South Dakota Sets Sights on Biotech Boom: The University of South Dakota Discovery District Leads the Charge
In the vibrant heartland of the United States, South Dakota is making strategic moves to position itself as a major player in the biotech and life sciences industry. Highlighting this ambition is the University of South Dakota Discovery District, an 80-acre campus in Sioux Falls that has recently opened its first building dedicated to expanding the state’s prowess in life science and biotechnology research.
The district’s opening is the culmination of almost three decades of planning and development, signifying a concerted effort to harness the potential of biotech—a field defined by the intersection of biological, engineering, and computer sciences. With applications ranging from pharmaceuticals to food production, biotechnology is a $3.2 trillion industry, and South Dakota is eager to claim its share.
Building an Industry from the Ground Up
The Discovery District provides lab and office space for both burgeoning and established companies. Major health organizations like Sanford Health, Avera Health, and the innovation company Phylloceuticals are already part of South Dakota’s emerging biotech landscape, lending their expertise and resources to the district. The collaborative spirit among these entities underscores a statewide commitment to growth in this sector.
- Infrastructure: South Dakota boasts an efficient interstate and highway system, facilitating convenient logistics and transport for biotech companies.
- Business Environment: With a low-tax environment, the state offers a cost-effective option for biotech startups, providing a longer financial ‘runway’ compared to more established areas like Boston.
- Collaborative Ecosystem: The state’s smaller industry circles foster natural collaborations and easy access to legislative players, key factors for any business seeking a supportive base.
Overcoming Challenges and Capitalizing on Strengths
Despite the promising setup, South Dakota faces significant hurdles. The state currently ranks 47th and 50th nationally in business and academic research and development efforts, respectively. Unlike most other states, it lacks biotech-specific incentive programs such as research tax credits, which poses a challenge in attracting large-scale investments to the industry.
Joni Ekstrum, executive director of the South Dakota Biotech Association, remains optimistic about the potential for state-assisted growth. “If we look at where we came from in the past 20 years, we’ve come a long way, honestly,” she notes. “We do need to have the state’s help with some of those operations because we are small, because we’re trying to grow this industry. So it will take ongoing state dollars.”
Nguyen’s Vision for a Unique Biotech Cluster
Tung Nguyen, who developed the Discovery District’s 2025 market study, believes that exploiting South Dakota’s unique attributes could be key to carving out a niche in the biotech world. “The question I always ask myself is, ‘What’s the point of replicating another cluster in America?'” he mentions. “Because I think if we do that, we risk kind of losing our own identity in some ways.”
Tony Venhuizen at the USD Discovery District.
The state’s robust agricultural sector and its historically strong connection to the Department of Defense are highlighted as potential differentiators. The success in value-added agriculture and its low tax environment are significant draws for companies, particularly those looking to innovate in food production and nutritional science.
Cultivating Future Prospects
The Discovery District, with its first building already housing tenants like the nutritional analytics company OmegaQuant LLC, is poised for growth. It plans to eventually create 2,800 jobs over the next 25 years. Ryan Oines, President and CEO of the Discovery District, emphasizes this potential for economic and employment growth. “In the research park world, we always say it’s a 20-year overnight success,” Oines quips.
As South Dakota leverages its unique qualities and fosters meaningful collaborations, optimism abounds for the future of its biotech sector. Industry advocates hope that the current hurdles will be stepping stones to establishing the state as a recognized hub for biotechnology.
For more information, contact Molly Wetsch at molly.wetsch@sdnewswatch.org.