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- Posted Tuesday September 29, 2009
TGen provides Arizona with $77 million in annual economic impact; $321 million predicted by 2025 – new study shows
Biomedical breakthroughs by TGen help patients, create jobs,
forge new businesses and propel Arizona's emerging knowledge-based
economy
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)
2008 - $8.09
2015 - $15.50
2025 - $30.20
TGen Jobs in Arizona
2008 - 461
2015 - 1,166
2025 - 2,332
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
2008 - $14.07
2015 - $26.44
2025 - $58.42
TGen-generated Jobs in Arizona
2008 - 703
2015 - 2,327
2025 - 4,116
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
*
About Tripp Umbach's 2009 TGen study
To calculate the economic impact of TGen and research
commercialization in Arizona, Tripp Umbach used a methodology
derived from the original set of research tools and techniques
developed for the American Council on Education (ACE). The
ACE-based methodology employs linear cash flow modeling to track
the flow of institution-originated funds through a delineated
spatial area. In addition, Tripp Umbach used a forward-linkage
modeling methodology to measure the potential impact of TGen and
research commercialization in Arizona. Tripp Umbach also used
IMPLAN analysis to calculate TGen's current economic impact.
The data presented in this report represent annual, point-in-time
economic snapshots of TGen's impact on the Arizona economy.
# # #
About TGen
The Translational Genomics Research Institute (TGen) is a
Phoenix-based, non-profit organization dedicated to conducting
groundbreaking research with life changing results. Research at
TGen is focused on helping patients with diseases such as cancer,
neurological disorders and diabetes. TGen is on the cutting edge of
translational research where investigators are able to unravel the
genetic components of common and complex diseases. Working with
collaborators in the scientific and medical communities, TGen
believes it can make a substantial contribution to the efficiency
and effectiveness of the translational process. For more
information, visit: www.tgen.org.
Press Contact:
Steve Yozwiak
TGen Senior Science Writer
602-343-8704
[email protected]
