Illinois’ life sciences industry is entering one of the most promising periods in its history. Today, more than 93,000 Illinoisans work in biosciences, earning an average annual wage of $153,000—a figure that speaks not only to the sophistication of these roles but also to the sector’s strategic importance to the state’s economy. Employment in life sciences has grown 7.5% annually since 2019, which is 20 times faster than the overall private-sector growth rate in Illinois. These gains are reinforced by a surge in venture investment, with Illinois companies raising more than $1.24 billion in 2024, as well as a strengthening ecosystem of university spinouts, maturing startups, and major expansions by companies like Cour, Vanqua Bio, Pathos, and Tempus.
Across Chicago and the broader region, more than 2 million square feet of new lab and R&D space have come online or are currently under development. Evanston Labs, Fulton Labs, Hyde Park Labs, and new suburban expansions signal that Illinois is no longer a market where scientific founders struggle to find space; instead, it is a market where companies can grow, scale, and commercialize. Venture firms like ARCH have launched multibillion-dollar funds from Chicago, and a wave of Illinois companies secured late-stage capital, clinical progress, and regulatory success in the last year. These developments collectively point to a state with genuine upward momentum.
Yet, as a recent STAT News analysis made clear, the national competition for biotech investment has never been more intense. Other states—particularly Massachusetts, New York, Pennsylvania, and Texas—are rapidly deploying targeted capital, translational research support, and incentive programs designed specifically to attract early-stage company formation, biomanufacturing, and innovation centers. Their strategies are already paying dividends. The clearest example is Eli Lilly’s decision to establish a major innovation campus in Pennsylvania, a state that has spent more than four decades building early-stage commercialization infrastructure through Ben Franklin Technology Partners. Pennsylvania didn’t win that project by accident. It won because it invested early and maintained that commitment consistently over time.
This illustrates a critical point for Illinois: while we have built a solid foundation for life sciences growth, and while our trajectory is strong and accelerating, we are competing against states that are making larger, more targeted, and more coordinated investments. The playing field is not static. Other states are moving aggressively, and Illinois must match that ambition if we want to shape the next decade of biotech growth rather than react to it.
The 2024 iBIO Venture Portfolio Report highlights one of the most pressing challenges in our ecosystem: early-stage capital scarcity. In 2024, 50% of Illinois venture dollars went to late-stage companies, another 35% to Series A, and only 15% to seed and pre-seed companies. That 15% represents the beginning of the pipeline—the moment when scientific founders decide whether they can build their company in Illinois or whether they need to move to Boston, New York, the Research Triangle, or Austin to find the capital, lab access, and translational support that early-stage biotech requires. Illinois has exceptional scientific research, world-class universities, and deep clinical expertise, but without stronger mechanisms to support early teams, too many opportunities risk leaving before they have the chance to become Illinois companies.
To secure our competitive position, Illinois should adopt a set of targeted, proven strategies already generating results in peer states. First, the state should create a translational proof-of-concept and IND-enabling grant program. Other innovation hubs—including Massachusetts through MLSC, New York through its LifeSci programs, and Pennsylvania through Ben Franklin—fund this stage directly, bridging the gap between promising university science and venture-ready commercialization. Illinois lacks this type of program, and adding it would significantly increase the volume and viability of startup formation emerging from Northwestern, UChicago, UIUC, UIC, Rosalind Franklin, and other research engines.
Second, Illinois should strengthen support for pre-seed lab access and equipment. While our lab footprint has expanded dramatically, affordability remains a barrier for very early-stage founders. New York City’s LifeSci NYC initiative and Massachusetts’ shared-infrastructure grants directly subsidize space and equipment for young teams. Illinois is well-positioned to adopt a similar approach; doing so would help retain talent and IP, ensuring more scientific breakthroughs become Illinois companies rather than exports.
Third, the state should develop a life-sciences-specific R&D or jobs tax credit, focused on the capital-intensive, long-duration nature of biotech development. Massachusetts ties its tax incentives directly to life sciences job creation. New York offers refundable R&D credits tailored to biotech. Texas uses its Enterprise Fund to land major biomanufacturing sites. Illinois has strong generalized incentives, but targeted programming would enhance our ability to compete for the next wave of expansions and manufacturing projects.
Finally, Illinois should consider launching a dedicated Illinois Life Sciences Capital Fund, in the range of $200–500 million. Other states have already built this model: Massachusetts has deployed more than $2.1 billion through the Massachusetts Life Sciences Center; New York has committed over $1.1 billion across its LifeSci programs; and Texas’ CPRIT initiative has invested $6 billion into cancer research and commercialization. Illinois does not need to match these totals to be competitive, but a dedicated, multi-year fund would send a powerful signal that the state is serious about leading in the sector. We have already demonstrated—through our $500 million commitment to quantum and microelectronics—that Illinois knows how to make a transformative investment capable of attracting national attention. Applying a similar strategy to life sciences would catalyze company formation, accelerate capital attraction, and anchor Illinois’ position in the national landscape.
Illinois has everything it needs to become one of the most competitive, dynamic life sciences hubs in the United States: talent, institutions, infrastructure, research excellence, and a growing base of companies. The progress we have made in recent years is significant and deserves celebration. But momentum alone is not enough. If we want to keep the companies we are creating—and attract the next generation of biopharma, medtech, diagnostics, and advanced therapeutics firms—we must strengthen the earliest parts of the pipeline and make targeted, strategic investments that ensure Illinois remains a place where founders can start, scale, and succeed.
The opportunity is here. Illinois’ recent momentum shows what is possible. Now is the time to secure our competitive edge and build the next decade of life sciences leadership in Illinois.