Our Impact on State Economies
Our Impact on State Economies Backgrounder
In the past, we’ve talked about the large role that we, biopharmaceutical research company employees, play in America’s economy. Even during the downturn, as many of us may have seen some of our colleagues lose their jobs due to cutbacks, that role remained strong. Our newest national economic impact report makes that clear, with data from 2008 showing that despite biopharmaceutical companies certainly feeling the pinch of the economy, they remained major providers of employment throughout the U.S.
However, it’s also important to step back and look at the role that we play not just at the national level, but at the state level, as well.
We know that even as America is moving toward a rebound, many states continue to battle budget woes and other financial troubles. That’s why we should pay attention to how we contribute not just to America’s economy, but our states’ economies as well.
A few years ago, Archstone Consulting, under contract to PhRMA, prepared a report on the economic role of the biopharmaceutical research sector in each state.
This year, PhRMA asked Archstone to update their information, replacing the 2006 data with numbers from 2008 - the most recent year that data were available. The takeaway is that while some states certainly are affected at a higher rate by an industry presence, not one state in America is without a biopharmaceutical footprint.
Curious about your own state? The user-friendly information is online here; just click on your state to learn about how many of your neighbors join you in being a part of the biopharmaceutical research community. In addition to direct jobs - people who specifically work for biopharmaceutical companies - the sector supports other jobs. Overall, each direct job supports 3.7 other jobs, such as highly trained construction workers who build and maintain essential research facilities, the security guards who protect the work being done, and even day care facilities that help care for the children of employees. Meanwhile, the direct jobs cover a wide range of professional areas, from the life sciences to engineering to production.
These jobs can mean a significant impact on a state, but they really only represent the start of that conversation. The data from Archstone make clear that economic impact extends well beyond straightforward employment numbers. From employee contributions to state taxes to contribution toward economic output, our sector is helping states regain strength and contribute to that of America as a whole.
Of course, this just reminds us of the importance of state policies and other efforts to attract the sector, in order to ultimately reap the benefits.
At PhRMA’s annual meeting, sanofi-aventis CEO and current chairman of PhRMA’s board Chris Viechbacher said, “Companies are going to invest in states that are well-governed.”
A strong biopharmaceutical research sector presence in a state does not happen on its own. It’s the result of efforts of state leaders to attract the sector, and it’s the result of serious decision-making on the part of company management to evaluate the most welcoming place for their presence.
That’s why it’s so important to tell our stories, as biopharmaceutical sector employees, about all of the good work that we do for our communities, our states, and our country.
As former North Carolina governor Jim Hunt said of biopharmaceutical companies, also at the annual meeting, “They provide the best jobs we have. They’re the highest-paying jobs.”
But more important than that, he added, “This sector is the most important industry in America. Why do I say that? I say that because of the good it does with the products that come from it.”
So take a look at the Archstone data. Learn about the role the sector plays in your state, and perhaps glance at the states that surround yours. Remember that many leaders don’t fully appreciate the jobs, the taxes, the R&D or other contributions our sector makes.
But don’t forget the most important thing: lives may be saved tomorrow because of the work we do today.