Report Reveals New Data for NJ’s Biopharmaceutical Sector Economic Output

On May 19, 2016

The biopharmaceutical industry supported 65,783 direct jobs and another 312,943 jobs and $108.7 billion in economic output in New Jersey in 2014, according to new research prepared for the Pharmaceutical Research and Manufacturers of America (PhRMA) by TEConomy Partners, LLC. The report, which analyzed state and national data across the large-scale biopharmaceutical sector supply chain, highlights how the discovery, development and delivery of innovative medicines translate into higher-wage jobs, increased tax revenue and greater economic output in our local communities.

“The United States leads the world in bringing new medicines to market. Beyond the value that these medicines deliver to the patients who need them is the profound impact a strong biopharmaceutical sector has on our local, state and national economy,” said President and CEO of PhRMA Stephen J. Ubl. “This report underscores the critical need to support policies that encourage biopharmaceutical sector R&D investment in order to continue to bring new medicines to patients, strengthen the U.S. economy and maintain our competitiveness in the global marketplace.”

The biopharmaceutical sector in the United States spurs economic activity and generates jobs across a whole range of sectors, from vendors and suppliers to the economic activity of its workforce. These benefits are felt far beyond individual biopharmaceutical companies and are built upon a robust foundation of innovation-led U.S. companies that sustain a diverse and large-scale supply chain for the development, production and distribution of treatments and cures to patients.

Key findings from this examination of the broad biopharmaceutical value-chain include the following:

• 378,726 jobs in New Jersey. The biopharmaceutical sector’s high job multiplier—for every one job, another 4.21 are supported across the economy—translates into more than 378,000 jobs in New Jersey in 2014, including 65,783 direct jobs and another 312,943 additional jobs through vendors and suppliers to the biopharmaceutical sector and with businesses that serve its employees in sectors ranging from transportation and construction to health care and information technology.

• $108.7 billion in total economic output in New Jersey. The biopharmaceutical sector’s economic output, which represents the value of the goods and services produced by the sector, totaled $47.5 billion in New Jersey in 2014. The sector also supported another $61.2 billion through its vendors and suppliers and through the economic activity of its workforce, for a total of $108.7 billion.

• $31.7 billion paid in wages and benefits. New Jersey workers in jobs supported by the biopharmaceutical sector were paid a total of $31.7 billion in wages and benefits in 2014.

• Annual average compensation of $173,254. Employees in direct biopharmaceutical sector jobs earn an average salary of $173,254, more than twice the average $66,720 annual salary for all other New Jersey jobs. These employees provide an average of $722,834 in annual economic output, compared to $175,039 for employees across all New Jersey job sectors.

• One-third of workers in STEM occupations. One-third of the biopharmaceutical industry’s workers are in key science, technology, engineering and mathematics (STEM) occupations.

At a time when the economic competitiveness of our nation is recognized to be strongly rooted in our capacity to advance innovation-based industries, the U.S. biopharmaceutical industry stands out as a leading advanced manufacturing industry.

“What these numbers show is that encouraging innovation through collaboration, intellectual property protections and robust R&D not only strengthens our competitive standing, it emboldens individuals, families and the communities in which we live and work and brings patients the treatments they need to live healthier, more productive lives,” concluded Ubl.

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