How did Boston become one of the premier Biotech hubs in the world? What are the benefits to the city and workers?
Biogen, Takeda, Pfizer. Do any of these companies ring a bell? Well, these three companies are just some of the 1,000 Biotech companies operating in the Greater Boston area (1). Why Boston though? What makes it so special for Pharmaceutical companies to place their headquarters and offices here?
Biogen’s headquarters in Cambridge, MA (5).
Let’s go back to 1977, when the Cambridge City Council became the first city to pass the local legislation to allow DNA research (1). One year later, companies like Biogen and Genzyme were founded (1). It is almost like the Boston area was made to create and research, as MassBio, the world’s first biotech trade organization, was founded shortly thereafter (1). These companies are located in Kendall Square, next to world class institutions such as the Massachusetts Institute of Technology and Harvard University. This area became a hotspot for many Pharma companies to expand. Years ago, when Biogen Co-Founder Phil Sharp came to MIT, “the area…between Binney Street and Main Street was empty. There were parking lots here. There was nothing here in some areas– just grass” (3). Now, the area is sprawling with companies in fancy glass buildings with unique architecture. According to MassBio CEO Kendalle Burlin O’Connell, “because of that density, we’ve been able to recruit 18 of the top 20 biopharmas to have a physical presence here” (1).
Biotech companies in Kendall Square (4).
Startup companies are one of the main reasons why Boston attracted so many big pharma companies. Corporations like Third Rock Ventures and Flagship were created to help small homegrown businesses grow into companies that help create, innovate, and do research (3). According to Nourbar Ayefan, the CEO of Flagship, “We don’t find the researchers, we do the research. We have some 300 patents over the last 15 years. We have a large army of scientists here that are dedicated to inventing new technologies and new science” (3). Desperate large Biotech companies needing new drugs, found these small companies around the MIT/Kendall Square area that were conducting world class research and innovation (3). There is a reason why 15% of drug development in the United states is done in Boston (1). The partnership between large and small is invaluable.
Another factor that brought pharmaceutical companies to Boston is the funding. The Massachusetts government is crucial in the existence of these companies. According to a study, in 2022, the Biotech companies in the Greater Boston area received 3.2 billion dollars in funding from the National Institutes of Health (1).
Boston has maintained being the number one spot in the best place to do Biotech, above San Francisco (2). Boston boasts being the fourth best place to work according to Glassdoor, and also has great flexible working hours and benefits compared to other large cities like San Francisco (2). With lower costs of living, first class medical institutions, and more job offerings than active workers, many new graduates and scientists decide to call Boston home (2).
The future of Biotech lies in the hands of Boston and its residents, and at BB&N, the resources for this sector are endless. Whether it is walking a few minutes to Harvard or taking the Red Line to Kendall Square, the world of Biotech is inescapable in our lives as Bostonians.
- Staff, Bio. News. (2023, May 23). I am BIO podcast explores how Boston became a “biotech hub.” Retrieved from https://bio.news/health/i-am-bio-podcast-explores-how-boston-became-a-biotech-hub/#:~:text=In%201977%2C%20the%20Cambridge%20City,world’s%20first%20biotech%20trade%20organization.
- (2023). Boston is the World’s Largest Biotech Hub | EPM Scientific. Retrieved from https://www.epmscientific.com/blog/2023/02/boston-is-now-the-largest-biotech-hub
- Khalid, A. (2017, June 19). How Boston Became “The Best Place In The World” To Launch A Biotech Company. Retrieved from https://www.wbur.org/news/2017/06/19/boston-biotech-success
- Fujiwara, D. (2018, June 4). The Biotech Boom: By The Numbers. Retrieved from https://www.wbur.org/news/2018/06/04/biotech-kendall-companies-jobs-office-space
- Biogen Global Headquarters – SGA. (2023). SGA. Retrieved from https://doi.org/10/26171510/2015-SGA_Logo-RGB-scaled