Transcript Understanding Our Role in State Economies May 2011

Understanding Our Role in
State Economies
May 2011
• Archstone Consulting recently released data
about the economic footprint of the
biopharmaceutical research sector at the
state level for the year 2008, the most recent
year that data were available.
• This is broken down state-by-state, providing
local detail beyond the most recent national
data.
• Nationally, the sector employs roughly 650,000
workers, supporting a total of nearly 3.1 million jobs
across the country. In other words, every direct job in
the sector supported 3.7 jobs in other sectors.
• On average, direct sector employees paid
approximately three times as much in federal and
state taxes as employees in the rest of the economy.
• The sector’s contribution to GDP was roughly 3.5
times the average contribution per sector in the rest of
the economy. Each direct job contributed more than
double the average contribution per worker in the rest
of the economy.
• This important national economic presence is reflected
– in varying degrees – at the state level.
• The sector’s presence is stronger in some states than
in others, but no state is without the economic benefit
of biopharmaceutical research companies.
• We’ve posted the fact sheets for each state on
PhRMA’s Web site. This will make it easy for you to
read about the impact of the sector in your state and, if
you wish, to explore other states that may interest you.
• Each fact sheet contains a wealth of information about
the importance of the sector in each state.
• Today, we’ll go over some of the key details included
in the Archstone fact sheets and talk a bit about what
each data set says about the sector and what it means
to the state.
• We’ll use Colorado as an example.
• Biopharmaceutical companies employed nearly
13,000 workers in Colorado in 2008 and supported a
total of nearly 55,000 jobs.
• Direct jobs represent a variety of employment types.
For example, 23.8% of biopharmaceutical sector
employees work in the life, physical, & social sciences;
22.3% work in architecture & engineering; 15.6% work
in computer & mathematical science; and 9.7% work
in business & finance operations.
• This doesn’t capture the full 100%, but certainly
demonstrates how varied biopharmaceutical
employment is.
• Direct biopharmaceutical employees contributed nearly
$240 million in federal taxes (including Social Security) and
more than $32 million in state taxes.
• The average biopharmaceutical sector employee
contributed much more in taxes (e.g., about $3,500 in state
taxes) than the average Colorado worker in the rest of the
economy (less than $1,000 in state taxes).
• Economic output is the value of the goods and
services provided by the sector.
• In Colorado, the biopharmaceutical research sector
contributed nearly $4 billion in output in 2008, and
supported total output of nearly $11 billion.
• Direct output per direct employee in Colorado was
roughly $294,000 in the biopharmaceutical sector,
compared with $153,000 in the rest of the economy.
• Biopharmaceutical research companies invested
nearly $380 million on R&D in Colorado in 2010.
• We do have more-recent data on clinical trials at the
state-level. In 2010, more than 1,700 clinical trials
were being conducted in Colorado.
• These included: 810 trials for medicines to treat
cancers, 98 trials for cardiovascular diseases, 75 trials
for HIV/AIDS and 18 trials for Alzheimer’s disease and
other dementias.
• We hope the data for your own state will help prepare
you to discuss at a more local level the important role
of the biopharmaceutical sector in your state.
• Don’t forget – jobs and tax dollars and economic
output are important, but the most important benefit of
the sector in each state is the hope provided by the
work that we do.