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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$4,944,000,0007
Industry$9,061,000,000 7
Universities$791,000,000 2
Total$14,796,000,0007

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


Population (2011)

 New York
Residents State Rank
Population, June 1, 2011 19,378,1023

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


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

Industry EmploymentAnnual Salary
Pharmaceutical 21,067$72,721
Medical Device21,827$63,927
Research, Testing, and Laboratories31,177
$69,532
Overall Private Sector7,162,962$62,085

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 $2,031,000,000 in New York, producing 33,610 new jobs.

Medical schools in New York City train 11% of the nation's medical students and 15% of its residents. Additionally, NYC houses 9 major academic research institutions, 26 research institutions and medical centers and 58 hospitals.

The Association of American Medical Colleges reports that the member medical schools and teaching hospitals in the state had a combined economic impact of $69.4 billion (ranked 1st in the nation) and a total employment impact of 476,200 in 2008.

According to the New York Biotechnology Association, New York's biotechnology and pharmaceutical industries generated $18.1 billion in economic activity in the state. These companies also employed nearly 54,500 people who earned $3.3 billion in wages in 2003. In 2004, research institutions produced 486 patents.

The State University of New York generates $8 in spending for every dollar from the state and had a total economic impact of nearly $24 billion in 2005-2006.

SUNY Downstate Medical Center's
estimates its economic impact to be $1.3 billion and that each dollar invested in Downstate returns $12 to the local economy.

In 2005, Cornell University had a total economic impact of $3.3 billion and supported 36,600 jobs. In addition, 28 start-up companies based on technologies developed at Cornell were launched between 2000 and 2004.

The Center for Biotechnology is a partnership between universities, private industry, and state of New York to promote economic development. Between 2001 and 2006, the Center for Biotechnology created 575 jobs and leveraged $106 million in federal and private funding from the state's initial $5 million investment. The Center had a total economic impact of $575 million from 2001-2006.

Stony Brook University
had a $2.5 billion impact on the Long Island economy and supported 47,400 jobs in 2002-2003. For every dollar of state investment, the University generates $15 for the region.

The New York State Office of Science, Technology and Academic Research awarded $232 million in research funds to institutions across the state between FY 2001-2002 and FY 2005-2006. This investment produced a total economic impact of $5.8 billion and led to the creation and retention of 17,000 jobs in the state.

In 2005-2006, the University of Buffalo had a total economic impact of $1.5 billion on the state-four times the state's investment. UB directly employed nearly 6,500 people and generated an additional 11,700 jobs in the Buffalo-Niagara region.

In FY 2004, Brookhaven National Laboratory directly spent $454 million which subsequently increased New York state's output by more than $880 million and generated 7,700 jobs statewide.