The Biotechnology Innovation Organization (BIO), in partnership with the Council of State Bioscience Associations (CSBA), released today its latest biennial report on best practices in bioscience economic development initiatives: The U.S. Bioscience Industry: A Powerful Engine for State Economies.
The report details the diverse strategies states, cities, and municipalities are using to strengthen the bioscience ecosystem in their communities and support America’s global leadership in biotechnology.
“This report underscores how deeply biotechnology is woven into our nation’s fabric and serves as a roadmap for how states can help maintain America’s global biotechnology leadership,” said John F. Crowley, President and CEO of BIO. “It shows how smart investments in biomanufacturing, research, and workforce development don’t just bring effective medicines to patients, they also foster economic vitality across the country.”
The report examines public policy initiatives across all 50 states and Puerto Rico, highlights standout programs, and identifies national trends, including:
- R&D Incentives: Thirty-nine states and Puerto Rico now offer research and development tax credits, many refundable, to help early-stage bioscience companies access capital. Thirty-two states and Puerto Rico support SBIR/STTR matching grants for companies in their regions. In the coming decade, the bioscience market is expected to expand rapidly — with forecasts predicting it will reach over $5 trillion by 2034.
- Jobs & Investment Boosts: States are expanding job creation and capital investment grants to attract and retain bioscience employers that inject our economy with good-paying jobs. In the U.S. alone, the bioscience industry’s total economic impact (as measured by overall output) exceeded $3.2 trillion in 2023, supporting a large number of direct and indirect jobs.
- Manufacturing Tax Relief: Forty states and Puerto Rico are offering sales and use tax exemptions to lower costs for new biomanufacturing and research and development facilities. North America (particularly the U.S. and Puerto Rico) account for 40% of the global biotechnology market revenue.
- Early-Stage Funding Support: Twenty-six states are expanding angel investor tax credits and twenty states have early-state venture fund tax credit, all to help fuel biotech startup growth. In 2024, venture capital investment in the bioscience industry saw a rebound, reaching $26 billion, up from $23.3 billion in 2023. In 2024, the revenue for public bioscience companies in the U.S. grew 6.8% year-over-year to $205 billion.
“State and regional policymakers can look to this report to see what we know works for the bioscience ecosystem,” said Mike Guerra, Board Vice Chair of CSBA and President & CEO of California Life Sciences. “It highlights practical strategies — like targeted incentives and public-private partnerships — that can help any state turn scientific potential into real economic opportunity and lifesaving breakthroughs.”
“Bioscience growth doesn’t happen by chance — it’s driven by smart policy decisions,” said Pete Pellerito, BIO’s senior policy advisor and the report’s lead author. “The latest edition of this report provides a refreshed look at the best practices states and regions can deploy to support and grow their bioscience sector.”
The full report is available at bio.org/bestpractices.
Read more here.