Life, Liberty, and the Pursuit of Innovation
The Northeast leads a new American revolution in life sciences
In the spirit of the original 13 colonies, a new revolution is underway, this one fought not with muskets, but with molecules. The life sciences industry has become the battleground for global innovation, and the Northeastern states—Massachusetts, New Jersey and Pennsylvania—are the patriots defending their turf. While challengers from across the globe rally for a foothold, these states are doubling down on what made them powerful in the first place: World-class institutions, public-private alliances and a relentless pursuit of scientific advancement. These are not just states; they are the founding fathers of America’s life sciences dominance, proving that the birthplace of American independence is still where the future is forged.
Massachusetts: The first to fight
In the Commonwealth of Massachusetts, the common derived wealth is from the state’s burgeoning life sciences sector—every dollar invested in research returns US$2 to US$3 in economic activity for the state. A commonwealth is defined as a political community founded for the common good; Massachusetts, therefore, is a commonwealth of the global life sciences industry. Massachusetts companies comprise 15.2% of the national drug development pipeline and 6.4% of the global pipeline.
In 2023, the state’s biopharma industry added nearly 3,000 net new jobs, accounting for approximately 17% of the state’s overall job growth, despite representing only 3.7% of the workforce. Massachusetts only lags California by 900 R&D jobs, despite being six times smaller.
Massachusetts is the bosom of biotech. Two Massachusetts-headquartered biotechs—Rapport Therapeutics and Fractyl Health—went public in 2024, matching the total for all of 2023, despite the total number of IPOs dropping from 19 to 17. R&D programs of companies receiving VC funding were focused on oncology (34%), central nervous system (12%) and anti-infectives (11%). In H1 2024, 95 Massachusetts companies received 95 rounds of funding. The average Series A round was US$57.8 million – up from US$50.9 million in 2023. “With just 2% of the nation’s population, the state pulled in nearly 30% of the country’s venture capital funding in 2024, second only to California, which is six times its size,” emphasized Ben Bradford, head of external affairs at MassBio.
In November, Governor Healey signed the Mass Leads Act into law, further strengthening the state’s position. Massachusetts committed US$500 million over 10 years to its life sciences sector through the Act, boosting annual tax incentives from US$30 million to US$40 million to attract companies and create jobs. In December 2024, the state launched the third iteration of the Life Sciences Initiative (LSI), that will inject the industry with a US$500 million capital investment over the next decade. When LSI was originally passed in 2008, seven out of the top 20 pharma companies had a physical presence in the state; now 18 out of 20 do. “The innovation is here. Industry, academia and government collaborate,” said Bradford.
New Jersey: The crossroads of the revolution
Historically named the Garden State, New Jersey is blossoming into the ‘Garden of Eden’ State in the life sciences, offering a fertile ecosystem for the industry to thrive and flourish. “New Jersey is home to eight of the top 10 global biopharmaceutical companies, nine of the top 10 R&D firms, and over 5,600 life sciences establishments. With nearly 120,000 jobs and a US$121 billion economic output, these assets drive scientific progress and groundbreaking healthcare technologies. The state accounted for 43% of all novel FDA approvals in the past two years,” summarized Debbie Hart, president and CEO of BionNJ.
Walk the streets of Newark or Princeton and odds are every person you meet either works in the life sciences industry or knows someone who does. The state has the highest concentration of engineers and scientist per square mile in the country. New Jersey also boasts more biomanufacturing facilities than any other state and has 22 million square feet of lab space, which, in total floor area, is roughly the size of nine Empire State Buildings. There are millions more square feet for purchase and the ongoing and planned construction of life sciences campuses and hubs puts that number on pace to increase 27% by 2026.
New Jersey has become a cell and gene therapy hub, with 40% of all therapies in development taking place in the region. Cellares, a San-Francisco-born cell therapy manufacturer, elected in January 2024 Somerset County for its new 118,000 square foot manufacturing site in Bridgewater. The state is committed to continuing its lead in cell and gene therapies with the launch of NJBioFutures in February 2025. The public-private workforce development coalition, launched by Johnson & Johnson and the New Jersey Council of County Colleges, aims to develop a skilled talent pipeline that meets the evolving needs of the cell and gene therapeutics sector. Novartis, Quva Pharmaceuticals and Tevogen are all part of the initiative.
In February 2025, the New Jersey Economic Development Authority and the Coriell Institute for Medical Research announced a US$41 million investment to create a Strategic Innovation Center to support biomedical research and innovation with an incubator and laboratory spaces for emerging biotech companies. “My Administration has been laser-focused on advancing New Jersey’s innovation economy through targeted investments in our most crucial industries and sectors,” stated Governor Phil Murphy.
Pennsylvania: The liberty lab
Pennsylvania’s life sciences industry is primed for major growth and cutting-edge innovation. Leading institutions like the University of Pennsylvania, the University of Pittsburgh and Penn State each invest more than US$1 billion annually in research and development. Collectively, the state’s colleges and universities rank fourth nationwide in life sciences R&D spending. More than 100,000 Pennsylvanians are employed in the sector, at standout companies such as Krystal Biotech in Western PA, Spark Therapeutics in Philadelphia, GSK in Lancaster County, and many others.
To build on momentum, Governor Shapiro’s proposed 2025 to 2026 budget includes a US$65 million boost in innovation funding, with an additional US$30 million earmarked for life sciences. These investments are designed to accelerate data sharing, support the commercialization of scientific discoveries and attract new business to the state. The funding would also help match private venture capital, making Pennsylvania a competitive hub for biotech while increasing support for entrepreneurs.
Improving infrastructure and fostering collaboration between academia, pharmaceutical companies, governments and incubators will be essential. States like Texas and Massachusetts heavily invested in life sciences, and Pennsylvania has the potential to follow suit under its Governor Shapiro, who prioritizes the sector, according to Louis Kassa III, CEO of the Pennsylvania Biotechnology Center, a non-profit incubator in the state: “With greater infrastructure investment, Pennsylvania could become a top-three state in the field. Pennsylvania’s strong academic institutions and research organizations position it to lead in biotech.”
From Boston’s biotech boom to Jersey’s gene therapy renaissance and Philly’s pharma-powered resurgence, the Northeast has planted its flag. These states are not content to watch the life sciences revolution unfold—they are leading it. With strategic investments, robust ecosystems and unwavering civic support, the patriots of the industry are holding their ground. And just like the tea that once spilled into Boston Harbor, the ripple effects of their innovation are being felt around the world.
Image by f11photo at Adobe Stock