Emerging Markets

What Makes an Emerging Market?

Growing Inventory

^{Source: Cushman & Wakefield Research}
^{*Inventory is manufacturing}

Expanding inventory can facilitate growth for life science companies in emerging markets. As firms gain more access to advanced laboratories and research facilities, they can use this enhanced infrastructure to accelerate their development processes.
Increasing supply levels confirm the growing momentum behind the life sciences sector in emerging markets. Additional access to space also helps these markets maintain cost-advantages compared to rental rates in hub metros.

Key Takeaway: The inventory pipeline reflects the growing enthusiasm of the life sciences sector within a market.

What Makes an Emerging Market?

Access to a Healthcare Ecosystem

^{*Hospitals considered top tier are those designated as 4- or 5-star buildings by Costar
Source: Cushman & Wakefield Research, Costar}

Healthcare providers, research institutions and universities help formulate an attractive life sciences market by providing several benefits such as:

Collaboration and innovation.
A steady stream of talent.
Improved access to patient populations critical for clinical trials

Medical professionals have direct access to patients and possess a high level of trust and credibility, which significantly boosts patient enrollment in clinical trials. This helps mitigate low patient participation, which often hinders clinical trials and delays drug development.
According to a report by the SAS Institute, enrollment strategies using healthcare providers and pharmacies were the most effective in recruiting patients.

Key Takeaway: A strong research and healthcare network within a market enhances innovation and reduces risks of delays in clinical trials.

What Makes an Emerging Market?

Public and Private Fund Attraction

^{Source: Pitchbook}

The inflow of public funding through grants, tax incentives and development projects in emerging markets drives infrastructure expansion and fosters a flourishing life sciences ecosystem. This funding also plays a valuable role in propelling early-stage projects that may be too risky for private investors.
Private investment is also critical for life sciences companies. By funding R&D efforts, covering clinical trial costs and developing the necessary infrastructure to commercialize drugs, private funding plays a vital role in the evolution of early-stage research to a market-ready product. This investment is especially pivotal for startups and smaller firms, which are often prevalent in emerging markets and lack the financial resources of larger companies.

Key Takeaway: Public and private funding fuels growth in emerging markets by facilitating an attractive life sciences ecosystem, propelling startups and pushing research initiatives from initial development to commercialization.

What Makes an Emerging Market?

High Growth in Employment

^{Source: Lightcast}

While emerging markets often have a shallow depth of specialized life sciences labor, they offer several talent attraction advantages compared to larger hub markets.
Emerging markets are attractive to researchers, scientists and industry experts who are often willing to relocate for lower costs of living. Not only does this offer a talent advantage for firms in emerging markets, but it also reduces elevated salary costs.
The presence of mega-sized pharmaceutical companies in these markets is also drastically reduced, which offers smaller firms a better shot at landing top talent.
Firms in emerging markets can also leverage an untapped talent pool of science, technology, engineering and mathematics professionals who can provide skilled labor at competitive rates.

Key Takeaway: Employment growth confirms an emerging market's ability to fulfill the talent requirements of life sciences companies, often at a reduced cost.

What Makes an Emerging Market?

Growth in Bio-Degree Awards

^{Source: Lightcast}

Robust growth in life sciences degrees demonstrates the momentum a market has captured in the life sciences sector. Universities, where life sciences companies actively recruit, are seeing higher enrollment, affirming that students believe these institutions and markets provide valuable pathways into the life sciences field.
The influx of new graduates attracts life sciences companies seeking talented, educated young professionals to join their ranks. This creates a virtuous cycle, where top students are drawn to regions with promising employment prospects, and companies in these areas increase their hiring efforts to secure the best candidates.
As the life sciences student body continues to grow, the university must increase investments in resources such as lab space, research facilities and space for more faculty. These enhancements foster a dynamic research environment, attracting life sciences companies to collaborate with academic researchers.
Despite a drop in life sciences degrees in Indianapolis, Indiana University announced plans to invest over $250 million to enhance the school's life sciences infrastructure. This investment aims to boost enrollment and enhance the university’s research capabilities.

Key Takeaway: Elevated degrees provide firms with an influx of young talent, bolster the life sciences infrastructure, and boost public and private sector collaboration.