The past decade was good for Ohio bioscience companies and, consequently, good for the state.
Ohio’s bioscience industry directly employs more than 62,500 workers, according to an industry growth report released today by BioOhio, the state’s bioscience membership and development organization. Since 2000, Ohio bioscience employers have added 10,222 jobs, a 19.5% increase in contrast to an 8.6% decline in total employment in Ohio.
When direct employment (62,533), indirect employment (87,906), and induced employment (45,396) are combined, Ohio’s bioscience industry accounted for 195,835 total jobs in 2009, based on latest available data. The estimated economic output of Ohio’s bioscience industry in 2009 is $61.6 billion. Economic output is the value of goods and services that were produced in Ohio through the buy-sell relationships affiliated with the bioscience sector.
Research conducted by BioOhio and The Center for Economic Development at Cleveland State University through February 2011 also indicates at least 1,345 bioscience-related firms with a combined 1,800 locations are operating in Ohio. These organizations range from Fortune 500 public companies to incubating start-ups. Retrospective analysis shows that 1,115 firms were operating 1,290 locations in 2000.
Almost 70% of Ohio’s bioscience firms fit into two subsectors: medical and testing laboratories (647 locations) and medical device and equipment manufacturers (604). The total number of locations increased in all subsectors between 2000 and 2009. The five bioscience subsectors also include pharmaceuticals & therapeutics, agricultural biotechnology, and research & development.
From 2004 to 2010, at least 413 bio-related firms either launched or established their first facility in Ohio—an average of 59 each year. Recent examples include Mammotome in Cincinnati, Cleveland HeartLab, Accord Biomaterials in Sylvania, and Nanofiber Solutions in Columbus.
BioOhio President and CEO Tony Dennis associates the growth to Ohio’s collaborative infrastructure of resources that companies—whether large or small, existing or new—can access.
“Ohio’s bioscience ecosystem is healthier than ever and resources are constantly being added or enhanced,” Dennis said. “BioOhio is fortunate to have so many like-minded and energetic economic development partners at the state and local level. Because of this committed collaboration, bioscience entrepreneurs are benefiting from sage advice and funding options unavailable in many parts of the country.”
Bioscience in Ohio also showed growth in payroll and wages. The bioscience sector in Ohio had a payroll of $4.3 billion in 2009. Ohio’s bioscience industry payroll has increased more than $1 billion—3% on average per year—since 2000, after adjustment to 2009 dollar values. Bioscience sector jobs paid an average wage of $68,384 in 2009, encompassing all bioscience subsectors and all occupations, not just scientists and executives. The average wage for bioscience industry employees in 2009 was 67% higher than the average wage for all industries in Ohio ($41,052).
Between 2005 and 2010, 236 bioscience companies have either expanded operations or announced new facilities in the state. More than 50 projects were announced in 2010, headlined by Philips Medical’s new medical imaging research and development center at University Hospitals Case Medical Center in Cleveland.
BioOhio now counts 80 sources of capital in Ohio for bioscience commercialization and company growth, ranging from angel funds and venture capital to leveraged buyout firms. There were only 12 in 2001. Other common sources of funding for Ohio companies include IPOs and acquisitions, Small Business Administration grants, Ohio Third Frontier Project, and federal R&D grants.
Overall, nearly $2.4 billion was invested in 2010 across Ohio to accelerate bioscience growth, making it the second highest year since tracking began in 2004.
The Ohio Bioscience Growth Report also reports on trends in public bioscience research funding, workforce indicators, and intellectual property. For the complete report and appendix, visit www.bioohio.com/pdfs/growthreport10.aspx