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National Bioscience Report Shows Industry Creating Jobs and Driving Innovation: Michigan Sees Gains

Tuesday, June 7, 2016   (0 Comments)
Posted by: Kate Oesterle
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Michigan’s Bio-Industry Sees Gains in Several Key Sectors and Success Indices

 2016 TEConomy/BIO report highlights depth and breadth of state’s bio-industry.


ANN ARBOR, Mich. — Michigan’s biosciences industry saw significant gains according to the TEConomy/BIO The Value of Bioscience Innovation in Growing Jobs and Improving Quality of Life 2016 Report released today during the annual BIO International Convention in San Francisco, California.

The TEConomy/BIO report measures growth in the bioscience sector from 2012-2014. Several indicators for success were measured including the numbers of employees and companies, average wages, academic R&D expenditures, venture capital investments, and number of patents issued.


Key findings in regards to the Michigan profile saw Michigan’s total employment in the biosciences grew 5.7% to 44,277, a gain of almost 2,400 jobs since the last findings in 2014. The increase was led by a robust 11% gain in the Drugs & Pharmaceuticals sector, demonstrating seemingly a nice recovery following the sector’s consolidation during the latter part of the last decade. Employment in the Bioscience-related Distribution, Medical Devices & Equipment and Research/Testing/Medical Laboratories sectors improved by 6.0%, 5.7% and 5.0%, respectively. It’s noteworthy that Michigan has a strong employment concentration in the Medical Devices & Equipment sector with a location quotient of 1.10. Overall, the total employment impact of the biosciences industry in Michigan is now 248,348.


There was concomitant growth in a number of bioscience companies. The largest gains were seen by the Drugs & Pharmaceuticals (49%) and Medical Devices & Equipment (24%) sectors.


“The new TEConomy/BIO report once again reinforces the fact that Michigan has a robust and growing bio-industry, with specific strengths in several key sectors”, remarked Stephen Rapundalo, PhD, President and CEO of MichBio, the state’s biosciences trade organization.  “The numbers are very encouraging, but continued growth is not guaranteed unless we proactively develop the state’s bio-industry further by executing the Michigan Bio-Industry Roadmap for Success strategic plan released by MichBio earlier this year. We must leverage and promote our biosciences strengths if Michigan is to become a national leader in the global bio-economy and realize significant economic impact.”


Michigan’s research institutions conducted more than $1.2 billion in bioscience-related R&D in 2014, ranking 10th nationally in this metric. NIH funding granted to the state’s academic research institutions increased 9.1% to almost $623 million.


The state’s strength in medical device manufacturing is evident too as the sector accounted for 48% of the 2,333 patents issued between 2012 to2015. In addition, Michigan bioscience firms have seen an increase in venture capital funding in recent years which totaled $666.5 million in the biosciences since 2012, with a peak of $218.4million in 2014.


“We are encouraged by strong investment in our companies, but the markets remain competitive and Michigan must do more on the policy front to improve access to capital for our bioscience start-up ventures”, said Rapundalo.


An analysis of the specific industry sectors revealed Michigan to be a top 10 employer. It is regarded as a “sizeable” and “concentrated” state in the Medical Devices/Equipment sector.  The Drugs & Pharmaceuticals sector is back to being “sizeable” as well. This sector has seen rapid growth since 2007 as noted above. In addition to the statewide information, several Michigan regions and cities were highlighted for their employment concentration in the various bioscience sectors:

  • Kalamazoo-Portage Metropolitan Statistical Area (MSA) – The Kalamazoo area continues its reign as a major hub for biosciences. It is the only MSA to have specialization in all five of the bioscience sectors. It ranks 21st overall in terms of the largest employment levels in Drugs & Pharmaceuticals.  Kalamazoo, as a medium MSA (total private employment between 75,000 and 250,000) and location quotient (LQ, local job concentration versus nation) is 1st in the Medical Devices & Equipment category, 3rd in the Drugs & Pharmaceuticals sector, 15th in Research, Testing & Medical Laboratories, and 7th in Bioscience-related Distribution; 
  • Detroit MSA – The Detroit area is ranked 12th overall in employment as a large MSA in both the Bioscience-related Distribution and Research, Testing & Medical Laboratories sectors;
  • Ann Arbor MSA – Ann Arbor as a medium MSA is 7th in LQ for Medical Devices & Equipment and Research, Testing & Medical Laboratories;
  • Lansing-East Lansing MSA – The Michigan Capitol area appeared on the rolls as a medium MSA for the first time and placed 15th in LQ for the Drugs & Pharmaceuticals sector;
  • Holland-Grand Haven MSA – The Holland-Grand Haven medium MSA area is 13th by LQ in the Drugs & Pharmaceuticals category;
  • Midland MSA – This mid-Michigan region appeared for the first time as a small MSA with an 8th LQ ranking in Drugs & Pharmaceuticals;
  • Niles-Benton Harbor MSA – In the Medical Devices & Equipment sector, the SW Michigan area ranks 3rd by LQ for a small MSA;
  • Jackson MSA – As a small MSA, the Jackson area is 12th in LQ in the Medical Devices & Equipment sector;
  • Battle Creek MSA – As a small MSA, the Battle Creek area appears for the first time as 12th in LQ in the Research, Testing & Medical Laboratories sector.

Michigan is home to the global headquarters for Stryker, Dow Chemical, Dow Corning, Kellogg Company, Amway Corporation, MPI Research, Diplomat Pharmacy, and Ferndale Pharma Group; the North American headquarters of Perrigo and the R&D headquarters of Zoetis. Pfizer, Beckman Coulter, Mead Johnson, Abbott Nutrition, Bayer CropScience, Cardinal Health, AmeriSource Bergen, Covance, Emergent BioDefense, Endo (Par) Pharmaceuticals, Orchid Health, Albermarle Corporation and many other companies have major operations located within the state.

Creating Value
by delivering business-critical resources & bottom line savings
Building Networks
by connecting Michigan's bio-industry one member at a time
Growing Talent
by creating opportunities that develop people & build organizations
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