Life Sciences Industry Thrives in Greater Philadelphia and New Jersey
The life sciences industry is booming in Greater Philadelphia and New Jersey, even in these tough economic times. Here we summarize the findings of two major studies that indicate its strength and vitality.
Greater Philadelphia Is a Vibrant Life Sciences Cluster
According to the Milken Institute, Greater Philadelphia’s life sciences industry — including biotech companies, pharmaceuticals, research and development (R&D), healthcare services, and medical devices — continues to demonstrate significant growth potential. The Milken Institute’s analysis compared the strength of Greater Philadelphia’s life sciences industry to that of other leading metropolitan areas in the United States and the findings included:
- Greater Philadelphia ranked second in the Overall Composite Index for Life Sciences — a single, comprehensive measure of where different regions rank relative to other elite life sciences clusters in the United States. Greater Philadelphia moved up from third place in 2005 — now outranking Greater San Francisco — while Boston remains in first place.
- Greater Philadelphia ranked first in the Current Impact Composite Index, which takes into consideration the relative size of the life sciences industry, market growth, and employment levels.
- Greater Philadelphia maintained its third place ranking for the Innovation Pipeline Index but significantly closed the gap with second-place Greater San Francisco. This index consists of the following components: R&D capacity, risk capital and entrepreneurial infrastructure, human capital, workforce, and innovation output.
- In 2007, the life sciences sector in Greater Philadelphia generated 380,800 jobs, $20.2 billion in earnings, and $39.7 billion in output.
- Life sciences accounts for 15% of all economic activity and one out of every six jobs in the Greater Philadelphia area.
The growth of Greater Philadelphia’s life sciences sector is attributed to an effectual blend of established pharmaceutical companies, strong research infrastructure, top universities, and emerging startups — all contributing to a powerful support network. The study concluded, “Greater Philadelphia is a vibrant life sciences cluster with many advantages that can be further exploited to spur continued growth.”
Biotech Is Growing Strong In New Jersey
The biotech industry continues to experience strong growth in the state of New Jersey, as well, according to preliminary results from a survey conducted by BioNJ with accounting firm Ernst and Young. Here are some of the major findings:
- There are currently 303 biotech firms in New Jersey, up from 238 in 2008 — a 28% increase.
- 31% of the responding companies have been in business 5 years or less.
- 51% of respondents have operated in New Jersey for 5 years or less.
- Of the responding firms, 78% plan to hire more staff next year.
You’ll find the complete Milken Report and more information on the preliminary findings of the BioNJ industry survey at the following links:
The Greater Philadelphia Life Sciences Cluster 2009: An Economic and Comparative Assessment
NJ Biotechnology Industry Continues to See Growth Despite Economic Downturn and Tighter Funding |
