Global Health: Our Window to the World

There’s been a lot of buzz about the region’s growing global health industry over the last two years, and for good reason: with the largest philanthropic investor in this industry in the world (Gates Foundation) here in our backyard, combined with leading research institutions in global health (University of Washington’s School of Global Health, Seattle Biomedical Research Institute) and internationally-recognized service delivery organizations (PATH), we’re pretty well situated to become THE epicenter for this industry in the world. But a lot of people are still confused as to how a cluster that’s focused on helping the world’s poorest people survive the world’s most widespread diseases translates into economic prosperity for our region.

Happy Anniversary, Recovery Act!

They grow up so fast…it seems like only yesterday that Congress passed the American Recovery and Reinvestment Act of 2009. In fact, it was not yesterday, but rather February 13, 2009. (The President signed it four days later.) Which makes today the nine month anniversary!

Even after all this time, there are actually a number of major opportunities still open. On this happy day, here are a few to keep an eye on (or apply for!):

Obesity: It’s Not Your Fault…Somewhat

We here at the Prosperity Blog have been trying to stay out of the health care reform debate for the most part, except to beat the drum somewhat for personal responsibility in taking care of yourself, so as to reduce the need for health services. But we carved out an exception on the obesity issue for lower income people “who tend to be heavier because of lack of access to healthy food.”

“The Importance of Clusters, Right?”

I couldn’t have put it better than Frank did (quoted above) when he emailed me this link:

It’s important for us to be in Seattle because the competitive environment in life sciences is important to the tone and productivity of a company, and, if you’re looking to recruit someone, it’s important to be in a labor pool of significant size like there is in Seattle,” Hudson says.

The importance of clusters, indeed.

Time for a Fat Tax?

As I’ve said before, I really don’t know very much about the healthcare system. But you’ll note that I did say that:

As a side note, I do think that it’s our lifestyle, not just our healthcare system. We eat too much crap, don’t exercise enough and are a bunch of big fat fatties. I’m not sure cheaper health insurance is going to help that…it requires a culture change.

As usual, my brilliant observations are backed up by research. Apparently, “Americans who are 30 or more pounds over a healthy weight cost the country an estimated $147 billion in weight-related medical bills in 2008,” and half of that is straight from taxpayers through Medicare and Medicaid.

Let’s do some fun math. The healthcare reform bill is coming in around $1 trillion over 10 years, which averages out to $100 billion a year. According to the CDC, our country is collectively 4.6 billion pounds overweight. If everyone paid $25 for every pound they were overweight, that would pay for healthcare on its own! And since we know that a lot of the money is coming through other sources, like administrative savings, it’d be less than that. The brilliant part about it is that it creates an economic incentive to lose weight, which ipso facto lowers the cost of healthcare which therefore still evens out.

Now, obviously, this is a terrible idea for a number of reasons, including the disproportionate effect on lower income people who tend to be heavier because of lack of access to healthy food. But it makes you think. Consider this my finest Jonathan Swift post yet.

What’s the Difference Between a Propeller and a Wind Turbine?

They’re both fan-shaped things that push wind to create energy, just one uses it to generate propulsion, the other makes electricity. Only one can be used to get the bad guy during a fight with Indiana Jones, though.

So, of course it makes sense that former aerospace manufacturers are turning to wind turbines as a way to put their capacity to work. There’s actually two stories in between the lines here, though:

I Don’t Understand Health Care Reform

…as my recent Master of Public Health graduate wife knows well. It’s not that I don’t think that health is an important part of our economy, and I certainly believe that rising health care costs are a challenge for both government and employers (and everyone else). It’s just that I know that I don’t understand the health care system or healthcare economics enough to truly understand how to ensure that reforms actually improve health outcomes and lower costs. So when the government starts talking about whether Group Health is better than a publicly run insurance competitor, I find it hard to come down on one side or another. Kudos to Group Health, though, for being a national model.

As a side note, I do think that it’s our lifestyle, not just our healthcare system. We eat too much crap, don’t exercise enough and are a bunch of big fat fatties. I’m not sure cheaper health insurance is going to help that…it requires a culture change.

God, That Is So Seattle!

I have to admit that I’m a subscriber to Seattle Metropolitan magazine.  As a low-paid public employee, it gives me vicarious joy to see how the other half lives.  Apparenly, there’s lots of great shopping and dining here!

I don’t read the SMet for its economic development insights (that’s what this blog is for!), but I couldn’t help noticing the article on the global health industry in the region and the “evils” of thinking of it as an regional economic driver:

Making a Huge Deal about a Huge Deal

The global health industry cluster is a funny thing. Certainly a lot of the large industry clusters in our region focus on selling things mostly outside the region (that’s how we generate wealth!), but they seem somehow more connected also to our daily lives: Microsoft sells most of its software to the rest of the world, but we all interact with Windows or Word on a regular basis; Boeing sells most of its planes overseas, but we all do enough flying or drive past Boeing Field enough to think of it as a hometown asset; Starbucks or Amazon, same thing.

All’s Fair that Ends Fair

We try not to use this space for too much boosterism of Prosperity Partnership projects…but when someone else takes the time, we want to at least share it!

Besides being called “pro-growth” (one of those terms you never know if Puget Sound residents are using positively or negatively), my favorite line is that we have “a number of working groups scheming in various policy and employment sectors” (emphasis added). It makes all the sitting in a cubicle staring at a computer screen I do seem so Bond-villain-esque.

Fun with catchphrases aside, the article is a nice summary of the reasoning behind why we think a 2012 global health event could be pretty awesome for this region:

• drive additional tourism to the region (ideally in the spring or fall when it’s otherwise tough to do so)
• brand the central Puget Sound as “the epicenter of global health work” and attract new global health companies and employment to the region
• Better link this work to the residents of the region and help people understand why it’s something to cherish and celebrate
• Create a great event that’s fun, educational, gives back to the world, helps support research and development that cures some of the world’s worst diseases and inspires children toward the sciences

And hey, we might even be able to get Bono and Angelina Jolie to come!

Investment Advice from the Prosperity Blog

That is to say, never take investment advice from the Prosperity Blog…you’ll end up daytrading WaMu stock.  However, I thought this story was worth noting, not only because it’s great that biotech companies with strong links to our region did well financially.  The interesting part is why they did well: because biotech companies are, by their very nature, a long term investment.  Everyone knows that it takes years and years and plenty of patience to coax a new drug through the R&D process and the federal approval process, so they’re looking beyond the current downturn.  It’s a great reminder for economic development in our region, to remember to focus on the long term as we work to grow and sustain those industries (like biotech) in which we have or hope to develop a competitive advantage.

For example, it’s a hard time for clean tech startups to get venture funding or credit and low oil prices are a disincentive for alternative energy investment, but we believe that this is the industry of the future so we have to find ways to continue to develop it.  As Bob Drewel recently said at the Prosperity Partnership luncheon, “Now is not the time to take a step back on the investments that are going to ensure our future. Now is the time to double down!”

Do They Have a Pill to Deal with the Global Financial Crisis?

Lots of big change in our region’s biotech industry these days. Zymo, Targeted Genetics and, of course, the Washington Biotech and Biomed Association. WBBA has been a major force behind building greater awareness among elected officials and the general public about the importance and potential of this growing industry cluster in our region.

Biotech doesn’t always get as much attention as the sexier clean technology industry or the big boys of aerospace, trade and IT, but it has real potential to become one of the main things our region is known for – between the great companies, the great research institutions and the powerful philanthropic dollars behind it. Hopefully the new folks at all these places can continue to lead that charge.

Blogging from Leadershp Conference #2 – Global Health

The Conference topic this year is Global Health.  As in, how can we capitalize on the list of great things going on in our region, from Gates, to PATH, to SBRI, to of course UW and WSU?

BTW, if you don’t know it, Seattle is rapidly becoming the center of Global Health on worldwide scale.  This has all grown organically, some would say “by accident.”  But I always think when someone says that it just means that they weren’t the ones that planned it.  I say it grew up because talented people executed their vision.  And because we have UWMC and the Gates Foundation.

So, recognizing that it is hard to say what should be done when we haven’t wrapped up the preceedings yet, my vote goes to a little planning and a lot of doing.