New Data Shows Economic Impact of NIH Research in 50 States + DC

March 28th, 2017

 NIH-Funded Research Responsible for 380,000 Jobs, $65 Billion in Economic Activity in FY16

Washington, DC – United for Medical Research today released new economic data showing the powerful impact that research funded by the National Institutes of Health (NIH) has on the U.S. economy. In fiscal year 2016, NIH-funded research supported 379,471 jobs and $64.799 billion in economic activity.

These numbers represent a significant increase over FY 2015 when NIH-funded research supported 352,349 jobs and $60.171 billion economic activity. The increase reflects the larger NIH budget for FY 2016 over 2015. Congress approved a $2 billion boost to the NIH budget for 2016 – the agency’s first substantial increase in more than a decade. This enabled a $1.8 billion increase in competitive research grants awarded in the 50 states and the District of Columbia and ultimately, the creation of 27,122 more jobs and $4.08 billion more economic activity. Congress has yet to complete the budgeting process for FY 2017 and the White House recently proposed a $5.8 billion cut to the NIH budget for FY 2018.

“NIH-funded research is an engine for economic and medical progress, making the drastic cuts to the NIH proposed in the President’s initial budget doubly dangerous. These cuts will stymie the jobs creation and economic activity happening today as a result of NIH-funded research and they will slow down or completely stall critical research on a range of diseases, including some of our most costly health problems, including cancer, cardiovascular disease, Alzheimer’s, and diabetes,” said UMR President Lizbet Boroughs.

The economic impact calculations were done by Dr. Everett Ehrlich of ESC Company on behalf of United for Medical Research using the Regional Input-Output Modeling System (RIMS II) developed by the Department of Commerce.

In FY 2016, the NIH provided just under $24.6 billion in extramural research funding to scientists in all 50 states and the District of Columbia. This funding directly supports the jobs of the principal investigators and their research teams, the producers of the specialized equipment used in the research process, and ultimately, the jobs of the people who provide the goods and services demanded by those researchers and equipment manufacturers. The median state has about 3,700 jobs due to NIH research activity and 13 states have employment of 10,000 or more. Additionally, the income generated by these jobs, as well as by the purchase of research-related equipment, services and materials, when cycled through the economy, produced nearly $65 billion in new economic activity in 2016. Nineteen states experienced an economic gain of $1 billion or more.

“Given the undeniable, positive impact that NIH-funded research has on America’s health and economy, we urge the Administration to rethink its proposed steep cut to the NIH budget. United for Medical Research stands ready to work with the Administration and the strong, bipartisan supporters of NIH in Congress to pursue steady, sustained and predictable funding increases for America’s premier health agency,” Boroughs said.

Link to UMR 2-Page Summary Report: HERE

Link to State-by-State Impact: HERE

United for Medical Research is a coalition of leading research scientific research institutions and industries, and patient and health advocates that have joined together to seek steady increases in funding for the National Institutes of Health. Learn more at www.unitedformedicalresearch.com. For examples of the amazing things that NIH research is making possible, visitwww.amazingthingspodcast.com.