Economic Impact

The Biopharmaceutical Industry Boosts the U.S. Economy

The men and women of America’s biopharmaceutical sector strive every day to discover, develop and deliver innovative medicines. This research and innovation results in high-wage jobs, significant tax revenues and growing economic outputs for local communities, as well as ensuring that patients across the country and around the world are benefiting from the latest treatments and cures.

According to a 2022 report prepared by TEConomy Partners, LLC for PhRMA, biopharmaceutical companies and their supply chains play key roles in supporting local economies and a wide range of jobs in every state across the country. In fact, nearly every state is involved in the manufacturing of FDA-approved medicines, with more than 900,000 workers directly employed in the U.S. biopharmaceutical industry in 2020.

Explore all fact sheets at the Industry Economic Impact page for the entire U.S., the 50 states, the District of Columbia, and Puerto Rico on this map.

Download the full report on the 2020 Economic Impact of the U.S. Biopharmaceutical Industry below.

Creating jobs

The U.S. biopharmaceutical sector directly employs more than 900,000 workers and supports a total of nearly 4.5 million jobs across the country.

The industry supports a vibrant scientific and economic ecosystem that is vital to the U.S. economy and our country’s competitiveness in the global market. Biopharmaceutical companies put down roots in communities across United States, helping to generate jobs across a broad and diverse supply chain – from suppliers to retail to transportation.

The jobs created by the industry boast high wages and require a workforce with diverse skills and educational levels, from Ph.D. scientists to entry-level technicians, to support staff of all kinds. In 2020, employees in direct biopharmaceutical sector jobs earned an average annual compensation of $145,328, which was more than twice the average $65,171 for all U.S. jobs.

Overall Economic Contribution

The biopharmaceutical sector’s economic output, which represents the value of the goods and services produced by the sector, totaled more than $1.4 trillion in the U.S. in 2020. This activity helped generate more than $76 billion in federal, state and local personal tax revenue — including more than $10 billion in state and local personal tax revenues and over $66 billion in federal personal tax revenues in 2020.

Although just a snapshot of the sector’s total impact, these findings demonstrate the importance of a strong and vibrant biopharmaceutical industry in helping other businesses grow and contributing to robust local and national economies.