Illinois’ Life Sciences Sector: A Key Focus in Governor Pritzker’s Economic Growth Plan

Illinois' Life Sciences Sector: A Key Focus in Governor Pritzker's Economic Growth Plan

by John Conrad| Aug 14, 2024| Policy News

In a bold move to secure Illinois' economic future, Governor JB Pritzker has unveiled a comprehensive five-year economic growth plan that places a strong emphasis on the life sciences sector. This strategic focus aims to position Illinois at the forefront of biotechnology innovation and medical research, potentially transforming the state into a global hub for life sciences.

The Life Sciences Opportunity

The life sciences industry, encompassing fields such as biotechnology, pharmaceuticals, medical devices, and healthcare technology, represents a significant growth opportunity for Illinois. With its world-class research institutions, skilled workforce, and existing biotech clusters, the state is well-positioned to capitalize on this burgeoning sector.

Governor Pritzker's plan recognizes the potential of life sciences to drive economic growth, create high-paying jobs, and contribute to advancements in healthcare and medicine. By prioritizing this sector, Illinois aims to attract substantial investments, foster innovation, and establish itself as a leader in cutting-edge medical research and development.

Illinois' Strong Foundation in Life Sciences

Governor Pritzker's focus on the life sciences industry is built upon Illinois' existing strengths in this sector:

1. Medical Devices Leadership: Illinois has a strong presence in the medical devices sector, with four of the top 10 largest companies in the industry. Medline, Baxter, Abbott, and GE Health, with combined revenues of almost $70 billion, are driving the growth of the medtech sector in the Chicago metro area.
2. Biomedical Research Excellence: In 2023, the Chan Zuckerberg Initiative selected Chicago as the site for a new CZ Biohub to develop new technologies to treat inflammatory disease. This decision was influenced by the extensive collaboration between researchers at the University of Chicago, Northwestern University, and the University of Illinois Urbana-Champaign (UIUC).
3. Top-10 Life Sciences Metro Area: The Chicago metro area was recently recognized as a top-10 metro area for life sciences, particularly due to its educational institutions and growth in lab space suitable for life sciences innovation.
4. Rapid Growth in Lab Space: From 2018 to 2023, rentable life sciences office space in Chicago increased by 76%, the fastest growth rate among the nation's top 10 metro areas for life sciences.
5. Cost-Effective Destination: Chicago ranks #1 as the most cost-effective destination for life sciences office space among its peers. Average rates are 61% less than New York City, 55% less than San Francisco, and 39% less than Boston, making it an attractive location for startups and established companies alike.

Key Initiatives for Life Sciences Growth

The economic growth plan outlines several key initiatives to bolster the life sciences sector:

1. Research and Development Incentives: Enhanced tax credits and grants for companies investing in life sciences R&D within the state.
2. Talent Pipeline Development: Partnerships with universities and community colleges to develop specialized programs in biotechnology, bioinformatics, and related fields.
3. Infrastructure Investment: Funding for state-of-the-art laboratory spaces and research facilities to attract and retain life sciences companies.
4. Startup Ecosystem Support: Increased resources for life sciences incubators and accelerators to nurture early-stage biotech companies.
5. Regulatory Streamlining: Efforts to simplify and expedite regulatory processes for life sciences companies, particularly in clinical trials and product approvals.

Specific Proposed Action Items

The plan includes several specific action items that are of particular interest to the life sciences industry:

1. Apprenticeship Tax Credit: Extending and reforming the apprenticeship tax credit to encourage more hands-on training opportunities in the life sciences sector.
2. Advanced Manufacturing Investment Tax Credit: Establishing this credit to support the production of medical devices and other life sciences-related manufacturing.
3. R&D Tax Credit Extension: Extending the R&D Tax Credit to 2037 and allowing startups to benefit, which is crucial for early-stage biotech companies.
4. Targeted Marketing Programs: Building targeted marketing initiatives specifically for the life sciences industry to attract more companies and investment.
5. Capital Grants for Shared Research Facilities: Deploying grants to support the development of shared research facilities, which can be particularly beneficial for smaller biotech companies and startups.
6. Sector Specialists: Hiring specialists dedicated to the life sciences industry to provide expert guidance and support.
7. Job Training Programs: Developing specialized curricula and training programs for occupations in the life sciences industry.
8. Prioritized Grant Support: Giving priority to businesses in growth industries, including life sciences, when allocating grant support.
9. INVENT Sector Fund: Creating a fund within INVENT (Illinois New Venture Encouragement for Technology) specifically for sectors like life sciences.
10. Incubator Support: Providing capital grants to support incubators for startups in tech and manufacturing, which can benefit life sciences companies.
11. OMEE Capital Grant: Launching a second round of the OMEE (Office of Minority Economic Empowerment) Capital Grant program, which can support diversity and inclusion in the life sciences sector.

These action items demonstrate a comprehensive approach to supporting the life sciences industry, from tax incentives and financial support to talent development and infrastructure investment.

Expected Economic Impact

The focus on life sciences is expected to yield significant economic benefits for Illinois:

• Job Creation: The plan projects the creation of thousands of high-skilled, well-paying jobs in research, development, and manufacturing.
• Investment Attraction: By positioning Illinois as a life sciences hub, the state aims to attract billions in private investment from both domestic and international sources.
• Innovation Ecosystem: The growth of the life sciences sector is expected to spur innovation across related industries, creating a ripple effect of economic growth.

Industry Response

The focus on life sciences in Governor Pritzker's economic growth plan has been met with enthusiasm from industry leaders. John Conrad, President and CEO of the Illinois Biotechnology Innovation Organization (iBIO), the trade association representing the 90,000 life sciences jobs in Illinois, offered praise for the initiative:

"We applaud Governor Pritzker and the Illinois Department of Commerce and Economic Opportunity for recognizing the life sciences industry as a cornerstone of Illinois' future. Over the past five years, our community has experienced remarkable growth, as highlighted in this report. The life sciences sector in Illinois continues to outpace the average growth of all private industries in the state.

While this report underscores the economic advantages of fostering the life sciences industry, we must emphasize that its true value lies in its profound impact on human lives. Every advancement in this field represents hope for patients battling illness, potential cures for devastating diseases, and innovations that can dramatically improve quality of life. The life sciences industry isn't just about creating jobs; it's about creating miracles for families across Illinois and beyond.

By investing in life sciences, we're investing in a future where medical breakthroughs are the norm, where diseases once thought incurable become manageable, and where every Illinois resident can look forward to longer, healthier lives. This is the higher purpose that drives our industry forward.

We're eager to continue our collaboration with the Governor's office, DCEO, and Intersect to nurture the life sciences industry in Illinois. Together, we're not just growing an industry; we're growing hope, health, and possibilities for countless patients and their loved ones."

This endorsement from a major industry representative reinforces the potential of Governor Pritzker's plan to not only drive economic growth but also contribute to advancements in healthcare and quality of life for patients.