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- Posted Wednesday December 6, 2006
Economic Impact Study Reveals TGen Provides Solid Return on Investment to Arizona
By 2025, TGen expects to generate the following for the State of Arizona:
$202.4 million in annual total economic impact
3,125 total jobs
$16.6 million in total tax revenue
Phoenix, AZ, December 6, 2006 -- The Board of Directors of the Translational Genomics Research Institute's (TGen) Foundation today released the results from an independent comprehensive economic impact study highlighting the institute's current and projected economic impact in the State of Arizona. The report, prepared by Tripp Umbach, a national leader in providing economic impact forecasts, shows a significant return on investment of state funds in terms of TGen's operations. The findings in the report are based on the 2002 - FY 2006 fiscal years and show that today TGen returns more than $21 million of it's total operational expenses to the state's economy, or $3.95 for every dollar of state-invested funding.
"The results of this study are quite gratifying," said Bennett Dorrance, chairman of the TGen Foundation Board. "As TGen continues to expand its reach and influence in the biomedical sciences, we expect its economic impact to increase accordingly. This is good news for the return to the City and State in terms of economic impact and also for those individuals who wish to see a solid return on their philanthropic contributions."
TGen has become in less than four years an important generator of economic expansion and employment.
Paul Umbach, national expert and Tripp Umbach President, stated that having completed nearly one thousand studies for more than 150 clients, TGen has gone further, faster in achieving positive economic impact than any other research organization studied.
Beyond the solid current performance and economic impact associated with TGen's operations, the projected future impact includes commercial application of research and TGen's ability to leverage its state funding through strategic statewide collaborations in the educational, biomedical and bioscience sectors.
"The nearly four-to-one return we presently achieve on the State's investment, coupled with exceedingly favorable future projections, portrays the value proposition TGen offers the state, both in terms of economic advantage as well as the impact our research will have on generations of Arizonans to come," said Dr. Jeffrey Trent, TGen's president and scientific director.
Summary of Findings
The study reports that TGen's economic impact on the state includes
the following:
Currently, TGen generates the following for the State of Arizona: $21.7 million in annual total economic impact, 220 total jobs, and $1.9 million in total tax revenue.
Through FY 2006, there was a strong return on the State's $5.5 million non-general fund investment in terms of the operational impact of TGen, resulting in $3.95 for every $1.00 invested.
Based on Tripp Umbach data, $68,000 is the average economic impact per employee in the health science sector nationally. Tripp Umbach places TGen's economic impact per employee at greater than 38 percent the national average resulting from TGen's ability to recruit and retain a more highly skilled and better-paid workforce.
A Look Ahead
In addition to current projections, the report also calculates the
potential impact of research commercialization in Arizona resulting
from the interaction of the broader biotechnology research and
business community and the presence of TGen for the years 2010,
2015 and 2025. The combined economic impact of TGen's operational
impact and research commercialization impacts could represent
significant returns to the state of Arizona, including:
2010 Impact
By 2010, TGen's operations and TGen-led commercial research are expected to generate the following for the State of Arizona: $60.7 million in annual total economic impact, 889 total jobs, and $6.0 million in total tax revenue.
Tripp Umbach projects that the return on investment to the
Arizona economy stemming from commercial application of research
completed from 2002-FY 2006 of TGen-led research will be between
$5.27 and $7.38 in 2010 for every $1.00 invested.
2015 Impact
By 2015, TGen and TGen-led commercial research are expected to generate the following for the State of Arizona: $114.3 million in annual total economic impact, 1,816 total jobs, and $8.5 million in total tax revenue.
Tripp Umbach projects that the return on investment to the
Arizona economy stemming from commercial application of research
completed from 2002-FY 2006 of TGen-led research will be between
$13.22 and $18.71 in 2015 for every $1.00 invested.
2025 Impact
By 2025, TGen and TGen-led commercial research are expected to generate the following for the State of Arizona: $202.4 million in annual total economic impact, 3,125 total jobs, and $16.6 million in total tax revenue.
Tripp Umbach projects that the return on investment to the
Arizona economy stemming from commercial application of research
completed from 2002-FY 2006 of TGen-led research will be between
$23.69 and $33.22 in 2025 for every $1.00 invested.
About The Study
To calculate the economic impact of TGen and research
commercialization in the State of 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 utilized a forward-linkage
modeling methodology to measure the potential impact of TGen and
research commercialization in the State of Arizona. Tripp Umbach
also utilized IMPLAN analysis to calculate TGen's current economic
impact.
Traditional economic impact studies are based on direct spending and re-spending within the economy (multiplier effect) driven from the institution itself. Forward-linkage models measure the broader impacts that occur or may occur in the economy as a result of the research and development activities of an institution - beyond the traditional direct and indirect impact. Examples of forward-linkage impacts include businesses that spin-off from research activities, to new and existing businesses, and sponsored research relationships. The data presented in this report represent annual, point-in-time economic snapshots of TGen's impact on the Arizona economy.
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About TGen
TGen is a nonprofit 501(c)(3) organization focused on developing
earlier diagnostics and smarter treatments. Translational genomics
research is a relatively new field employing innovative advances
arising from the Human Genome Project and applying them to the
development of diagnostics, prognostics and therapies for cancer,
neurological disorders, diabetes and other complex diseases. TGen's
research is based on personalized medicine. The institute plans to
accomplish its goals through robust and disease-focused
research.
Media Contact
Galen Perry
Communications Director
602.343.8423
602.377.4734 (mobile)
[email protected]
www.tgen.org
