By M. Ray Perryman
Austin is on the verge of a historic decision. If voters approve Proposition 1 next week, it will merge a phenomenal economic opportunity with a comprehensive healthcare effort that promises to benefit people across the community. A medical school at UT Austin is a win-win.
Because I enthusiastically support the idea, it has been bizarre to see my previous work taken out of context and misconstrued by the few opponents of this initiative. Their use of my firms report on the economic effects of medical and educational activities in Temple to project the effects of such activities in Austin is fundamentally flawed.
Opponents ignored our findings regarding the current economic benefits of the Temple medical and education complex of $1.8 billion and 24,150 jobs. This amount is comparable to the potential annual impact for the Austin region of $2 billion and significantly above the 15,400 jobs estimated for the Austin project by TXP.
Instead, opponents improperly focused on our estimate of the potential economic impacts of expanding the existing complex in Temple (which already includes a medical school and a teaching hospital more than twice the size of UMC Brackenridge). We found significant potential economic development gains of the expansion (including 2,221 to 3,572 permanent jobs in Temple/Bell County) which are over and above those of the current facilities.
The differences between Austin and Temple are plain for most people to see. Of particular relevance in this instance is the stark difference in the potential economic synergies and opportunities for research collaboration between a medical school co-located with a Tier 1 research university and one located 80 miles away in a much smaller community. Add to that the Austin areas burgeoning biotech industrial base, and the potential impact of adding a medical school skyrockets. In short, a project of a different size, different type, and in a different geographic market cant be extrapolated in the manner that was attempted. Apples and oranges doesnt begin to describe it.
In fact, Id say the estimates generated by Jon Hockenyos at TXP, my long-time friend and former employee, are quite reasonable and, if anything, a bit on the conservative side. In 2008, my firm studied the potential for a medical school in Austin and found the potential benefits to be somewhat larger. We also noted that the economic development effects of Texas enhancing its market presence in biosciences like other states with medical school-research university collaborations were multiple times higher. I should note that the current proposal (including the enhanced care Proposition 1 will provide and a number of the other initiatives set out by my friend, Sen. Kirk Watson) is much larger than was considered in the 2008 report.
I also disagree with the out-of-state economist who commented on the supposed limited possibility of a strong biotech economy in Central Texas. It is true that the prior generation of big pharma is well established, but the next wave, driven by innovations in genomics and nanotechnology, is just beginning. It is clear that the industry thrives on new discoveries largely emerging from research universities. New businesses will be founded and nurtured in cities where basic research can be translated into clinical applications, including the capacity for clinical testing.
Moreover, the recent selection of Texas A&M; as a major center for vaccine research and development virtually assures that Central Texas will have opportunities for biopharmaceutical operations on a grand scale, with Austin as a prime potential location. Finally, the multi-trillion-dollar convergence that is occurring across multiple research and production areas facilitated by nanotechnology advancements will define the growth centers of the future, and a major medical school attached to UT Austin is the only missing ingredient for Austin to be at the forefront of this expansion. Implementing this initiative is a once-in-a-generation opportunity that can positively redefine the future of Austin.
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Perryman: A medical school for Austin is a once in a generation opportunity
