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New CSG Report Highlights State Strategies Advancing Health Innovation, Economic Growth

Apr. 15, 2026

The analysis examines how state policy and cross-sector partnerships drive successful outcomes in patient care, pharmaceuticals and biotechnology

LEXINGTON, Ky. (April 15, 2026) — States are taking an increasingly central role in shaping the life sciences sector, guiding where companies invest, how research and development is supported, and how communities build the workforce needed to sustain medical innovation.

To support state leaders in navigating these evolving responsibilities, The Council of State Governments (CSG) has released “The Biotech Frontier: How States Are Partnering with Industry to Advance Patient Care and Biotechnology,” the fifth installment of its nonpartisan 50‑State Scan Research series.

“The CSG 50-State Scan series equips state leaders with trusted, evidence-based analysis of solutions that cross borders and political divides,” said David Adkins, CSG executive director/CEO. “These reports provide a strategic roadmap for states seeking to foster innovation and strengthen governance.”

The report builds on existing industry research, offering new insights into the challenges facing the patient care, pharmaceutical and biotechnology sectors. It provides state leaders with analysis of recent legislative activity related to patient care and health innovation; trends in health care costs, medical education and research capacity; state-level successes in improving patient outcomes; and the strength of bioscience ecosystems.

Since Jan. 1, 2025, 50 states have introduced 1,059 bills related to innovation in patient care, pharmaceuticals and biotechnology, with 194 measures already enacted or in effect. These actions — led by states such as New York, New Jersey, Texas, Illinois, Minnesota, Oregon and Virginia — reflect shared priorities, including improving health care workforce mobility, stimulating biotechnology growth through targeted investments and enhancing care for individuals managing chronic illnesses. Four common approaches emerge across these efforts:

  • Implementing financial incentives for economic development
  • Establishing collaboration through multi-sector partnerships
  • Developing a patient care and biotechnology workforce from relevant talent pools at state universities and degree programs
  • Supporting the development of biotechnology infrastructure and programs

Examples include Puerto Rico’s nonrefundable tax credit of up to 50% of a company’s qualified R&D investment, North Carolina’s Research Triangle Park — now home to nearly 400 companies and more than 60,000 workers  — and Georgia’s Research Alliance, which leverages a public‑private partnership to advance technology‑based economic development and strengthen the state’s scientific research capacity.

The CSG 50-State Scan series has previously examined government efficiency and accountability, tax policy, artificial intelligence and public health. Access the full research series to learn how states are navigating today’s emerging policy challenges.