Economic Impact of Health Research

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

Source of R&D Funding Investment State Rank
Federal Government $2,648,700,000 7
Industry $10,544,200,000 4
Universities $410,800,000 4
Non-profit $305,200,000 2
Other * $356,800,000 2
Total $14,265,700,000 5

* 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 9,238 $68,762
Medical Device 16,334 $47,724
Research, Testing, and Laboratories 19,130 $52,501
Overall Private Sector  $39,109

Source: Battelle Memorial Institute and Biotechnology Industry Organization (BIO), Growing the Nation's Biotech Sector: State Bioscience Initiatives 2006


Highlights from local economic impact studies

The Association of American Medical Colleges reports that the member medical schools and teaching hospitals in the state had a combined economic impact of $26.6 billion (ranked 5th in the nation) and a total employment impact of 177,100 in 2005.

The MD Anderson Cancer Center accounted for $1.9 billion in business activity in the Houston region and supported 31,600 Houston jobs in FY 2002.

The 15 institutions of the University of Texas System supported 215,700 jobs and had a total economic impact of $12.8 billion on their host economies during FY 2004.

The 21st Century Life Sciences Roadmap reports that the health care technology industry in Texas accounts for more than 50,000 private jobs and produces $6.5 billion in sales.

In 2000, The Texas Medical Center in Houston contributed $5.8 billion in spending and nearly $3.9 billion in personal income to the region. In addition, the Center supported more than 142,600 workers that year.

The total economic benefit to the Houston area of the University of Houston System was $3.1 billion in 2006. The University also generated 24,000 jobs and attracted more than $100 million in research funding.

According to the Greater San Antonio Chamber of Commerce, the health care and bioscience industries directly employed nearly 112,800 people and had an economic impact of $15.3 billion on the city in 2006.

Texas A&M University had an overall economic impact of $2.7 billion on Brazos County in 2006. The Texas A&M Health Science Center had a total economic impact on the Bryan-College Station area of nearly $75 million in 2002.

Baylor University had a total economic impact on the Waco Metro Area of $1.22 billion during the 2005-2006 academic year.

Currently under construction, the bio-containment facility at the Galveston National Laboratory is expected to contribute $1.4 billion to the state over 20 years.