New Report Finds Bioscience Sector Generates Over $3 Trillion for U.S. Economy
The 11th edition of the BIO/TEConomy report has come out from the Biotechnology Innovation Organization (BIO) and the Council of State Bioscience Associations (CSBA). The report covers national and state-level data detailing the U. S. bioscience industry's economic performance in 2023, along with its impacts and geographic footprint.
I had no idea just how HUGE the impact Biotechnology has on the U.S. economy. I am in biotech because I love science, and I am driven to make a difference in the lives of people through science, education, and writing. But of course, paying the bills is a critical part of life, and this report shows just how strongly the industry sector has been growing, which bodes well for the future, although of course only time will tell!
Some figures from the report, although there are many more than just these in the 54 page report (data from 2023):
Bioscience Industry direct employment: 2.29 Million
Total impacts: 10.3 Million jobs, $3.2 Trillion in economic output, $882 Billion Wages & Benefits
Overall, the industry has seen a 15% growth in employment since 2019 which is higher than the nation's overall private sector job growth, although in 2023 the net job gain was only 1.2% due to, some believe, a market correction after an over-sized investment due to COVID. Research, Testing, & Medical Labs showed the greatest growth in the past 4 years, at 23.8% compared to the total bioscience sector.
Page 13 of the report details wage information, and the need for additional skilled STEM talent! It states that 82% of all life science industry roles have minimum entry-level requirements for education/training at the bachelors level, or beyond high school but not necessarily a bachelors. I would have liked some more granularity on that number, but I am optimistic that the industry is continuing its shift towards increased recognition of skilled workforce-ready community college degree-holding and credentialed employees!
Along with national numbers, the state level data is fascinating! Thirty-four states and Puerto Rico have a specialization in at least one of the five bioscience subsectors in 2023, and more than half (53%) or 203 metropolitan areas have a specialized employment concentration in at least one bioscience industry subsector or market. Geography matters--the bioscience is not everywhere, yet! But reports like these can give an idea of places to look for jobs, and to take a step back, places to look for programs that have industry ties that could prepare you for a job in the area. I took a look at the biggest sector as mentioned above, Research, Testing, & Medical Labs, to see the Metropolitan Statistical Areas with the most sector employment. The usual suspects were top of the list, Boston region, New York City region, San Francisco region, and nearly all of the regions have one or more InnovATEBIO members who are training new employees for the local or national bioscience ecosystem. Knoxville, Tennessee was on the list, and InnovATEBIO does not have a member in that state--but we are always happy to get new members!
The CHIPS and Science Act of 2022 was mentioned, as it spurred the development of the U. S. Regional Innovation and Technology Hubs Program. The report lists 14 bioscience (including health tech and medical devices) Hubs as well as 2 bioscience recipients of Strategy Development Grants for further development. Community colleges can play a role in these!
The overall innovation ecosystem summary was not all rosy though. NIH research funding continues to grow, but at a slower pace. However bioscience venture capital investments saw a significant decline from a peak in 2021. Honestly, there is more than I could possibly put in a blog, I hope you get a chance to download the report and read it for yourself to see just what is been happening!
BIO is the world's largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations.
The Council of State Bioscience Associations (CSBA) is a confederation of state-based, non-profit trade organizations each governed by its own board of directors.