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New Haven's economy runs on education, healthcare, and life sciences. Yale University is the city's largest employer, and Yale New Haven Health, one of the country's premier hospital systems, is a major employer serving the region. Science Park, built on the former Winchester Firearms factory campus and developed jointly by Yale, the city, Olin Corporation, and the state, now houses biotech and technology startups alongside Yale offices and residences, with roughly 550,000 square feet of additional lab and incubator space proposed at Science Park at Square 10 and Downtown Crossing.

Beyond Yale, employers include Southern Connecticut State University, lock manufacturer Assa Abloy, the Knights of Columbus headquarters, and Alexion Pharmaceuticals, which returned to the city as part of the biotech buildout. Greater New Haven has become the preferred base for roughly 46% of Connecticut's 112 biotech companies, and the state recently announced new investment in downtown infrastructure to support continued innovation-sector job growth, including the Yale-UConn quantum research initiative QuantumCT.

A city built around a research university, a 12,000-employee hospital system, and an expanding biotech corridor generates dense, round-the-clock demand: lab workers and hospital staff need dentists and urgent care nearby, new lab buildings need electricians and HVAC contractors, and the steady flow of students and biotech hires into downtown housing keeps local plumbers and attorneys busy.