[VT | July 22, 2026 | Philadelphia, PA]
Pennsylvania has launched Innovate in PA 2.0, a new $125 million initiative that marks the Commonwealth’s largest state investment in life sciences in nearly three decades. Announced by Governor Josh Shapiro at B+labs in Philadelphia’s Schuylkill Yards, the program is designed to expand startup financing, build a statewide clinical trial network, and strengthen Pennsylvania’s innovation ecosystem. The funding was included in the bipartisan 2026–27 state budget, signed into law on July 12.
Rather than serving as a standalone funding program, Innovate in PA 2.0 is part of Pennsylvania’s broader strategy to accelerate research commercialization, attract private investment, retain high-growth companies, and position the Commonwealth as a national leader in life sciences, biotechnology, and advanced innovation. The initiative connects state government, research universities, hospitals, startup incubators, investors, industry organizations, and labor partners through a coordinated economic development approach.
What Is Innovate in PA 2.0?
The $125 million initiative focuses on three priorities designed to address long-standing financing and commercialization challenges facing Pennsylvania’s innovation economy.
The first is expanding early-stage capital for startups, particularly biotechnology and life sciences companies navigating the so-called “valley of death”—the difficult period between scientific discovery and commercial investment.
The second is establishing a statewide clinical trial network, helping research institutions and healthcare providers accelerate the translation of laboratory discoveries into patient care.
The third is strengthening Pennsylvania’s broader innovation ecosystem by supporting the organizations and partnerships that help emerging companies grow, attract investment, and remain in the Commonwealth.
Why B+labs Was Chosen
Governor Shapiro announced the initiative at B+labs, a life sciences incubator located inside Philadelphia’s Schuylkill Yards, one of the region’s fastest-growing innovation districts.
Developed through a partnership between the Pennsylvania Biotechnology Center and Brandywine Realty Trust, B+labs provides laboratory space, shared research equipment, and scalable facilities for early-stage biotechnology companies. Its location places startups within one of the nation’s most concentrated research ecosystems, surrounded by institutions including the University of Pennsylvania, Children’s Hospital of Philadelphia (CHOP), Drexel University, and numerous research organizations, hospitals, and technology companies.
Holding the announcement at B+labs highlighted the state’s emphasis on supporting commercialization, entrepreneurship, and collaboration rather than research alone.
A Coalition Across Government, Research, Industry, and Labor
The announcement brought together leaders from multiple sectors that shape Pennsylvania’s innovation economy.
Participants included Governor Josh Shapiro, Life Sciences Pennsylvania President and CEO Chris Molineaux, Children’s Hospital of Philadelphia CEO Madeline Bell, Steamfitters Local 420 Business Manager Jim Snell, State Senator Vincent Hughes, State Senator Steven Santarsiero, Representative Tim Briggs, Representative Amen Brown, and other elected officials and industry leaders.
Their presence reflected how Pennsylvania’s life sciences strategy extends beyond research institutions to include workforce development, construction, private investment, healthcare, public policy, and regional economic development.
Why Pennsylvania Is Expanding Its Life Sciences Strategy
The announcement comes as Pennsylvania continues attracting significant private-sector investment into biotechnology and advanced manufacturing.
Since taking office in 2023, the Shapiro Administration says it has secured more than $41 billion in private investment and helped create over 24,000 jobs statewide.
Major projects include:
- Eli Lilly‘s $3.5 billion manufacturing investment in Lehigh County, the largest life sciences investment in Pennsylvania history.
- Johnson & Johnson‘s $1 billion cell therapy manufacturing facility in Montgomery County.
- GSK‘s $800 million expansion in Lancaster County.
- Additional investments by Eurofins Lancaster Laboratories and B. Braun.
Together, these projects are expected to generate more than 6,000 construction jobs and at least 1,350 permanent positions.
Pennsylvania’s Life Sciences Sector by the Numbers
Pennsylvania’s life sciences industry has become one of the Commonwealth’s largest innovation sectors.
According to state officials:
- More than 100,000 people work in Pennsylvania’s life sciences industry.
- The Commonwealth is home to over 3,000 companies and research institutions.
- More than 10,700 life sciences patents were granted during the past five years, ranking fourth nationally.
- Philadelphia ranked among the top five U.S. markets for life sciences investment and leasing opportunities in the 2025 Colliers National Life Sciences Report.
- Moody’s has identified Pennsylvania as the only Northeastern state with a growing economy, while CNBC ranked Pennsylvania as the Top State for Business in the Northeast.
Built Into Pennsylvania’s 2026–27 Budget
Innovate in PA 2.0 was approved as part of Pennsylvania’s 2026–27 bipartisan budget, Governor Shapiro’s fourth consecutive bipartisan budget since taking office.
The Governor first confirmed the initiative during the July 12 budget signing ceremony, recognizing Representative Tim Briggs, Senator Vincent Hughes, and Senator Steven Santarsiero for their support in advancing the proposal through the General Assembly.
The budget passed with bipartisan support and included no new taxes while continuing investments in economic development, workforce training, education, infrastructure, and business competitiveness.
What’s Next
The Pennsylvania Department of Community and Economic Development (DCED) is expected to announce application details for Innovate in PA 2.0 in the coming weeks.
Once launched, the program is expected to become one of Pennsylvania’s primary tools for supporting startup financing, expanding clinical research infrastructure, and strengthening collaboration among government, universities, healthcare systems, investors, and the broader innovation economy.
