBecton Dickinson Microbiology Systems),more than 1,700 people conduct R&D andmanufacture products used around the

world, including tissue culture systems anddisposable testing kits.

Greater Baltimore’s private sector bio-science companies leverage talent and sci-ence from world-class academic researchersat Johns Hopkins, University of MarylandBaltimore and UMBC.

Over 500 employees at AlpharmaU.S.P.D operate an R&D facility inOwings Mills and a production plantmaking liquid oral pharmaceuticals inWoodlawn. Guilford Pharmaceuticals, aBaltimore City firm with about 300employees, develops and commercial-izes proprietary products for the diag-nosis, treatment and prevention of neu-rological diseases. PharmaceuticsInternational in Hunt Valley is a con-tract drug manufacturer whose employ-

ment has doubled to 175 in just five years.Chesapeake Biological Laboratories, Inc., arecognized leader in aseptic fill for biophar-maceutical, pharmaceutical and genericinjectables, is located in the CamdenIndustrial Park near Ravens Stadium. OsirisTherapeutics is a development stage compa-ny in Baltimore City focusing on cellulartherapeutic products for the regenerationand functional restoration of damaged anddiseased tissue. Shire Pharmaceuticals inOwings Mills produces solid dosage produc-tion operation for a global specialty pharma-ceutical company.

The Baltimore area also is fertile groundfor bioscience discovery. FASgen Inc. andCell Works Inc. are start-up biotech compa-

One county’s focus on bioscience

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nies that are now poisedto move new technologiesalong the developmentpath. In VitroTechnologies, a providerof in vitro laboratoryresearch and contract test-ing services for the phar-maceutical, chemical andcosmetics industries, is anincubator success story,having grown from twoemployees to 75 at thetechcenter@UMBC incu-bator.

Why is Baltimore gain-ing prominence as a cen-ter for biotech? Theregion occupies a strategicgeographic locationbetween the major con-centration of pharmaceu-tical companies in NewJersey, Delaware and Pennsylvania and majorWashington-area research institutions. TheNational Institutes of Health (NIH), theFood and Drug Administration, the USDAand its Beltsville Agricultural ResearchCenter, Walter Reed Army Institute ofResearch, and the National Institute ofStandards and Technology are less than anhour’s drive from downtown Baltimore.

Maryland’s concentration of research cen-ters – more than 200 private labs as well asnumerous governmental/non-profit researchinstitutes – is another reason for the region’sincreasing strength in biotechnology. NIH,the largest sponsor of biotechnology researchin the country, has awarded Baltimore

researchersmore than $700million over thepast five years,the fourth-highest amount in the country.

The Johns Hopkins University is the largestfederally supported research university in thecountry. The University of MarylandBaltimore campus is among the fastest grow-ing life science research centers in the coun-try. The University of MarylandBiotechnology Institute, established in 1985,is a hub of intensive study into the basic sci-ence of biotechnology and its application tohuman health, the marine environment,agriculture and protein engineering andstructural biology. The University of

Alpharma U.S.P.D’s production plant in Woodlawnmanufactures liquid oral pharmaceuticals. Along with a

R&D facility in Owings Mills, the company employsmore than 500 workers.

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Maryland Baltimore County (UMBC) hasrecently been designated by the CarnegieFoundation as one of the top tier ofAmerica’s elite research universities. UMBC,the first Maryland public university tobecome a host institution for the world-renowned Howard Hughes Medical Institute,

has acquired the strongestnuclear magnetic reso-nance spectrometer at anyU.S. university, makingthe university a leader inthe investigation of themolecular structure ofHIV. In Harford County,

the Battelle Memorial Institute has openedthe Batelle Eastern Science and Technology(BEST) Center, a $20 million facility that willserve as home to more than 200 scientists,

engineers and technicians devoted to biolog-ical, chemical and technology research onbehalf of government, industry and academ-ic clients. These and many other institutionsin the area offer limitless opportunities forresearch collaborations and commercialspin-offs from research.

Educational institutions havepartnered with the State ofMaryland and local governments toensure that adequate space exists toaccommodate biotechnology com-panies at all stages of development,from fledgling start-ups throughlarger R&D firms, to biopharmaceu-tical manufacturing. For start-ups,the region offers three bio incubatorfacilities: The Alpha Center at JohnsHopkins Bayview, the Bard LifeSciences facility at Baltimore CityCommunity College and the tech-center@UMBC in BaltimoreCounty.

For larger companies, theBaltimore region’s research parksoffer wet labs and other speciallyoutfitted space near research insti-

tutions. Just five minutes from BWI Airportin Baltimore County sits Maryland’s firstuniversity-affiliated research park,bwtech@UMBC. The 41-acre research park,convenient to researchers on the adjacentUMBC campus, opens a new $9 millionmulti-tenant building in summer 2004,bringing an additional 60,000 square feet ofspace on line. A 20-acre biotechnology parkis planned for the area just north of theJohns Hopkins University Medical Campusto create and nurture an integrated research

bwtech@UMBC Research and TechnologyPark includes five buildings with 350,000square feet of multi-tenant space. The park,adjacent to the UMBC campus, is easilyaccessible from both Baltimore andWashington, D.C. and convenient toBaltimore/Washington International airportand AMTRAK and MARC commuter trainservice.

community and medical center dedicated tothe advancement of biomedicine throughcollaboration among academic, governmentand corporate scientists and clinicians. Onthe west side of downtown Baltimore, theUniversity of Maryland is developing aworld-class biomedical research centerimmediately adjacent to its campus. Whencomplete, the UMB Research Park will offer750,000 square feet of lab and office spaceand the opportunity to connect companieswith UMB expertise and services.

Outstanding opportunities exist for com-panies needing large sites for full-scale bio-pharmaceutical manufacturing. One of themost exciting prospects is the Middle Rivercorridor, where contractors are hard at workextending White Marsh Boulevard to theEastern Baltimore County waterfront andMartin State Airport. When the 3.8 mileroad is completed early in 2006, 600+ acresof prime land can be accessed for major cor-porate tenants. Employers that locate in thecorridor will be within three-miles of theEast Coast’s major artery, I-95, in one direc-tion, and the picturesque and flourishingcommunities of Baltimore County’sChesapeake Bay waterfront in the other.

Baltimore’s location advantage is evenmore pronounced when the cost of doingbusiness is added to the equation. Data com-piled by the Greater Baltimore Tech Councilindicate that the cost of doing bioscience inthe Baltimore area is lower than in manyother top corridors. For example, total busi-ness operating costs are 20% lower, and busi-ness real estate costs are 30% lower inBaltimore than in Boston.

The region’s 25 colleges and universitiesbolster Baltimore’s bioscience workforce,producing a stream of professionals trainedfor the full range of bioscience occupa-tions—from doctoral scientists and engi-neers to technicians. In fact, Maryland ranksfirst nationally in the number of science andengineering PhD’s per capita.

Baltimore offers an additional advantage tobioscience manufacturers – a quality localworkforce accustomed to the shift workoften required by the industry’s productionschedules. Last fall’s early flu epidemic pre-sented an opportunity for the Baltimoreworkforce to display its skill and flexibility ingetting the job done. “When our Sparksplant was working 24/7 to produce flu testkits this winter, Baltimore County workersreally showed their stamina, skills and dedi-cation,” stated Michael M. Meehan, VicePresident and General Manager of BDDiagnostic Systems. “Our employees gave uppersonal time to work double shifts over theholidays. You can have the greatest technolo-gy in the world, but it’s the quality of yourworkforce that makes companies succeed.”

Reflecting on strengths in location, work-force, land availability and a world-class bio-science R&D infrastructure, noted economicand policy consultant Anirban Basu ofOptimal Solutions predicts that “within thenext two decades, Baltimore will emerge as apeer in private-sector biotechnology withSan Francisco, Boston, San Diego and otherexisting biotech hotbeds.” Clearly, theprospects for a thriving bioscience industryin the Baltimore area are strong and gettingstronger.

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On the trail of an assassin

BY KAREN GLENN

In 1865, it became the largest manhunt inU.S. history.

On April 14 of that year, John WilkesBooth, having just shot President AbrahamLincoln at Ford’s Theatre in what was thencalled Washington City, fled across thePotomac River into Southern Maryland.Over the next 12 days, Booth and his accom-plice, David Herold, tracked through thelower counties of Maryland and then backacross the Potomac River into Virginia,where Booth was eventually shot and killedat a farmhouse.

In mid-April, the Maryland Office ofTourism Development will bring to lifeBooth’s amazing escape and subsequent dayson the run with the opening of its newestCivil War Driving Trail. The trail, JohnWilkes Booth: Escape of an Assassin, War onthe Southern Chesapeake, will encompass 90miles of scenic and historic roads which fol-low Booth’s legendary escape route.

“Maryland’s Civil War Trail initiative isimportant because it brings forward the bestpractices in heritage tourism,” said DennisCastleman, assistant secretary for tourism,film and the arts. “Together with our local,state and federal partners, we have preservedthis important history, we have taken steps toshare it with visitors and we will all reap theeconomic benefits of tourism.”

The trail will follow Booth and Herold’sfirst stop at the Surratt House and Tavern,where they gathered supplies and guns. Then

Booth,his leginjuredfrom his11-footjump fromthe presi-dential boxto the stageof the the-atre after hefired the fatalshot, traveledto the farm-house of Dr.Samuel Mudd,who splinted hisleg. From there,Booth andHerold headedinto the Zekiahswamp and on tothe home of Colonel Samuel Cox, asouthern sympathizer who providedthe pair with food for several days.

Nearly a week after the assassination,Booth and Herold crossed the PotomacRiver into Virginia, and stayed withvarious members of the Confederatespy network before eventually findingshelter in a tobacco shed at the Garrettfarm. It was at the Garrett farm thatthe 16th New York Calvary unit caught up toBooth and set fire to the shed while Booth laysleeping inside. As Booth tried to escape theflames, he was shot by the calvary and died onthe Garretts’ front porch.

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Maryland Tourism

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In addition to highlighting Booth’s escaperoute, the trail also offers a collection of sitesscattered throughout the lower region of theChesapeake Bay, including sites and themes

showcasing the important role MarylandAfrican Americans played during the CivilWar.

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The trail may be driven in one, two orthree days depending on traveler preference;however, visitors are encouraged to step outof their cars to enjoy the local scenery andexplore other recreation along the trail.Walking tours, hiking, biking and paddlingadventures are but a few of the activities list-ed.

John Wilkes Booth: Escape of an Assassin,War on the Southern Chesapeake marksMaryland’s third Civil War Driving Trail. In

September 2002,Maryland’s firstCivil War DrivingTrail, TheAntietamCampaign: LeeInvades Maryland,opened and hasalready attractedthousands of trav-elers. In June 2003,the Gettysburg:Invasion and

Retreat Trail opened and was an instant suc-cess. Only weeks after opening, the trail wasso popular the map guides had to be replen-ished in many of the locations where theyare made available.

It is no surprise why the trails are so popu-lar. According to recent data from the TravelIndustry Association of America, a remark-able 81 percent of U.S. adults who traveled

in the past year, or 118 million, are consid-ered historic/cultural travelers. These travel-ers included historical or cultural activitieson almost 217 million trips last year, up 13percent from 1996. Historic and culturaltravelers also typically spent more money,averaging $623 per trip compared to theaverage U.S. trip expenditure of $457.

The Office of Tourism Development iscurrently planning for additional Civil WarDriving Trails, including the Star-SpangledBanner Trail, which will open on September11, 2004 to coincide with the Defender’s Dayholiday. The trails have been modeled afterthe program in neighboring Virginia, whichhas already developed an extensive array ofCivil War trails. Maryland and Virginia planto develop additional trails that connect thetwo states with the idea of eventually con-necting to trails in West Virginia,Pennsylvania and Washington D.C.

Trail maps will be distributed free at allMaryland Welcome Centers, local tourismoffices and select Civil War attractions alongthe trail. In addition, visitors may call 800-719-5900 or order via www.mdwelcome.org.Copies of the map may also be downloadedfrom www.civilwartraveler.org.

For Maryland travel information, includ-ing Maryland Civil War Trails, contact 1-800-MDISFUN (634-7386) or visitwww.mdisfun.org.

According to recent data fromthe Travel Industry Association ofAmerica, a remarkable 81 percentof U.S. adults who traveled in the

past year, or 118 million, areconsidered historic/cultural

travelers. These travelers includedhistorical or cultural activities onalmost 217 million trips last year,

up 13 percent from 1996.

To make the most of your precious time off, call for your free Maryland travel guide.

1-877-652-7795. Or go to www.VisitMaryland.org.

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On the trail of an assassin: (clockwise from top left) bright new signage mark variousstops along the trail, interpreting history by detailing the significance of the people andplace involved; Surratt House and Tavern in Clinton, home to Mary Surratt, one of fourpeople hanged as co-conspirators in the Lincoln assassination—and the first womanin American history to be executed; Joan Chaconas, a recognized expert on theSurratt family, conducts a tour of the historic home; a model in the Surratt HouseMuseum visitor’s center depicts the hanging of the four convicted co-conspirators atthe old federal penitentiary in the District of Columbia (today the site of tennis courtsat Fort Leslie J. McNair); the home of Dr. Samuel Mudd, convicted of conspiracy afterproviding medical aid to assassin John Wilkes Booth, but who escaped the fate of thefour who were hanged; in addition to serving as a tavern and hotel, Surratt house wasalso a polling place and the post office for what was then known as Surrattsville.

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Department Profile

“The time has come for the department totake a more proactive approach to helpingMaryland businesses succeed. Our goal increating these new regionally focuseddivisions is to provide our customers—businesses throughout the state—a ‘one-stop-shop’ organization. The reorganizationwill allow our staff to focus more closely onthe industries, the issues and the needs of thethree distinct regions of the state.”

—Aris MelissaratosMaryland Secretary ofBusiness and Economic Development

BY TONI TALBOTT

The Capital Region, which consists ofFrederick County, MontgomeryCounty and Prince George’s County,

was formed in December 2003 as the resultof reorganization in the MarylandDepartment of Business and EconomicDevelopment to bring a more comprehen-sive regional focus to business development.

Assistant Secretary William Askinazi, for-merly in charge of DBED’s Division ofBusiness Development leads the new group.

“I think all business development is local,”Askinazi said during an interview with theMontgomery County Gazette. “GovernorRobert L. Ehrlich, Jr., and Secretary ArisMelissaratos have crafted DBED into a localorganization. We have converted aBaltimore-centric organization to a geo-graphically diverse economic engine.”

Diversity is a key element to the region.Each county possesses its own unique set ofqualities, problems and challenges. Yet, takenas a whole, this tri-county area has strengthin numbers most Marylanders are not awareof. Specifically, this region represents 35 per-cent of the total population of the state, has70 percent of the state’s military installationsand 300 of the 310 biotech companies.

Montgomery County is ranked numberone in the nation with graduate and profes-sional degrees. Prince George’s County hasthe highest percentage of African-Americanprofessionals and the largest percentage ofAfrican-American owned businesses in thestate. Frederick County is the third largestgrowing county and has the second highestpercentage of high school graduates. Somemight say that the Capital Region is nowdriving the economic development bus.

Priorities remain constant

With a shift in focus, priorities also some-times shift. Not so in this case, says Askinazi.

“I communicate with the locals daily. I talkwith them two or three times a week on localprojects.” In other words, the name of thegame is still bringing businesses intoMaryland, helping them grow—and keepingthem here.

“We have a good team of experienced busi-ness professionals, some of whom have hadtheir own businesses. In our region we needto communicate and know what local com-panies are doing.”

Capital Region staff support growthin state’s bioscience corridor

With that in mind, Askinazi has adopted aproject team approach, joining forces withlocal economic development personnel,bringing in experts in workforce develop-ment and financing and going out to thebusinesses. Bringing together their own mixof business experience and personal knowl-edge of the region are the following teammembers:

JJaaee CCoolllliinnss, Business Manager, is a native toMontgomery County, where he still resides.He came to DBED last year and brings over10 years experience in the business sectorfollowing 10 years of active military service.His area of expertise is Advanced Technologyfor Montgomery County. He would like tosee the county become the industry icon.

MMaatttt HHooggaann, Sports Marketing Director andBusiness Manager, moved to FrederickCounty from Prince George’s County withhis family when he was a young boy. Mattcomes to DBED having been a professionalathlete and owner of a small business. Hisfirst area of responsibility involves bringingsporting events that hold a substantial eco-nomic impact ($20 million and higher) tothe region. The other area involves businessdevelopment and retention efforts forFrederick County.

DDaavviidd LLeewwiiss, Business Manager, resides inPrince George’s County where he is respon-sible for business development and work-force development. He has been with DBEDfor eight years and formerly managed theDRD Greater Baltimore Regional Office.With experience as an engineer and financialplanner, David is well equipped to assess theneeds of the business community.

KKiirrkk MMuurrrraayy, Business Manager, is a nativeto Prince George’s County and still livesthere. Prior to joining DBED last year, Kirkmanaged a successful vending machine busi-ness. He assists companies with expansion,sells companies on the merits of coming toMaryland and Prince George’s County, inparticular, and keep-ing them here. Hesees his position withDBED as a way of giv-ing back to the coun-ty.

JJuulliiee WWooeeppkkee,Business Manager, haslived in Maryland forseveral years and isresponsible for assist-ing companies identi-fy private and publicresources that willincrease the capabili-ties, competitivenessand customer base forbusinesses inMontgomery County.Julie has worked inplanning and economic development inMaryland, Florida, California and Illinois.She has been with DBED for 18 months.

Looking toward the future

So what does the future hold for theCapital Region? Askinazi proposed puttingup a highway sign along I-270 betweenFrederick and Montgomery County stating“Welcome to the Biotech Capital.” While itmay sound grandiose, there are those insideand outside of DBED who are trying tomake that happen.

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Leading the Capital Region team is AssistantSecretary William Askinazi, formerly in charge of

DBED Business Development.

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The federal government is planning majorimprovements and expanded facilities at Ft.Detrick in Frederick County; funding hasbeen approved for the University ofMaryland Enterprise Campus at CollegePark; Hood College in Frederick hasannounced the launching of an incubator onthe campus.

Other priorities on the list include thedevelopment around the Metro station stopsin Prince George’s County, creation of theworkforce retail training center in Wheatonand the Greater Rockville Partnership devel-opment project of mixed use.

On the international front, Askinazi is con-fident that the continued marketing ofMaryland in the global marketplace willyield significant results in the near future.Already, his trip to Israel in November withthe governor has produced several deals.

“We have to inject Maryland into the glob-al marketplace. Our participation intradeshows help usdeliver GovernorEhrlich’s messageto the world that

Maryland is open for business.”

The Capital Region office is located at 11North Washington Street in the historic cen-ter of Rockville and shares space with theMontgomery County Division of WorkforceInvestment Services. As DBED searched forits own space it was decided that a store-front office at street level would be moreaccessible and more visible to the communi-ty and thus, the region’s clients—businesses.The new offices are located around the cor-ner from the former location and will fea-ture state-of-the-art communications capa-bilities connecting directly to the Baltimoreoffices. The new office will open inSeptember 2004.

Capital Region team members pictured beloware, left to right, DavidLewis, Kirk Murray,Julie Woepke, JaeCollins and MattHogan.

Ton

i Tal

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35


BY ANDREA HARRISON

For DBED Secretary Aris Melissaratosand Deputy Secretary Chris Foster itwas a matter of taking a bureaucratic

government agency and reshaping the organ-ization to give it a more business, more proj-ect-oriented approach to economic develop-ment. The reorganization would also allowthe state agency to focus more on the strate-gic industries and the businesses of thefuture.

“We need to take a more focused, regionalapproach; one that provides our customersand businesses throughout the state a ‘one-stop-shop’ organization that features officeslocated regionally rather than centralized inone part of the state,” said SecretaryMelissaratos. “This reorganization will allowour staff to focus more closely on the indus-tries, the issues and the needs of the threedistinct regions of the state.”

This team approach to business develop-ment, which replicates successful programsother states have adopted, is designed toincrease communications within the depart-ment and also facilitate greater communica-tions with local economic developmentoffices across the state. DBED will now havea single point of contact for each region; onethat will provide information and assistanceon financing, workforce training, businessdevelopment and other services availablefrom the Department.

Heading the new regional divisions areRobert Hannon, Baltimore Region; William

Askinazi, Capital Region; and JamesRzepkowski, Rural Maryland Region.Askinazi and Hannon have served as assis-tant secretaries for business developmentand regional development, respectively.Rzepkowski most recently served as executivedirector of the Maryland EconomicDevelopment Commission.

Focusing on Small Business

Another major benefit of the reorganiza-tion is that it will allow DBED to focusgreater resources on small and minoritybusinesses, a priority of the Ehrlich/SteeleAdministration. The Governor’s Office ofBusiness Advocacy and Small BusinessAssistance (GOBA), headed by DirectorJames McLean, has been expanded to pro-vide more outreach to small and minoritybusinesses, particularly African Americanand Hispanic businesses, and ensure that allMaryland businesses have the tools theyneed to grow, create jobs and bring sharedprosperity to communities across the state.The changes are designed to make theDepartment more responsive, more integrat-ed and target more resources to small andminority businesses across the state.

Supporting Maryland’s Strategic IndustrySectors

The reorganization also allows DBED totake a more aggressive approach to attractingand retaining jobs, particularly in the strate-gic, high technology industry sectors.

“One of Maryland’s greatest assets is our

DBED reorganizes to take more focused,regional approach to doing business

36


ability to produceleading edge tech-nology,” saidDeputy SecretaryFoster. “Our goalis to establish anenvironment thatwill facilitateinteractionbetween entrepre-neurs and researchfacilities, to bringnew products andnew technologiesto the market-place.”

This new tech-nology focus wasreinforced whenGovernor Ehrlich’sCommission onthe Developmentof AdvancedTechnologyBusiness (the Pappas Commission) present-ed its recommendations in January 2004 onthe future of Maryland’s technology indus-tries. The Commission found that “enhanc-ing Maryland’s business environment tobecome one of the premier states in creating,nurturing and retaining advanced technolo-gy investment and business” was critical tothe Maryland’s continued success in thehighly competitive technology global mar-ketplace.

The commission also found that the stateneeds to “increase commercialization ofinnovation by coordinating and leveragingthe research and development performed inMaryland’s private, government and aca-demic institutions.”

The Office of Strategic Marketing andBusiness Development will focus on attract-ing and retaining businesses in Maryland’sstrategic industry sectors including: bio-science, information technology, advanced

technology, financing and real estate, aero-space and manufacturing.

Marketing Maryland

In addition to serving as AssistantSecretary for the Division of Tourism, Filmand the Arts, Dennis Castleman also hasbeen named State Marketing Director for

DBED. In thisrole, he will over-see theDepartment’smarketing efforts.His marketinggroup, whichcombines themarketing, adver-tising and com-munications func-tions, will workwith the Office ofStrategicMarketing andCommunicationsPlanning to devel-op and implementmarketing andpromotionalstrategies for theDepartment andthe State.

“In order to bemore competitive, to successfully attract andretain businesses and jobs to Maryland, wemust take a more aggressive approach to thework of this Department,” said SecretaryMelissaratos. “This reorganization will allowus to fine tune and target our efforts andensure the Maryland economy continues togrow.”

37


BY ARIS MELISSARATOSMARYLAND SECRETARY OF BUSINESS AND

ECONOMIC DEVELOPMENT

Shortly after I was appointed secretaryof the Maryland Department ofBusiness and Economic Development,

Governor Robert L. Ehrlich, Jr., challengedme to make Maryland—currently the thirdlargest state biotech cluster—into thebiotechnology capital of the world. While

this is an ambitious goal, Ibelieve we are making steadyprogress to that end.

In fact, given our uniqueresources—we are the largestrecipient of federal R&Dmoney per capita, having notonly a wealth of federal labs,but the highest percentage ofpost-graduate workers in thecountry—we are well posi-tioned to not only be a biotechleader, but a high technologyleader as well.

Maryland, like the rest of thecountry, is emerging from a three-year eco-nomic downturn. We fared better than most.Our unemployment numbers for this periodremained two points lower than the nationalaverage. We have seen a marked increaseover the past six months in biotechnologyentrepreneurs launching companies andapplying for DBED’s seed fund and venturecapital program. The Governor has asked thelegislature to double these funds in the com-ing fiscal year. This incredibly successful

program, with a portfolio of over 80 compa-nies and an ROI of 32 percent, will attracteven more private investment from the com-petitive capital markets.

Maryland companies now have more than40 new therapeutic technologies in clinicaltrials. As our bioscience industry maturesfrom R&D into production, we are makingcritical capital investments in the uniqueinfrastructure required for biomanufacturing.This year, the state invested $50 million atthe University of Maryland’s BioprocessingScaleup Facility and the new GMP (GoodManufacturing Practices) center at theUniversity of Maryland’s BiotechnologyInstitute’s CARB II facility to be completedin 2006. The state also is assisting five newor expanded research park initiatives tohouse new and expanding bioscience enter-prises. Two of these state-of-the art parks arein Baltimore City.

Looking ahead, we are creating even moreopportunities to work in partnership with allorganizations around the state having similargoals, and leveraging Maryland’s uniqueposition in R&D. One out of every five dol-lars for federally performed research getsexpended in Maryland—that’s $9 billion.Our challenge is to capitalize the commer-cialization potential of this federal invest-ment in intellectual property that exists atthe University System of Maryland andJohns Hopkins University, the NationalInstitutes of Health (NIH), the NationalInstitute of Standards and Technology(NIST), the Beltsville Agricultural Research

38


Secretary’s Column

Doing whatever it takes

Center (BARC), Fort Detrick (USAMRIID),or the National Security Agency with itsimpact on information technology and infor-mation assurance.

With our unique assets, I believe that weare strategically positioned to become a

leader in biotech, biodefense and high tech-nology. We are actively presenting Marylandon an international stage and pursuing globalbusiness development with recent trips toJapan and Singapore. Our future is brightand the sky is the limit.

39


Ehrlich. “We are pleased that the federal gov-ernment has found another avenue to utilizethe vast technology resources that the Statehas to offer.”

U. S. Air Force Lt Gen Michael V. Hayden,director, NSA/Chief, CSS, said the newlyinked agreement would benefit both parties.

“This agreement will enhance our trans-formation efforts to provide quality intelli-gence to the national leadership while pro-moting economic prosperity in Maryland,”General Hayden said.

NSA’s Research Associate Directorate(RAD) explores opportunities to developnew technologies for its information assur-ance and signals intelligence missions. Withthe signing of the memorandum of under-standing, DBED hopes to achieve the dual

goal of raising the awareness of emergingtechnologies of interest to NSA and activelyattracting to Maryland other technologycompanies that would like to work with theNSA.

“In today’s increasingly global marketplacebusinesses can locate almost anywhere,” saidMaryland Secretary of Business andEconomic Development Aris Melissaratos.“We are extremely pleased that NSA hasdecided to partner with the State on thisendeavor.

“Maryland’s number one ranking for thehighest percentage of professional and tech-nical workers in the nation and the intellec-tual power of research centers in more than200 federal agencies and universities locatedacross the State are key elements in attract-ing the high technology firms of today andtomorrow.”

NSA pact continued from page 13

Did you know…❚ Maryland ranks second in the nation in National Institutes of Health research and

development contract awards ($274 million).Source: National Institutes of Health, data for FY 2002.

❚ Maryland ranks second nationally in federal obligations for research and development($9.3 billion).Source: National Science Foundation, data for FY 2001.

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