$3 trillion growth reported for biotech sector
A report reveals US job growth in the biotech industry has risen 11 percent since 2018, tipping the COVID-19 pandemic as the key driver.
The Biotechnology Innovation Organization (BIO) and the Council of State Bioscience Associations (CSBA) has released new data on the US bioscience industry, indicating it was valued at $2.9 trillion dollars in 2021. The report also found that in 2021, the US industry employed 2.1 million people in over 127,000 businesses.
The report, developed in partnership by TEConomy Partners and BIO, is the tenth in a biennial series that assesses the state of the US bioscience industry and its innovation structure.
Titled The US Bioscience Industry: Fostering Innovation and Driving America’s Economy Forward, the report evaluates the bioscience industry’s economic performance and its impact during the COVID-19 pandemic.
The investigation identified that in the pandemic, the economy reduced 1.5 percent of its workforce. Since 2018, employment numbers in the industry have grown by 11 percent, totalling $2.9 trillion dollars in 2021. Sectors such as research, testing, medical labs and pharmaceutical manufacturing expanded greatly during the pandemic, due to high demand for COVID-19 therapeutics. For instance, small and mid-sized biotech companies invested heavily in developing vaccines. To date, 747 novel compounds are in production.
The report stated that in 2022, the industry successful navigated:
- Global inflation
- Sluggish economic growth
- Slow progress in US National Institutes of Health (NIH) funding and academic R&D
- Ongoing supply chain challenges.
Data demonstrated that other recent factors such decline in patent awards and applications have impeded economic development.
“This data highlights the vital role US bioscience companies have in creating high-wage jobs and stimulating the economy. The report further shows the industry’s enormous role in navigating the COVID-19 pandemic, both in terms of getting life-saving therapies and vaccines to patients, as well as economic recovery,” stated Pete Pellerito, BIO Senior Policy Adviser for Federal and State Economic Development and Technology Transfer Initiatives.
“Looking forward, the industry will continue to play a critical role, not only in addressing global health challenges but in helping to grow the US economy by generating high-quality jobs,” explained Ryan Helwig, Principal and Project Director with TEConomy Partners.
