The Biotechnology Innovation Organization (BIO) and the Council of State Bioscience Associations (CSBA) today released new data on the bioscience industry in the United States. The report includes individual fact sheets for all 50 states, the District of Columbia and Puerto Rico, which can be found alongside the full report and interactive map at www.bio.org/jobs. AZBio uses this data and additional federally reported data to build its statewide progress report.
The new BIO/TEConomy report, The U.S. Bioscience Industry: Fostering Innovation and Driving America’s Economy Forward, examines the bioscience industry’s economic performance and its footprint across the nation and individual states during the COVID-19 pandemic.
Some key takeaways:
- The nation’s bioscience industry employed 2.1 million employees across more than 127,000 U.S. business establishments in 2021.
- Arizona’s bioindustry employed 236,410 employees across 2,912 AZ business establishments. (Up 32.4% over 2018)
- As the overall economy shed 1.5% of it’s job base, the biosciences industry increased employment by 11% since 2018.
- Arizona’s bioindustry increased employment by 21.8% over 2018 and double the national growth rate.
- In total, the bioscience industry’s economic impact on the U.S. economy amounted to $2.9 trillion dollars in 2021, as measured by overall output.
- Arizona’s bioindustry’s share of this economic impact, based on the state’s share of wages & employment, was $38.52 billion in 2021.
- Biotech companies – especially small – and mid-sized – undertook a monumental effort to develop COVID-19 vaccines and therapeutics; there are 747 novel compounds in development currently.
“This data highlights the vital role U.S. bioscience companies have in creating jobs and stimulating the economy. The report further shows the industry’s enormous role in navigating the COVID-19 pandemic, both in terms of getting life-saving therapies and vaccines to patients, as well as economic recovery,” said Pete Pellerito, BIO Senior Policy Adviser for Federal and State Economic Development and Technology Transfer Initiatives.
“Even during the pandemic, bioscience employment grew as other industrial sectors faltered. Looking forward, the industry will continue to play a critical role, not only in addressing global health challenges but in helping to grow the U.S. economy by generating high-quality jobs,” said Ryan Helwig, Principal and Project Director with TEConomy Partners.
“Arizona has consistently been one of the fastest growing, emerging life science sectors for over a decade,” shared Joan Koerber-Walker, president & CEO of the Arizona Bioindustry Association, Inc. (AZBio). “AZBio’s vision is that Arizona will rise in the rankings and grow to be a top-10 life science state. AZBio’s mission is to help Arizona get there.”
Arizona is not yet in the top-10 by national measures.
Population is a key economic driver for the life science industry, especially as it relates to the delivery of health services in the local market. Arizona currently ranks 14th for population in the United States.
The state currently ranks 20th nationally for Economic Impact; 14th in the number of firms (establishments); 22nd in employment; and 25th in the funding/investment metrics for Venture Capital, NIH Funding, and Academic R&D.
“Arizona’s ability to take its place in the top-10 will be strongly correlated with our ability to improve our performance relative to Arizona’s funding/investment metrics.”, shared Koerber-Walker. “That is why AZBio has made significant investments in supporting the creation of AZAdvances within the Opportunity Through Entrepreneurship Foundation. With a focus on workforce development, entrepreneurial support, and investment, AZAdvances will drive Arizona’s growth in this vital sector delivering both economic impact and social impact.”
The State of Arizona is also making significant investments in growing its life science sector, this investments include the Technology & Research Initiative Fund (TRIF) and the recent creation of the Arizona Health Innovation Trust Fund within the Arizona State Treasurer’s office which became effective in September, 2022.
“Arizonans now have the opportunity to work together as industry, philanthropy, and public partners to fully fund AZAdvances and the Arizona Health Innovation Trust Fund so that Arizona discoveries progress to become health innovations that benefit people in Arizona and around the world,” said Koerber-Walker.
Learn More About AZBio
For 19 years, the Arizona Bioindustry Association (AZBio) has supported life science innovation and life science innovators in Arizona. A key component in Arizona’s life science ecosystem, AZBio is the only statewide organization exclusively focused on Arizona’s bioscience industry. AZBio membership includes patient advocacy organizations, life science innovators, educators, healthcare partners and leading business organizations. AZBio is the statewide affiliate of the Biotechnology Innovation Organization (BIO) and works in partnership with AdvaMed, MDMA, and PhRMA to advance innovation and to ensure that the value delivered from life-changing and life-saving innovation benefits people in Arizona and around the world. AZBio will celebrate 20 years of impact in 2023.
Explore the National Data
The state-by-state industry assessment is the tenth in a biennial series, developed in partnership by TEConomy Partners and BIO, and studies the state of the U.S. bioscience industry and its associated innovation ecosystem at the national, state, and metropolitan area levels.
The report includes individual fact sheets for all 50 states, the District of Columbia and Puerto Rico, which can be found alongside the full report and interactive map at www.bio.org/jobs.
Learn More About BIO
BIO is the world’s largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. Good Day BIO is the only daily newsletter at the intersection of biotech, politics and policy. Subscribe here.
View the BIO Press Release here: https://www.bio.org/press-release/biotech-sector-thrives-generating-nearly-3-trillion-economic-impact-new-report-shows
Learn More About TEConomy
TEConomy Partners, LLC is a global leader in research, analysis and strategy for innovation-driven economic development. Today we’re helping nations, states, regions, universities and industries blueprint their future and translate knowledge into prosperity. The principals of TEConomy Partners include the authors of the prior Battelle/BIO State Bioscience Development reports, published since 2004. For further information, please visit www.teconomypartners.com.