Transcript The Bioscience Industry in Douglas County

The Bioscience Industry in
Douglas County
Joshua L. Rosenbloom
David Burress
Patricia Oslund
Study Goals
• Present an accurate picture of
– Current state of bioscience industry
– Historical trends in the bioscience industry
– Climate for bioscience industry growth
• Assess economic impacts of the
bioscience industry
• Analyze several potential future scenarios
for the bioscience industry
Policy Research Institute,
University of Kansas
Current Status
• 2,385 people were employed in bioscience
research and manufacturing in 2003
• Total Payroll for these jobs was about $68
million
• Indirect (multiplier effects) lead to
– 1,300 additional non-bioscience jobs
– $38 million in additional wages and salaries
Policy Research Institute,
University of Kansas
The KU Contribution: Employment
• KU accounts for the vast
majority of bioscience
jobs (2,285) in the county
• On average there are 4-5
non-faculty jobs for each
faculty job
• KU bioscience
employment grew 20.5%
between Oct. 2000 and
Oct. 2003
• KU expects to add 60
new bioscience faculty in
the next 5 years
Figure 4.1:
Composition of KU Bioscience Employment
October 2003
15%
25%
4%
22%
28%
6%
Faculty
Academic Staff
Unclassified
Classified
Student
Student Hourly
Policy Research Institute,
University of Kansas
The KU Contribution:
Funded Research
Figure 4.2
Growth of KU Bioscience Grants and Expenditures
Fiscal Years 1999-2004
800
$60,000,000.00
700
$50,000,000.00
600
500
400
$30,000,000.00
300
$20,000,000.00
200
$10,000,000.00
100
0
$0.00
1999
2000
2001
2002
Bioscience Grant Expenditures
Policy Research Institute,
University of Kansas
2003
2004
Bioscience Grants
Grants (number)
$40,000,000.00
Expenditures ($)
• Over the past 5 years
funded research has
accelerated
considerably
• The number of
projects has grown by
50%
• Expenditures have
increased 221%
Private Sector Core
Bioscience Firms
• “Core” bioscience industry consists of bioscience
R&D and manufacturing firms
• There are 8 such firms in Douglas County today
• This includes two recent additions
– Deciphera
– Serologicals
• Employment in 2003 was about 100
• We estimate that this will rise to 170 in 2004
Policy Research Institute,
University of Kansas
The Future of Private Sector
Bioscience in Douglas County
• Recent growth is
Table 3.2
encouraging
Jobs and Wages in Core Bioscience Firms
• But past decade displays Annual and monthly 1990 1995 1997 1999 2001
instability in employment averages
Average annual jobs
305
555
465
233
259
and number of firms
Average annual
9.3
7.6
8.7
7
8.3
• Instability reflects small number of firms
Average monthly
wages ($)
1,857
2,073
2,225
2,494
2,708
numbers
Average monthly
adj. inflation
• Entry and or exit will likely wages
($)
2,487
2,460
2,549
2,784
2,890
drive future employment
2003
2004
(est)
103
170
6.8
8
2,777
2,800
2,863
2,800
Source: Calculation by Policy Research Institute based on confidential ES202 Data, Kansas Department of
Labor. Inflation adjustment based on GDP deflator, U.S. Bureau of Economic Analysis.
Policy Research Institute,
University of Kansas
The Climate for Private Sector
Bioscience
Strengths
• High quality workforce
• Good K-12 Schools
• Good transportation
options
• Community a plus in
recruiting top-level
managers & scientists
• KU faculty and
researchers
Weaknesses
• Lack of critical mass
of firms
• Property taxes
• Relations with KU—
intellectual property
policy in particular
Policy Research Institute,
University of Kansas
Conclusions
• Cautious Optimism seems justified
• KU presence is a big plus for the industry
• Basic amenities and work force quality are
attractive to industry
• The Private sector is dynamic but so far limited
in scope
• Developing a critical mass of private sector
employment will be important
• KU-Private sector relationships may need
attention
Policy Research Institute,
University of Kansas