The biopharmaceutical sector is the foundation of one of New Jersey’s most dynamic innovation and business ecosystems. Not only does the industry invest heavily in the research and development of new treatments and cures, it also generates high quality jobs, powers economic output and exports for the U.S. economy and sustains a very large-scale supply chain.
Supporting High Quality Jobs in New Jersey
Recent research from TEConomy Partners provides estimates of this economic impact for New Jersey. Download a PDF snapshot here and read on for highlights:
The innovative biopharmaceutical sector directly supported 65,783 jobs in New Jersey in 2014. These jobs are often high-skill, high-wage professions.
The industry also supported another 251,058 jobs outside the biopharmaceutical sector, for a total of about 312,943 jobs across the New Jersey economy. These additional jobs are with vendors and suppliers such as construction companies and I.T. companies, and jobs generated by the sector’s employees such as day care centers and restaurants.
New Jersey workers whose jobs were supported directly by the biopharmaceutical sector paid a total of $7.3 billion in personal taxes in 2014—$6.5 billion in federal taxes and $799.9 million in state taxes.
Wages and benefits (total compensation) totaled $31.7 billion in New Jersey in 2014 for direct biopharmaceutical sector workers.
In 2014 the biopharmaceutical sector supported $108.7 billion in economic output1 for the state of New Jersey—including $47.5 billion generated directly by the sector, and another $61.2 billion through its vendors and suppliers and through the economic activity of its workforce.
Sustaining a Large-Scale Supply Chain
In accomplishing the mission of bringing new medical treatments to the market, the biopharmaceutical industry sustains a very large-scale supply chain—both in R&D and in support of the manufacturing and distribution of biopharmaceutical and biotechnological products.
For further insight into the breadth and depth of our industry’s impact in the form of business relationships with vendors and suppliers (companies that provide services or supplies), We Work For Health gathered data from 18 innovative biopharmaceutical companies to develop Biopharmaceutical Industry Vendor & Supplier Economic Impact Maps in all 50 states plus the District of Columbia and Puerto Rico. Click here to view the New Jersey map.
Conducting Clinical Trials
It takes about 10 years to develop one new medicine. Clinical trials are the most time- and resource-intensive part of the research and development (R&D) process for a new medicine, and biopharmaceutical companies support and conduct the lion’s share of this work. Yet without clinical trials, new medicines could not be approved and made available to the patients who need them.
Beyond the profound value that biopharmaceutical industry R&D brings patients in the form of new treatments and potential cures for society’s most devastating and costly diseases are the significant economic impacts resulting from clinical trials conducted in communities across the country.
Below is an overview of industry-sponsored clinical trial activity across the state of New Jersey in 2013:
- 1,234 total clinical trials
- 25,127 clinical trial participants
- $245.9 million invested in clinical trials
- $617.5 million total economic impact of clinical trial investments