Key to innovation is funding. Established markets vastly outperform in this regard, with significantly higher inflows of VC. The challenge for other markets and governments seeking to compete is how to address the gap between established and emerging hubs. This is particularly relevant as global VC funding is beginning to normalise and return to pre-pandemic levels.
Basel stands out as a key life sciences hub where several major firms are headquartered, including Roche and Novartis. The city is particularly attractive to businesses looking to break into the European market, benefitting from easy accessibility to other established sector hubs in Zurich and neighbouring France and Germany, as well as excellent infrastructure and attractive tax benefits. Whilst being a centre of excellence, Basel ranks lower in our global index owing in part to its comparatively smaller inflows of VC. Government initiatives, including the new “Innovation-Society-Environment” policy, will support this in the future.
Other flourishing life sciences hubs include Singapore, Manchester, and the Scandinavian clusters around Copenhagen, Stockholm, Uppsala, and Oslo, which all offer access to renowned universities, numerous pharmaceutical and biotech companies, and innovative start-ups. However, investments from VC are relatively low. Governments are working hard in each of these locations to boost their life science economies through increased funding and policies to attract investment.
Talent retention is also key to building a successful life science hub. Toronto boasts a high-calibre workforce and innovative advancements in genomics and AI. However, the city faces talent outflows, with many of its top students attracted to better-funded American universities, while promising companies which secure US VC funding also tend to relocate to the US. Ontario’s sector strategy, “Taking Life Sciences to the Next Level”, is helping to address some of these challenges.
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