The Changing Landscape of Life Sciences & Medtech Business Development

The life sciences and medical technology (medtech) industries are at the forefront of innovation, driving advancements that enhance health outcomes and improve the quality of life. As these industries evolve, so do the strategies for selecting optimal sites for their operations. This blog offers an overview of the Hickey Institute’s most recent report, “Life Sciences & Medtech Site Selection Strategy.” It highlights how changes in the economy, job market, and technology are impacting various aspects of location decision-making.

During the COVID-19 pandemic, reshoring (and onshoring) the medical and pharmaceutical supply chain became an important focus. To mitigate challenges to the flow of mission-critical medicines and medical equipment, establishing associated operations in the US is trending. This new activity has led to the creation of several biomanufacturing hubs where regions are investing heavily in industry-specific infrastructure and has resulted in a renewed focus on talent availability. These facilities don’t just appear out of nowhere. Several conditions have to be right to make these complex projects work.

Artificial intelligence (AI) and digital technologies are transforming drug discovery and healthcare delivery. Companies are seeking talent with expertise in AI, machine learning, and data science. As such, proximity to tech ecosystems is becoming increasingly important for life sciences firms. In a race to fill life science and medtech-related jobs, talent availability has become a critical factor in site selection, often outweighing tax incentives.

Design considerations and the availability of power and water are also significant factors for life sciences and medtech companies, as many facilities require specialized designs to meet regulatory and operational needs. Reliable utility infrastructure is essential for biomanufacturing operations. Moreover, meeting the physical regulatory requirements for life science and medical technology operations is non-negotiable. These projects come with extensive training and documentation requirements and must comply with Current Good Manufacturing Practices  and other FDA rules.

In addition to meeting the infrastructure, technical, and regulatory requirements of life science facilities, life sciences professionals are seeking communities with supportive business climates and affordable living. Oh, and don’t forget about the incentives factor. As with other industries, federal and state governments tend to incentivize development through tools such as research grants, tax credits, and funding for workforce training. Some local governments may also provide additional incentives to strengthen competitiveness.

Taken together, the evolving nature and complexity of life science and medical technology projects are starting to equate to a mash-up of “greatest hits” in terms of location criteria. This emphasizes the need for comprehensive economic development ecosystems that can answer the call to provide business environments that offer collaborative and well-equipped communities, as well as quality of life environments that are affordable and desirable.

Fortunately, the document cites several examples of communities doing exemplary work to attract and keep life science and medtech companies in operation. Standouts in diagnostics, cellular biology, and medical devices are showcased for the innovative ways they’re responding to meet the changing needs of the industry. Communities with extensive infrastructure are highlighted to demonstrate how that infrastructure is being utilized to support facility operations.

Like many other economic developers, you may be reading the document and thinking, “How can we replicate what these communities are doing? What will our messaging be about talent and site readiness?” It’s complicated enough to land less technical projects, but where do you start when the industries are evolving, and that evolution demands a more sophisticated market for operations? While the challenges may be getting larger, solutions still exist. Hickey Global has several tools that can help when it comes to determining a community’s baseline of business development readiness on an industry-specific scale, and we’ve listed several below.

• Cluster Studies: First and foremost, does chasing life science and medtech companies make sense for your location? Understanding your community’s business composition and learning which clusters can thrive in your ecosystem is an important first step

• Skills Gap Analysis: Beyond a labor analysis, which lays out the composition of your market’s workforce, understanding skills gaps will identify key skill sets that should be invested in to support local industry. The outcomes of these studies will alert practitioners to whether more support is needed to enhance the skilling of medtech professionals, for example.

• Competitive Assessments: Identify your actual location competitors based on data surrounding similarities in business composition factors, like cost structure, industry mix, and existing infrastructure. There’s nothing like measuring up against competitors with an apples-to-apples data comparison to see where things stand.

Successful site selection in life sciences requires a holistic understanding of industry needs. Communities need to invest in specialized real estate, utility infrastructure, and talent pipelines to be relevant. The good news is that with so much industry evolution, even emerging markets have opportunities to attract life sciences investment through strategic planning and preparation. If you’re interested in understanding more about the opportunities that exist for your market, connect with our team. We’d welcome the chance to learn more about your priorities and circumstances and build a strategy well-suited for getting the business development results you’re pursuing.

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