Bioscience brings $3.4 billion to area
By Jim Stafford
The Oklahoman
Up to 90,000 jobs relate to this booming industry
The economic engine that is the booming bioscience industry is creating a $3.4 billion annual impact on the Oklahoma City area economy, according to a study released Tuesday by the Greater Oklahoma City Chamber of Commerce.
The direct economic impact of bioscience jobs is $1.95 billion, said the study's authors, economists Robert C. Dauffenbach and John McCraw of the University of Oklahoma, and Larkin Warner of Oklahoma State University.
The study found that 44,500 people are directly employed in the area bioscience industry, with total employment, including spin-off jobs, generated by the industry exceeding 90,000. The study included every field of bioscience from hospitals and health care to medical education, laboratories and research.
"A lot of these (jobs) are hospital-related, that's certainly true, but it's also the case that when you are looking at that kind of job number, you are getting up there in pretty high realms," Dauffenbach said. "It's a growing area and more and more investments are being put into that area."
The study revealed that the biosciences industry employs more people in the area than even the aerospace industry. A similar chamber study released in August showed that 38,000 people are employed in some aspect of aerospace, including 26,000 at Tinker Air Force Base, said Roy Williams, chamber president.
"If you compare industry cluster to industry cluster, this (biosciences) is a bigger cluster," Williams said. "But it's very, very close both in terms of numbers and as well as in terms of economic impact."
The chamber hired the Battelle Institute last year to create a "road map" to build the life sciences industry in state, and the study released Tuesday helps to quantify the industry for economic development officials, Williams said.
"The main thing is it helps us understand it, so that when we go out and talk to other bioscience businesses, we speak their language and understand what they are looking for and what we have in that area," he said.
The Battelle report identified about 14 different actions economic development officers should take to grow the industry, including funding the Governor's EDGE endowment and creating an opportunity fund for business startups. Leaders should use the chamber study as a starting point, said Dr. Stephen Prescott, president of the Oklahoma Medical Research Foundation.
"These numbers are great, but we shouldn't look at them as an end point," Prescott said. "There's a big push in this area on all fronts -- the Governor's EDGE plan, the Presbyterian Health Foundation Research Park, the Chamber's bioscience initiative, increased funding for the Oklahoma Center for Advancement of Science and Technology, and the capital projects that emerged from this legislative session.
"As long as we keep investing in bioscience infrastructure, our economic impact figures should continue to grow."
Much of the economic power of the area's biosciences is clustered in the area of the Oklahoma Health Science Center, which is home to the OMRF, the University of Oklahoma Health Sciences Center and its medical school and affiliated hospitals, as well as the Presbyterian Health Foundation Research Park.
"The concentration we have right here at just the health center itself, which is roughly approaching a third, or easily a fourth of that employment number, is significant to say the least for Oklahoma City and central Oklahoma," said Hershel Lamirand, executive director of the Oklahoma Health Center Foundation. "It's incredible the pulling power this complex has."
The study included health care employment and capital spending, medical and biotech research and education to establish the employment and economic impact totals. It also highlighted more than $565 million in ongoing or planned construction projects.
"It is a considerable figure and indicates how great it is," said Michael Anderson, president of the Presbyterian Health Foundation.
The Foundation has just started construction on a 155,000-square-foot, five-story building at its Presbyterian Health Foundation Research Park -- the seventh building on its campus -- that is part of $78 million in construction that includes a second multistory parking garage.
At the University of Oklahoma Health Sciences Center, more than $160 million in construction is planned or under way, including a cancer center and a diabetes center.
"Recent and planned construction at the OU Health Sciences Center campus show our dedication and commitment in allowing our scientists and researchers to continue their world-class work in cancer, genomics, molecular biology and more," said Dr. Joseph Ferretti, senior vice president and provost of the Health Sciences Center.
A big chunk of the capital spending number included in the study is the $220 million renovation and construction under way on the St. Anthony Hospital Campus near downtown.
The chamber defines the Greater Oklahoma City region as an 11-county area that includes Canadian, Carter, Cleveland, Grady, Kingfisher, Lincoln, Logan, McClain, Oklahoma, Payne and Pottawatomie counties.
By Jim Stafford
The Oklahoman
Up to 90,000 jobs relate to this booming industry
The economic engine that is the booming bioscience industry is creating a $3.4 billion annual impact on the Oklahoma City area economy, according to a study released Tuesday by the Greater Oklahoma City Chamber of Commerce.
The direct economic impact of bioscience jobs is $1.95 billion, said the study's authors, economists Robert C. Dauffenbach and John McCraw of the University of Oklahoma, and Larkin Warner of Oklahoma State University.
The study found that 44,500 people are directly employed in the area bioscience industry, with total employment, including spin-off jobs, generated by the industry exceeding 90,000. The study included every field of bioscience from hospitals and health care to medical education, laboratories and research.
"A lot of these (jobs) are hospital-related, that's certainly true, but it's also the case that when you are looking at that kind of job number, you are getting up there in pretty high realms," Dauffenbach said. "It's a growing area and more and more investments are being put into that area."
The study revealed that the biosciences industry employs more people in the area than even the aerospace industry. A similar chamber study released in August showed that 38,000 people are employed in some aspect of aerospace, including 26,000 at Tinker Air Force Base, said Roy Williams, chamber president.
"If you compare industry cluster to industry cluster, this (biosciences) is a bigger cluster," Williams said. "But it's very, very close both in terms of numbers and as well as in terms of economic impact."
The chamber hired the Battelle Institute last year to create a "road map" to build the life sciences industry in state, and the study released Tuesday helps to quantify the industry for economic development officials, Williams said.
"The main thing is it helps us understand it, so that when we go out and talk to other bioscience businesses, we speak their language and understand what they are looking for and what we have in that area," he said.
The Battelle report identified about 14 different actions economic development officers should take to grow the industry, including funding the Governor's EDGE endowment and creating an opportunity fund for business startups. Leaders should use the chamber study as a starting point, said Dr. Stephen Prescott, president of the Oklahoma Medical Research Foundation.
"These numbers are great, but we shouldn't look at them as an end point," Prescott said. "There's a big push in this area on all fronts -- the Governor's EDGE plan, the Presbyterian Health Foundation Research Park, the Chamber's bioscience initiative, increased funding for the Oklahoma Center for Advancement of Science and Technology, and the capital projects that emerged from this legislative session.
"As long as we keep investing in bioscience infrastructure, our economic impact figures should continue to grow."
Much of the economic power of the area's biosciences is clustered in the area of the Oklahoma Health Science Center, which is home to the OMRF, the University of Oklahoma Health Sciences Center and its medical school and affiliated hospitals, as well as the Presbyterian Health Foundation Research Park.
"The concentration we have right here at just the health center itself, which is roughly approaching a third, or easily a fourth of that employment number, is significant to say the least for Oklahoma City and central Oklahoma," said Hershel Lamirand, executive director of the Oklahoma Health Center Foundation. "It's incredible the pulling power this complex has."
The study included health care employment and capital spending, medical and biotech research and education to establish the employment and economic impact totals. It also highlighted more than $565 million in ongoing or planned construction projects.
"It is a considerable figure and indicates how great it is," said Michael Anderson, president of the Presbyterian Health Foundation.
The Foundation has just started construction on a 155,000-square-foot, five-story building at its Presbyterian Health Foundation Research Park -- the seventh building on its campus -- that is part of $78 million in construction that includes a second multistory parking garage.
At the University of Oklahoma Health Sciences Center, more than $160 million in construction is planned or under way, including a cancer center and a diabetes center.
"Recent and planned construction at the OU Health Sciences Center campus show our dedication and commitment in allowing our scientists and researchers to continue their world-class work in cancer, genomics, molecular biology and more," said Dr. Joseph Ferretti, senior vice president and provost of the Health Sciences Center.
A big chunk of the capital spending number included in the study is the $220 million renovation and construction under way on the St. Anthony Hospital Campus near downtown.
The chamber defines the Greater Oklahoma City region as an 11-county area that includes Canadian, Carter, Cleveland, Grady, Kingfisher, Lincoln, Logan, McClain, Oklahoma, Payne and Pottawatomie counties.