Economic Impacts of Utah's Life Sciences Industry.

• Author: Pace, Levi

The Utah Governor's Office of Economic Development (GOED) and BioUtah, the trade association for life sciences companies in the state, commissioned the Kem C. Gardner Policy Institute to analyze the role of the life sciences industry in Utah's economy.

The Gardner Policy Institute is pleased to share our findings about Utah's nationally recognized life sciences industry. Years of strong growth have made life sciences a vital strategic sector as we anticipate tomorrow's economic opportunities. We want to thank our great partners in this groundbreaking study--BioUtah, GOED, and the Utah Department of Workforce Services.

Life sciences companies created significant economic impacts during 2017 that benefitted companies and workers beyond the industry itself, making it an important economic driver for the state of Utah. This article examines the details of the life sciences industry's economic impacts, including jobs, personal income, GDP, tax revenue, and exports.

WHAT IS THE LIFE SCIENCES INDUSTRY?

Life sciences companies deliver technologies and services to improve personal health. They develop, manufacture, and distribute medical devices, pharmaceuticals, and related products. The life sciences industry includes biotechnology firms, medical laboratories, diagnostics companies, and support service providers.

ECONOMIC IMPACTS OF THE INDUSTRY

In 2017, the economic impacts in Utah from life sciences companies were:

* 130,439 jobs

* $7.6 billion in personal income (including benefits)

* $13.0 billion in GDP

Jobs include employees at companies, as well as self-employed workers. 'Ihese total direct, indirect, and induced estimates equaled 6.7 percent of Utah employment, 5.9 percent of its personal income, and 7.9 percent of its GDP in 2017. For example, 5.9 percent of all personal income in Utah came either from life sciences companies or from companies in other industries that were supported by purchases by life sciences companies and workers.

Utah's life sciences industry sold over 40 percent of its 2017 output of $9.6 billion to in-state customers, such that medical providers, pharmacies, and other buyers in Utah did not require out-of-state alternatives for $4.0 billion in goods and services. Nearly 60 percent of life sciences industry sales were to buyers in other states and countries, bringing $5.6 billion to Utah.

From 2002 to 2017, the average job growth rate was 3.3 percent per year in Utah's life sciences industry, compared to 2.1 percent...