Economic Impact of Health Research

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

Source of R&D Funding Investment State Rank
Federal Government $1,374,700,000 19
Industry $10,734,300,000 3
Universities $218,700,000 13
Non-profit $73,600,000 10
Other * $59,200,000 17
Total $12,460,400,000 7

* 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 39,683 $99,521
Medical Device 15,801 $72,511
Research, Testing, and Laboratories 23,093 $89,177
Overall Private Sector  $47,608

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

Members of the Health Care Institute of New Jersey had an economic impact on the state of nearly $25.6 billion and accounted for nearly 149,000 New Jersey jobs in 2006.

The Association of American Medical Colleges reports that the member medical schools and teaching hospitals in the state had a combined economic impact of $12.6 billion and a total employment impact of 76,700 in 2005.

The Biotechnology Council of New Jersey reports that the biotechnology industry had a total economic impact of $1.7 billion in income on the New Jersey economy and supported 27,000 jobs in 2006.

In 2004, Rutgers University had a total economic impact of $2.8 billion on the state of New Jersey-more than 5 times the initial investment of $524 million. In 2003, Rutgers disclosed 174 inventions, was granted 34 patents, and received $5.4 million from licensing.

The University of Medicine and Dentistry of New Jersey had a $3.33 billion economic impact on the state in FY 2006. UMDNJ attracts $9 million of economic activity for every $1 million the state invests.

Princeton University had an economic impact of $2 billion on the region during FY 2007. The University also helps create jobs and encourage research through partnerships with 275 companies.