Ohio Bioscience and Healthcare Industry Impact: $148 Billion
COLUMBUS, Ohio--(BUSINESS WIRE)--A report published by BioOhio today reveals the importance of bioscience and health care to Ohio's economic recovery.
In 2007, the overall economic impact of Ohio-based bioscience was $148.2 billion, representing 15.7% of Ohio's total economic output. Bioscience also directly and indirectly generated 1.4 million jobs in Ohio in 2007. BioOhio teamed with consulting firm Tripp Umbach, which employed the IMPLAN input-output model to estimate the impact of bioscience economic events in the state of Ohio.
BioOhio's comprehensive definition of the bioscience industry includes three integrated sectors: commercial bioscience entities, hospitals and healthcare providers, and medical colleges. The commercial bioscience sector alone accounted for a $33.8 billion overall economic impact and 50,100 direct jobs in 2007, up from $27.3 billion and 48,485 direct jobs in 2006. When indirect and induced jobs are factored, the commercial bioscience employment impact jumps to 135,136.
Analysis of commercial bioscience industry segments revealed research and development as the top employment sector (12,415), while agricultural biotechnology contributed the largest direct economic impact ($10.7 billion) in 2007. Medical device and equipment manufacturers directly employed 9,757 Ohioans.
Bioscience, medical technology, and research organizations continue to thrive in Ohio. As of December 2008, 1,141 bioscience-related entities were operating in the state. While company launches and relocations explain some of the 39.5% increase since last year's count (818), the expansion is mostly attributable to a more thorough census of organizations. For instance, 636 Ohio companies are FDA-certified to manufacture medical devices and 88 facilities in the state are FDA-certified to manufacture pharmaceuticals. BioOhio determined that nearly half of these companies are actively involved in the value chain of at least one commercial bioscience product.
Bioscience-related entities include those involved in research, development, and marketing of pharmaceuticals, diagnostics, bioinformatics, medical devices, medical equipment, biotechnology products, and health-related products.
Half of Ohio's bioscience entities (574) are located in northeast Ohio, which includes the Cleveland area, Akron, Canton, and Youngstown. Southwest Ohio, anchored by Cincinnati, and central Ohio, which includes the capital Columbus, are each home to about 200 of the state's bioscience-related entities.
"The Ohio Bioscience Growth Report clearly shows that Ohio continues to make great strides in the biosciences, and our bioscience industry is on the fast track creating jobs of the future for Ohioans," said Lieutenant Governor Lee Fisher, who also serves as Director of the Ohio Department of Development. "We are once again rated as one of the nation's top technological innovators, recognition of the wide diversity of world-class research institutions, medical centers, and visionary companies that call Ohio home."
From 2004 to 2007, an average of 66 new companies began operation in Ohio each year. In 2007, Ohio welcomed 60 bioscience organizations by way of new company launches or companies establishing their first facility in the state, including AcelleRX Therapeutics (Cleveland), Akebia Therapeutics (Cincinnati), Freedom Meditech (Cleveland/Toledo), and Traycer Diagnostic Systems (Columbus).
From 2005 through 2007, 100 bioscience-related companies have either expanded operations or announced new facilities in Ohio; 36 projects occurred in 2007. Noteworthy 2007 examples include: Philips Medical expanding R&D space for their imaging systems in Highland Heights; growing CROs like Kendle International in Cincinnati, Charles River Labs in Spencerville, and WIL Research in Ashland; Ben Venue Labs' new 244,000 square foot facility; and Cardinal Health breaking ground on a $50 million, 250,000 square foot facility at its Dublin headquarters.
"The current global economic crisis is affecting every industry sector," said BioOhio President & CEO Tony Dennis, "but a solid infrastructure and sustained growth will help Ohio's bioscience industry weather the storm and position it for explosive growth when the economy recovers."
Commenting on the strength of agricultural biotechnology in the state, Ohio State's Vice President for Agricultural Administration Bobby Moser said, "Agbioscience is a key driver of economic progress and technology-based economic development for the U.S. and Ohio. Because of a strong R&D and outreach infrastructure together with the support of multiple stakeholders across the state, Ohio has moved into an early leadership position in this area."
Funding for research, company formation, and company expansion also continued to rise in Ohio. Overall, nearly $2.5 billion were invested across Ohio to accelerate bioscience growth in 2007, almost doubling the 2006 total. The sources of funding include venture capital, angel funds, IPOs, SBIR/STTR, state biomedical grants, acquisitions, and NSF and NIH grants.
The largest portion of the 2007 increase was "exit" related, as six acquisitions and two IPOs generated more than $1 billion, 44% of total investment in Ohio bioscience ventures. Universal American Financial Corp's purchase of MemberHealth for $630 million represented the largest investment in 2007.
For the complete report and appendix, visit www.bioohio.com/pdfs/growthreport08.aspx.
BioOhio (formerly Omeris) is a non-profit organization supported by the Thomas Edison Program of the Ohio Department of Development. Its mission is to accelerate bioscience discovery, innovation and commercialization of global value, driving economic growth, and improving quality of life in Ohio. BioOhio is headquartered in Columbus, with regional business development affiliates in Cleveland, Columbus, Cincinnati and Athens.
Contact:
BioOhio Matt Schutte, Director, Corporate Communications 614-675-3686, x6