Ohio bioscience and healthcare economic impact
near $150 billion
More than 800 bioscience-related entities counted in the state
Released last December, the 2007 Ohio Bioscience Growth Report indicates the growing importance of bioscience to the state’s economy.
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 $27.3 billion overall economic impact and 48,485 direct jobs in 2006. When indirect and induced jobs are factored, the commercial bioscience employment figure jumps to 128,206.
In 2006, the overall economic impact of Ohio-based bioscience was $146 billion, representing 17.6% of Ohio’s total economic output. Bioscience also directly and indirectly sustained 1.2 million jobs in Ohio in 2006. BioOhio teamed with consulting firm Tripp Umbach and employed the IMPLAN input-output model to estimate the impact of bioscience economic events in the state of Ohio.
Cleveland, Cincinnati, and Columbus anchor the three Ohio regions that collectively accounted for 89 percent of the state’s commercial bioscience industry economic impact and 90 percent of the state’s commercial bioscience employment impact in 2006. In northeast Ohio, commercial bioscience was responsible for an $8.6 billion overall economic impact and 39,247 total jobs (direct, indirect, and induced). The commercial bioscience sector in southwest Ohio boasted an $8.3 billion economic impact and 36,700 total jobs. In Central Ohio, commercial bioscience had an economic impact of $6.5 billion and contributed 30,152 total jobs.
Analysis of commercial bioscience industry segments revealed medical device and equipment manufacturers as the top employers (12,392), while agricultural biotechnology contributed the largest direct economic impact ($6.1 billion) in 2006.
Bioscience, medical technology, and research organizations continue to thrive in Ohio. In 2006, 818 bioscience-related entities were operating in the state, a 6% increase since 2005. 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.
The distribution of Ohio’s 818 bioscience organizations remains consistent with previous years. Northeast Ohio continues its strong performance, as more than half (425) of the bioscience entities are located in the metropolitan Cleveland area, Akron, or Canton. Southwest Ohio, anchored by metropolitan Cincinnati and Dayton, is home to about one-quarter (195) of the bioscience-related entities, followed closely by Columbus and central Ohio (146).
From 2004 to 2006, an average of 58 new companies began operation in Ohio each year. In 2006, Ohio welcomed 47 new bioscience organizations by way of new company launches or companies establishing their first facility in the state, including Activaero America (Columbus), Bexion Pharmaceuticals (Cincinnati), and Telerad Express (Beachwood).
Funding for research, company formation, and company expansion also continued to rise in Ohio. Overall, more than $1.3 billion were invested across Ohio to accelerate Ohio’s bioscience growth in 2006, an increase of nearly $100 million (8%) as compared to 2005.
The sources of funding include venture capital, angel funds, IPOs, SBIR/STTR, state biomedical grants, and National Science Foundation and National Institutes of Health grants. The largest portion of this funding came from NIH ($721 million), which constitutes 60% of total investment.
For the complete report and appendix, visit www.bioohio.com/growthreport07.pdf