Opening the Door to Discovery
More than two decades ago, leaders in business and education came together to imagine the possibilities for growing the biotech and life science sectors in South Dakota. They planted the seed for a university-based research district that would serve as a hub of innovative research and commercialization in Sioux Falls.
A public-private partnership emerged; the University of South Dakota, the City of Sioux Falls, the South Dakota Board of Regents, the Governor’s Office of Economic Development and Forward Sioux Falls set out to create the USD Discovery District.
The vision was to establish a corporate and academic research district that would foster entrepreneurship and commercialization by bridging university-led research and student development with private-sector resources. As a leader in research, USD was well-positioned to help advance this community of innovation and discovery.
This year, that vision is coming to life.
In January of 2025, the USD Discovery District opened the doors of its first building – a 50,000-square-foot, two-story facility for innovators in biotech and life science.
The build-to-suit office and research building is designed to offer cutting-edge lab space necessary to meet the stringent requirements of research and commercialization.
Additionally, the building offers shared resources such as conference rooms and common areas to promote collaboration. Tenants also have access to university services such as prototyping, cGMP facilities and equipment to accelerate development.
“The USD Discovery District’s first tenants are already experiencing the value of this facility and partnership with USD,” said James W. Abbott, interim president and chief executive officer for the USD Discovery District. “The USD Discovery District is set to shape the future of research, health care and life sciences. This first building is a significant milestone in making that happen and in promoting economic growth in South Dakota.”
The first building has created momentum and engagement with the biotech community and recruiting organizations. The USD Discovery District has secured three tenants, each of which has successfully customized their spaces to align with the specific requirements of their needs. To serve as resources for tenants, the South Dakota Small Business Development Center Network and the Prairie Family Business Association are among the initial tenants. OmegaQuant Analytics, an industry-leading nutrient status testing company, is also one of the first tenants. Additionally, a medical device company is currently in the design proposal phase to determine its space requirements within the building.
“We are excited to welcome tenants into the building and to provide the space for innovation, research and collaboration,” said Ryan Oines, chief operating officer for the USD Discovery District. “The goal of the USD Discovery District has been to create a dynamic and collaborative environment where talent, research and innovative businesses interact. This space will foster the creation of new ideas, new technologies and new opportunities. That goal is now a reality.”
The building is strategically located near the USD – Sioux Falls campus, which further facilitates collaboration between the university and the private sector.
USD – Sioux Falls is supporting South Dakota’s workforce, and the USD Discovery District complements that mission by connecting students and businesses in mutually beneficial partnerships; students can access hands-on internship and research opportunities that help prepare them for their futures while USD Discovery District tenants will benefit from the skills and perspectives of students.
USD – Sioux Falls also houses USD’s Graduate Education and Applied Research (GEAR) Center – a collaborative environment that brings together researchers from regental universities, other academic institutions, government agencies, small businesses and industries with shared interests to develop advanced technologies for biomedical and biological applications.
The center provides valuable educational and research opportunities for graduate and post-graduate students, playing a crucial role in training the next generation of the state’s high-tech workforce.
Oines shared that there is potential for USD’s biomedical engineering students to move through a pipeline from the GEAR Center, where their ideas are incubated, to the USD Discovery District, where the next stages of technology development and commercialization occur.
“USD is building biomedical engineering talent and investing in this research,” said Oines. “Students graduate with the expertise and hands-on experience they need to expand their innovations. The USD Discovery District is a window into where they can take their research and a natural next step in their path toward commercialization.”
This first building is just the beginning. The district will grow to fill 80 acres, with plans for 26 privately constructed buildings. While the research district is focused on driving economic growth potential as a hub for biotech and life science research, it will house businesses that span numerous industries – from technology startups to coffee shops. The USD Discovery District is projected to provide employment opportunities for nearly 2,800 individuals through companies situated within the district.
In reflecting on the last several years of this project, USD President Sheila K. Gestring noted that Abbott played a critical role.
“This trajectory of success with the USD Discovery District would not have been possible without the leadership and vision of Jim Abbott,” said Gestring. “Jim has been instrumental in the USD Discovery District coming to fruition, and his legacy will be felt for decades to follow.
“The opening of this first building is the culmination of years of hard work, strategy and collaboration,” Gestring continued. “The individuals and groups involved in this effort have created something bigger than what we could have accomplished alone. I could not be more excited to celebrate this milestone and continue our progress in driving innovation and economic growth for South Dakota.”
Timeline Visual: How the USD Discovery District Came to Be
- 1989 - Gov. George S. Mickelson, Sioux Falls business leaders and USD first proposed developing a university-related research park.
- 2000 - The Forward Sioux Falls Technology Committee revived the research park concept. More than 200 education, community and business leaders participated in a planning process focused on strengthening the region’s capacity to support and grow technology-based businesses.
- 2001 - Hammer Siler George Associates conducted a feasibility study that recommended establishing both a business incubator and research district.
- 2006 - Through a gift from the Great Plains Education Foundation, the Board of Regents acquired 252 acres to establish a permanent location for what was then called the University Center Sioux Falls. This created the opportunity to consider where a research district could take shape.
- 2009 - The South Dakota Legislature enacted legislation authorizing the establishment of an 80-acre research district at the University Center Sioux Falls.
- 2011 - Research park experts from across the country met with university and community leaders to assess the feasibility of the University of South Dakota Research Park. Their unanimous recommendation was to proceed.
- 2012 - The legislature passed, and Gov. Dennis Daugaard signed, legislation to authorize research parks on lands controlled by the South Dakota Board of Regents. The University of South Dakota Research Park corporation was formed later that year.
- 2014 - The USD Discovery District name was formalized.
- 2016 - The USD Discovery District was awarded a $755,000 EDA grant for infrastructure.
- 2017 - The USD Discovery District broke ground and held a ceremony celebrating the start of construction on the research park. Phase I street construction was completed.
- 2021 - James W. Abbott was named interim president and CEO of the Discovery District.
- 2022 - The USD Discovery District secured $15 million from the State of South Dakota and $4 million from the City of Sioux Falls for construction of the first building.
- 2023 - Construction on the district’s first building began.
- 2024 - The USD Discovery District’s first tenants signed on.
- 2025 - The USD Discovery District opened the doors of its first building. A grand opening and ribbon cutting will be held later this spring.
