BIO Convention Report Says US Biosciences Strong, Releases NJ Stats

On Jun 5, 2018

A study released at the 2018 BIO International Convention shows that the U.S. bioscience industry has reached $2 trillion in annual economic impact while maintaining accelerated venture capital investment and job growth numbers. Among U.S. technology sectors, the bioscience industry has held a leading position as an economic driver and job generator.

“This report highlights the enormous economic impact delivered by our industry,” said Jim Greenwood, President and CEO of the Biotechnology Innovation Organization. “This strong performance is due to the vital and wide-ranging collaborations between industry partners, universities, and policymakers that provides a business climate that supports the development of innovative bioscience products and high paying jobs,”

The report, “Investment, Innovation and Job Creation in a Growing U.S. Bioscience Industry 2018,” finds U.S. bioscience firms directly employ 1.74 million people, a figure that includes more than 273,000 high-paying jobs created since 2001. The average annual wage for a U.S. bioscience worker reached $98,961 in 2016. These earnings are more than $45,000 greater, on average, than the overall U.S. private sector wage. The report further shows that since 2014, the bioscience industry has grown by 4.4 percent with four of its five major subsectors contributing to this overall job gain.

Of note, overall, New Jersey is among the national leaders in the biosciences with a very large, highly specialized and diverse industry base that has seen moderate growth in recent years. Industry firms grew their employment base by 2.6 percent from 2014 through 2016 to reach nearly 94,000 jobs that span 2,897 state business establishments. Growth in four of the industry’s five major subsectors helped to more than offset a decline in the state’s large drugs and pharmaceuticals subsector. New Jersey has a high degree of industry specialization with 94 percent greater concentration of bioscience industry employment relative to the nation (location quotient is 1.94). Further, the state stands out in its breadth of industry strengths with a specialized employment concentration in four of the five industry subsectors, a distinction that is shared only with Puerto Rico. The high concentration of industry is evident in the innovation activities of state inventors, who have been awarded 7,303 patents during the 2014 through 2017 period in bioscience-related technology classes. Venture capital investments have risen in recent years, reaching $320 million in 2017.

“New Jersey’s continued national leadership in the biosciences industry and in the medical innovation it brings to Patients around the world is being highlighted here today and we couldn’t be more proud,” said BioNJ President and CEO Debbie Hart. “The expansion of the life sciences industry with the addition of jobs, establishments, venture funding and patents is further testament to the strength of our industry as well as our talent.

“New Jersey’s biosciences industry has been an important source of the State’s and the nation’s economies for generations and that continues to be true as we have witnessed here today,” added Hart.

“The growth of New Jersey’s biopharmaceutical sector is a testament to the strength of our innovation ecosystem,” said Jose Lozano, President and CEO of Choose New Jersey, Inc. “Our State offers companies a highly educated workforce, incubators and lab space, collaboration opportunities with world-class research universities and biopharmaceutical companies and an environment that supports them at every stage of their growth.”

“The job growth and investment in New Jersey reflected in this report quantifies how primed the State is for growth,” said EDA CEO Tim Sullivan. “The fact that these gains have been largely in the biosciences sector further validates fostering an economy that encourages innovation as the foundation of Governor Murphy’s vision for the State’s economy.”

“We are excited to showcase all that New Jersey has to offer with our State colleagues this week at BIO and to celebrate this positive report,” said Hart.

To access more business news, visit njbmagazine.com

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