TLDR:
– The biotech industry in Greater Boston has expanded beyond Cambridge to other areas such as Arsenal Yards, Fenway, and Waltham.
– Nearly 60% of venture capital for Massachusetts life sciences companies in 2023 went to startups outside of Cambridge.
– The new clusters are creating jobs, tax revenue, and opportunities, but also putting pressure on real estate costs and increasing traffic.
The biotech industry in Greater Boston is no longer confined to Cambridge, with new hotspots emerging in areas such as Arsenal Yards, Fenway, and Waltham. Over the past few years, the biotech sector has spread to smaller clusters as Cambridge became congested and lab space costs skyrocketed. In 2023, nearly 60% of venture capital for Massachusetts life sciences companies went to startups outside of Cambridge, the highest share since 2019. The new clusters are bringing jobs, tax revenue, and a cutting-edge vibe to these communities, but they are also causing increased traffic and pressure on real estate costs.
The expansion of the biotech industry is driven by lower rents and more space availability outside of Cambridge. Companies like ElevateBio in Waltham have taken advantage of this and attracted large venture capital rounds. Other startups in Burlington, Boston’s Back Bay, Waltham, and Newton have also received significant capital injections. Additionally, Watertown has seen an influx of biotechs, with companies like Mariana Oncology leasing space in new glass towers behind the Arsenal Yards development.
Cambridge has long been the epicenter of the biotech industry, but business leaders and state officials are looking to expand the industry to other cities and towns in Massachusetts where space is more plentiful. Efforts to broaden the industry’s reach include certifying communities as “BioReady” and making infrastructure upgrades to accommodate biotech properties. While Cambridge still retains a dominant position in the industry, the growth of biotech clusters outside of Cambridge is seen as a positive development that strengthens Massachusetts’ dominance in life sciences.
The expansion of the biotech industry beyond Cambridge has been welcomed by officials in these communities. Local officials in Watertown, for example, see the arrival of biotechs as a windfall, bringing in tax revenue that has allowed for the construction of new schools and renovations. Lower rents are not the only draw for biotechs choosing to set up outside of Cambridge. Areas like Boston’s Seaport district and the Fenway neighborhood offer more space and quick access to Logan Airport.
Overall, the expansion of the biotech industry in Greater Boston beyond Cambridge is creating new opportunities and economic growth in surrounding areas. While Cambridge remains an important hub for the industry, the rise of new clusters demonstrates the strength and potential of the biotech sector in the region.
