PHOENIX, Ariz. Sept. 29, 2009 The Translational Genomics Research Institute (TGen) provides Arizona with an annual total economic impact of $77.4 million, according to the results of an independent analysis released today.
Including spin-off businesses and commercialization of TGen-led research, a study by the research firm Tripp Umbach predicts TGen's total annual economic impact will grow to $321.3 million by 2025.
"As we make important and significant contributions to the local economy, TGen is helping place Arizona on the world biosciences map through our cutting-edge discoveries in cancer, neurological, cardiovascular and infectious-disease research,'' said Dr. Jeffrey Trent, TGen's President and Research Director.
TGen acting as Arizona's "collaborative catalyst" in the fields of biomedicine and bioscience has outpaced all previous performance marks and projections made in a December 2006 economic impact report by Tripp Umbach.
TGen by 2008, the new study shows, more than doubled the results recorded just two years ago in its return on investment, jobs, taxes paid and total economic impact.
The new report concludes that TGen operations in 2008 produced $8.09 for every $1 invested by the State of Arizona, 461 full-time jobs (directly and indirectly), generated $2.7 million in state taxes, and produced a direct annual economic impact of $44.5 million.
When the impact of TGen-generated business spin-offs and commercialization are included, the study shows, TGen in 2008 produced $14.07 for ever $1 invested by the state, $5.7 million in taxes and $77.4 million in total annual economic impact.
"TGen has certainly kept its promise to the State of Arizona to be a strong economic engine,'' said Paul Umbach, the President of Pittsburgh-based Tripp Umbach. "Our updated analysis shows dramatic increases in economic, employment, and government revenue impacts on Arizona's economy. As a result of TGen's better than expected performance over the past two years, our projected impact numbers for 2015 and 2025 are also significantly stronger.''
By 2025, the report predicts, TGen operations will return $30.20 for every $1 invested by the state, resulting in 2,332 jobs, $13.4 million in state taxes, and producing an annual economic impact of $166.1 million.
Including projected business spin-offs and commercialization, the report said, TGen in 2025 would return $58.42 for every $1 invested by the state, create 4,116 jobs, generate $27.4 million in taxes, and produce a total annual economic impact of $321.3 million.
"It is clear from our updated analysis that commercial spin-off activities from TGen are rapidly having a positive economic impact on the Arizona economy at just a time when adding jobs is so important," Paul Umbach said.
The report shows that TGen is helping grow the state's knowledge-based economy attracting national and international research investments, intellectual collaborations and world-renowned researchers all while making significant strides in scientific research and providing life-changing results for patients.
Bigger impact than 2 years ago
At the time of its 2006 report, Paul Umbach noted that TGen had "gone further, faster'' and accomplished more positive economic results than any other research organization among the more than 150 clients it had studied.
Following the 2006 report, an Arizona Republic editorial said: "TGen commissioned the Tripp Umbach study to give legislators a cold, hard look at whether the state's investment ($5.5 million a year from tobacco taxes) is paying off. The answer is a loud and vigorous yes. To keep the momentum going, Arizona needs to continue supporting TGen.''
Tripp Umbach, a national leader in economic forecasting, also concludes in its 2009 report that to continue TGen's progress and accelerate commercial development state support for TGen can create even greater economic impact in future years.
"TGen has produced a significant return on investment to the State of Arizona. In order to continue to accelerate TGen's growth and the growth of Arizona's bioscience/biomedical sector, TGen would benefit from continued support from the State of Arizona,'' the report said.
Tripp Umbach's recent analysis parallels a Flinn Foundation report, released in January, which showed that since 2002: Arizona bioscience research and development reached $415 million in 2007, a 48 percent gain; Arizona bioscience jobs grew 23 percent; and the number of bioscience establishments grew by 22 percent far outpacing the national average in all three categories.
Impacts of TGen Operations
TGen Return on Investment (for every $1 from the State of Arizona)
TGen Jobs in Arizona
TGen Tax Revenues for Arizona
2008 $2.7 million
2015 $6.5 million
2025 $13.4 million
TGen Annual Economic Impact on Arizona
2008 $44.5 million
2015 $85.3 million
2025 $166.1 million
Including TGen-led research and commercialization
TGen-generated Return on Investment
TGen-generated Jobs in Arizona
TGen-generated Tax Revenues for Arizona
2008 $5.7 million
2015 $11.9 million
2025 $27.4 million
TGen-generated Annual Economic Impact on Arizona
2008 $77.4 million
2015 $145.4 million
2025 $321.3 million
|Contact: Steve Yozwiak|
The Translational Genomics Research Institute