International and innovative growth in Greater Phoenix

Originally published in Site Selection Magazine.

With a strategic location, supportive infrastructure and business-friendly environment, Greater Phoenix is experiencing remarkable international business momentum and has consistently ranked as a top market for foreign direct investment (FDI) in the U.S.

This ascent is supported by a significant increase in advanced manufacturing while the region becomes a hotbed for innovation and cutting-edge developments in climate tech and the biosciences. Global companies charting the future through ingenious ideas and technologies benefit from Greater Phoenix’s central location — more than 35 million consumers are accessible from the market within a single-day truck haul, and Phoenix Sky Harbor International Airport connects to 100 domestic and 24 international locations. While international companies such as Amkor, DSV, LG Energy Solution and TSMC have recently chose Greater Phoenix for U.S. expansions, growing opportunities in key sectors continue to draw global interest to the region.

A hotbed for innovation

Novel ideas and innovative companies thrive in Greater Phoenix thanks to a low operating cost compared to peer markets, unparalleled lifestyle and livability, and a robust university network that creates abundant top-tier talent. The region has become a magnet for entrepreneurs and startups of all stages drawn to the market’s spirit of collaboration and competitiveness, which allows innovators to bring their ideas to fruition with unparalleled efficiency.

In 2023, the region saw $1.9 billion in total venture capital funding across 121 deals resulting in a 6% increase year-over-year. Comparatively, funding in the U.S. as a whole was down 36%, a decrease experienced by competitor markets. This influx of investment has spurred growth in companies including GT Medical Technologies, Lessen and Persefoni, which benefit from Greater Phoenix’s dynamic ecosystem.

Rising opportunities in climate tech

Greater Phoenix’s abundant sunshine and low risk of natural disasters make it an ideal market for climate tech companies revolutionizing industries and reshaping our world. The region is becoming a hub for producing, developing and trialing solutions in natural energy, carbon capture and sustainable solutions. Though it is a relatively young region, Greater Phoenix has a rich history of technological innovation and research, attracting major players in cutting-edge industries for decades.

Climate tech leaders including Footprint, OnePointOne, First Solar and SOURCE Water have recently found success in the region. Additionally, programs like the Southwest Sustainability Innovation Engine, an NSF-funded initiative led by Arizona State University focused on carbon capture, water security and renewable energy, are pivotal in advancing Greater Phoenix’s future in climate tech and creating a healthy ecosystem with quality jobs that will further opportunities for game-changing advancements in the market.

Bioscience boom

With a longstanding history of major healthcare companies and leading national research firms finding success in Greater Phoenix, the region has paved the way for a thriving bioscience sector. Three major hubs — Phoenix Medical Quarter, Phoenix Bioscience Core, and Mayo Clinic’s Discovery Oasis — are at the forefront of advancing industry growth and opportunity by bringing together research and education in a collaborative atmosphere.

These hubs and the firms that call them home are driving advancements in immunotherapies, precision medicine, personalized medicine and translational neurosciences, building upon the market’s strong core capabilities in clinical trials, diagnostic development, genomics and medtech. The region’s commitment to fostering innovation in this sector is attracting top talent and investment, further cementing its status as a leader in bioscience and biotech. Between 2019-23, the market saw more than $4 billion in capital investment in the biosciences and over 10,000 new bioscience and healthcare jobs. Additionally, $364 million in NIH funding was allocated across Arizona in 2023 alone.

A region leading the future

The intentional efforts of the Greater Phoenix Economic Council (GPEC) have played a crucial role in elevating the region to its current position as a market for top-tier innovation and an emerging continental gateway. Through strategic planning, Greater Phoenix continues to offer a robust ecosystem for businesses to thrive. We invite you to connect with GPEC to learn more about the opportunities that the region has to offer and how we can help your business succeed in this dynamic and rapidly growing market.