Pennsylvania’s life sciences sector is well-positioned for continued growth thanks to the Commonwealth’s strong research institutions, skilled workforce, improving business climate, and growing role in emerging technologies, according to PA Chamber President and CEO Luke Bernstein.

During an Axios Live interview in Philadelphia las week, Bernstein said the Commonwealth has developed many of the ingredients that life science companies look for when making major investment decisions. He pointed to Pennsylvania’s universities, medical research ecosystem, and talent pipeline as key advantages that continue to attract employers and capital.

“Investment is like water. It will flow to the path of least resistance,” Bernstein said. “What you’re seeing right now in Pennsylvania is the opportunity and the foundation that’s really set in place.”

Bernstein argued that those strengths have helped make Pennsylvania an increasingly attractive and competitive location for life sciences companies. Recent major investments by Eli Lilly and Johnson & Johnson, he noted, demonstrate the industry’s confidence in the Commonwealth, and he suggested additional life sciences investment announcements could soon follow.

Looking ahead, Bernstein said artificial intelligence could help drive the next phase of growth for the industry. As AI and advanced technologies reshape medical research and drug development, Pennsylvania’s concentration of research institutions and scientific talent could position the state to benefit from future breakthroughs.

“We are at maybe one of the most exciting times in the course of human history with AI, with innovation, with technology,” Bernstein said.

While large investment announcements often focus on headline figures, Bernstein emphasized the broader economic impact they generate. Major projects create demand for construction workers, suppliers, manufacturers, and local businesses while supporting high-skill jobs throughout surrounding communities.

He pointed to Chobani’s recently announced Pennsylvania expansion as an example of how a single investment can create ripple effects across an entire supply chain. Similar dynamics, he said, occur with life sciences projects, where the benefits extend well beyond a single facility.

Bernstein also highlighted recent reductions in Pennsylvania’s Corporate Net Income Tax rate and reforms to the state’s net operating loss deduction rules, arguing that those changes have helped improve the Commonwealth’s competitiveness. He noted that executives announcing major investments have cited those reforms as factors in their decision-making.

However, Bernstein did acknowledge some areas for improvement, noting that Pennsylvania’s ability to compete for future investment will depend in part on both physical and policy infrastructure. He characterized data centers as critical to supporting AI-driven economic growth and innovation, while arguing that legal liability reform could help make the Commonwealth more attractive to employers and investors compared with competing states.

Despite those challenges, Bernstein expressed confidence that Pennsylvania’s strengths in workforce development, research and innovation position the Commonwealth to capture future growth in the sector.

“These are real opportunities for our country and our region to lead … we can do it and do it responsibly,” Bernstein said.