$10.7 Billion: More Biotech Firms, More Life Research, More Jobs and Higher Industry Wages in Oregon Make an Increasingly Larger Economic Impact in Oregon

Oregon
Bioscience Association releases its new
economic impact report which points to a highly diverse
workforce, combined $10.7 billion footprint (with $4 billion of that in
‘new money’) and continued notable gains in wages and jobs touching
virtually every other sector in the economy, including $1.1 billion in
state and federal taxes paid and $3.9 billion in exports

PORTLAND, Ore.–(BUSINESS WIRE)–#biojobs–Oregon’s biotechnology and life science sector continues its growth and
gains in economic output and activity. Statewide data show Oregon is
home to 19,157 bioscience jobs with $1.5 billion paid in direct wages in
2017. Annual wages in corporate bioscience averaged $70,451 and in life
science research averaged $92,840 in 2017. These two sectors far exceed
Oregon’s overall private annual wage by 40 percent and 46 percent,
respectively.

The newest study underscores how Oregon’s bioscience and health research
sectors provide high-paying, skilled jobs, while showing increased
exports, as well as substantial contributions to the economy via taxes
and overall economic activity.

The total economic impacts include the direct impacts of the bioscience
industry plus additional supply-chain and consumption-driven impacts. In
2017, the total impacts in Oregon consist of:

• $10.7 billion in output, including $3.4 billion in income, and 47,238
  jobs
• $401.9 million in tax and fee revenues for state and local
  jurisdictions
• $789.6 million in tax and fee revenues for the federal government.

The report, Economic
Impact Study 2019: Profiling the Growth of Oregon’s Bioscience Industry
in 2017 (and Trends Since 2002),
shows growth trends over the past 15 years with total bioscience
employment increasing 76 percent (adding 6,700 jobs) and payrolls
increasing 182 percent ($767 million). The new economic impact study
examines corporate/private bioscience alongside life science research
and was independently researched and prepared by Pinnacle Economics.

“It is compelling to note that Oregon’s biotech and health research
sectors reside in all sizes of companies from start up to scale up to
medium sized to very large,” said Oregon Bioscience Association’s
Executive Director Liisa Bozinovic. “And the increased diversity shows
larger numbers of women and minorities work in our sector.”

Oregon’s bio ecosystem was measured using national standards and
comprises five key subsectors: 1) Agricultural feeds and stocks, 2)
Drugs and pharmaceutical manufacturing, 3) Medical devices and equipment
manufacturing, 4) Research, testing and medical labs, and 5)
Bioscience-related distribution. The direct economic impacts in 2017
include:

• Corporate/firms/organizations: 820 establishments, $1 billion in
  wages, $415 million in benefits and payroll taxes
• Life science research at labs, hospitals and universities: $669
  million in economic activity, $422 million in wages
• NIH and federal dollar awards to Oregon researchers reached a high:
  $363.4 million.

“Our analysis again shows bioscience industry generates economic
activity in every sector of the Oregon economy,” said Alec Josephson of
Pinnacle Economics who conducted the study. “The industry is healthy and
with health comes growth.” He notes the employment multiplier of 2.5
suggests for every 10 bioscience jobs, the industry supports an
additional 15 jobs in other sectors of the economy. He adds the income
multiplier of 1.8 shows for every $1 million in income directly
generated in the bioscience industry, another $800,000 in income occurs
for other workers/industries.

Oregon’s report accessed government data using NAICS codes, which are
used in national bio-industry benchmarking and are comparable to the
most recent report by TEConomy/BIO found at https://www.bio.org/value-bioscience-innovation-growing-jobs-and-improving-quality-life-2018.

As an outward-facing industry, the local bioscience industry exported
$3.8 billion in goods and services, which is 66 percent of total
production. Coupled with federal research awards, Oregon’s biotech
sector brings more than $4 billion in ‘new money’ to Oregon.

Notably, the local biotech and health research economy is home to an
increasing number of well-paid, skilled jobs held by women and
minorities. About 46 percent of total bioscience and related industry
jobs are held by women and 22 percent are held by minorities out of a
total of 47,238 jobs in Oregon in 2017.

Additionally, Oregon bio companies/firms are varied in size and
location. Of note, the bioscience industry exists in nearly every county
of Oregon, with 43 percent of firms/companies located outside of
Portland, generating $427 million in wages and employing 6,778 persons.
Much of the recent growth between 2014 and 2017 occurred south of
Portland, alongside the I-5 corridor.

“The bio sector here is thriving and continues to outshine the state
averages with higher wages, more jobs, a growing number of bio
companies/firms and more funding from federal sources for research than
previous studies. It will be important to protect and preserve this
growth so our expanding industry can continue to support Oregon’s
diverse economy,” added Bozinovic.

Adds Bozinovic, “National BIO’s report, commissioned by TEConomy
underscores our local findings as well, and includes more good news
regarding higher venture capital funding and a higher number of
bio-related patents than in previous studies.” The TEConomy
report on Oregon can be found at https://www.bio.org/value-bioscience-innovation-growing-jobs-and-improving-quality-life-2018.

About Oregon Bioscience Association

The Oregon
Bioscience Association advocates for its members and the industry
to create opportunity through advocacy, cultivation and education.
Oregon Bio promotes the growth and quality of the bioscience industry in
Oregon and continually seeks ways to support sustainability and growth
in the life science, bioscience, biotechnology and device manufacturing
industries and to create acceleration initiatives so members can achieve
their full scientific, economic and social potential. Oregon Bio, a
nonprofit membership association, is both the Oregon affiliate of BIO (Biotechnology
Innovation Organization), and
AdvaMed (Advanced
Medical Technology Association).

BIO found in 2016 Oregon’s jobs in biotech grew faster than most
other U.S. markets. The “Value
of Bioscience Innovation in Growing Jobs and Improving Quality of Life
2018” report showed Oregon attracted $76.5 million in venture
capital investments between 2014-2017 and 1,274 bioscience and related
patents. BIO also found Oregon is emerging in several bioscience areas,
with job growth in four of the five major subsectors from 2007 to 2016.
Oregon’s share of NIH funding grew every year since 2016.

Contacts

Liisa
Bozinovic, Executive Director, (503) 548-4432
Dianne
Danowski Smith, Publix Northwest, (503) 201-7019
Alec
Josephson, Pinnacle Economics, (503) 816-0295