NJ Biotechnology Industry Study Sees Strong Job Growth
TRENTON, N.J. -- Jun 21, 2007 - A growing base of well-paid jobs, rising spending on goods and services and swelling tax revenues are strong signs that New Jersey's expanding biotechnology industry has made significant and increasing contributions to the State's economy. Between 2003 and 2006, the number of employees working directly for biotechnology companies in the State increased 28 percent to more than 10,000 from 7,800. The multiplier effect from this robust growth has also led to the creation of 9,300 jobs supporting the industry and another 7,600 jobs attributed to higher worker spending. The total impact of the State's biotechnology industry is estimated to be in excess of $1.7 billion in income to State residents. These are among the findings of a report issued today by the Biotechnology Council of New Jersey (BCNJ) and Deloitte & Touche USA LLP.
Last year, biotechnology companies spent more than $3.3 billion in goods and other services, while the 10,000 employees working directly for biotechnology companies contributed $80 million to New Jersey through State and local taxes, according to the report, New Jersey Biotechnology...A Robust State of Health.
"As this study clearly demonstrates, New Jersey's biotechnology industry is delivering impressive economic dividends to the State," said Michael Becker, President and Chief Executive Officer of Cytogen Corporation and BCNJ Chairman. "Thanks in part to great support from State Government, New Jersey is fertile ground for biotechnology. Because of this, biotechnology companies are choosing to move here, new companies continue to emerge here, and established members of New Jersey's biotechnology sector are thriving. This is great news for those who work in our industry and great news for New Jersey residents."
Study Highlights Job Growth
Highlights from the study conducted by Deloitte in the spring of 2007 include:
-- The number of biotechnology-related jobs increased to 10,071 in 2006 from 7,834 in 2003, an increase of 28 percent.
-- The average base salary in 2006, as reported by respondents to a survey, was approximately $86,800.
-- The biotechnology industry indirectly supported 9,389 jobs and $644 million in income at vendor companies.
-- Workers directly and indirectly supporting the biotechnology industry helped generate an additional 7,637 jobs and $351 million in compensation.
-- The biotechnology industry provided employees with generous benefits as high as $40,000 annually.
Supporting State Services and Programs
The biotechnology industry's workforce contributed significantly to the tax revenue that enables many State programs and services. State and local taxes paid by the industry's resident workers are estimated to be $80 million, excluding corporate taxes that companies pay directly to the State and the State and local taxes paid by workers who support the industry.
Respondents to a survey also reported making use of several State tax credit, incentive and other programs that are designed to enhance the growth of the biotechnology industry through additions to staff or capital expenditures. The programs included the Business Employment Incentive Program (BEIP), the Technology Business Tax Certificate Transfer Program and business incubators/centers of excellence.
"New Jersey is a leader for biotechnology and life sciences and ensuring that it remains so is a top priority of the Governor's Economic Growth Strategy," said Gary Rose, Chief of the Office of Economic Growth. "Through programs such as the Edison Innovation Fund, which supports technology and life sciences companies throughout their discovery, development and commercialization stages, the State is working hard to ensure New Jersey remains an attractive environment for biotech companies to locate, thrive and create jobs."
Adding to Growth in the Garden State
The impact of the biotechnology industry extends well beyond the direct imprint of the more than 235 research and development companies that make up what the respected online e-letter FierceBiotech described in 2006 as one of the world's top five growth markets for biotechnology.
In 2006, biotechnology companies and their vendors spent approximately $3.3 billion on goods and services to support their businesses. The services included drug manufacturing, wholesale trade and management services.
"We are fortunate that New Jersey continues to build on its long-standing reputation as an ideal location to establish biotechnology companies," said Debbie Hart, President of BCNJ. "The growth is coming from a variety of venues: from outright start-ups, from spin-offs created by New Jersey-based biotechnology and pharmaceutical companies, from companies relocating from other states and countries, as well as from spin-offs coming from New Jersey and other universities. The efforts of State Government have provided a welcoming environment."
About BCNJ
The Biotechnology Council of New Jersey was founded in 1994 by New Jersey biotechnology industry CEOs to serve as the voice of and advocate for the biotechnology industry in New Jersey. With more than 200 member companies, BCNJ is singularly focused on the growth and prosperity of New Jersey's rapidly expanding biotechnology cluster. For more information, visit the BCNJ Web site at www.biotechnj.org.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte", "Deloitte & Touche", "Deloitte Touche Tohmatsu" or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein.
Deloitte & Touche USA LLP is the US member firm of Deloitte Touche Tohmatsu. In the US, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte & Touche USA LLP.