Oct. 17, 2004--A new study shows that the biopharmaceutical industry is a critical contributor to both employment and economic output here in the U.S. and across the globe. Better yet, the industry promises to add thousands of new jobs and millions of dollars to the domestic economy over the next 10 years.
The study, conducted by the Milken Institute, an independent economic think tank, found that the U.S. biopharmaceutical industry was directly responsible for 406,700 jobs last year and about 2.3 million others due to the ripple effect measured across other industries. The 2.7 million total represents about 2.1 percent of the total employment in the country.
Biopharmaceutical companies also combined to produce $63.9 billion in inflation-adjusted output--or about $172.7 billion when measured across all the industry sectors that it influences. The study also estimates that in 10 years, the industry's output could grow to $350.1 billion with a total employment of 3.6 million.
The industry also funneled $24.5 billion to government coffers last year through federal, state and local tax revenues.
"There is good reason why governments across the country and around the world are fighting hard for biopharmaceutical dollars," the study said. "Thanks to its highly paid workforce, its financial commitment to research and development, and its ability to generate many new jobs in other sectors, this industry will become an important source of economic growth in the regions that are successful in growing and nurturing it."
The study found that many state economies are already highly dependent on the biopharmaceutical industry, including New Jersey, Massachusetts, Connecticut, California, New York, Pennsylvania, Rhode Island, North Carolina, Washington and Utah.
The state economies in Nevada, Vermont, Alabama, New Hampshire, Florida and West Virginia also show great potential for capitalizing on biopharmaceutical development in the next 10 years.
Darren Dahl is a contributing editor at Inc. Magazine, which he has written for since 2004. He also works as a collaborative writer and editor and has partnered with several high-profile authors. Dahl lives in Asheville, NC.