WATERTOWN – After more than a decade of rapid expansion, Watertown’s life science industry is entering a new phase marked by both continued investment and emerging challenges, according to local leaders and industry experts.

The state of the sector was the focus of a recent panel hosted by the Charles River Regional Chamber and Boylston Properties, where business leaders, developers and city officials discussed the industry’s growth and its future outlook.

Over the past 10 years, Watertown has become a hub for biotechnology and life science companies, with more than 100 firms now operating in the city. The expansion of lab space and commercial development has helped generate significant tax revenue, supporting major projects such as the construction of the new Watertown High School without increasing residential taxes.

However, panelists said the industry is beginning to stabilize after a period of rapid growth. Rising vacancy rates in lab space and shifts in venture funding have led some companies to scale back or delay expansion plans.

Despite those challenges, early 2026 data shows renewed investment activity, with companies securing substantial funding in the first months of the year. Industry leaders said Watertown remains well positioned due to its concentration of smaller, emerging companies and its proximity to Boston and major research institutions.

City officials said the industry continues to play a critical role in the local economy but noted that future growth will depend on addressing broader issues such as housing and transportation.

Panelists expressed cautious optimism about the future, saying the industry is likely to continue growing at a slower, more sustainable pace.

Watch the full panel here.

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