Geography may not seem to be an obvious element in the success of a bio-science enterprise. Yet consider all of the cities, regions, states and countries that promote themselves as the "right" locations for specialized research, development, commercialization, and advanced manufacturing to enterprises big and small, across the spectrum of the life sciences industry sector.
Facility investment in the life sciences sector is one of the most sought after "prizes" in the business location arena. This headline could have been written fifteen years ago, five years ago or today. What differs now are several simultaneous and interrelated trends which are rapidly transforming the business of the life sciences, and are influencing where job creation and capital investments occur. These include:
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The convergence of core technologies that spawn bio-sciences innovation
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Changes in the business operating models that manage the research / discovery to commercialization process
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The increasingly tightening interdependency and specialization of the health / patient care industry with the life sciences industry.
This article highlights the importance of workplace geography and the process of location selection in light of these core trends and how ‘place’ decisions apply across the life sciences
Defining Life Sciences
It is challenging to categorize all of the industries and activities comprising life sciences given the complex and changing inter-relationships among many specialized sectors. Rather, it is useful to view the life sciences as a spectrum ranging from scientific research and development to commercialization and manufacturing to medicine and patient care then information management. Some of the key sectors include:
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Biotechnology: The application of engineering and technology to life sciences - includes the use of biological processes, organisms, or systems to produce products intended to improve human life quality. The sector is comprised of companies developing and commercializing new treatment therapies often focused at the genetic level.
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Bio-informatics: The dry science of biotechnology…the application of information technology to the field of molecular biology. This involves the creation and advancement of databases, algorithms, computational and statistical techniques, and theory to solve problems arising from the management and analysis of biological data.
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Medical devices:Production of bio-medical instruments for patient diagnostics, treatment and care as well as simulation equipment and training; these range from the simple (e.g., tongue depressors) to the exceptionally complex (e.g., bio-robotics).
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Pharmaceuticals: Traditional “big pharma” companies which are emerging as key commercializers and integrators of biotech innovation.
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Personalized medical management: A broad range of clinical activities, training and health care I/T in support of improved patient care ranging from personalized drug and treatment therapies to physician training and certification.
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Electronic health records management: Digitizing medical records is said to have vast potential to save time, money and patient lives. It also is said to have the ability to positively impact drug discovery and clinical development through more efficient and rapid interface with medical information.
In addition to the core sectors mentioned above (within which is a very complex range of highly specialized industry niches) are other pillars of the broader health care and delivery sector:
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Universities and Teaching Hospitals: the sources of fundamental research and discovery, start-up business support, entrepreneurial business incubators, etc.
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Contract Research Organizations (CROs): a service organization that provides outsourced pharmaceutical research services to drug and medical device manufacturers.
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Provider Networks: hospital and physician networks, the personalized front-line delivery points of health care.
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Insurers, Regulators and the Payer-Payee Finance Infrastructure: which have a pivotal role and huge support infrastructure.
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Venture Capital Firms: the fuel to seed promising investment.
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Economic Development Organizations: Economic development has an increasingly important role enabling life sciences clusters via provision of a positive business climate, effective incentives, appropriate facilities and infrastructure, comprehensive workforce development programs and the fostering of a collaborative environment among science, business and academic partners.
In particular, the presence of noted universities and teaching hospitals and the specialized research occurring there, in combination with venture capital and a nurturing economic development environment are essential elements for a business location to thrive as a life sciences cluster. A handful of locations are blessed in this regard, others are emerging and many other communities are competing for shares of this pie.
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