“In my opinion, the value of an innovation district comes from the ability to congregate, connect and collaborate,” says Wexford Science & Technology Executive Vice President Thomas Osha. “And that requires the space to do so.”
Innovation districts — or, as Osha dubs them, “knowledge communities” — are a vital way of forming intentional space for universities, academic medical centers and major research institutions to pioneer lifesaving research. The concept of eds and meds clustering is far from new, but in recent years a strategic focus from the federal government takes a new approach in fostering these ecosystems.
The Wexford team has developed a portfolio which includes the Innovation Quarter in Winston-Salem, North Carolina; The Pearl in Charlotte, North Carolina; the Pittsburgh Knowledge Community in Pittsburgh, Pennsylvania; the BioPark in Baltimore, Maryland; and more around the country. These locations have become staples in their regions for groundbreaking research, while providing dedicated space for companies to move in and collaborate.
“I’ve always said that talent is the currency of innovation,” explains Osha. “Nothing substitutes for it, so that’s really why we focus in this area of development.”
While there is no lack of established university systems in any state Wexford explores for new opportunities, a challenge that is often faced is economic and commercial viability of multi-tenant projects, particularly in rural areas. Developing knowledge communities in regions without strong real estate markets is difficult as interest rates and cost of construction often exceed what rental rates can recoup.
“If you look across the country, you’re going to see that projects have really come to a halt,” says Osha, “regardless of mark, regardless of quality of institution, until we get more favorable rates where the economics will work.”
Filling The Gap
The Biden Administration launched the Tech Hubs Program in 2022, authorized through the CHIPS and Science Act to strengthen the U.S. economy and boost national security by investing in a multitude of industries to develop new technology, support new businesses and grow the nation’s workforce.
In July 2024, it was announced that $504 million would be distributed among 12 selected Tech Hubs. Those recipients included the ReGen Valley Tech Hub in New Hampshire, Heartland BioWorks in Indiana and the Wisconsin BioHealth Tech Hub.
These Tech Hubs in particular are developing in states where Wexford has shown interest in innovation district development but was unable to find the right project to pursue. The Tech Hubs Program is important due to its effort to spur innovation in smaller markets outside of major cities like San Francisco and Boston where eds and meds clusters have occurred naturally.
“This kind of funding can help close those gaps.” says Osha. “Using this funding as a catalyst, as a way of bringing people together, as a way of enabling plans that may be in place, is the way to go.”
Heartland BioWorks Tech Hub, led by the Applied Research Institute, received $51 million in funding to boost biotechnology and biomanufacturing within Central Indiana. Out of the four projects the Hub will use funding toward, the most important may be the construction of a BioWorks HQ, which will serve as a training and demonstration site for the region’s workforce.
Osha typically visits about 75 innovation districts globally per year. Most often he finds the largest missing piece is space for collaboration. Or the district has been approached as a real estate play rather that cultivating a collaborative environment. Life sciences clusters depend on hospitals and research universities, but outreach remains a key point in growing the ecosystem.
“From my research and experience the smaller the market, the more that market needs to work together,” says Osha. “Government officials, business community, civic infrastructure, higher education systems and workforce investment boards all need to be rowing in the same direction. They need to pick a place and invest in that place.”
ReGen Valley Tech Hub
The Advanced Regenerative Manufacturing Institute (ARMI) was selected to lead New Hampshire’s ReGen Valley Tech Hub with a focus on biofabrication. The Tech Hub received $44 million from the Economic Development Administration to launch five projects which focus on scaling commercialization capacity of biofabrication-related therapies, creating a multi-institutional Common Campus for workforce development, increasing awareness and adoption of regenerative therapies, boosting a paid apprenticeship program and driving consortium-wide engagement.
“New Hampshire is a small state and there’s a lot of great things going on,” says ARMI Chief Innovation Officer Julie Lenzer. “But biofabrication has been a unifying thread that has brought the community together, because they can see the potential of us becoming an epicenter for the industry. As a result, there are more people wanting to get involved and anxious to get started,”.
Designation brought an influx of demand and interest in the ReGen Valley Tech Hub, which helped with preparing proposals for implementation as Lenzer saw that demand has quickly outpaced capacity. Projects like the Common Campus aim to ease friction for talent looking to enter the industry, providing new training programs and assistance along the way. It provides the means to avoid a “brain drain” as this Tech Hub looks to create 9,000 new roles over the next decade.
In addition, the ReGen Valley Tech Hub aims to reach and support the state’s underrepresented and low-income populations, while finding the most equitable way to build the region’s industry. When the Tech Hub was first announced it received base funding from the U.S. Department of Defense, although this move was supportive of building up a national network rather than focusing on individual communities.
“Government officials, business community, civic infrastructure, higher education systems and workforce investment boards all need to be rowing in the same direction.”
— Thomas Osha, Executive Vice President on innovation districts in smaller markets, Wexford Science & Technology
“The DoD wants to create an industry and they’ve invested in the base technology capabilities, but the EDA mandate supports the local ecosystem, which is important to creating an industry,” says Lenzer. “It’s a beautiful marriage of government funding working in tandem and multiplying their impact.”
Building this industry ecosystem excites Lenzer due to its potential multiplier effect. Research activity conducted here will not only draw in companies but provides a pull for creating new restaurants, services, child care, affordable housing and transportation support that drives innovation forward and creates new jobs.
“We don’t want to lose what makes New Hampshire special,” states Lenzer. “Our community coalition is made up of 40-plus organizations and we’re going to be adding more, because everyone wants to see us have the opportunity to do this right.”
Wisconsin BioHealth Tech Hub
Wisconsin has an established presence in the life sciences industry as it’s home to over 2,000 biohealth firms supporting over 46,000 jobs.
“Our existing partnerships with leading educational institutions, research facilities and industry leaders have created a robust foundation,” says BioForward Wisconsin Regional Innovation Officer Wendy Harris. “This ecosystem is primed to pursue life-saving ventures by leveraging cutting-edge research, advanced technologies and the collective expertise of our community.”
The biohealth ecosystem in place will leverage its $49 million Tech Hubs funding to drive synergy between established industry leaders and nimble startups to drive innovation in personalized medicine and foster economic growth throughout Wisconsin. AI and creating a real-world data ecosystem will help accelerate new product development, clinical integration of new technologies and overall research activity.
Much like the ReGen Valley Tech Hub, the Wisconsin BioHealth Tech Hub has a strategic focus on increasing access to health care by underserved and rural communities. This includes deploying mobile cancer screenings and health care referral fleets to reach these diverse populations.
“By bringing advanced diagnostics and referral services directly to patients, we can ensure timely interventions and improve survival rates,” explains Harris. “The potential for global application is significant, as these models can be adapted to address health care access issues in various regions worldwide.”
Projects undertaken by the Tech Hub provide talent with opportunities for hands-on experience with industry professionals, which is a key factor in excelling within the state’s rapidly evolving biohealth sector. Wisconsin BioHealth brings together over 250 member organizations within BioForward Wisconsin’s network and allows for innovation to take place around the state, rather in a concentrated region.
“The Tech Hub designation is a game-changer for Wisconsin’s life sciences and health care sectors, which in our specific ecosystem we term as ‘biohealth’ encompassing research institutions, biotech and biopharma, digital health, health care systems, and medical device and diagnostics,” says Harris. “It not only highlights our state’s longstanding reputation as a leader in these fields but also attracts new and established companies to our vibrant ecosystem.”
