Sector generates more than $75 billion for Texas economy offers substantial job growth potential new study shows
AUSTINThe states life sciences industry is an economic powerhouse supporting 236000 jobs and a $31 billion payroll while generating a total annual economic impact of $75 billion according to a new study released today by the Texas Healthcare and Bioscience Institute (THBI).
Continued state federal and private sector investments like those from the Texas Emerging Technology Fund and the Texas Cancer Prevention and Research Institute will fuel the states growth in the life sciences sector. The cancer initiative alone would grow Texas share of U.S. research and development investments a full percentage point from 7 percent to more than 8 percent translating into another 40000 direct and indirect jobs for Texas as the cancer institutes investments grow over time the study found.
Texas life sciences are literally breathing new life into the Texas economy while pioneering life-saving medical therapies" said Tom Kowalksi THBI president and CEO.
In little more than a handful of years the life sciences industry has rocketed into the Texas economic stratosphere" Kowalski said. Today with the continued support at the state and federal levels and venture capital the industry holds outstanding potential for even greater job growth."
Kowalski pointed to smart state decision-making innovative entrepreneurs and outstanding university and public sector researchers as key factors in the industrys growth in Texas. Texas life sciences sector is leading the way in job creation and medical advancements for people across the state and around the globe" Kowalski added.
The study developed by New Economy Strategies LLC shows the Texas life sciences industry is one of the most vibrant and growing sectors of the states economy and demonstrates significant gains in both employment and investment opportunities as a result of industry activity within the state.
According to the Texas Life Sciences Industry Profile employment in the sector accounts for more than 71000 direct jobs more than 8600 of which were created since 2003. These are good-paying jobs the study determined with the average annual salary approaching $70000 in 2007 a full 55 percent higher than the average salary in the rest of the Texas economy. The industry attracted $179 million in venture capital in 2008 and draws some $1.1 billion each year from the National Institutes of Health.
State leaders have also recognized the importance of the industry to health care and job creation. In 2005 the Legislature established the $200 million Emerging Technology Fund (ETF) to promote and finance innovations in technology including the life sciences. To date the ETF has awarded more than $145 million in the life science sector including commercialization. Gov. Rick Perry has requested an additional $203.5 million for the ETF for the next two-year state budget.
In addition in 2007 Texas voters approved $3 billion in bonds for cancer research and prevention as much as $300 million a year for the next decade through the Cancer Prevention and Research Institute of Texas. However it is now up to the Legislature to determine how much to allow for debt service impacting the size of the annual bond issuance.
This study proves that Texas made a wise decision when it chose to establish the Emerging Technology Fund and the Cancer Prevention and Research Institute" Kowalski said which is why it is critical our state leaders continue to invest additional money in the ETF and approve funding for the cancer prevention initiative."
Gov. Perrys announcement this week regarding the expansion in San Antonio of the diabetes division of Medtronic a global medical device company underscores the growth potential of the industry. The expansion means Medtronic Diabetes will create 1400 new jobs and generate $75 million in annual economic impact.
The study shows all regions of the state benefit from the industry with El Paso and the Rio Grande Valley experiencing growth rates of more than three times the U.S. average during 2003-2008. North Texas posted the largest increase in employment from 2003-2008 reaching nearly 25000 direct life sciences jobs.
Patent activity remains an active part of the industry. From 2003-2007 more than 5000 patents were assigned in Texas led by the medical devices and pharmaceutical sectors.
The Texas life sciences industry is one of the most dynamic and vibrant sectors of the states economy" said Richard Seline chief executive officer and principal of New Economy Strategies LLC. From both an employment and competitiveness perspective the industry continues to make impressive gains in Texas."
For a full copy of the economic impact study entitled Texas Life Sciences Industry Profile please visit the Texas Healthcare and Bioscience Institute at
www.thbi.com.
