Richmond, Virginia, is fast becoming a significant player in the life sciences sector, leveraging its talented workforce, favorable location, and targeted incentives to attract investment and foster growth. As a central hub in the Mid-Atlantic, Richmond’s strategic advantages make it a compelling destination for biopharmaceutical R&D, medtech innovation, and advanced manufacturing.
Demographics: A Workforce Primed for Growth
Richmond’s metro population of 1.4 million people includes a highly desirable workforce:
- 37% of residents are aged 18 to 44, the prime working demographic.
- Nearly 50% are millennials or Gen Z, ensuring a sustained pipeline of talent for the region’s industries.
- Population growth is projected at 3.1% over the next five years, reinforcing Richmond’s stability as a life sciences market.
A Strong Base of Scientific Employment
Richmond boasts a scientific employment base aligned with national averages but at lower labor costs, enhancing its competitiveness for life sciences investment. Key highlights:
- 1.5% of the workforce is engaged in life sciences-related roles, from biopharma R&D to medtech.
- Ranked 30th out of 100 metros for life sciences R&D talent in CBRE’s 2024 Life Sciences Talent rankings.
- Exceptional concentrations in specific roles:
- 7th for “life sciences, all other” occupations
- 26th for epidemiologists
- 33rd for biological technicians
Location Incentives: Fueling Investment
Richmond has strategically deployed incentives to attract life sciences companies, offering financial benefits that lower operational costs:
- Eight public incentive deals over five years, averaging $8,500 per new job.
- Key programs include:
- Major Business Facility Job Tax Credit: A tax credit of $1,000 per new job, with lower thresholds in economically distressed areas.
- Virginia Economic Development Incentive Grant (VEDIG): Supports companies making significant investments and creating high-paying jobs.
R&D’s Role in Virginia’s Economy
Research and development is a cornerstone of Virginia’s economy:
- R&D expenditures accounted for 2.41% of state GDP in 2021, up from 1.73% in 2017.
- This strong focus on innovation positions Richmond as a leader in translating R&D into commercial success.
Education: Building the Talent Pipeline
Richmond’s educational institutions are vital to its life sciences success:
- 16% of adults hold a graduate or professional degree, above the national average.
- Six local universities, led by Virginia Commonwealth University (VCU), produce a steady stream of talent.
- VCU awarded 589 degrees in biological and biomedical sciences in 2022, including the nation’s first Ph.D. program in Pharmaceutical Engineering.
Funding Momentum
Virginia is experiencing record funding levels for life sciences:
- Over $537 million in venture capital, grants, and other investments secured in 2024 (YTD).
- Richmond is poised to continue its upward trajectory as a center for innovation.
Market Snapshot: A Thriving Ecosystem
Richmond’s life sciences ecosystem is anchored by the VA Bio+Tech Park, a 34-acre urban campus housing:
- Nearly 70 companies and institutions.
- The VA Bio+Tech Center, a wet-lab incubator fostering startups.
- The Alliance for Building Better Medicine, which has received $53 million in federal funding to accelerate advanced pharmaceutical manufacturing.
Conclusion
Richmond’s combination of affordable labor, robust talent, strategic incentives, and a thriving ecosystem cements its status as an emerging life sciences market. As investment and innovation continue to grow, the city is well-positioned to attract businesses seeking a competitive edge in the biopharma, medtech, and advanced manufacturing sectors.
