$150 billion economic impact powers the state
INDIANAPOLIS (June 15, 2022) –Indiana’s healthcare and life sciences sector has a $150 billion annual economic impact; directly employs one in every ten jobs in the state (more than 383,000 people); and has a substantial presence in the corporate and university sectors, according to a new report. The study from TEConomy Partners, ESSENTIAL: The impact of healthcare and life sciences sector in Indiana, examined the influence of decades of investments in the state as well as how the sector provides benefits to Indiana’s other industries such as manufacturing, technology and retail.
The report discusses not only the economic measures of capital expenditures, wages and jobs, but also analyzes the non-traditional impacts such as access to healthcare and its influence on economic development. It also points out that the healthcare and life sciences ecosystem is larger than traditional research and development, underscoring the importance of continued investment in the sector.
Key data from the report include:
• Every $1 of goods and services produced by the healthcare and life sciences sector, generates an additional $0.52 within the Indiana economy.
• The combined healthcare and life sciences sector grew by 9.5 percent overall from 2015 to 2020.
• More than 4 million square feet of committed construction projects have been underway since 2020, accounting for $5.5 billion of capital project spending by healthcare and life sciences organizations.
• National Institutes of Health funding to Indiana institutions has reached $1.04 billion over the most recent 3-year period.
“Hoosiers working in healthcare and life sciences are discovering, making and delivering treatments and cures to improve the quality of life for those of us in Indiana – and people all over the world – all while driving Indiana’s economy,” said Patty Martin, president and CEO, BioCrossroads. “However, we need to be proactive to take advantage of opportunities; to bring in additional investments; and ensure that we sustain and optimize the state’s ecosystem conditions to allow this important sector to thrive.”
The report compares key indices such as employment and gross domestic product (GDP) with other major industries, including manufacturing, which is the largest sector in the state. Employment for manufacturing was more than 520,000, while the life sciences and healthcare sector employed more than 383,000 in 2020. As a production-intensive state, more than 42,000 jobs are in life sciences manufacturing, accounting for 8 percent of all state manufacturing jobs.
GDP was measured at $87 billion for manufacturing while the healthcare and life sciences sector contributed $56 billion to Indiana’s economy. However, healthcare and life sciences punches above its weight as the industry accounts for almost 10 percent of private sector jobs but contributes 14.5 percent of state GDP.
“Indiana’s advanced manufacturers make products that power the world – from automobiles to jet engines, RVs and electronic components,” said Fred Cartwright, president and CEO of Conexus Indiana. “Our manufacturers also innovate, produce and deliver life-saving medicines, medical devices and healthcare products to patients around the globe. In fact, Indiana is the most manufacturing intensive state in the nation, making us a vital part of the world economy and global prosperity.”
The full report is available at www.biocrossroads.com.
BioCrossroads is Indiana’s initiative to grow, advance and invest in the life sciences, a public-private collaboration that supports the region’s existing research and corporate strengths while encouraging new business development. BioCrossroads invests capital and provides support to life sciences businesses, launches new life sciences enterprises (Indiana Biosciences Research Institute, 16 Tech, Indiana Health Information Exchange, Fairbanks Institute for Healthy Communities, BioCrossroadsLINX, OrthoWorx and Datalys Center), expands collaboration and partnerships among Indiana’s life science institutions, promotes science education and markets Indiana’s life sciences industry.