Economic Impact of Health Research

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

Source of R&D Funding Investment State Rank
Federal Government $2,355,400,000 9
Industry $8,000,400,000 9
Universities $226,500,000 12
Non-profit $130,000,000 5
Other * $100,600,000 10
Total $10,812,900,000 10

* 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 23,307 $88,754
Medical Device 19,876 $50,590
Research, Testing, and Laboratories 27,488 $67,405
Overall Private Sector  $38,055

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

Pennsylvania BIO reports that in 2006, the bioscience industry in the state supported more than 326,000 jobs and paid out $5.1 billion in wages. Research institutions in the state brought in $1.5 billion in research funding from the NIH that year.

The Pennsylvania State System of Higher Education reports that the 14 public universities it represents had an annual economic impact of nearly $4.47 billion on the Commonwealth and supported 51,000 jobs in FY 2003-2003.

For every dollar from the Commonwealth, Pennsylvania State University returned $19.42 in 2003. Penn State had an annual economic impact of more than $13 billion and supported 60,000 jobs that year.

In 2002, Penn State Hershey Medical Center generated 13,500 jobs and had an economic impact of $613 million.

The Association of American Medical Colleges reports that the member medical schools and teaching hospitals in the state had a combined economic impact of $35.6 billion (ranked 2nd in the nation) and a total employment impact of 219,600 in 2005.

The Milken Institute reports that the Greater Philadelphia life science industry supports 276,000 jobs and $13.7 billion in total earnings in the region (accessing report requires free registration).

The University of Pittsburgh spent $1.5 billion in the local economy and supported nearly 32,100 jobs in 2006. The $188 million Biomedical Research Tower 3 will add 200 new professional jobs with $10 million in salaries.

The University of Pittsburgh Medical Center has a regional economic impact of $6 billion and supports 100,000 jobs beyond direct employment.

The statewide economic impact of the University of Pennsylvania is equal to $25 million per day. Penn's expenditures generated $9.6 billion in economic activity and support 100,000 jobs in the state.

In FY 2004, research projects at Carnegie Mellon University generated nearly $280 million for the local economy. Between 2001 and 2005, Carnegie Mellon also helped create 17 companies that have created 100 jobs in the region and raised $40 million.