WASHINGTON, May 17, 2016 /PRNewswire-USNewswire/ -- The biopharmaceutical industry supported nearly 854,000 direct jobs and another 3.5 million jobs and more than $1.2 trillion in economic output in the United States 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:
- Close to 4.5 million U.S. jobs. The biopharmaceutical sector's high job multiplier—for every one job, another 4.21 are supported across the economy—translates into nearly 4.5 million jobs in the United States in 2014, including close to 854,000 direct jobs and another 3.5 million 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.
- More than $1.2 trillion in economic output. The biopharmaceutical sector's economic output, which represents the value of the goods and services produced by the sector, totaled more than $558 billion in the United States in 2014. The sector also supported another $659 billion through its vendors and suppliers and through the economic activity of its workforce, for a total of $1.2 trillion.
- Nearly $311 billion paid in wages and benefits. U.S. workers in jobs supported by the biopharmaceutical sector were paid a total of nearly $311 billion in wages and benefits in 2014.
- Annual average compensation of $123,108. Employees in direct biopharmaceutical sector jobs earn an average salary of $123,108, more than twice the average $57,149 annual salary for all other U.S. jobs. These employees provide an average of $653,971 in annual economic output, compared to $171,600 for employees across all U.S. 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.
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country's leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier and more productive lives. Since 2000, PhRMA member companies have invested more than half a trillion dollars in the search for new treatments and cures, including an estimated $58.8 billion in 2015 alone.
About TEConomy Partners, LLC
TEConomy Partners, LLC is a global leader in research, analysis, and strategy for innovation-based economic development. Today we're helping nations, states, regions, universities, and industries blueprint their future and translate knowledge into prosperity. Learn more at www.teconomypartners.com/.
Contact: Priscilla VanderVeer / 202-835-3460 / email@example.com
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SOURCE Pharmaceutical Research and Manufacturers of America (PhRMA)