Economic Impact of Health Research

Investment: Funding sources for overall research and development (2004)

Source of R&D Funding Investment State Rank
Federal Government $678,700,000 25
Industry $4,031,200,000 14
Universities $310,600,000 7
Non-profit $55,800,000 14
Other * $54,000,000 18
Total $5,130,400,000 18

* Other represents funding from state and local governments and funding for Federally Funded Research and Development Centers from non-federal sources.

Source: National Science Foundation, National Patterns of R&D Resources , 2006


Economic Impact: Statistics for research-driven health industries (2004)

Industry Employment Annual Salary
Pharmaceutical 20,057 $88,364
Medical Device 16,688 $58,931
Research, Testing, and Laboratories 6,423 $53,427
Overall Private Sector  $34,724

Source: Battelle Memorial Institute and Biotechnology Industry Organization (BIO), Growing the Nation's Biotech Sector: State Bioscience Inititives 2006


Highlights from local economic impact studies

The Association of American Medical Colleges reports that the member medical schools and teaching hospitals in the state had a combined economic impact of $7.4 billion and a total employment impact of 52,500 in 2005.

In FY 2004-2005, spending at Purdue University had a total economic output of more than $2.9 billion in Indiana and supported 44,000 jobs.

The health industry in Indiana generated a total of $69.5 billion in economic output and supported more than 578,000 Indiana jobs in 2003.

Indiana University employs more than 18,000 people and spends more than $145 million on goods and services from Indiana vendors. IU received $737 million in research funding during 2000-2002 and this funding supported 30,500 Indiana jobs.

The Indiana University Research & Technology Corporation reports that more than 80 patents were filed in FY 2006 and the Indiana University Emerging Technologies Center has created over 350 high-tech jobs in its 3-year existence.