New report highlights outsized impact of healthcare and life sciences sector in Central Indiana
$84 billion economic impact powers the region
INDIANAPOLIS, Aug. 25, 2021 /PRNewswire/ -- Central Indiana's1 healthcare and life sciences sector has an $84 billion annual economic impact and directly employs more than 133,000 people and 331,000 workers indirectly, according to a new report. The study from TEConomy Partners, ESSENTIAL: The economic impact of Central Indiana's healthcare and life sciences sector, examined the influence of decades of investments in the region 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 statistics from the report include:
- Commercial healthcare and life sciences R&D spending was an estimated $8.6 billion by regional companies in 2020.
- There are currently 2.94 million square feet of committed construction projects, resulting in a projected $2.27 billion capital project spending (2019-2023) by healthcare and life sciences organizations.
- The healthcare and life sciences sector contributes $33.2 billion in gross domestic product (GDP) compared to the next largest sectors: $29.3 billion for manufacturing and $14.6 billion for finance and insurance.
- Every $1 of all goods and services produced by the healthcare and life sciences sector, generates an additional $0.48 within the regional economy.
"From investments in facilities, equipment, research, talent and purposeful connections through BioCrossroads, Central Indiana's healthcare and life sciences sector has a substantial collective impact on the vitality of the region," said Patty Martin, president and CEO, BioCrossroads. "These investments help ensure Hoosiers have access to high quality healthcare services and support innovation, economic development, and educational opportunities for not only the healthcare and life sciences sector, but also our manufacturing, technology and retail sectors."
Central Indiana's healthcare and life sciences sector directly accounts for a significant amount of the region's economic impact measures, including:
- 10.6% of regional employment
- 16.5% of regional labor income (wages and benefits)
- 19.6% of regional Gross Domestic Product (GDP)
- 18.7% of total regional output, which is the total value of goods and services produced
Central Indiana's manufacturing sector, the next largest sector, accounts for:
- 7.9% of regional employment
- 11.5% of regional labor income (wages and benefits)
- 17.3% of regional Gross Domestic Product (GDP)
- 25% of total regional output
Notably, the healthcare and life sciences sector's total impact on the Central Indiana region includes:
- 21.4 % of total employment
- 26.1% of total labor income (wages and benefits)
- 28.9% of total Gross Domestic Product (GDP)
- 27.7% of total output
The total impacts are the summation of all economic impacts driven directly by the healthcare and life sciences sector and the effects of this spending rippling through the region's economy.
"Ultimately, it is clear that past and future investments in the infrastructure and talent that advance Indiana's life sciences and healthcare capacity represent a fundamental good for Indiana," commented report author Simon Tripp, principal and senior director, TEConomy Partners. "Enhancing the quality of life for Hoosiers; boosting the regional economy; making critical infrastructure investments that benefit multiple sectors; and providing a proactive means of response in the face of public health emergencies are all components of this critical sector."
The full report and executive summary are available at www.biocrossroads.com. Join BioCrossroads' virtual Frameworx educational event on Friday, Sept. 10 where Tripp and leaders from Central Indiana's healthcare and life sciences sector will discuss the findings in detail.
About BioCrossroads
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.
1For this report, Central Indiana is defined as Boone, Brown, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Monroe, Montgomery, Morgan, Putnam, Shelby, and Tippecanoe counties.
SOURCE BioCrossroads
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