Economic impact of life sciences now rivals state’s computer and electronics sectors
The life sciences industry in Washington state directly employs 22,000 people and may support another 55,000 additional jobs for a total of 77,000 jobs statewide, according to a new report.
The report, Washington Life Sciences Economic Impact Study, was prepared by the Washington Research Council.
The life sciences industry in Washington state is now “on par with the state’s computer and electronics products manufacturing industries,” the report says.
What’s more, unlike other sectors of the state’s economy, the life sciences continues to add jobs despite the recession, the report found.
On a per capita basis, the state now ranks sixth among states in research funding from the National Institutes of Health, seventh in placement of biosciences venture capital, and eighth in bioscience employment.
Massachusetts, Maryland and Connecticut “consistently ranked higher than Washington in these per capita measures, the report says.
“Washington is still not among the top regions for the life sciences, but perhaps near the top of the second tier,” the report says. ”Massachusetts, with its complex of leading universities, the San Francisco Bay area, with its universities and huge technology industry base, and New Jersey, with its large pharmaceutical industry, all have large life sciences industries than Washington.”
The “bulk” of the the state’s life science output is in the areas of scientific discovery and product development and design, but not in manufacturing, the report says.
Instead, many products developed here go out of the state for manufacture. As a result, the sector does not generate many manufacturing jobs.
In its analysis the report breaks the state’s sector into four areas: biopharmaceuticals; medical devices; global health; and agriculture, energy and environment.
Life science workers in the biopharmaceutical area have developed many “breakthrough” products but most have not led to the creation of large companies in the state.
Instead, the production, distribution and marketing of these products is usually taken over by out-of-state pharmaceutical companies.
The report blames this on the state’s “lack of competitiveness as a manufacturing site”, which “inhibits the growth of large production and distribution facilities.”
Medical device production can also leave the state, especially when a local company is acquired by a large multi-national company, but many companies have remained in the state even after acquisition, the report said.
The state has seen a marked expansion in the area of global health, the report says, “and is thought be many to be second only to Geneva in its concentration of global health assets.”
The report cites a 2007 study prepared by a team at the University of Washington that concluded that global health activities produced over $700 million of direct economic activity in the state in 2005, including 3,650 direct and 10,470 indirect jobs.
In the area of agriculture, energy and environment, the demand for affordable and environmentally safe biofuels is a great opportunity for the state’s life science industry, but it is a field that is highly competitive.
The future of life sciences in Washington depends of the state’s ability to continue to attract talent, the report concludes:
“There are many complex factors that determine success in the life sciences industry, but none more important than ensuring that the state’s universities, research institutions and businesses have the highly skilled people they need working in an environment that encourages innovation.”
To learn more:
- Read the full report: Washington Life Sciences Economic Impact Study.
- Visit the Web site of the Washington Research Council.
- Visit the Web site of the Washington Biotechnology & Biomedical Association.
- Read LocalHealthGuide’s article: Study reveals scale and scope of Washington state global health initiatives
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Category: Biotechnology, News
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