Several Midwest regions illustrate success in the life sciences industry. This success is not just about landing a major life sciences employer but in many cases is about building a tech-friendly ecosystem.
Indianapolis offers a strong starting point for a successful life sciences region. Life sciences is a big industry in Indiana: $79B economic impact; 56,000 industry jobs; $115M venture capital funding in 2019; and 1,689 life sciences companies. Indiana has the second highest national concentration of biopharmaceutical jobs and worldwide exports totaling $8.2 billion. Indianapolis and Lafayette are two of only eight cities in the United States with specialized concentration in four of the five life sciences subsectors. Indianapolis is leveraging their life science strength to develop an innovation district, 16 Tech, located just three miles northwest of Downtown. The 50-acre live-work-innovate community brings together entrepreneurs, academics, startups, corporations and creatives in a single place designed to spark the exchange of ideas that lead to innovation. The innovation district opened its first building in August 2020, home to Indiana Biosciences Research Institute, IU School of Medicine and the Central Indiana Community Partnership and its initiatives. HqO, the innovation hub at the heart of the district, opened its doors in 2021. Located in the former headquarters of the Indianapolis Water Company, HqO boasts three unique activity centers including a makerspace, artisan marketplace, and flexible/private office space powered by national incubator 1776. The development will change the landscape of Indianapolis over the next ten years. By 2030, 16 Tech will be home to: $500 million in investment, 50 acres of mixed-use community space, 15 acres of greenspace, 3 miles of trails, more than 750 housing units, 3 million square feet of development including office, lab, retail, and residential, and 3,000 jobs in the tech life sciences and advanced manufacturing.
Chicago is not only home to Fortune 500 corporate headquarters but is a global leader in the life sciences industry. The Chicago region’s life sciences industry has a real GDP of $28.5B which makes it 5th among metro areas and has a +2.3% growth since 2021. Chicagoland’s R&D services is the 9th largest in the nation and added 560 jobs since 2022 and 2,300 jobs since 2019. The region’s Medical and diagnostic laboratories is the 5th largest in the nation and added 640 jobs since 2022 and 1,480 jobs since 2019.
As the map on this page illustrates, the life sciences industry is spread around the Chicago region. Chicago’s success in life sciences is driven in part by the fact that Chicago offers affordable lab space, with more slated to come online. At $47.50/sq ft, lab space is half the cost compared to New York and almost 60% of the cost compared to Boston. Chicago also has a supporting ecosystem for industry innovation and business growth. Chicago is home to over 75 incubators and accelerators, including 1871 and healthcare-focused MATTER. Finally, Chicago is an existing hub for medicine. Chicago is home to one of the largest urban medical districts in the country, the Illinois Medical District, which spans over 500 acres with 40 healthcare facilities. There are 7 medical schools in the Chicago metro area, including two top-20-ranked programs and one of the nation’s largest programs.
Cleveland, Ohio is another example of a successful player in the life sciences and health care industry. As home to the Cleveland Clinic, University Hospital and Case Western Reserve University, Cleveland is a major life sciences industry. Healthcare is one of the strongest sectors in Northeast Ohio’s economy. Not only is Cleveland a hotspot for medical innovation, but is also home to the Cleveland Clinic, ranked as one of the nation’s top hospitals by U.S. News & World Report. Here you’ll also find one of the nation’s top research and teaching medical schools, Case Western Reserve University School of Medicine. Cleveland’s Health-Tech Corridor (commonly referred to as HTC), is a prime location for biomedical, healthcare and technology companies looking to take advantage of proximity to four world-class healthcare institutions including the Cleveland Clinic and University Hospitals, six business incubators, four academic centers, and more than 170 high-tech and health-tech companies engaged in the business of innovation. The Global Center for Health Innovation is the only facility in the world to display the future of health and healthcare presented on four themed floors. The Global Center serves health and healthcare innovation, technology, education and commerce through state-of-the-art spaces, programs and virtual offerings. Cleveland is home to over 700 life science companies with $243 M in new life sciences venture capital spending and 5000 life sciences jobs in the life sciences industry. The Cleveland Innovation District brings together Northeast Ohio’s world-class healthcare providers and education institutions with the goal of creating a pathogen center with global reach to improve the lives of millions of people and to generate more than 20,000 jobs in Ohio over 10 years. The State of Ohio, through DSA, JobsOhio, and Cleveland Clinic, committed a combined $565 million to the Cleveland Innovation District. Collectively, the institutions participating in this $500 million public-private initiative have created more than 2,600 jobs, spent nearly $1.2 billion on research and innovation, commenced construction of two new research facilities, created dedicated research space comprising more than 550,000 square feet, and awarded more than 7,300 degrees and certificates to support workforce development.
Regions across the Midwest are leading successful growth driven by the life sciences industry.
