Which sectors come to mind when you think of the key business strengths of London and New York City? Financial services and fintech, certainly. How about life sciences?
If you’re not in the industry, perhaps not, but both New York City and London are making strides in strengthening their ecosystems. Kings Cross in London is even rapidly emerging as the epicenter for innovation and R&D in biotechnology and MedTech in Europe, with large U.S. players taking notice and opening labs to take advantage of the opportunity there.
CONNECTING INTERNATIONAL LIFE SCIENCE COMMUNITIES
For some context, I’m from the U.K. and have lived in New York City for 15 years. I work for London & Partners, London’s economic development and tourism agency, and my role is to promote London to U.S. investors and deliver tangible results to U.K. companies by winning them clients or investments in the U.S. and Canada.
In May 2024, we brought a delegation of London-based companies to Boston. These were pre-Series A through to Series C scaleups that showcased innovative solutions, proven business models, and a rigorous GTM plan for U.S. market entry. These life science leaders caught the attention of big players including Bayer, MIT, and Sanofi.
The companies, ranging from those analyzing tumor samples to deconvolute complex cancer biology to those transforming early-stage fertility treatment, found success by engaging with a well-established life sciences ecosystem boasting bustling lab spaces, an engaged VC network, and a world-leading talent base. There are more than 1,000 biotechnology companies in the greater Boston area, including 18 of the 20 largest corporates globally, and more than 100 life sciences in Cambridge’s Kendall Square itself.
THE CHALLENGERS
While Boston dominates in life sciences, New York City is working hard to catch up—and their efforts are paying off. According to NYC EDC, a sister organization to London & Partners, the life sciences industry now contributes $3.1 billion to the city’s GDP and created an average of 50+ new companies every year since 2016. New York City’s growth and success in life sciences has been driven by a well-executed $1 billion intervention from EDC to connect research to industry, unlock an abundant supply of lab space, and create a diverse and highly qualified talent pool.
Whether it’s the Alexandria Center for Life Sciences, Elevate Research Properties’ West End Labs, or CornellTech on Roosevelt Island, there’s traction behind New York City’s push to compete with Boston and San Francisco in attracting and retaining life sciences companies and investors.
So, what about London? Notorious for Harry Potter’s Platform 9 ¾, the King’s Cross business district has gone through a renaissance since its post-regeneration reopening in 2012, including Google’s acquisition of DeepMind. Life sciences is also competing as the major success story for the area with people describing it as having the same role for the sector as the city of London has for financial services.
The cornerstone of life sciences is arguably The Francis Crick Institute, Europe’s largest biomedical research facility employing more than 1,500 scientists focused on health and disease. Expanding from the Francis Crick Institute is MSD (Merck in the U.S.) which has broken ground on a 10-story, 270,000-square-foot tower in King’s Cross that will open in 2027 and bring together all of their U.K. teams to collaborate in one location. More recent market entrants include Utah-based clinical-stage biotech Recursion, which opened a 6,700-square-foot office in King’s Cross in June 2024.
While demand currently outstrips supply for lab space in London, there are growing urban innovation districts across the city in areas including White City, Whitechapel, Canary Wharf, and Brent Cross to ensure companies of all sizes can find the high-quality centers they need. Opportunity London’s prospectus outlines exact specifics on future life sciences built environment projects that will add new jobs and strengthen London’s economy in the coming years.
There are now more than 2,100 life sciences companies in London, including the highest concentration of top 20 pharmaceutical company R&D locations in Europe and 90 new specialist spinouts and startups created each year. In 2021/2022, the life sciences sector contributed £11.6 billion to London’s economy.
LONDON’S COMPETITIVE ADVANTAGE
So, what is the appeal and how can business leaders in the U.S. take advantage of the opportunity in London?
The main driver is the availability of world-leading talent from around the world. London has seen an uptick in life sciences jobs since 2019 and the lifestyle and career opportunities on offer make it a beacon for professionals around the world. The U.K.’s skills-based visa system provides a relatively easy way for employers to hire the world’s best talent. Due to the USD/GBP exchange rate and other factors, it is also significantly cheaper to hire talent in London than in U.S. hubs such as Boston or New York City.
There are also the ancillary benefits of having such a high concentration of life sciences professionals in one place, not least the cross-pollination of ideas that lead to new businesses being founded, funded, and succeeding. It’s no coincidence that three life sciences unicorns were founded in London.
Large international health care groups and venture capital are also taking notice of the innovation taking place through startups in London and are keen to tap into it. The city’s diversity is also a strength—46% of London’s 8.9 million population identify as non-white, representing one of the world’s most inclusive and representative clinical trial patient populations.
GLOBAL COMPETITION IS HEATING UP
Boston retains the crown as the world’s leading life sciences ecosystem, but the global competition from cities including New York City and London is heating up. Business leaders in the U.S. should take note of the high-quality, lower-cost global talent available in London and the opportunity to be part of a bustling and growing life sciences ecosystem where innovation thrives. Watch out, Boston, London’s coming for you!