Like harvard, where we are now. One Company Betting Big on boston is General Electric. Multinational broke ground on a new World Headquarters right here in the city. The ceo talked about the collaboration between the company and the city of boston. Jeff one of the Oldest Companies has moved its headquarters to one of the countrys oldest cities for the purpose of creating this huge, whether its in Renewable Energy or Life Sciences or technology or aviation, these the things we want to bring to the city. These of the things we think we can do together. Caroline it is a year when they won the bid for ge. It cost the city on property relief on top of a incentive package from the state. I sat down with the cfo to discuss why boston was the topic. Top pick. Jeff i think boston is unique. You start with a place where there is more research spent in any other place in the world. It is a bed of ideas in a sea of ideas. There is such an entrepreneurial irit and so many startups in a deep technology culture. Its the right place for us to start making this transformation. There is no other place on earth where youve got 500,000 of the smartest kids in the world going to school and graduating every year in the metro boston area. Its really unique in tt regard. We are thrilled to be here and be part of this ecosystem. Caroline you have so many areas of power, where do you think will make the most obvious and dent . Where we see it be integrated quickly . Jeff we think it plays across all of our verticals. In health care, there is an enormous market with ai and Machine Learning and how we think about clinical outcomes around images. Our oil and gas business are full steam ahead on improving productivity and efficiency of wells and try to get the breakeven price for a barrel of oil or gas down. For our customers to make our products more competitive. There is not a business in the portfolio that wont benefit dramatically from this digital transformation. At the end of the day, we are trying to make our produs perform better f ctomers and create Better Outcomes for customers economically. We think there is an enormous amount of productivity in the world of machines and systems of machines. Caroline we have seen you make acquisition activity, especially in robotics and three printing. They have targeted largely european companies. What about the east coast area . Jeff the added manufacturing is an enormous opportunity for the company and the world. It will be revolutionary and the digital transformation. We absolutely believe that. We bought two big Concept LaserPrinting Companies in europe last year. We didnt start there. We started with a Company Called morris Tech Knowledge he about five years ago. Weve been investing and doing research run 3d printing or added manufacturing over that time. We didnt start with these acquisitions. They give us new modalities of technology that allow you to make parts differently and different kinds of parts. We will leverage off that. It will remake how people think about designing products or parts or finish roddicks and how they build it. The great thing about additive, its a constructive process. You only use the material you need to make the product and you can make it in a fidelity you could never do with todays machine technology. Greatest machines in the world today wont let you make things is accurately as three printing. E sign space it never existed. Caroline do you finish with those acquisitions . Jeff we will really evaluate how we put this puzzle together. Where there are possibilities to accelerate, we are wide open. If boston fits that way, we have partnerships with robotics and m. I. T. Labs and northeastern labs with the Research Going on. There is a real ecosystem here to move the practice forward. Caroline youre talking about investment and money spending. I know youve got to look at costcutting at the same time. How you able to square that circle . You been asked to take 2 billion out of operations. Jeff we have to continue investing the future. This is where the Company Going for the next two decades. In the long run, these investments we have to make. We have to run our own company as efficiently as possible. We can do this. We can walk and chew gum. One doesnt have to be at the expense of the other. I think running the company more efficiently gives us the opportunity to invest in these tech colleges that are the ture of the company. Caroline as you make these big commitments, its a time of political change. How do you field the political environment fits into this area and you talked about what austin brings to you. There are worries about immigration and funding going into biotechnology. What do you think about th Trump Administration . Jeff from a ge perspective, we are a Global Company. We serve global customers. We have a global workforce. That is the company we are and that is the company we are going to run. Our supply chain and our manufacturing and Technology Capability looks like places and the customers we serve and thats how we have to run the company. We are going to remain a Global Company. I think anything we do policy wise that makes the u. S. More attractive for investment, taxes, i think its great for ge and great for other companies. More than 50 of what we do and sell we do outsidehe. S. We have to be able to play broadly. Caroline coming up, we bring you a oneonone with a top investor in massachusetts, none other than the Boston Celtics coowner. His plans on maintaining the place as a leader in biotech and health care. Thats next. We will explain how boston emerged as a Global Leader in biotech. This is bloomberg. Caroline welcome back to the special edition of Bloomberg Technology. We are coming from Harvard University. Massachusetts Biotech Sector has been receiving a lot of attention. One investor helping keep the industry rolling is none other than Boston Celtics coowner and bain capital manager steve pagliuca. Thanks to a have two donation a hefty donation, the life lab opened its door last november. It is a shared Laboratory Space for high potential Life Sciences and biotech startups founded by harvard faculty, alumni, and students. I spoke with him about the significance of the lab. Steve the story started several years ago when i was running for the senate. One of my Campaign Promises was to protect biotech here. I wrote an editorial saying weve got to keep the lead and infrastrucreere. We have the best universities and hospitals. Through the vision of dean faust, they came up with the idea of building a facility that while the startups to stay here instead of leave and be costeffective. Caroline were you worried about a brain drain . Steve we had seen it in the tech industry. 25 years ago when i went to business school, we had digital equipment. Many of them went to california. We didnt want that to happen here. The mar d governor got involved. They promoted the Life Sciences. You can see the result of it now. Caroline intense competition when youre looking globally, are there areas you feel you can harness the crown away from or fight off . Is it written up in the United States . Steve the talent pool is the richest in the country here in boston because of the groundbreaking research in the hospital complex and the technology. I think we have the crown. We dont want to lose the crown. The life lab can really promote that. It gives easy access to companies. There are eight schools from harvard and 15 businesses. Youve just seen one that is very exciting with vaccination. There are projects going on. When you have that kind of vitality that can start here and stay here. They will move to another facility. Caroline you know youre investing well. Is biotech and area you would not only want to see for future innovation for our health, but also as a reward . Steve there are many biotech companies. We actually are announcing a large fund that will focus on the area of later stage. There is ecosystem financially developed as well so these companies can get capital and moved to venture capital. Caroline the local ecosystem is supporting from a private point of view. What about the public point of view . We might see the taps turned off or biotech funding. What about longerterm . Steve hopefully they will see this is good for america and the economy. They certainly ran on that platform. We have been supporting locally our governor and mayor. The mayor was here at the opening. The entire administration of boston help get this facility up in record time. A lot of times these buildings take seven years. Thanks to the mayor and governor ancounity, he came together very rapidly. 15 businesses are already up and running. Caroline atbout the diversity in terms of the pool of people you see here . Is that something you have been able to prioritize . Steve my wife was heavily involved. E an investor. My daughterinlaw is a cofounder of a biotech company. They work with the university to make it very familyfriendly. We have rooms for women and rooms for kids, breastfeeding, all the things to ma ia very friendly and easy environment. Caroline that was steve pagliuca. Facebook famously started in a harvard dorm room, is considered as the one that got away. Headquartered in california, facebook quietly returned to cambridge in 2013 to open an engineering office. The company is taking advantage of the talent. Kendall square in cambridge is thhet of austins tech community. West Coast Software giants of taken note. Facebook is looking for opportunities in boston. Boston is a combination of senior engineers and great universities. Caroline he helped Facebook Open the office nine years after Mark Zuckerberg developed a social network at harvard. It has grown to 18,000 square feet and employs 100 engineers that tackle some of the toughest challenges. Most of what we are working on his infrastructure. They are working on the technology that is the underpinning for the products people see on a regular basis. Caroline compilers, storage, security, networking. These systems needed to develop the applications that reach facebooks users. The team also supports some of these social networks most visible projects like facebook live. Anyone who is looking at that video will see that comment in real time. Caroline location by product like the live video map and marketplace that helps you buy and sell things locally. The Global Company with the market cap of 425 billion has even more ambitious plans in its tenure outlook. We can give more people a voice. Caroline along with the engineering teams, the Cambridge Team will play its part, particularly in connectivity. Had a we get connectivity to the next billion people . We build up technology that can work in a greater ecosystem to make cellular and Wifi Technology cheaper. We are trying to change the cost curve so we can develop networks to the world today that dont have network availability. Caroline it is social networking on a local and global scale. We will have more from boston after the break. Coming up, we bring you a discussion on how biotech mpies are responding to Trump Administration policy changes from health care to visas. We will introduce you to mass robotics, the nonprofit bringing robotics to life. This is bloomberg. Caroline this is the best of Bloomberg Technology. We are coming to you from boston. More from the Biotech Sector which benefits from capitalists and the research center. The Trump Administration proposed cuts that could hamper future growth. Local companies are posing some of the other initiatives such as the Affordable Health care act and the typing of visa restrictions. We look at how some companie are responding. Theyve invested in more than 400 startups, including local success stories. I think some of the Central Companies here are her tech, some of the Largest Companies in biotech. They are based here. So many Tiny Companies spring up around the universities during i think some of the trends we look at our the move toward rare diseases. We talk so much about pricing in the industry and there has been so much pressure on pricing. Some of the people who of en resistant have been those that vocus on rare diseases. Insurers are less willing to fight back against high prices. They treat cystic fibrosis. They charge hundreds of thousands of dollars here. Biogenic came out with a new drug for a deadly musc disease. The first year of treatment costs 750,000. These are areas that local companies are pushing into across the country. Caroline when you are helping to cure such crucial areas, there are money for funding. How much of the ecosystem, how does it grow . The ecosystem is coming. Boston is the absolute epicenter of biotechnology. Every Major Company has r d centers here. Weve got 50 colleges. There are 200,000 students here. We convinced them to move from around the world to a place with great weather and they stay. And they join Pharma Companies and that makes them fertile ground. Caroline talk to us about some of the concerns of have come in. They seem to have kept the money flowing for the short term. The shortterm budget have kept it going. There is worry about Affordable Care act changes and the Trump Administration and their viewpoint on health care in general. I had concerns around some of the trump immigration orders. Attracting people means attracting people from all over the world. If there are problems because of religion or which country you are coming from, thats going to be an issue for some the innovation around the area. Thats what a lot of the companies have said. When it comes to pricing, some of the concern around the changes to obamacare in this act that just passed the house still meets to go to the senate. In that case, there are concerns we could get lifetime limits ba. These are limits on how much insurers will pay for care. When youre talking about a drug that the cost 350,000 a year, that adds a pretty quickly. I think thats a major concern for some of the Companies Moving into these rare diseases. If those limits are back, they will face major struggles when people hit their caps. Caroline when you have a longterm perspective, how much can you factor in the daytoday swing of the pendulum . No city feels healthcare funding like boston. The top for funded hospitals are all in boston. This could be a good thing. When the funding does try up, people who are entrepreneurs and do want to Start Companies will think about driving funding. Were there to fill that gap. Caroline how much are we seeing the vc Community Expand in boston . Many feel that Silicon Valley is a big brother. Are you seeing the seas, or from their . Is there a buildup of money . In Traditional Technology, Silicon Valley is the big rather. It might be the grandfather in many ways. In biotech, this is the center of excellence. You see venture capitalists from the bay area swarm here. Weve got the three ingredients. Weve got the universities. Weve got big pharma. That builds up clusters of entrepreneurs. Weve got radically decreasing costs. That mea iyou are a young researeror these companies and youve got an idea, it doesnt require 50 million to see if it works. Caroline is International Money coming in . This gene editing technology, all three of the big crisper companies all have their r d centers in cambridge. That is because you have that ustering effect going on. Caroline when you are looking at the investments you make, where are you looking in term of exits . To receive see money getting refueled back into the system . Are angels exiting . The ipo market has been muted. We see an opening of a window in oth. In biotech, it has been wide open. You have technology capitalists moving into biotech. There used to be health care on one side and Tech Knowledge he on another. Now with the powers of Machine Learning in artificial intelligence, you see the converging of those spaces. Caroline you are in a number of companies. You have exited half of them. Which should we look at . I think pill pack is one you have focused on a lot. They are making fundamental changes to the way prescriptions are delivered. We are changing peoples access to doctors reports in booking. We use the power of big data. The theme is the convergence of Traditional Technology with health care. Its incredibly exciting. Caroline coming up, we speak with the Harvard University president drew faust and discuss how boston is synonymous with Higher Education and what the university is doing to e