South Dakota’s Biotech Revolution: Paving the Path for Future Innovators
SIOUX FALLS, S.D. — South Dakota is poised for a biotech renaissance, as the state unveils its latest advancement in the life sciences sector. In the bustling innovation hub of Sioux Falls lies an 80-acre expanse dedicated to revolutionizing biotechnology: the University of South Dakota Discovery District. Here, emerging and established biotech companies find a nurturing ground, turning visionary ideas into transformative solutions.
The state, traditionally known for its robust agriculture and sprawling plains, is now leaping into the future with a strong focus on research and development (R&D). This pivotal shift is propelling South Dakota into the national spotlight of the biotech industry, despite its current low rankings in business and academic R&D—47th and 50th, respectively, as indicated in the 2025 Market Study.
Tung Nguyen
The study, meticulously crafted by Tung Nguyen, pinpoints South Dakota’s advantageous position due to its affordable environment and collaborative spirit. These attributes are highly attractive for biotech companies seeking a fertile ground for innovation. As noted in the study, “A business may have five years of runway in Boston, but for the same capital, that business can have a 10-year runway in South Dakota.”
Key players like Sanford Health, Avera Health, and the biofuel giant POET underline the state’s commitment to this burgeoning industry. With their expansive reach and expertise, they are setting the stage for South Dakota to become a formidable force in biotechnology.
“From developing pharmaceuticals to enhancing agricultural yields, the possibilities in biotech here are endless,” said Joni Ekstrum, executive director of the South Dakota Biotech Association. “The growing interest includes not just biotech firms but extends to law firms, construction companies, and architecture firms all vying to be part of this ecosystem.”
This trajectory aligns with former Governor Mike Rounds’ vision in 2004 when he established funding for specialized research centers at public universities. Today, these investments are bearing fruit, as the state steadily constructs its pathway in the competitive bioscience arena.
Despite the thriving potential, South Dakota remains one of only two states without dedicated tax incentives for the biotech industry. This remains a challenge, as recognized in BIO’s Best Practices 2025 report, yet it further emphasizes the need for ongoing collaboration between state entities and private businesses.
Indeed, the state’s strengths in agriculture also serve as a unique advantage. The rich agricultural landscape offers immense opportunities for biotech applications, transforming staple crops into high-value products. “Value-added ag is a big thing for us. How do we do more processing here to make it more profitable for our farmers?” Ekstrum pondered, hinting at the innovative solutions South Dakota is on the cusp of unveiling.
The enormous scope of work being done in the state speaks volumes. This commitment resonates deeply with local communities, as it fosters job creation and educational opportunities, vitalizing the local economy and enhancing the quality of life.
Additionally, the strategic location of South Dakota with its robust interstate system facilitates seamless access and connectivity for businesses. This infrastructural advantage, combined with the state’s commitment to affordability, makes it a favorable destination for startups and established enterprises alike.
To sustain this momentum, the state’s leaders recognize the necessity of nurturing talent and fostering learning. Collaboration with educational institutions ensures that emerging professionals are well-prepared to contribute to and lead in the biotech revolution.
As South Dakota steps confidently into the future, its blend of affordable business environments, collaborative networks, and strategic industry partnerships stands as a beacon of innovation, ready to make significant contributions to the global biotech landscape.
For further inquiries and deeper insights into South Dakota’s biotech initiatives, contact reporter Molly Wetsch, an investigative journalist specializing in rural and Indigenous issues.