Across the United States, Clusters of innovation have created self-sustaining ecosystems that are shaping the future of the life sciences industry - and driving economic growth.
Throughout the United States and globally, clusters of innovation have created self-sustaining ecosystems that are shaping the future of the life sciences industry - and driving economic growth.
Not only are these systems advancing the life sciences industry, but they are also serving as strong economic engines within communities, including ones that have historically been disadvantaged when it comes to sustainable development. Suzet McKinney, director of life sciences at real estate development firm Sterling Bay, pointed to Philadelphia as a prime example of this broad regional impact.
Rapid Rate of Expansion in Pharm Country
Philadelphia, part of the Pharm Country hotbed, has seen explosive growth over the past several years, primarily driven by advances in cell and gene therapy development. Over the past few years, there have been significant expansions of manufacturing and research space by multiple companies.
In 2019, Iovance announced the building of a 136,000-square-foot facility in the Philadelphia Navy Yard for commercial and clinical production of autologous tumor-infiltrating lymphocyte (TIL) products. In March 2020, Amicus Therapeutics opened its Global Research and Gene Therapy Center of Excellence as part of a collaboration with the University of Pennsylvania (Penn). Last year, Penn’s Gene Therapy Program became an anchor tenant at Discovery Labs, a suburban Philadelphia ecosystem of more than 7 million square feet.
This year has seen further expansion. In May, Tevogen Bio announced new laboratory space at CIC Philadelphia to facilitate the rapid expansion of its R&D facilities. Meanwhile, RNA-focused Chimeron Bio opened operations at the landmark Center City Philadelphia site, The Curtis, a historic building re-invented as a life sciences facility.
“The Philadelphia market is growing significantly,” McKinney told BioSpace, noting the city and its stakeholders are effectively working together to expand its importance as a critical life sciences hub. Not only are the companies themselves expanding, but peripheral support businesses are also growing, which is strengthening the overall economy of the region. “These innovation clusters can be so transformative in our cities, not just for the economics for under-resourced communities but for creating a greater range of options for entrepreneurs and scientists alike,” she said.
Life Sciences Jobs Propelling the Economy
Pointing to a 2018 report by TEConomy Partners and the Biotechnology Innovation Organization, McKinney noted that for every life sciences job created, there are an additional 3.57 jobs supported throughout the broader economy. Beyond that, for every $1 generated by the life sciences industry, there is an additional $1.27 in output in the broader economy, the report states. For each $1 spent on biomedical research the local business activity increases by $2.43, McKinney added.
Another area where Philadelphia-based companies and entrepreneurs are excelling in is the growth of talent. McKinney said there have been “robust efforts” from government, non-profit and private sector organizations to establish STEM training programs in the schools that have bolstered talent supply lines. Some of the training programs are geared toward manufacturing roles that do not require a four-year college degree.
“We have to recognize that not all kids and young people will go to college. For some, that’s by choice; for some, that’s due to situation and circumstances,” she said. “We have an opportunity to continue to prime the pipeline with workers in the scientific field by creating training programs.”
Philadelphia isn’t the only innovation hub to see significant growth. McKinney also pointed to North Carolina’s Research Triangle Park, the jewel of the region dubbed Bio NC. Founded in 1959, the park now boasts more than 300 life sciences and tech companies. This, she said, shows off the strong collaboration between established technology companies, startups and nearby universities.
Collaboration is Key
Although there has been growth in innovation hubs across the nation, McKinney noted that there is a scarcity of available lab space across the country. There is a 5 percent lab vacancy rate across the country, according to a report from CBRE Americas Research. In top hubs like Boston, the rate is closer to 1 percent, the report shows. Because of this lack of space, developers need to think carefully about builds, evaluating every opportunity, including the rehabilitation of older spaces.
“Demand for lab space is at an all-time high,” McKinney said.
To address this demand, she said it will be important for developers and organizations to hold meetings with the very scientists who are conducting the research to find out their needs and avoid delivering a “cookie-cutter” concept. Horizon Therapeutics followed this model when laying out plans for its new innovation center in Maryland. With a focus on “cross-functional collaboration,” the company turned to its research team to assess their needs and wants before embarking on its ambitious build. McKinney noted that when developers work hand-in-hand, they form a collaborative partnership that has the potential to transcend beyond one build into the creation of a cluster.
“Perhaps the most important element of every successful innovation cluster is how it promotes collaboration by satisfying the needs of its human occupants, the scientists and others working in the environment,” she said.
As she scanned the landscape of innovation, McKinney, who has been involved with the development of decentralized innovation clusters in Chicago such as Sterling Bay’s Lincoln Yards, sees a bright future for the industry.
“The life sciences market has never been stronger, reaching all-time highs in funding, demand for lab space and new construction,” she said. “In fact, life sciences now represents a leading source of U.S. job growth. Biotechnology R&D jobs are growing at their fastest pace on record.”
Featured Jobs on BioSpace
