How Greater Phoenix Is Building a World-Class Biosciences and Healthcare Innovation Ecosystem
Published: 06/03/2026
Greater Phoenix has become one of the nation’s most compelling destinations for biosciences and healthcare innovation and the numbers are starting to reflect it.
From medical device manufacturing and cell and gene therapy to clinical trials and workforce development, the region is building the infrastructure, talent and collaborative ecosystem that make it one of the industry’s key markets to watch.
Medical Device Manufacturing
Nationwide, medtech and biomanufacturing are projected to grow 9-13% annually over the next decade across pharmaceuticals, diagnostic supplies, surgical appliances and dental supplies. Greater Phoenix well-positioned to meet that demand.
- Greater Phoenix’s medtech and biomanufacturing sector has accelerated over the past decade with employment growth of 99% from 2015-25, propelling the region from the 30th-largest to 14th-largest market in the nation.
- Efforts in the sector have given rise to organizations like the Medical Device Manufacturing Multiplier (MDM2), a consortium of companies, institutions and statewide networks aligning resources and technologies to support innovation and develop Greater Phoenix as a premier medical device manufacturing hub.
The impact: Greater Phoenix has the employment growth, market ranking and collaborative infrastructure to capitalize on one of the decade’s strongest growth opportunities in health innovation.
Related Industry Capacity
Greater Phoenix’s advanced manufacturing prominence has fueled growth across multiple high-tech verticals, with medtech and biomanufacturing companies benefiting from the region’s robust semiconductor and microelectronics ecosystem and its emerging leadership in artificial intelligence.
- In 2024, Greater Phoenix manufacturers sourced nearly 90% of their semiconductor-related purchases in-state, compared to peer markets that largely rely on out-of-region suppliers.
- As AI reshapes the biomedical industry across clinical trials, diagnostics and risk assessment, Greater Phoenix stands out as one of the few markets ready to meet this innovation with a full-stack AI ecosystem that spans chip manufacturing, data centers, software companies and educational institutions embracing AI.
What it means: Arizona’s biomedical companies have a structural advantage with direct access to in-state supply chains and a robust AI ecosystem that accelerates innovation at every level.
Cell and Gene Therapies
Cell and gene therapy (CGTx) is one of medicine’s fastest-growing fields, but a complex billing sequence, labor-intensive sample processing and the demands of unbroken cold storage remain significant hurdles.
- Greater Phoenix’s cold storage and distribution infrastructure gives CGTx companies a competitive edge, with specialty warehouse and distribution assets that are recognized nationally.
- The region is home to more than 5 million people and is located within a day’s roundtrip of 27 million others, spanning Los Angeles, San Diego, Riverside and Tucson. CGTx companies have more access to patients and specimens.
The bottom line: Greater Phoenix’s industrial infrastructure and geographic reach make it a natural home for CGTx companies navigating the field’s most complex logistical demands.
Clinical Trials and Product Validation
Greater Phoenix’s population profile and concentration of world-class health partners make it one of the nation’s premier destinations for clinical trials.
- Arizona ranked eighth nationally for clinical trials in 2023, despite being the 14th-most populous state, with 25,000 patients enrolled, according to a 2025 TEConomy analysis.
- Those trials generated $887M in investment and a nearly $2B economic impact for the state, supported by health partners including Mayo Clinic, Barrow Neurological Institute, City of Hope, Banner Health, Dignity Health and HonorHealth.
Zooming out: Arizona punches well above its weight in clinical trials, turning its younger, faster-growing population and elite health network into a measurable economic engine.
Workforce Talent Development and Retention
The U.S. faces a potential shortage of 86,000 physicians driven by an aging population, a retiring workforce and training bottlenecks. Greater Phoenix is building the workforce pipeline to address it.
- Greater Phoenix is home to nine medical schools, and Arizona State University ranks 1st in bioengineering job growth, creating a robust talent pipeline for the region’s health innovation sector.
- Arizona retains about 55% of in-state trained medical professionals, helping sustain a stable, homegrown workforce.
Simply put: Greater Phoenix’s concentration of medical schools and top-ranked bioengineering programs position the region to produce the next generation of health innovation talent at scale.
Want to dive deeper?
Download our free 42-page biosciences report or our 37-page healthcare innovation report to get the full break-down of the ecosystem in Greater Phoenix.