America's Biopharmaceutical Companies Responsible for Creating Jobs and Economic Growth in MassachusettS

New Milken Report Shows Biopharmaceutical Companies Create Nearly Three Additional Jobs for Every Biopharmaceutical Industry Job in Massachusetts

13-Oct-2004

Boston. America's biopharmaceutical companies are responsible for creating 21,419 high-skilled, high-technology, high-quality jobs in Massachusetts according to findings from a new Milken Institute report, Biopharmaceutical Industry Contributions to State and U.S. Economies, released today. The report also found that 2.6 jobs in Massachusetts are created for every biopharmaceutical job. The report projected that biopharmaceutical growth will be responsible for creating 57,145 additional jobs in Massachusetts by 2014.

"State governments that support the biopharmaceutical sector are reaping a great economic reward," said Alan F. Holmer, president and CEO of the Pharmaceutical Research and Manufacturers of America (PhRMA). "The jobs created by the innovative biopharmaceutical companies make these locales stronger and more competitive in the global economy. Every job created by the biopharmaceutical sector creates additional jobs in Massachusetts. These are the kinds of jobs -- in construction, manufacturing, the service sector, transportation, and finance -- that Massachusetts needs to sustain and grow in a 21st-century economy."

The Milken Institute is an independent, economic think tank based in Santa Monica, California. The report released today focuses on the economic impact of the biopharmaceutical industry-including jobs, economic output, and taxes paid among others -- both at a national level and on a state-by-state basis.

The Milken study finds that in 2003 biopharmaceutical companies in Massachusetts:

* Directly employed 21,419 workers;

* Were responsible for a total of 77,279 jobs across the state;

* Directly generated approximately $2.4 billion in real output;

* Were responsible for generating a total of $4.8 billion in real output; and

* Are projected to be responsible for 134,424 jobs across the state by 2014.

Nationally, key findings include:

* The biopharmaceutical sector employed over 406,000 people across the U.S. in 2003. Once the full multiplicative impact of the biopharmaceutical industry is included, biopharmaceutical companies are responsible for creating over 2.7 million jobs across the United States.

* For each job directly created by biopharmaceutical companies, an additional 5.7 jobs were created in the overall economy -- substantially above the average for all industries.

* The biopharmaceutical industry is one of the most research intensive industries in the U.S.

* The biopharmaceutical industry was directly responsible for $63 billion in real output in 2003 and a total output of over $172 billion when its ripple effect across other sectors was figured in.

* A growing number of state economies increasingly look to the biopharmaceutical sector for growth.

"Many cities and states are working hard to gain a share of the biopharmaceutical industry, and our research shows why," said Ross DeVol, the director of regional economics at the Milken Institute and the lead author of the report. "It's an important and growing part of the global, knowledge- based economy that will have a very positive impact in those regions that are successful in attracting these industries."

"New jobs and economic growth strengthen both local and state economies. More importantly, the policies that support creation of biopharmaceutical jobs also support men and women engaged in one of the most important jobs imaginable -- the search for new treatments and cures. All of our families and communities benefit as a result," noted Mr. Holmer.

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country's leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA members invested an estimated $33.2 billion in 2003 in discovering and developing new medicines. PhRMA companies are leading the way in the search for new cures.

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