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Economic Impact of Health Research

Investment: Funding sources for overall research and development (2008)

Source of R&D Funding InvestmentState Rank
Federal Government$19,585,000,000 1
Industry$54,231,000,000
1
Universities$1,386,000,000
1
Total$75,202,000,000
1

Source: Calculated from National Science Foundation, Science & Engineering Indicators, 2012 


Population (2011)

 Residents State Rank
Population, June 1, 2011 37,253,956
1

Source: U.S. Census Bureau, 2010 Census Data


Economic Impact: Statistics for research-driven health industries (2008)

Industry EmploymentAnnual Salary
Pharmaceutical 43,038$109128
Medical Device73,344
$79,580
Research, Testing, and Laboratories100,132
$97,739
Overall Private Sector13,042,130
$50,706

Source: Battelle and Biotechnology Industry Organization (BIO), BIO State Bioscience Initiatives, 2010 


Highlights from local economic impact studies

United for Medical Research's 2011 study, An Economic Engine, shows that in 2010, NIH invested $4,021,000,000 in California, producing 71,633 new jobs.

The National Institutes of Health contribute more than $3 billion per year to the state economy through biomedical research facilities. This supports an industry that provides 267,000 California jobs with an average annual wage of more than $71,000 according to the Los Angeles Biomedical Research Institute at Harbor-UCLA Medical Center and the Los Angeles Area Chamber of Commerce.

The Association of American Medical Colleges reports that the member medical schools and teaching hospitals in the state had a combined economic impact of $41.6 billion (ranked 3rd in the country) and a total employment impact of 238,000 in 2008.

California's Proposition 71 authorized $3 billion to support stem cell research and is expected to save between $6.4 and $12.6 billion in health care costs.


Each dollar of spending by the California State University (CSU) system generates another $2.13 to the economy. The CSU system supports 150,000 jobs annually and pays over $995 million in taxes to California. 

Each dollar produced in the life sciences sector in San Diego generates $1.10 beyond it through indirect and induced impacts. The life sciences industry in San Diego supports 55,600 jobs and has an economic impact of $5.8 billion dollars (accessing report requires registration).

Within the University of California system, every dollar of state-funded research in 2000-2001 led to an additional $3.89 through federal and private funding. Overall UC expenditures had an economic impact between $14 and $17 billion and supported 370,000 California jobs.

In 2005-2006, the UC Berkeley had a total economic impact of more than $1.5 billion in the Bay Area and supported more than 31,000 area jobs. In addition, UC Berkeley spent $469 million on research and reported 128 inventions.

UC Davis reports that every dollar the state invests in the university returns $5 to the state. UC Davis generated 45,000 jobs for California and contributed $2.7 billion to the state economy in 2001-2002.

UC Irvine has an annual economic impact of $3.6 billion in Orange County and employs more than 17,000 people.

Every taxpayer dollar invested in the University of California, Los Angeles generates nearly $15 in economic impact in the region. UCLA has a $9.3 billion impact on the area and supports 70,000 jobs.

The University of California, San Diego had a national economic impact of $5.1 billion and generated 319,000 jobs nationwide.

The University of California, San Francisco generates more than 23,000 jobs and reported $1.8 billion in sales in 2003.