PHOENIX–(BUSINESS WIRE)–#ASU–Arizona continues to outpace the nation in several key bioscience industry and innovation ecosystem metrics, including gains in jobs and academic R&D expenditures. Still, challenges remain in the areas of commercialization and venture capital deal activity.
Those are top-line findings in the latest data analysis commissioned by the Flinn Foundation to track the state’s bioscience industry. Since the Foundation launched Arizona’s Bioscience Roadmap in 2002, performance metrics have been tracked and shared publicly by a third-party consultant. The latest analysis by TEConomy Partners was released April 23 during an online event.
The Roadmap is the longest-running statewide bioscience strategic plan in the nation. It serves as a blueprint for one of the most significant economic drivers in the state.
“Arizona’s bioscience sector is on a roll. The metrics show we are growing fast and gaining ground nationally,” said Tammy McLeod, Ph.D., Flinn Foundation president and CEO. “With world-class talent across research, entrepreneurship, education, and health care, we are confident that Arizona will have improved health outcomes and quality of life for years to come.”
Among the findings are:
- Arizona’s most recent bioscience job growth rate from 2020-2023 (8.1%) was higher than the nation’s (6.7%). Non-hospital jobs—about 40,000 of the state’s total 144,000 bio jobs—grew far faster, up 19% over the same period.
- In 2023, bio workers’ average annual wages were $20,000 above Arizona’s private-sector average. The average wage was $87,000 compared to $67,000. Bio wage growth of 15% generally matched the national rate.
- Arizona received $368 million in grants from the National Institutes of Health in 2024, a new annual record for the key metric of biomedical research funding. Arizona’s growth rate was about four times faster than the U.S. from 2020-24. Arizona’s share of national funding inched up slightly to a record .99%, just shy of the 1% target.
- Arizona’s research universities spun out 14 bioscience firms in 2024, two more than the year before. Still, the number was short of 2021’s high of 27.
- Venture capital funding for bioscience companies in the state totaled $289 million in 2024, the highest number since 2021’s $291 million. The 50 deals, however, continued a downward trend from 2021’s high of 71, mirroring national trends.
- In 2023, bioscience-related R&D spending at state universities exceeded $800 million for the first time. At 30%, the R&D growth rate at Arizona universities outpaced that for the nation (25%) from 2020-2023.
“Arizona’s research community continues to play a vital role in the overall growth of the state’s bioscience sector and innovation ecosystem, with a record high in federal NIH funding and a rate of increase that outpaces the nation, a sure sign of competitiveness,” said Ryan Helwig, TEConomy Partners principal and senior director. “The biosciences have been a significant economic driver in Arizona for more than 20 years and it’s encouraging to see the tangible outcomes in so many areas of steady, long-term commitment.”
The report is the final set of data that will be tracked from the current Roadmap. The Flinn Foundation has commissioned SRI International of Menlo Park, California, to draft a new plan that will launch this fall. The initiative continues to be guided by Arizona’s Bioscience Roadmap Steering Committee, which includes leaders from the public and private sectors in science, healthcare, business, academia, and policy.
About the Flinn Foundation
The Flinn Foundation is a Phoenix-based privately endowed, philanthropic grantmaking organization established in 1965 by Dr. Robert S. and Irene P. Flinn that awards grants and operates programs in four areas: the biosciences, the Flinn Scholars, arts and culture, and the Arizona Center for Civic Leadership. The foundation’s mission is to improve the quality of life in Arizona to benefit future generations. The foundation’s focus on health care and medical research stems from the career of Robert Flinn, a cardiologist who practiced in Phoenix and provided leadership across Arizona’s medical community.
Contacts
Stacy Sullivan, Flinn Foundation Vice President, Communications, (602) 320-1762, [email protected]
Brian Powell, Flinn Foundation Communications Manager, (602) 744-6806, [email protected]
