Economic Impact of Health Research

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

Source of R&D Funding Investment State Rank
Federal Government $2,224,600,000 12
Industry $5,193,500,000 11
Universities $230,200,000 11
Non-profit $58,500,000 13
Other * $109,400,000 8
Total $7,816,200,000 12

* 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 4,745 $64,548
Medical Device 12,325 $41,555
Research, Testing, and Laboratories 8,434 $45,668
Overall Private Sector  $35,929

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 $24.5 billion and a total employment impact of 176,400 in 2005.

According to BioOhio, 775 bioscience companies were operating in the state in 2005, with 50 of them launched as start-ups. The overall economic impact of bioscience companies in Ohio was $1.8 billion in 2004.

BioOhio also reports that in 2005, more than $1.2 billion were invested in the biosciences in the state.

The Cincinnati Children's Hospital Medical Center supported nearly 13,800 jobs and had a total economic impact of $1.34 billion on the Greater Cincinnati area in FY 2002.

The University of Cincinnati Medical Center supported more than 50,000 jobs and had an overall economic impact of $3.59 billion on the Tri-State region in 2002.

The Inter-University Council of Ohio, an association of 15 public universities in the state, reports that for every dollar the state invested in FY 2004, the universities generated an additional $3 from other sources. The universities also pumped $6 billion into the state economy and supported 124,000 Ohio jobs.

Businesses incubated by Ohio University's Innovation Center generated 344 jobs and about $12.6 million in income in 2006.

Ohio's three largest research universities, Case Western Reserve University, The Ohio State University, and University of Cincinnati supported 68,000 Ohio jobs and $6.2 billion in economic activity in 2004.

In 2004, Case Western University reported 135 new inventions and earned $11 million on all its licenses.

The OSU Biomedical Research Tower is expected to generate 17,000 new jobs and have an economic impact of $3.7 billion during the first 10 years of its operation.