DES MOINES -- Building a thriving biosciences economy in Iowa will require a state government investment of more than $300 million over the next 10 years, according to a report being released today by a high-tech research institute.

The Battelle Memorial Institute study praises Iowa's biotech progress. But the report also argues more dollars be plowed into biosciences research at the state's three Regents universities, including efforts to recruit talented faculty and upgrade equipment and facilities.

State dollars, according to the study, could leverage $1.5 billion in investments from the federal government and other sources. And in 10 years, the study estimates biotech firms could spark the creation of more than 16,000 jobs.

Battelle, a world leader in technology research, was hired by the Iowa Department of Economic Development to size up Iowa's bioscience potential. Gov. Tom Vilsack is expected to release the 145-page report today at a trio of press conferences in Sioux City, Des Moines and Cedar Rapids.

"Iowa has the opportunity to build its economy through the application of advanced biosciences," Battelle researchers wrote. "Indeed, given the state's agricultural-bioscience expertise, its leading-edge work in biorenewables, and its distinct strengths in various areas of human and animal medicine, the biosciences represent the most logical path to a high-productivity, high-wage, 21st-century economy."

Between 2000 and 2002, the report said, Iowa's bioscience economy grew by 5.3 percent compared to average growth nationally of 3.7 percent. Among the state's growth sectors were chemical and pharmaceutical industries.

Biotech employment totaled 82,849 in 2002, or 7 percent of Iowa's private sector work force. Nationally, bioscience jobs make up 5.6 percent of the work force. Iowans working in bioscience industries, according to the report, earn annual wages $12,700 higher than the state average.

University research funds in Iowa total $439.8 million, according to the report, ranking the state 24th nationally. The state ranked 21st in biotech research funding and 19th in medical sciences. But Iowa, at the heart of farm country, ranks just 20th in agricultural research.

"Given Iowa's agricultural base, its ranking in agricultural sciences is a matter of some concern," researchers wrote.

Deep cuts in university budgets in recent years, according to the report, have shaken efforts to transform university research advances into commercial ventures yielding jobs and profits.

The report recommends state government invest an additional $301.5 million over the next 10 years on a wide-ranging array of efforts to boost university-based research and development programs, including $131.8 million from the state's general fund.

The plan calls for hiking state funding for programs driving campus biotech creations to the marketplace, boosting aid from $2.9 million in the first year to $15.4 million annually by 2014.

The report advocates the sale of $169.4 million in bonds to create a Strategic Technology Investment Fund, with $96.7 million sold in the first five years and $73 million floated in years six through 10. The investment fund would be used to help recruit key faculty, support research and bankroll new technology.

With those state dollars in place, the study predicts, federal funding and private sector investments would drive total research and development spending in Iowa to $700 million by 2010 and to $900 million by 2014.

By then, researchers argue, biosciences firms would create more than 5,100 jobs while also indirectly spawning nearly 11,000 more jobs. Total sales from Iowa biotech companies would top $1.4 billion, Battelle researchers concluded.