< Previous170 SEPTEMBER 2024 S I T E S EL E C T I O N “Critical to CarbonCapture’s decision was the extensive institutional support it received from the Greater Phoenix Economic Council, Arizona Commerce Authority, Arizona State University and Salt River Project. The facility will employ 30 full-time hires growing to an expected 400 total by 2029.” Also investing in the area is Arizona Lithium, which in May cut the ribbon on a new Lithium Research Center in Tempe. With the capability to perform all of the processing steps for battery-grade lithium carbonate, the center will function as a technology incubator focused on the extraction of lithium from both the Prairie Project in Saskatchewan and the Big Sandy Project in Wikieup, Arizona. In March the U.S. National Science Foundation delegation during a visit to Intel’s growing campus in Chandler announced that Ecolab, Hydrosat and the U.S. Green Building Council had joined NSF Engines: Southwest Sustainability Innovation Engine (SWSIE) led by Arizona State University. SWSIE unites academic, community, nonprofit and industry partners throughout Arizona, Nevada and Utah to establish the Southwest as a leader in carbon capture, water security and renewable energy. Life Sciences A recent report from CBRE found Phoenix is the second-fastest-growing market for life sciences degrees with a growth rate of 75% between 2017 and 2022. A new ASU School of Medicine and Advanced Medical Engineering in downtown Phoenix will only ratchet up those numbers, as will a new College of Medicine from Northern Arizona University, a new College of Health Sciences from the University of Arizona and a new Phoenix Medical Quarter home to a medical school from Creighton University in partnership with St. Joseph’s Hospital. That’s just one door into the region’s surge in life sciences activity, headlined by the MDM2 consortium, a medical S I T E S E L E C T I O N SEPTEMBER 2024 171 device initiative that was named one of the nation’s 31 Tech Hubs by the U.S. Department of Commerce. A report from the Flinn Foundation found that bioscience industry jobs increased by 14.8% between 2020 and 2022 to 39,118; the average Arizona bioscience wage climbed by 11.5% to $84,536 in 2022 and reached $99,658 for non-hospital jobs; and a record high of $365 million in NIH grants went to Arizona institutions in 2023, a figure that increased by 29% (three times the national average) since 2020. Also part of that ecosystem are Translational Genomics Research Institute (TGen), part of City of Hope, and the International Genomics Consortium (IGC), original founding companies on the City of Phoenix’s Phoenix Bioscience Core campus. One company looking to take advantage of the ecosystem is Wisconsin-based Exact Sciences, the cancer detection and treatment company which currently employs more than 190 people but is looking to establish a 250,000-sq.-ft. center of excellence at Phoenix Sky Harbor Center. The company’s proposed expansion will result in more than 800 new jobs. In north Phoenix, the anchor is Mayo Clinic, whose footprint includes its original campus in Phoenix proper established in 1987, its own Alix School of Medicine that graduated 47 students in May 2024 and Discovery Oasis, a 120-acre medical and research campus announced in 2023 in Scottsdale. Mayo Clinic has been in Arizona for 36 years, employs approximately 10,400 employees and has an annual state economic impact of $4.7 billion. Mayo itself is part of the region’s growing international fabric. In an interview, Mayo Clinic cardiologist Dr. Steven Lester, M.D., medical director of Discovery Oasis, says his team recently has welcomed delegations from TSMC’s home country of Taiwan, Ireland, France, the Netherlands and Japan. Global firms have also been prominent in the six years of cohorts at Mayo’s MedTech Accelerator. Lester says Mayo is part of a robust ecosystem, and cites the words of a colleague who told him, 172 SEPTEMBER 2024 S I T E S EL E C T I O N “The seeds of innovation only grow in fertile soil.” Lester and his colleagues saw small firms competing with large incumbent health care organizations and winning. “I thought, why don’t we identify these creative startups, and if they have clinical or ideological links to people in our organization, bring those companies in, connect them and work collaboratively? More of a pull strategy of innovation,” he says. “Let the companies manage the business aspects. We provide access to patients, clinical trials, data and potentially capital. We will make investments in Mayo-aligned projects. That was the birth of the medtech accelerator program.” Mayo has invested in around half of the accelerator’s portfolio companies and seen four companies exit. Pfizer has collaborated with one of them, and another is led by the ex-CEO of Cardinal Health. Yes, Lester says, the portfolio is attracting interest from life sciences multinationals, partly to keep abreast of discovery, partly to watch for acquisition targets and partly — because research and innovation are so expensive — to outsource some of it and thereby “de-risk it a bit,” he says. Lester says the Phoenix area is “catching up very, very quickly” to other areas when it comes to biosciences talent. “Think about it: nearly 32,000 engineering students alone at ASU. That’s a rich pool of talent,” he says, noting the equally important training resources of Maricopa County Community Colleges. “If we are building a company and need a certain type of workforce, we can go to these colleges and identify the training programs,” he says. “It’s a lot easier to get people to move across the parking lot than across the state line.” Asked about his personal experience of life in the Phoenix region, Lester, a native Canadian who grew up in Toronto and lived in Vancouver, says he came to Arizona thinking he’d be there for a few years and then go back to Vancouver. Twenty-six years later, he uses one word to describe living in Arizona: “Easy. It’s easy to live here. The weather is S I T E S E L E C T I O N SEPTEMBER 2024 173 great. The infrastructure is spectacular — roads, the school system, health care organizations, cultural opportunities. It’s been a wonderful place to live and raise a family.” Looking out his window at Discovery Oasis, he observes that the highway there didn’t exist when he first arrived. “The level of growth has been remarkable, but it’s been strategic and well planned,” he says. “And very much like Canada, very few people were born and raised here.” That means networks are not hardened and closed, but open. “People are very welcoming and embracing,” Lester says. “The community wants everybody to work together. That is one of the secret sauces to the growth in Arizona.” Thomas Osha, executive vice president at Wexford Science + Technology and a noted global expert on life sciences districts, says small firms are leasing space at his company’s Connect Labs site in Phoenix, which he describes as “our smaller, flexible, ready-now lab product.” The facility is 85% leased, he says, including space leased by the NIH for its national diabetes and kidney research. “Talent wise, there is a ton of talent in Phoenix,” Osha tells Site Selection’s Alexis Elmore. “The PBC [Phoenix Bioscience Core] is the only location in the state where all three of the public universities have a presence — Arizona State University, the University of Arizona and Northern Arizona University.” There is TGen. There is the Barrow Neurological Institute. And 10 minutes away is one of the largest Veterans Administration facilities in the country. But the real engine is the proliferation of medical schools. In the past decade or so, the region has gone from zero to five. “Imagine,” says Osha, “the research and the talent behind that.” If recent history is any guide, you won’t have to imagine it for long. Federal Tech Hubs funding could help emerging districts reach viability. The value of an innovation district “comes from the ability to congregate, connect and collaborate,” says Wexford Science & Technology Executive Vice President omas 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. e 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. e Wexford team has developed a portfolio which includes the Innovation Quarter in Winston-Salem, North Carolina; e Pearl in Charlotte, North Carolina; the Pittsburgh Knowledge Community in Pittsburgh, Pennsylvania; the BioPark in Baltimore, Maryland; and more around the country. ese 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 diffi cult 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 e Biden Administration launched the Tech Hubs Program in , 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 , it was announced that $ million would be distributed among selected Tech Hubs. ose recipients included the ReGen Valley Tech Hub in New Hampshire, Heartland BioWorks in Indiana and the Wisconsin BioHealth Tech Hub. ED S & MED S S I T E S E L E C T I O N SEPTEMBER 2024 175 A Welcomed Catalyst for Innovation A Welcomed Catalyst for Innovation by ALEXIS ELMORE alexis.elmore r@siteselection.com The ReGen Valley Tech Hub looks to build upon New Hampshire’s growing biofabrication industry. Photo courtesy of the Advanced Regenerative Manufacturing Institute176 SEPTEMBER 2024 S I T E S EL E C T I O N ese Tech Hubs in particular are developing in states where Wexford has shown interest in innovation district development but was unable to fi nd the right project to pursue. e Tech Hubs Program seeks to spur innovation in smaller markets outside of major cities like San Francisco and Boston where eds and meds clusters have already evolved. “ is 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 $ 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 innovation districts globally per year. Most often he fi nds the largest missing piece is space for collaboration. Or the district has been approached as a real estate play rather than 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 offi cials, business community, civic infrastructure, higher education systems and workforce investment boards all need to be rowing in the same direction. ey need to pick a place and invest in that place.” ReGen Valley Tech Hub e Advanced Regenerative Manufacturing Institute (ARMI) was selected to lead New Hampshire’s ReGen Valley Tech Hub with a focus on biofabrication. e Tech Hub received $ million from the Economic Development Administration to launch fi ve 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 Offi cer 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 infl ux 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 , new roles over the next decade. Research activity conducted here will not only draw in companies but provides a pull for creating new restaurants, services, child care, aff ordable housing and transportation support. “We don’t want to lose what makes New Hampshire special,” states Lenzer. “Our community coalition is made up of -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 , biohealth fi rms supporting over , jobs. “Our existing partnerships with leading educational institutions, research facilities and industry leaders have created a robust foundation,” says BioForward Wisconsin Regional Innovation Offi cer Wendy Harris. “ is ecosystem is primed to pursue life-saving ventures by leveraging cutting-edge research, advanced technologies and the collective expertise of our community.” e biohealth ecosystem in place will leverage its $ million Tech Hubs funding to foster synergy between industry leaders and nimble startups to drive innovation in personalized medicine and foster economic growth throughout Wisconsin. 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. “ e Tech Hub designation is a game- changer for Wisconsin’s life sciences and health care sectors, which in our specifi c 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 fi elds but also attracts new and established companies to our vibrant ecosystem.” Government o cials, 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 Government S I T E S E L E C T I O N SEPTEMBER 2024 177 Ask 10 location experts what their top quality of life ingredient is, and you’ll likely get about 10 different answers. Most would agree that housing costs and availability, education options, cultural amenities and commute times are high on their list, but it varies from person to person. Personal finance company WalletHub released in August its 2024 Best States to Live In, which uses 51 indicators of livability to compare the 50 states. The indicators are organized into five categories, each weighted 20%. They are affordability, economy, education and health, quality of life and safety. Following is the overall rank of the Top 20 states. by MARK AREND mark.arend@siteselection.com QU ALITY OF LIFE Florida ranks No. 2 as a place to live and No. 4 for quality of life, the highest combined ranking in WalletHub’s new index. Photo of Gasparilla Island State Park courtesy of Florida DEP DOES YOUR STATE MAKE THE CUT?178 SEPTEMBER 2024 S I T E S EL E C T I O N The quality-of-life component — one fifth of the overall ranking — consists of 16 weighted metrics including average hours worked per week, average commute time, access to public transportation, quality of roads and the number of restaurants, bars, museums, performing arts centers, movie theaters and fitness centers per capita. Among other questions WalletHub asked experts from academia was this: What can state policymakers do to attract and retain new residents? “There is a lot of talk about keeping taxes low,” said Howard Yaruss, adjunct assistant professor at New York University. “Nevertheless, for many years, some of the highest tax states, such as New York and California, were attracting residents and some of the lowest tax states, such as Mississippi and West Virginia, were losing residents. That said, taxes are clearly one factor in attracting and retaining residents, but states ignore all the other factors at their peril. These include good infrastructure, job growth, quality of life, good 1 Massachusetts 2 Florida 3 New Jersey 4 Utah 5 New Hampshire 6 Idaho 7 Pennsylvania 8 Wisconsin 9 New York 10 Wyoming 11 Virginia 12 Iowa 13 Minnesota 14 Maine 15 Montana 16 Illinois 17 North Dakota 18 South Dakota 19 Vermont 20 Kansas Top 20 States to Live in America source: WalletHub S I T E S E L E C T I O N SEPTEMBER 2024 179 schools, and safe/welcoming streets and public spaces.” Dr. Randal Ice, professor emeritus at the University of Central Oklahoma: “Recognize that we are seeing more and more people who are geographically flexible and will choose their location based on a variety of local factors. Attracting new residents, particularly those who can advance commerce in a state, is important. Not everyone is geographically flexible, but enough are that states should always consider how laws impact the desirability of their location. “Make sure tax rates are competitive, particularly for high-income and highly mobile individuals like retirees,” he adds. “However, even highly paid CEOs can move a company to a low- tax location, taking many jobs to a new state when tax rates are unfavorable. Life is about more than taxes, however. Quality of life factors play a role in where people want to settle. States should consider these factors when providing services to their residents and act accordingly. It is a very competitive world for the best and the brightest.” 1 New York 2 California 3 Pennsylvania 4 Florida 5 Illinois 6 Massachusetts 7 Minnesota 8 Texas 9 Washington 10 Michigan 11 New Jersey 12 Colorado 13 Wisconsin 14 Oregon 15 Ohio 16 Iowa 17 North Carolina 18 Georgia 19 Virginia 20 Connecticut Top 20 States for Quality of LifeNext >