Economic Impact of Health Research

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

Source of R&D Funding Investment State Rank
Federal Government$1,179,500,000 20
Industry $15,027,400,000 2
Universities $353,200,000 5
Non-profit $77,800,000 9
Other * $83,900,000 12
Total $16,721,800,000 2

* 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 10,057 $80,660
Medical Device 9,989 $50,097
Research, Testing, and Laboratories 12,922 $80,275
Overall Private Sector  $40,404

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 Michigan Economic Development Corporation reports that over $2 billion are invested in R&D each year and nearly 120 new life science companies have been formed since 2000. In the life sciences industry, Michigan has 542 companies, 31,800 employees, and $4.8 billion in sales.

The Michigan Life Sciences Corridor awarded $150 million to research and commercialization projects in the state and generated 400 jobs and $2.4 billion in private investments.

The University Research Corridor, a collaboration between Michigan State University, the University of Michigan, and Wayne State University, had a net economic impact of $12.8 billion on the state of Michigan in 2006 while helping to create 68,800 Michigan jobs.

The University of Michigan Medical School and other academic medical centers in the state had a combined economic impact of $18.7 billion on the state and supported 122,000 full-time jobs.