Up and coming

Houston named a top city for emerging life sciences market

Houston, home to the largest medical center in the world, was ranked the second in the nation for emerging life science clusters. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

From a real estate and employment perspective, Houston is the second in the nation for emerging life sciences market, according to a new report.

CBRE released the top 10 cities for life sciences, as well as nine cities that have seen recent growth in the industry. While the Northeast and California dominated the list of the established markets, three Texas cities took top spots on the emerging list. Austin ranked behind Houston at No. 3 and the Dallas/Fort Worth area claimed the No. 7 spot. The top emerging life science cluster was the Seattle area.

The ranking was based on each metro's three-year growth in life sciences employment, National Institutes of Health funding, life science educational opportunities, number of medical research and health-services institutions, and the amount of high-tech workers.

"We've watched the life sciences sector for quite a few years in Houston as it steadily grew, but within the past few years it has grown exponentially," says CBRE Houston's First Vice President Scott Carter in a release. "TMC3 is obviously going to be a catalyst for continued growth in life sciences."

The growth within the industry has translated from employees and research to real estate, and Carter says CBRE currently has the 224,931-square-foot Texas A&M ALKEK building on the market — most of the facility is laboratory space.

"There has been substantial interest from investors in the top established life science markets," he continues. "They recognize Houston as an emerging market and see the value of placing capital in the Houston area."

The country's venture capital funding for the industry increased 86 percent last year to $15.8 billion, and, according to the release, the lab space under construction in the top five metros for life science growth expanded 101 percent last year to 6 million square feet.

"Multiple indicators point to sustained, strong growth for the life sciences industry, which makes life sciences labs and offices an ideal focus for developers and investors," says Steve Purpura, vice chairman leading CBRE's life sciences business. "Few industries offer this much expansion potential, but much of the activity happens in a select number of special markets."

Via the CBRE report

Myra Davis is responsible for Texas Children's Hospital's technology and innovation — two completely separate things, she says. Courtesy of TCH

A few months ago, Myra Davis got a whole other slew of responsibilities with the addition of just one word to her title: Innovation. The senior vice president and chief information and innovation officer of Texas Children's Hospital oversees a team of individuals not only focused on bringing in new technologies and ideas — but maintaining those processes.

Currently, the hospital is in a transition phase looking to better represent its ongoing innovation, as well as bring in new aspects of innovation. Along with Paola Álvarez-Malo, assistant vice president of strategic and business planning at TCH, Davis is looking to keep TCH at the forefront of hospital innovation and pediatric care.

Davis sat down with InnovationMap to discuss the hospital's transformation process and how, while the work together, technoogy and innovation bring two different things to the table.

InnovationMap: What has been your initial focus since assuming the “innovation” part of your title a few months ago?

Myra Davis: When I was appointed, I stepped back and asked myself how we can go about doing this. I knew it was more than the need for technology. We needed to begin to leverage data and a resource that can be agnostic to the organization to help drive strategy.

IM: Why is being both the innovation officer and the information officer important?

MD: Typically, an innovation officer would pass off a new technology to the information officer and hope that they keep it up. Innovation is more than technology. It's about change, and advocating for change in practices, how we hire, how we look at outcomes, and how we look at data. Innovation is radical disruption of how we do things today. It's a full-time job, and then it backs up into including startups and new companies.

IM: Where are you in the transition process?

MD: We're in a discovery phase, which is almost complete. It will drive an outcome of what the structure should look like for an organization of our size and magnitude, and what additional resources we need to have. For example, today to make an appointment, you need to call and make an appointment at the front desk. But we should be disrupting that process and leverage technology. We should have goals of decreasing calls moving forward. We don't yet have the structure to bring those ideas to the table, but that's where I see it going.

IM: How have you seen innovation become a bigger player in health care?

MD: Health care is always a service organization. We're here to serve patients and help them get better. I think clinically, there's always been a need to stay innovative because it's medicine. Now, we're seeing the need to infuse the behaviors of innovative thinking and acting in our operating models to meet the health care model of service. What I mean by that is the cost of care. The models must change because reimbursements are changing, populations are changing, the demand of patients have changed. When I started, we never had patients not wanting to come in for care. Now, patients are saying they don't want to come in because it costs too much. While there's been a plethora of technologies — we have a host of technology systems — but we're realizing we've only scratched the surface with the opportunities we have.

I often talk about the little "i" versus the big "i" in the word "innovation." The little "i" is leveraging what you have already — that's an innovative game changer. Then there's the big "i" and that's the commercialization of a product or partnering with a startup company and they go public. When we say innovation, most people think of that big "i" but it's a spectrum.

IM: What’s the big technology you see disrupting the health care industry?

MD: I think it's data science. It's a major breakthrough. For prescriptive, predictive, and descriptive reasons, we can't afford to keep doing things ourselves. The market is getting competitive, and we must get to decision making faster. You got to go with the data. You can't be so precise it keeps you from being creative, but you have to start with knowledge.