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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 $1,110,000,000
22
Industry $2,753,000,000 18
Universities $221,000,00014
Non-profit $30,000,00025
Other * $25,000,000 34
Total $4,139,000,00020

* 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 6,165,689 16 

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


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

Industry EmploymentAnnual Salary
Pharmaceutical 1,109
$56,223
Medical Device4,792
$48,958
Research, Testing, and Laboratories6,741
$57,031
Overall Private Sector2,225,700
$39,526

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 Arizona generated $369,000,000 of business activity and 2,934 new jobs.The report also highlights why global health matters to Arizona.


Arizona State University had an economic impact of $2.1 billion and 37,020 jobs in FY 2002.

The University of Arizona (UA) supported 41,300 jobs and had an economic impact of $2.3 billion in FY 2004. Every dollar from the state generated an additional $3.50 in grants, contracts, and gifts.

The University of Arizona received more than $285.1 million in research funding in FY 2002. This supported more than 3,400 direct jobs at UA and had a state-wide impact of 9,540 jobs.

The Phoenix Biomedical Campus of the UA College of Medicine-Phoenix is expected to produce up to $2.1 billion in annual economic impact as well as employment for up to 24,000 Arizonans by 2025.

The Association of American Medical Colleges reports that the member medical schools and teaching hospitals in the state had a combined economic impact of $4.2 billion and a total employment impact of 28,400 in 2005.

According to Arizona BioBasics, venture capital investments in the biosciences totaled $77 million in the first three quarters of 2007. Arizona's jobs in the biosciences increased by 18.5% from 2002-2006. Every dollar invested in bioscience leveraged $6.26 in other investments.

The Mayo Clinic in Scottsdale had a total economic impact of $704 million and 10,950 jobs in Arizona in 2002.

The Translational Genomics Research Institute (TGen) in Phoenix is expected to generate an annual economic impact of $202.4 million and 3,125 jobs by the year 2025.