Economic impact driven by record $1.16 billion in R&D spending

December 10, 2024

Nashville, Tenn. – A new report finds Tennessee has emerged as a leading state for bioscience research and development, with bioscience R&D accounting for 74 percent of all research in the state. Specifically, bioscience-related academic R&D spending totaled nearly $1.2 billion Tennessee, which is more than 10 points higher than the national average and ranks the Volunteer State among the top quintile of states in the U.S.

This finding is one of several that collectively tell the story of significant bioscience industry growth in Tennessee from the Tri-Cities to Memphis. The Biotechnology Innovation Organization (BIO) and TEConomy released these findings as part of a new report analyzing national and state-level data on the bioscience industry’s economic performance, impact, and geographical footprint.

The report highlights Tennessee’s continued impact in the industry with notable growth in employment, academic research and development, and venture capital investment. The industry growth can be measured across the state, with Memphis ranking in the top 20 markets for their specializations of medical devices as well as bio-agriculture and industrial biosciences.

“This data proves what we know to be true in the industry: Tennessee is a growing center of excellence for the life sciences,” said Jenn Adams, 2025 board chair of Life Science Tennessee, the statewide nonprofit member association, and CEO of August Bioservices, a Nashville-based CDMO. “Our industry’s growth is exceptionally strong in pharmaceuticals and the research, testing, and medical laboratory sectors, which reflects the state’s commitment to expanding the economic footprint of life science companies.”

Key highlights from the Tennessee report:

Employment Growth

  • Bioscience industry employment has grown 13.4%, nearly double the private sector growth of 7.5%.
  • In 2023, the bioscience industry employed 48,258 people in the state of Tennessee, which is a 60% increase in the last four years. The Research, Testing, and Medical Laboratories category alone increased by 164%.
  • The Pharmaceuticals category drives the growth in Tennessee at triple the national average.

Research and Development and Venture Capital Investment

  • Total bioscience R&D is at an all-time high of $1.166 billion in Tennessee, which accounts for 74% of the total academic R&D in the state. This is 11% more than the national average, and puts Tennessee in the top 12 states for bioscience R&D. 
  • Venture capital investment in bioscience has increased significantly from $1.7 billion from 2018 – 2021 to $3.4 billion from 2019 – 2023.  

Regional Impact

  • Memphis remains a strong market for the industry landing in the top 20 U.S. metro markets for the Bluff City’s specializations of devices as well as bio-agriculture and industrial biosciences. 
  • Tennessee is a leading state in biopolymer patents and venture capitalist investment in bio-based products and biofuels.
  • Knoxville is recognized as a leading large metro with significant employment in Research, Testing, and Medical Laboratories, accounting for nearly 7,000 employees in the MSA.
  • Johnson City is noted as a small MSA with a specialization in Research, Testing, and Medical Laboratories.
  • Nashville and Memphis are recognized as large MSAs with specializations in bioscience-related distribution.

“Tennessee’s bioscience industry continues to drive economic impact and innovation statewide,” said Abby Trotter, executive director of Life Science Tennessee. “We are grateful to state leaders who understand the significant role this industry plays not only in providing high-wage jobs, but also in sparking innovation that contributes to overall economic growth and saves and improves lives. Life Science Tennessee will continue to advocate for the industry, supported by this strong data.”

The full BIO/TEConomy report for the U.S. bioscience industry can be found here. The Tennessee Fact Sheet can be found here.

About Life Science Tennessee

Life Science Tennessee is a statewide, nonprofit, member organization whose mission is to advance and grow the life science industry in Tennessee through advocacy, partnerships and alignment with economic and workforce development. Members include companies, universities, research institutions, government and economic development groups and other industry associations involved in discovery and application of life science products and related services that improve the health and wellbeing of people throughout the world. LST conducts business and economic development activities; advocates on behalf of the industry; educates the public about the benefits of life sciences research and product development; and provides a network for the ex