Creating a successful Life Sciences ecosystem

by Rob Burborough , partner at 3PM

Much has been discussed about Life Sciences in development and transactional terms with many new players entering the market over the last two years. A large proportion of money coming into the sector has been looking to join with parties that have a track record in delivering life sciences real estate but have found it difficult competing for a partner who understands the subject, its trajectory and has connections.

The truth is, there aren’t that many of us who can demystify the sector and translate genuine knowledge into opportunities. Because life sciences isn’t just about a ‘build labs and they will come’ mentality. Life Sciences is about creating ecosystems where SciTech firms of all shapes and sizes can coexist, knowledge share and flourish for many years to come, are integrated with their community on which they have a positive impact.

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To create such an ecosystem, there are seven stages.

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Firstly, there must be mature partnerships. This means having collaborations that work with the NHS and academia to reduce friction between the different organisations and share knowledge & best practice. If we look at the examples of Oxford & Cambridge, science clusters have formed around the Universities while the emerging cluster at Whitechapel surrounds St Barts Hospital. This is where the global players base themselves, and spin outs and start-ups want to be near the more mature businesses.

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Secondly there is full integration. This is more than just colocation and knowledge sharing as referenced in point one – this is giving each party within an agreement titles and roles within each other’s organisations. This breaks down barriers and reinforces a structure where collaboration is crucial to success.

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After integration comes mobility. This is about mobility in staff, sectors, industries and academia.??Giving people the opportunity to move across sectors, across different skill sets freely is especially important. Allowing top talent to hold multiple roles across these sectors is crucial to innovation creation. Experts that have unique knowledge and insight can benefit many parties and help that knowledge spread and grow. This also fosters collaboration and partnerships – points 1 & 2.

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Fourthly we have flexibility. This refers to the real estate footprint, the ability to undertake a range of different scientific applications from med tech to wet and dry labs to bio-informatics and digital. This underpins the future of the sector and all of its evolutionary phases and ensures the fundamentals for true long-term growth.

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The fifth stage is affordable housing. Housing for key workers and young talent is critical. Most Nobel Prize winners and talented scientists do their best work between the ages of 25 and 40. This is certainly a stage that needs support in the UK where the affordability of housing is lowest in the Golden Triangle, so much so that Big Pharma and global brands are considering building or investing in its own workers homes to keep them close.

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Continued community engagement is the sixth stage. A successful ecosystem makes itself valuable to the local economy and to local people, creating an environment where you can grow and nurture talent from all backgrounds.

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The seventh key element is the most important. Create talent, grow talent and invest in talent both in the UK and globally. Allow that talent to bring the best that they can to the environment. Allow them to think freely – unhindered by politics and bureaucratic red tape.

This is something the Government should also prioritise when considering STEM VISAs alongside their various Science war chests. This sector just wouldn’t work without the people – much like the wider property industry.

Are any of the big?Life?Sciences developers in the UK doing this right??It's early days but the signs at Whitechapel are good with the work being done between developer Lateral, St Bart's and the Tower Hamlets (and many others) in creating a cluster for the long-term future with a range of flexible spaces, strategic moves to integrate the community, provision of affordable workspace and the investment in?education in talent.?British Land at Canada Water and RLAM in Oxford are two other examples of developers creating?sustainable life sciences schemes.?With many?other developments in the pipeline across the UK, but not yet brought to fruition, there's time to get them right.