- Posted Monday January 16, 2012
TGen's economic impact, job creation and state tax revenues continue climb, outpacing previous estimates, new study shows
Biomedical breakthroughs by TGen help patients, create jobs,
forge new businesses and propel Arizona's emerging knowledge-based
PHOENIX, Ariz. - Dec. 16, 2011 - The Translational Genomics Research Institute (TGen) provides Arizona with a total annual economic impact of $137.7 million, according to the results of an independent analysis released today.
The new report finds that TGen operations in 2010 produced $14.40 for every $1 invested by the State of Arizona, supported 737 full-time jobs (directly and indirectly), generated $4.8 million in state tax revenues, and produced a direct annual economic impact of $79.2 million.
When the impact of TGen-generated business spin-offs and commercialization are included, the study shows, TGen in 2010 produced $25.04 for ever $1 invested, supported 1,124 jobs, generated $10.1 million in state tax revenues, and $137.7 million in total annual economic impact.
"TGen has become a cornerstone of Arizona's biomedical industry, continuing to add great value to the state and thriving despite challenging economic conditions," said Bill Post, recently retired Chairman and CEO of Pinnacle West Capital Corp. and recently appointed Chairman of the TGen Board of Directors.
Dr. Jeffrey Trent, TGen's President and Research Director, said the new report shows that, "Through our multiple partnerships in healthcare, the private sector and Arizona's universities, we have leveraged funding for cancer, neurologic, metabolic and infectious-disease research, providing direct benefit to patients while adding new jobs and tax revenues to Arizona."
TGen in 2010 outpaced previous performance marks and projections observed by Tripp Umbach in 2006 and 2008 assessments.
"This report underscores the ongoing economic, employment and tax generation power of TGen on the Arizona economy," said Paul Umbach, President of Pittsburgh-based Tripp Umbach, a national leader in economic forecasting. "Again this year, TGen's annual economic impact exceeds earlier expectations as TGen quickly becomes one of the nation's more successful economic engines in the biomedical sector."
The report shows that TGen is helping grow the state's knowledge-based economy - attracting out-of-state research investments, intellectual collaborations and world-class researchers - all while making significant strides in scientific research and providing life-changing results for patients.
By 2015, Tripp Umbach predicts, TGen operations will return $25.62 for every $1 invested by Arizona, result in 1,865 jobs, generate $11.5 million in state tax revenues, and produce an annual economic impact of $140.9 million.
When TGen-generated business spin-offs and commercialization are included, the study shows, TGen in 2015 will produce $47.06 for every $1 of state investment, support 3,723 jobs, result in $21.1 million in state tax revenues, and have a total annual economic impact of $258.8 million.
And by 2025, the report says, TGen operations will return $45.62 for every $1 invested by the state, resulting in 3,731 jobs, $23.8 million in state taxes, and producing an annual economic impact of $250.9 million.
Including projected business spin-offs and commercialization, the report said, TGen in 2025 would return $103.98 for every $1 invested by the state, support 6,585 jobs, generate $48.8 million in taxes, and produce a total annual economic impact of $571.9 million.
Tripp Umbach concludes in its most recent report that "to continue to accelerate TGen's growth and the growth of Arizona's bioscience/biomedical sector, TGen would benefit from continue support from the State of Arizona."
Michael Bidwill, recent past Chairman of the influential Greater Phoenix Economic Council and President of the NFL's Arizona Cardinals, said, "TGen is one of this state's premier medical research and economic assets, and is a standard-bearer for promoting everything that is positive and forward-looking about Arizona."
About Tripp Umbach's TGen study
To calculate the economic impact of TGen and research commercialization in Arizona, Tripp Umbach used a methodology derived from a 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.
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