1 George Goodno Communications Director for State Policy, International Affairs and Intellectual...

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George GoodnoCommunications Director for State Policy,

International Affairs and Intellectual Property

BioForward2014 Bioscience Vision Summit

October 8, 2014

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Biotechnology companies

Academic institutions

State biotechnology centers

Related organizations

Over 1000 Members across US and more than 30 other nations involved in research and development of

technologies in:Healthcare

Agriculture

Industry and Environment

Biotechnology Industry Organization

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Heal, Fuel, Feed the World

Health & Medical

Industrial & Environmental

Food & Agriculture

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Defining the Bioscience Industry: 5 Major Subsectors Reflect the Breadth of Bioscience Opportunities

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Bioscience Industry: A Signature Performer for the U.S. Relative to Other Technology Sectors

*Battelle/BIO State Bioscience Industry Development 2014

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Since the Recession, Biosciences Job Growth Mixed, But Economic Activity Continues to Rise


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Broad National Footprint with Widely Shared Growth Across Many of the States


Change in Bioscience Employment by State, 2007–2012

28 states had overall bioscience industry job gains from 2007-2012

Only 12 states had significant job losses of 1,000 or more

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Bioscience Industry a Source of High-Wage Jobs

Employment Sector Average

Annual Wage

Drugs & Pharmaceuticals $106,576

Research, Testing, & Medical Labs $91,248

Finance & Insurance $91,226

Total Biosciences $88,202

Bioscience-related Distribution $85,188

Professional & Technical Services $83,357

Information $82,013

Agricultural Feedstock & Chemicals $75,828

Medical Devices & Equipment $75,695

Manufacturing $60,491

Construction $52,294

Total Private Sector $49,130

Real Estate & Rental & Leasing $48,236

Transportation & Warehousing $46,611

Health Care & Social Assistance $45,407

Retail Trade $27,729

Source: Battelle analysis of Bureau of Labor Statistics, QCEW data; enhanced file from IMPLAN.

• Average wages for Bioscience industry workers $88,000 in 2012

• Bioscience wages were nearly $40,000 more, or 80% greater than for the average private sector worker

• Bioscience wages have grown at a much higher rate vs. private sector; inflation-adjusted Bioscience wages up 15% since 2001 vs. 5% for private sector

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Broader Impacts of the U.S. Bioscience Industry

• Each bioscience job generates an additional 3.9 jobs due to purchasing goods and services from other industries and spending of employees

• The 1.62 million direct jobs translates into a total economic impact of 7.86 million jobs

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A Growing Engine of Innovation—Patent Activity in the Biosciences

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Signs of Stress? Bioscience VC Investments Down

U.S. Bioscience Venture Capital Investments, 2009-2013 ($ Millions)

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Signs of Stress? NIH Funding More Challenging

National Institutes of Health Funding, 2009–2013 ($ Billions)

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Trends in U.S. Bioscience and Private Sector Employment, 2001–2012(Indexed: 2001=100)

While Impacted by the Great Recession, Bioscience Industry Weathered it Far Better than Overall Private Sector Industries


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Wisconsin’s Bioscience Industry Continues to Expand


2012: 31,758

Total Jobs

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Since 2007, over 10% growth in jobs in Medical Device and Diagnostic Companies

Over 21% growth in jobs in Drugs and Pharmaceuticals

Over 20% growth in Research and Testing jobs

Below average in Distribution and Ag biotech

Nice Chart… But Doesn’t Tell the Whole Jobs Story

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Wisconsin’s Bioscience Employment

Bioscience-Related

Distribution:10,296

Medical Devices &

Equipment: 10,912

Research, Testing, & Medical

Laboratories:5,132

Agricultural Feedstock & Chemicals:

1,316

Drugs & Pharmaceuticals: 4,103

Total Bioscience Industry Employment: 31,758 Direct-Effect Employment Multiplier: 4.7Total Employment Impact: 148,833Average Annual Wage (2010 dollars) $72,604

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Deeper Dive

Milwaukee:• Largest bio industry across the metros, 13,365 jobs

• 2 specialized industry concentrations:• Medical Devices (6,745 jobs) • Bio-related Distribution (3,600 jobs)

Madison: • Large, impressively varied, 7,748 jobs• Highly specialized/concentrated region

• One of only 8 US metros with a specialized employment base in 4 of 5 bio subsectors and the 5th is just under the specialization threshold

Sheboygan: 439 med device jobs Racine: 254 med device jobsJanesville: 294 Bio-related distribution jobs

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Leading Metro Areas

Metropolitan Statistical Area Total Biosciences

New York-Northern New Jersey-Long Island, NY-NJ-PA 117,281

Los Angeles-Long Beach-Santa Ana, CA 81,878

Boston-Cambridge-Quincy, MA-NH 66,147

Chicago-Joliet-Naperville, IL-IN-WI 61,650

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 53,334

San Francisco-Oakland-Fremont, CA 42,060

Minneapolis-St. Paul-Bloomington, MN-WI 40,776

San Diego-Carlsbad-San Marcos, CA 35,491

Miami-Fort Lauderdale-Miami Beach, FL 30,937

Dallas-Fort Worth-Arlington, TX 28,226

Washington-Arlington-Alexandria, DC-VA-MD-WV 25,533

Indianapolis-Carmel, IN 25,193

San Jose-Sunnyvale-Santa Clara, CA 24,833

Houston-Sugar Land-Baytown, TX 19,320

Atlanta-Sandy Springs-Marietta, GA 17,620

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$934 million in bioscience academic R&D in 2012

–70% of all academic research

–61% is the national average

Wisconsin Universities are Focused in the Biosciences

State inventors have been issued 3,048 bioscience related patents

since 2009

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As industry changes the future is in discovery and development partnerships.

Partnerships with Universities and emerging companies are critical for larger company success.

Your strategy fits nicely with the new model and should accelerate job growth and investment in Wisconsin

Positioned for the Future

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Looking Ahead

• Importance of biosciences as an economic driver continues with a bright future in helping to “feed, fuel and heal the world”

• But the growth of the biosciences depends upon innovation and its future success cannot be taken for granted

• Enlightened state development approaches and national policies have made an important difference in growing the biosciences in the U.S. and will continue to be important for the future in creating a high-quality business environment for biosciences industry to grow

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June 15-18, 2015 | Philadelphia, PA

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Thank You!! BioForward

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