Key Points: 

• Arizona’s bioscience industry gains momentum in education, funding

• State still faces uncertainty in federal funding and sustained state funding

• Leaders identify key policy changes as crucial for future industry success 

More than two decades after Arizona leaders charted a course for the state’s budding bioscience industry, growth has come by way of four more medical schools, increased funding for research and entrepreneurship, job growth, the creation of an industry association and nationwide momentum. 

The rearview mirror shines, but in paving a way forward with the launch of the 2025-2030 Arizona Bioscience Roadmap, commissioned by the Flinn Foundation, dips in federal funding and policy hurdles create new uncertainty for the industry. 

But with goals outlined at the outset — increased collaboration, accelerated commercialization, an elevated startup ecosystem, strengthened talent and career pipelines and a plan to amplify the state’s existing work through public communications — the hope is to cement the state’s position as an industry leader. 

“When you look at the biosciences, you see steadiness and resilience. This is something I know that lawmakers look at at the Capitol, our city elected official teams look at, and this is something that we need to celebrate,” said Heather Carter, chair of the statewide Bioscience Roadmap Steering Committee.

Bioscience, as defined by the roadmap, encompasses “the research, development and commercialization of therapies and products to prevent, diagnose and treat disease, improve health outcomes, enhance crops and generate biological solutions for environmental and industrial challenges.”

It spans agriculture, pharmaceuticals, medical devices and equipment, research, testing, medical laboratories, hospitals and encompasses 144,000 jobs across the state. 

The bioscience roadmap, first unfurled in 2002 and updated in 2014, set out a straight path forward for the state. Since then, it has ushered in the founding and growth of research hubs, companies and a healthy start-up ecosystem. 

Paths for bioscience careers expanded, too, including a University of Arizona medical school campus in Phoenix, the Mayo Clinic Alex School of Medicine, the Creighton School of Medicine, the creation of the Arizona State University School of Medicine and Advanced Engineering and plans to launch a College of Medicine at Northern Arizona University. 

Carter attributed the growth over the past 20 or so years to not only the roadmap but also to the support of elected officials and voters.

“At important moments, many local and state leaders have really rolled up their sleeves and have devoted precious resources to strengthen both the education and the research in health care and the bioeconomy. And then voters have gone to the polls and have done the same,” Carter said. 

But on the policy side, the road map and industry leaders see some opportunities for growth, especially in funding. 

The biosciences grew first from the creation and passage of Proposition 301, a 2001 measure creating a 0.6% increase in the state’s sales tax, with funds to, in part, support research and technology initiatives under the Technology and Research Initiative Fund. 

Proposition 301 was set to lapse in 2021, but in 2018, the Legislature passed a 20-year extension. Though the industry continues to celebrate Prop. 301 as the foundation for industry growth, the measure is no longer voter protected and could be more easily altered.

“If we’re going to have this long-term strategy to support university research, then we should probably voter-protect the Prop. 301 funding,” said Joan Koerber-Walker, president and chief executive officer of the Arizona Bioindustry Association. 

Another more recent stride included the creation of the Arizona Health Innovation Trust Fund, a mix of legislative appropriations, fund earnings, gifts and grants, with 4% allocated to a nonprofit supporting health innovation and health care workforce development. 

The fund was established in 2022, with a goal of reaching $200 million, maturing for five years to $250 million and ultimately resulting in about $10 million per year for entrepreneurial support, workforce development and commercialization funding. But so far, the state has only put in about $100,000. 

And again, as the industry grows, the road map identifies future allocations from the state to the trust fund to be critical. 

“Making sure that we are properly funding the universities, properly funding the trust fund, and then making sure our hospitals are able to maintain their levels of excellence. That’s all part of the strategy,” Koerber-Walker said. 

Beyond state funding, the industry also faces a more existential threat of shaky federal research budgets. 

Arizona received about $368 million from the National Institutes of Health in FY2024, which makes up about 30% of its funding. But, earlier this year, federal cuts led to attempted cuts of $190 million in health research grants, which are still in limbo at the courts. 

Phoenix Mayor Kate Gallego said government funding is key, though it comes with its own hurdles. 

“For many people in my line of work, we think major funding may need to come from voters at the state level. Just for political reasons, it’s complicated for the Legislature to be raising taxes,” Gallego said. 

She noted that voters were enthusiastic in past elections and again stressed the need to keep a strong state backing for biosciences, especially amid uncertain tides at the federal level. 

“The states that have local funding sources will benefit,” Gallego said. “We are already seeing people who are losing federal grants but going to places … that have local funding for research. So there will be winners and losers, and in many ways, the folks with the capital are well-poised to be the ones who benefit.”