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Economic Impact of Health Research

Investment: Funding sources for overall research and development (2005)

Source of R&D Funding InvestmentState Rank
Federal Government$1,963,000,00015
Industry$717,000,00029
Universities$96,000,00025
Non-profit$20,000,00029
Other *$9,000,00039
Total$2,805,000,00027

* 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, 2007


Population (2006)

 Residents State Rank
Population, July 1, 2006 4,590,240 23

Source: U.S. Census Bureau, Annual Population Estimates, 2008


Economic Impact: Statistics for research-driven health industries (2006)

Industry EmploymentAnnual Salary
Pharmaceutical 636$47,224
Medical Device2,962
$34,125
Research, Testing, and Laboratories3,231
$49,900
Overall Private Sector1,574,947
$35,520

Source: Battelle and Biotechnology Industry Organization (BIO), Technology Talent and Capital: State Bioscience Initiatives 2008


Highlights from local economic impact studies

A 2007 study by FamiliesUSA, In Your Own Backyard, shows that NIH funding for Alabama generated $614,000,000 of business activity and 4,798 new jobs. The report also highlights why global health matters to Alabama.

The Association of American Medical Colleges reports that the member medical schools and teaching hospitals in Alabama had a combined economic impact of $4.4 billion and a total employment impact of 30,400 in 2005.

The University of Alabama at Birmingham has an economic impact of more than $3 billion on the Birmingham metro area and accounts for 52,900 local jobs.

According to a report from BIO and Battelle, The Cumming Research Park is creating a Biotech Campus which will house the Hudson-Alpha Institute for Biotechnology. This new institute is expected to employ 500-600 by 2008 and up to 1,600 in 10 years.