Data-driven healthcare and connected devices, along with the development and manufacturing of next-generation therapeutics, could make Pittsburgh a global hub for human health innovation, according to a new study from the Pittsburgh Life Sciences Alliance (PLSA).
“When we look across peer and even more advanced markets, Pittsburgh has unparalleled capabilities in all forms of data science, AI, and computer engineering, combined with incredible depth and breadth of clinical research and delivery,” said Megan Shaw, president and CEO of PLSA. “With the right investments and a coordinated strategy from government, universities, and private industry, the region can catalyze decades of job growth and wealth creation.”
Released on Oct. 17, the study, entitled “Life Sciences Assessment and Strategic Growth Opportunities for the Pittsburgh Region,” points out that Pittsburgh’s life sciences ecosystem sits at the intersection of the emerging data capabilities, technological applications, and clinical discoveries that will shape the next several decades of human health innovation.
For example, in addition to serving as a hub for clinical healthcare and health and life sciences education, southwest Pennsylvania (the 10-county region centered on Pittsburgh) has a long history of medical innovation.
Supported by the University of Pittsburgh, which consistently ranks among the top recipients of federal National Institutes of Health (NIH) research funding, and Carnegie Mellon University, known for its advances in computer science, the Pittsburgh region “is uniquely situated to lead the nation in the convergence of biological and data sciences,” the study says.
In addition, the region is home to two large healthcare providers, the University of Pittsburgh Medical Center (UPMC) and Allegheny Health Network, as well as other smaller providers, such as Indiana Regional Medical Center, Independence Health System, and Heritage Valley Health System.
Combined, the report says that these institutions employ thousands of individuals, offer top-ranked services and specialties, and are advancing cutting-edge solutions related to digital platforms and AI applications.
When applied to the data generated by the region’s two largest health systems, biorepositories, over $1 billion in annual NIH research funding, and a well-established medical device manufacturing hub, this creates an unmatched advantage in health information and informatics, computational biology, and connected devices, according to the study.
Combining digital health, smart medical devices, and bioinformatics, this segment is expected to grow nationally to represent $560 billion in economic activity per year by 2026, with a 17 percent year over average year compounding growth rate, according to the study’s data, and companies including Smith & Nephew, Bayer, and Zoll chose to locate global R&D facilities in the Pittsburgh region for these and other competitive advantages.
The study also discovered that advancements in AI, machine learning, and computational biology are not only digitizing healthcare and transmitting real-time health data via connected devices but are also fueling the discovery of new precision therapeutics in the Pittsburgh region.
Citing the University of Pittsburgh and Richard King Mellon Foundation-sponsored Pitt BioForge, a 185,000-square-foot state-of-the-art biomanufacturing center, and its recent addition of ElevateBio, paired with established regional expertise in automation and advanced manufacturing, the greater Pittsburgh region could jump to the forefront in manufacturing precision biologics as the world continues moving toward precision medicine, the PLSA study says.
This segment — precision medicine and cell and gene therapies — is expected to reach $123 billion by 2028, with a 15 percent year-over-year growth rate, according to the analysis.
“This region offers a suite of technology and data capabilities that, when applied to the health sector, make it stand out among other global clusters,” said Simon Tripp, principal and senior director at TEConomy Partners LLC, which authored the study for PLSA. “The ambitious investment and flagship partnership behind BioForge also presents an opportunity for the region to push to the forefront of precision therapeutics manufacturing.”
The study’s authors offered several recommendations to accelerate growth in these two platforms, supercharge the ecosystem, and improve the overall business environment for the sector statewide, including using multi-sector approaches to increase the pool of growth capital in the region and attract experienced talent. This would also include investment from the state.
Other recommendations include a strong alignment of all regional stakeholders in support of the two growth platforms, and instituting programs to align regional education and workforce programs to future industry needs and demand.
“The greater Pittsburgh region possesses all the raw ingredients that can help us move from an emerging ecosystem to a true global hub for human health innovation,” Shaw said. “This is a once-in-a-generation opportunity and success hinges on a shared commitment by all stakeholders and decisive action by key entities and leaders.”
The study’s findings, compiled by economic development experts at TEConomy Partners, are based on quantitative analysis, more than 100 stakeholder interviews, and benchmarking against other major life sciences clusters.