Georgia's life sciences sector has grown, but key ingredients still lacking
“If you're not affiliated with a university, you can't really access their labs,” said Eddie Lai, director of business development at venture capital firm Portal Innovations. “If you're trying to build your own facility, that costs a lot of money.”
By Tyler Wilkins – Staff Reporter, Atlanta Business Chronicle
This year, Shriners Children’s picked Atlanta to carry out its mission to advance pediatric care.
The Tampa-based hospital network plans to establish a research institute at Science Square, an emerging life sciences hub on the doorstep of Georgia Tech’s campus. The announcement is one of the latest wins for Georgia’s life sciences industry, which has rapidly expanded in recent years.
Economic development professionals tend to point to Georgia’s relative affordability, labor and real estate costs, net migration patterns, talent pool and academic institutions as some of the state’s attributes that have helped attract all the investment. But insufficient access to capital, shortfalls in skilled labor and other challenges have the potential to hinder innovation — limiting the industry's pace of expansion and opening a window of opportunity for rival states.
Georgia’s life sciences industry is the third-largest among Southeastern states based on the number of companies and economic impact, behind North Carolina and Florida. Despite impressive growth in recent years, the Peach State is locked in fierce competition with its neighbors. “We're seeing Tennessee creep up, and they might be able to surpass us in the next couple of years, if we don't make some significant changes,” said Maria Thacker Goethe, president and CEO of Georgia Life Sciences, an industry association formerly known as Georgia Bio.
Venture capital, federal funding drove growth in recent years
Georgia's life sciences industry began to take off after the state hosted the BIO International Convention in 2009, Thacker Goethe said. The multi-day event drew thousands of executives and other professionals to Atlanta. Hosting the event allowed state and local leaders to showcase Georgia’s strengths to the life sciences community. It caught the industry’s attention, likely helping to attract some of the big companies that have set up operations in the state. A decade later, Georgia’s life sciences industry would experience a big surge during the Covid-19 pandemic. The state captured records level of venture capital and angel investment in 2021, as well as a strong amount of National Institutes of Health funding sent to state institutions.
The region is home to approximately 18,000 life sciences jobs. Nearly 5,600 of those jobs are research and development roles, which grew by 44% from 2019 to 2022, according to a CBRE report. Georgia employed more than 78,000 people across 4,000 establishments in the
life sciences industry as of 2021, ranging from biopharma companies and medical device firms to R&D and manufacturing, according to a TEConomy report. The state added 11,000 net new jobs between 2015 and 2021, a 20% increase that outpaced the national average, according to the report. Major companies have planted operations in the state, including Takeda Pharmaceuticals, Intuitive Surgical and Alcon. Meissner Corp. is expected to create more than 1,700 jobs through a $250 million facility in Athens-Clarke County, and Boston Scientific recently expanded its presence in the state with a new research and development hub in Johns Creek.
Academic and research institutions such as Georgia Tech and Emory University have undoubtedly aided in the industry's growth. Shriners considered several locations in the Southeast for its research institute, said Leslie Stewart, the chairman of its board of trustees. It ultimately landed on Science Square to be close to Georgia Tech, with which the organization has had a longtime partnership. "Attracting new organizations [such as Shriners] creates momentum for future opportunities in recruitment and nurturing existing ecosystems," said Misti Martin, deputy commissioner of global commerce for Georgia's Department of Economic Development, in a statement. "Each new organization is a new potential partner for those already in the state or considering locating in Georgia."
Companies don’t necessarily come to Atlanta in search of moderate weather and Southern hospitality, said Katherine Lynch, a principal at Trammell Crow Co., the developer behind Science Square. “But many shared with me that they found themselves pleasantly surprised
at how much of an impact these qualities made on their ultimate decision,” Lynch said.
Georgia needs more local investors, non-university lab space
Georgia has a robust labor force with applicable skills, but its members may be working in other fields or simply not aware of the career opportunities, according to subject-matter experts.
Early-stage companies can benefit from bringing on senior talent with business know-how. But it can be difficult to persuade high-level executives to leave their jobs at a major company in another state. “In terms of venture capital in life sciences in the region, I think there's room to grow in that space,” said Kristi Brigman, chief economic development officer at the Metro Atlanta Chamber
After all, startups don’t always last. There are more opportunities to fall back on in larger markets such as Boston or San Francisco than Atlanta. For entry-level jobs, part of the problem is perception. Many people assume a graduate-level degree is needed to work in life sciences. A majority of the talent needs require a high school diploma or associate’s degree, Thacker Goethe said. Many companies provide training for those jobs, which can be high-paying and fulfilling, she said. “If you're manufacturing something that's going to help treat cancer or get the device someone needs to move and live their best life, that is very meaningful for people,” Thacker Goethe said.
The federal government provides early-stage funding to support development and commercialization through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Many states offer to match funds awarded through the programs. Georgia Research Alliance has a matching program, but it is only available to companies affiliated with member universities, Thacker Goethe said. The absence of a statewide program limits startup scaling, Thacker Goethe said. One innovator told her it was a deal-breaker in deciding where to launch his company. “He's going to set up the office in Tennessee, keep a house in Atlanta and
work remotely from Atlanta to support the company,” she said. “That’s a real problem.”
Universities play a critical role in the startup space as development and funding partners. The Trump administration's efforts to cut federal research grants could impact the ecosystem in Georgia and beyond. In the first six months of 2025, the NIH had awarded fewer grants than the previous year and had terminated or frozen funding for thousands of grants, according to a Business Journals report. “In terms of venture capital in life sciences in the region, I think there's room to grow in that space,” said Kristi Brigman, chief economic development officer at the Metro Atlanta Chamber.
There are more avenues for Atlanta startups to line up private funding than in the past. But it can still be difficult for those in life sciences to raise what they need. One of the selling points of markets such as Boston and San Francisco is the proximity to a wide array of venture capitalists. “In terms of venture capital in life sciences in the region, I think there's room to grow in that space,” said Kristi Brigman, chief economic development officer at the Metro Atlanta Chamber.
A lack of nonacademic lab space is another challenge. Tech startup founders can launch their business out of their garage if necessary. That won’t cut it for someone who needs access to lab equipment. “If you're not affiliated with a university, you can't really access their labs,” said Eddie Lai, director of business development at venture capital firm Portal Innovations' Atlanta site. “You’re stuck in the dark. If you're trying to build your own facility, that costs a lot of money.”
There have been efforts to address some of the obstacles. Consider Portal, the first tenant at Science Square Labs. The national firm
provides lab and office space to early-stage startups at a base price, with the option to pay for additional services and amenities as a company grows. Members can network with peers across the country, and they can work from other locations when they're out of town. In an effort to bolster the industry, Georgia Life Sciences is working with large employers, small companies and universities to develop a "road map." The study will produce recommendations to guide the state’s strategy around economic development, workforce pipelines and innovation investment.
'Two-edged sword': Lack of lab space was a barrier to growth but prevented a glut
Unlike Boston, Raleigh-Durham and other markets, metro Atlanta hasn’t had a physical hub centered around life sciences innovation. Academic institutions, local leaders and real estate developers are trying to create that kind of environment. In the suburbs, Gwinnett County has invested millions of dollars into Rowen. The 2,000-acre development is intended to become a major employment and research hub centered around the environment, agriculture and medicine.
Inspired by Research Triangle Park, Rowen has an ample supply of land to accommodate companies that want to establish offices and research facilities. The project is located between Athens and Atlanta, providing access to Georgia Tech, University of Georgia, Emory University and other institutions. Roads, green space, multi-use trails and other forms of infrastructure have been built in the area.
Gwinnett officials gave the green light for Rowen in the early days of the pandemic. Years later, it’s still uncertain who could become the first tenant. It took decades for North Carolina leaders to create RTP, the largest research park in the U.S. In May, Rowen Foundation President and CEO Mason Ailstock told Atlanta Business Chronicle that more than a dozen companies have considered locating at the so-called “knowledge community,” including four in just that past quarter. "We continue to make progress down that short list line for several companies today, as we compete nationally to win these huge, multimillion-dollar projects,” Ailstock said. Landing that first tenant could lead to a ripple effect, putting Rowen on the radar of other companies in expansion mode, Thacker Goethe said. “They just need one,” Thacker Goethe said. “The plan, the idea and the leadership is all in place. It’s just getting that first domino to fall.”
Trammell Crow Co. developed the first phase of Science Square with the help of Georgia Tech. The first phase includes a 13-story tower with more than 350,000 square feet of lab and office space, as well as retail and an apartment building. Shriners plans to build out its research institute in phases, with the option to take up almost half of the space in Science Square Labs, Stewart said. Earlier this year, battery manufacturer Duracell announced that it would relocate its R&D headquarters from Connecticut to two full floors at Science
Square Labs. The Georgia Department of Agriculture also leases space in the tower. Science Square is a true test of “build it and they’ll come,” said David Hartnett, former chief economic development officer at Metro Atlanta Chamber. “That is the biggest win that the life science community has had in two decades,” said Hartnett, who has held senior roles at medical device companies. “I can’t think of another deal of more importance and significance than Science Square.”
Outside of Science Square, lab-ready space available to lease is almost nonexistent in Atlanta proper, said Eric Ross, executive vice president of CBRE’s Landlord Representation Group in Atlanta and part of the leasing team for Science Square. That is a “two-edged sword” for Atlanta, Ross said. It is a challenging environment for life sciences companies across the U.S. to raise funds through private equity and venture capital, he said, resulting in leasing concerns for existing space in other markets. “From a real estate investment standpoint over the next five to 10 years, Atlanta is going to be in a much better position to attract outside institutional capital to build appropriate lab office space, because we're not going to have an overbuilt inventory,” Ross said.
