DOD and NIH witness budget increase in a year of cutbacks

July 22, 2002

by Ketaki Sood, Larta Research Economist

Already under the strain of the tax cut and recent recession, the U.S Government's decision to increase funding to combat terrorism prevents any prospect of a budgetary surplus in the near future. As a part of that effort, the fiscal year 2003 budget proposes large increases for R&D with funding reaching a massive $112 billion, an 8.6% increase from 2002. The Department of Defense (DOD) and National Institute of Health (NIH) will receive the largest portion of funds. Defense R&D will increase by 9.9%, reaching $58.8 billion.

Concerns about bioterrorism following last year's anthrax attacks have drawn attention to the National Institute of Allergy and Infectious Diseases (NIAID), which focuses on biodefense, including prevention, detection, diagnosis, and treatment of diseases caused by potential bioterrorism agents. Federal funding to the NIAID will increase by 57.3% in 2003 to $4 billion. These funds will be used to build bioterrorism research laboratories around the nation and fund research grants for bioterrorism. Not only does this increase open a new window of opportunity for biotech companies who are willing to collaborate with the Government in developing cutting edge technologies to combat terrorism, but creates a whole new arena of jobs for people with training and expertise in areas including structural biology, bioinformatics and diagnostics, among others. There is a significant time lag between the making of a grant and the actual commercialization of an idea, and ensuring the timely access to funds is vital to the success of such counter terrorist efforts. One can only wait and watch how effectively the Government collaborates with companies and how quickly funds actually make it to the program level.

Larta University Managing Your Team: July 24 & 25
When investors, recruiters and entrepreneurs intersect to match a startup with experienced business management, it's a delicate dance of communication, ego and power struggle that can make or break a company. Many startups usually have a standard set of weak spots in their initial management team--a lack of marketing experience, little to no background in launching or heading a corporation, or technologists that cannot juggle a business on their own. This workshop will address such topics as compensation and incentives, management skills, ensuring team follow-through and teamwork, and legal obligations. The workshop will also touch upon establishing and working with a board of directors. Speakers Include: Jim Jonassen (Riviera Partners), Greg Bonfiglio (Anthem Ventures), Michelle Jackman (MJ Enterprises and Adventures), David McKenzie (Ernst & Young), Ivan Rosenberg (Frontier Associates), and Bruce May (Stradling Yocca Carlson & Rauth)
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