It’s well understood that without clinical trials there wouldn’t be all the groundbreaking innovative, life-saving drugs that patients rely on, but less understood is their significant economic impact across the United States. New research by TEConomy Partners, in concert with PhRMA, quantifies the impact of clinical trials across all 50 states, Puerto Rico and the District of Columbia.
The biopharmaceutical industry drives innovation and economic growth in the U.S. and globally. It creates jobs for skilled workers and sustains the economy. Robust pro-innovation policies, including strong intellectual property protections, a well-functioning regulatory system, and support for research and development, are essential for this growth.
In 2023 alone, the biopharmaceutical industry sponsored nearly 5,300 clinical trials of medicines in the U.S., involving over 900,000 participants.
Here are some key findings:
- The biopharmaceutical industry spent more than $30 billion directly in clinical trial sites across the U.S. in 2023. These amounts are in addition to the significant resources invested in clinical trial-related activities occurring outside the individual trial sites.
- In total, biopharmaceutical company investments in U.S. clinical trial sites generated more than $62 billion in economic activity in communities throughout the U.S. This includes the ripple effect of expenditures by clinical trial vendors and contractors, such as clinical research organizations, and direct spending by industry and vendor employees.
The 2025 clinical trials study also examines the economic impact of industry-sponsored clinical trials by phase and disease area. Notably, the report captures the economic impact of post-approval research, which may include pursuing new uses or indications for an approved medicine, new formulations or dosage forms, or even new patient populations. These numbers provide additional heft to the importance of follow-on research, particularly given prior research showing that more than half of all approved uses for medicines were based on trials conducted after a medicine’s initial approval.
Zoom in on the states:
- States with the highest economic impact from industry-funded clinical trials in 2023 include:
- Florida: $8.3 billion (2,198 active trials)
- Texas: $7.7 billion (2,508 active trials)
- California: $7.1 billion (2,695 active trials)
- New York: $3.1 billion (1,932 active trials)
- Ohio: $2.3 billion (1,475 active trials)
This report focuses solely on investments made at clinical trial sites and does not capture all trial-wide work that occurs across sites, including trial design, coordination and data analysis, nor does it capture the substantial investments companies make every year in basic and preclinical research before projects even get to the clinical testing phase. These activities only add to the positive economic impact of clinical trials.
While clinical trials are essential for advancing numerous life-saving medications that benefit patients, we can’t ignore their substantial contributions to the U.S. economy.
The new report underscores findings from another recent analysis from TEConomy Partners that focused on biopharmaceutical companies and their U.S. supply chains, showing that the industry is a key contributor in supporting jobs and local economies across the country. The analysis found that biopharmaceutical manufacturers:
- Contributed over $1.65 trillion directly and through supplier activities to the U.S. economy in 2022. Exceeds $800 billion in direct output in 2022.
- Supported nearly 5 million American jobs.
To learn more about the importance of clinical trials, click here.
Reid Porter
Reid Porter is senior director of public affairs at PhRMA, where he focuses on key policy priorities, member engagement and state media relations. He brings over two decades of experience leading communications and managing complex issues across the biopharmaceutical, technology and energy sectors. Porter holds a B.A. from Middlebury College, where he double‑majored in English and Spanish, and a graduate certificate in Publishing from Columbia University. Outside of work, he enjoys writing, traveling, cheering for the Green Bay Packers, playing and watching soccer, playing the violin, rereading Hemingway novels and spending time with family.
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Clinical Trials
Economic Impact
Supply Chain
New research: Industry sponsored clinical trials contribute billions to state economies
Image of beakers and flasks on lab bench