|[February 05, 2013]
Arizona Bioscience Jobs Continue Rapid Growth During Economic Recovery
PHOENIX --(Business Wire)--
Arizona's bioscience sector added jobs at nearly four times the national
rate over the past decade and experienced double-digit job growth during
the economic recovery, a new report shows.
The new performance analysis of Arizona's bioscience sector,
commissioned by the Flinn Foundation, also found that the number of
bioscience establishments in Arizona continues to grow faster than the
national average and bioscience wages in the state are outpacing those
in other private-sector industries.
The 10th-annual study, released Feb. 5 by the Battelle Technology
Partnership Practice, did reveal funding challenges for the state. In
2012, Arizona fell to its lowest venture capital investment level since
2009 and suffered a drop in National Institutes of Health funding while
the top-10 funded states advanced.
"Arizona's bioscience sector continues to significantly outperform the
nation in terms of job and establishment growth and has made impressive
gains in building a more concentrated industry base," said Walter
Plosila, senior advisor to the Battelle Technology Partnership Practice.
"However, more attention must be paid to academic research performance
and venture capital investment to continue the trend in years to come."
Plosila added that progress has been made over the past decade on all 19
actions recommended by Battelle in 2002, including substantial progress
Arizona's Bioscience Roadmap was launched in 2002 as a long-range plan
to make the state's bioscience sector globally competitive. The Roadmap
was commissioned by the Phoenix-based Flinn Foundation, which committed
to 10 years of major funding of Arizona biosciences and formed a network
of committees involving statewide experts to implement its
Since the Roadmap was launched in 2002, Arizona's bioscience jobs have
increased by 45 percent to 99,018 in 2011. Nationally, the growth rae
during this time was 12 percent. While hospitals dominate Arizona's
bioscience jobs, the state's non-hospital subsectors grew 14 percent in
2011 alone. During the economic recovery years of 2009-11, the state's
bioscience jobs increased 11 percent while there was no gain across the
state's private sector.
There was also a major increase in bioscience establishments, rising 31
percent since 2002 to 892 firms, which is above the national growth rate
of 23 percent.
Bioscience jobs in Arizona pay an average salary of $56,328, or 28
percent higher than the $44,098 for all private-sector industries. Since
2002, bioscience salaries have increased 44 percent.
"After 10 years, Arizona has carved a niche in the highly lucrative and
competitive biosciences field," said Martin Shultz, chair of Arizona's
Bioscience Roadmap Steering Committee. "We're one of the nation's top
emerging bioscience states, and our growth in high-wage jobs continued
during both good economic times and bad."
In terms of research dollars, NIH funding in 2012 was $174 million, or
19 percent greater, than the 2002 figure. This is a decrease from $184
million in 2011. While NIH funding, the gold standard for biomedical
research funding, did increase slightly faster than the national average
of 18 percent over the past decade, Arizona is no longer meeting its
goal of obtaining funding at a growth rate higher than the top-10 funded
states. In addition, its share of the funding pool remains nearly the
same as it was in 2002.
The latest data also shows:
The largest non-hospital bioscience subsector continues to be
research, testing and medical laboratories. This group now boasts
about 8,900 workers across 466 establishments, roughly a 60 percent
increase in both employees and firms since 2002. The other subsectors
are drugs, pharmaceuticals and diagnostics; hospitals; medical devices
and equipment; and agricultural feedstock and chemicals.
Venture capital investment was $22 million in 2012, which is the
lowest figure since 2009. This was a drop of 68 percent from 2011,
compared to a national decline of 49 percent.
Bioscience-related academic research and development expenditures at
Arizona's universities reached a record $452 million in 2011, a 55
percent increase since 2002. Arizona's growth had outpaced the nation
until 2009, but now trails the overall U.S. growth rate of 74 percent.
Arizona universities spun out seven bioscience companies in 2012.
University discoveries have now led to 67 new bioscience startups
since 2002 as well as 180 bioscience patents.
On Dec. 4, 2012, the Flinn Foundation and bioscience leaders from across
Arizona came together at the Arizona Biltmore to celebrate the 10th
anniversary of the launching of Arizona's Bioscience Roadmap. The
Foundation announced it has committed to continue funding Arizona
biosciences and coordinating the Roadmap as it enters its next chapter.
"We recognize this is a long-term pursuit," said Jack Jewett, president
and CEO of the Flinn Foundation. "We will continue to strive to improve
the lives of Arizonans today and tomorrow through new medical
discoveries, access to clinical trials and the recruitment of top
researchers, while also attracting high-wage jobs that will strengthen
The Flinn Foundation is a Phoenix-based, private, nonprofit
philanthropic endowment. It was established by Dr. and Mrs. Robert S.
Flinn in 1965 with the mission of improving the quality of life in
Arizona to benefit future generations. The nonprofit philanthropy
supports the advancement of Arizona's bioscience sector, the Flinn
Scholars program, arts and culture, and the Arizona Center for Civic
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