To Spur Growth and Create Jobs in Life Sciences, States Need Supportive Policies and Specialized Inputs, Says New ITIF Report
WASHINGTON—Life-sciences companies—especially pharmaceutical, biotech and medical device companies—have been steadily increasing their U.S. economic output and employment in high-skilled, high-wage jobs. But not all states are equally well positioned to grow and attract these companies, according to a new report released today by the Information Technology and Innovation Foundation (ITIF), the world’s leading think tank for science and technology policy.
“America’s pharmaceutical, biotech, and medical-device subsectors play an outsized role in the national and state economies, and they provide a significant number of above-average-wage jobs,” said ITIF Senior Fellow Joe Kennedy, author of the report. “However, these companies are attracted to and grow in locations that can combine qualities like a good business environment, skilled workers, strong research universities, and available capital. Strengthening these and related factors can give states a stronger competitive advantage.”
At least 27 states have specific life-sciences-focused economic development efforts. The report examines how five states—Colorado, Indiana, New Jersey, North Carolina, and Washington—are working to create environments that support the growth of their life-sciences sectors.
Among its findings, the report highlights:
- In 2016, life science companies in the United States employed 1.2 million workers.
- In 43 states, pharmaceutical wages are at least 50 percent greater than each state’s average private wage.
- Life-science industries account for between 25 and 30 percent of all high-tech start-ups in each of the five states examined.
- From 2008 to 2012, U.S. patent awards rose 63.3 percent for pharmaceuticals and medicines, and 161.3 percent for medical equipment, compared with 56.2 percent for patents from all industries.
“If states want to lead in life sciences, it isn’t sufficient to leave the sector’s fate to markets alone. Governments play an important supporting role in helping to support the factors that influence the sector’s success,” said Kennedy. “States that want to have robust life-sciences economies and a pro-growth approach to attracting investment and jobs need to put the right supporting policies in place, which includes a comprehensive strategy and sustained support for it.”
###
The Information Technology and Innovation Foundation (ITIF) is an independent, nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized by its peers in the think tank community as the global center of excellence for science and technology policy, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress.
