Public-private partnerships with major universities are successful for a number of reasons. In the US, the most obvious is the continued decline in funding for research and development. With pharmaceutical companies, biotech firms, medical instrument manufacturers and life sciences companies, the federal government traditionally funded their R&D through agencies such as the US Food & Drug Administration, the US Centers for Disease Control and the National Cancer Institute.
It used to be that major pharmaceutical companies would spend considerable money on in-house R&D operations, taking decades to bring a product to market. At one point, they started to rely on acquisitions of small start-ups, where discoveries were already taking place, sometimes in people’s garages. The combination of exorbitant R&D costs and lengthy regulatory processes gave birth to the new normal, wherein the private sector partners with public and academic researchers, using the capabilities of major research universities to jumpstart things.
New Brunswick encourages redevelopment, with a history of public-private partnerships and the support of all major stakeholders
“In that way, you’re not starting from the conceptual phase, but actually have the potential to take things directly from the lab bench into production”, explained Christopher J Paladino, President of the New Brunswick Development Corporation. “Being proximate to universities became expedient for businesses because they are a great source of new drug and medical technologies.”
Another driver of public-private partnerships is the fact that the real estate part of locating a business has almost become secondary. Nowadays, it’s all about relationships and the sharing of ideas. Big pharma and life sciences especially have realised that things don’t work as effectively remotely. “They want to be there with the researchers”, said Paladino. “They want to have lunch; they want to look into the microscope.” Thus, they need to be located in close proximity to major research universities.
Finally, businesses and major research universities have always been in competition for talent. The smartest kids in the world want to go to the best universities. So, naturally, businesses want to be proximate to those students who are the next generation of idea makers. They want those students to be their interns, their first hires, and those students want to live in the exciting urban environments where most of these academic institutions are located.
Building the future
As a non-profit organisation, New Brunswick Development Corporation (DEVCO) is unique, in that there is no other public or private entity in the region whose primary purpose is to ensure that redevelopment projects have a clear public policy intention, and that they come to fruition despite economic or bureaucratic challenges that would otherwise deter private sector developers.
The company currently has $330m of infrastructure and capital improvements in the ground at Rutgers University, which will uniquely situate us to bring the next level of redevelopment with the university.
“DEVCO harnesses the key components of successful urban revitalisation to its expertise in leveraging a variety of public and private resources to achieve multiple development goals”, explained Paladino. “Even amid some of the most challenging times in our country’s recent history, redevelopment in New Brunswick remains robust because of Devco’s unique approach. Successful redevelopment requires capitalising on momentum: DEVCO is always opening one project, breaking ground on another, financing a third and envisioning projects for the future”, he added.
New Brunswick encourages redevelopment, with a history of public-private partnerships and the support of all major stakeholders. Within five blocks of downtown New Brunswick, DEVCO has completed more than $2bn in development in the past 15 years. The biopharmaceutical and medical technology industry is a major factor in creating a thriving economy in New Jersey, as well as making the state a leader in research and development. In fact, it has the highest concentration of scientists and engineers in the world.
Heart hub
“On the heels of the success of several recent redevelopment projects (including the Transit Village Gateway, Wellness Plaza and College Avenue projects), DEVCO will soon break ground on the first phase of a 1.7 million sq ft complex that will become the region’s most exciting 24/7 mixed-use neighbourhood – right in the heart of downtown New Brunswick”, Paladino noted. “The Hub @ New Brunswick Station will embrace the modern workplace culture with state-of-the-art office layouts and research facilities, great apartments and condos allowing workers to walk to work, restaurants and shops, and spectacular public spaces.”
The Hub will provide corporations and the workforce that supports them with opportunities for collaborative research with nearby universities, teaching hospitals and like-minded corporations and entrepreneurs – as well as access to a highly educated and skilled workforce, public transit and a wide variety of housing, dining and entertainment options.