The Life Science Industry of New York City: Obstacles and Recommendations Towards Regional Development

[摘要] The life science industry has localized into clusters, due to the localization of small and large life science companies, academic institutions that conduct biomedical and scientific research, sources of funding for early stage companies, and support from local, state and federal governments. While there are life science clusters all over the United States, Greater Boston and the Bay Area are considered the top two life science clusters in the country, and are considered life science hubs due to the large-scale localization of companies, research institutions, funding and government support.While New York City has a life science cluster, they are not considered a life science hub because they lack the infrastructure and resources that Greater Boston and the Bay Area possess. Three hypotheses were created to investigate potential obstacles that are impeding the growth of New York City’s life science industry. The first hypothesis stated that the lack of affordable lab space was an obstacle impeding New York City’s life science industry. The second hypothesis stated that the lack of local venture capital funding impeded the growth of New York City’s life science industry. The third hypothesis stated that the lack of entrepreneurial culture within academic technology transfer offices impeded the growth of New York City’s life science industry. The case study approach was used to examine the structure of New York City life science companies. The lack of lab space has resulted in the growth of virtual life science companies that outsource research and development, and the growth of parent and subsidiary life science companies. The structure and operations of two parent and subsidiary model companies, Roivant Sciences and Fortress Biotech, were studied. The lack of affordable lab space was determined to be an obstacle impeding the development of New York City’s life science industry. While the existence of local venture capital firms was not an issue in New York City, the firms did not invest in local life science companies. The technology transfer offices of university and medical institutions implemented measures to progress research to the pre-clinical stage and create start-up companies; however, the start-up companies that were formed from technology transfer offices did not remain in New York City. A case study of parent and subsidiary life science companies revealed a structure that prioritized financial return on investment over the commercialization of therapeutic products; in addition, parent and model subsidiary companies also impeded the growth of the life science industry by reducing the quality of management and scientific talent in the city.Recommendations aimed at improving New York City’s life science industry are: the construction or renovation of lab spaces to include mixed-use spaces that are suitable for medium sized companies; the incorporation of common spaces that encourage informal interaction amongst the life science community; cost of living subsidies for founders or CEOs that want to locate their start-up companies in New York City; grants to encourage the formation of local start-up companies that spin off of technology transfer offices, and public-private partnerships between the local government and local venture capital firms. In addition, the city must advocate for traditional life science companies that conduct in-house R&D and discourage the influx of virtual companies and parent and subsidiary companies.

[发布机构] University:Havard University;Department:Biotechnology Management

[效力级别] General

[关键词] Business Administration;General