Economic Impact of Health Research

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

Source of R&D Funding Investment State Rank
Federal Government $351,400,000 34
Industry $322,400,000 37
Universities $134,600,000 20
Non-profit $50,100,000 16
Other * $114,000,000 7
Total $971,500,000 37

* 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 265 $41,870
Medical Device 1,107 $26,986
Research, Testing, and Laboratories 2,363 $37,336
Overall Private Sector  $31,671

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 $5.4 billion and a total employment impact of 41,000 in 2005.

The Pennington Biomedical Research Foundation in Baton Rouge attracts $3 of federal or private funding for each dollar from the state. In FY 2003-2004, the research center produced 24 technology disclosures, 8 patent applications, and one start-up company.

Louisiana invests $140 million in the Louisiana State University Health Sciences Center at Shreveport and the Conway Medical Center in Monroe. In return, the Center generates $533 million in household earnings and $558 million in sales and supports nearly 13,000 jobs.