TGen reports $174 million economic impact on Arizona
Translational Genomics Research Institute (TGen) annual economic impact on Arizona has risen eight-fold over 8 years, reaching a total of $174 million annually, according to an independent financial report released Wednesday.
Independent auditing firm Tripp Umbach of Pittsburgh’s report shows that TGen is responsible for $8.7 million is annual tax revenues to the state’s general fund, exceeding its historic two to one return on investment.
TGen has crated more than 1,400 jobs, and provides Arizona $46.50 for every $1 that the state invests, according to the report.
“As the anchor for the Phoenix Biomedical Campus, TGen is a vital economic engine that provides a significant return on investment to the State of Arizona,” said Gov. Doug Ducey.
One of the most important findings in the new report from Tripp Umbach is that, even in an increasingly competitive funding environment, TGen’s economic impact has increased significantly since 2010.
The total annual operational economic impact of TGen grew to $174 million in 2014, from $137 million in 2010, an increase of more than 27 percent. Meantime, research funding from the National Institutes of Health (NIH) is an estimated 25 percent less in 2014, than in 2003, when converted to constant dollars.
This analysis of TGen’s economic impact for 2014, the last full fiscal year, is the fourth conducted for TGen by Tripp Umbach. Others were completed for fiscal years 2006, 2009, and 2011.
The $174 million in total annual economic impact is eight times what it was ($21.7 million) in 2006.
“Despite the recent economic environment, government budget limitations and increased competition for research grants, TGen has managed to produce and grow a highly significant economic return for Arizona,” said Tess Burleson, TGen Chief Operating Officer.
TGen continues to pursue new standars for medical care, leading to health and wellness as well as an economic impact, said Dr. Jeffrey Trent, TGen president and research director.
“TGen is a global leader in genomics research, generating both economic, social, scientific and health benefits for Arizona,” said William J. Post, TGen board chair and former Chair of Arizona Public Service Co. and Pinnacle West Capital Corporation. “TGen is recognized both nationally and internationally, bringing global distinction to Arizona’s bioscience industry.”
According to the report, the combined economic impact of TGen’s operations, the commercialization of research conducted through TGen partnerships, and the operations of TGen-related business spin-offs, represents a significant contribution to Arizona’s economy.
TGen creates “highly-compensated, knowledge-based” jobs, according to the report, directly and indirectly generating full-time employment for 664 Arizona residents. Including the employment from spin-off companies TGen was responsible for more Arizona jobs in 2014 (1,428), than in 2010 (1,124).
Tax revenues for the State of Arizona generated annually by TGen and its spin-off companies grew to $8.7 million in 2014, from $6.9 million in 2010, an increase of more than 26 percent. This return exceeds historic levels from past economic analyses and represents a positive return to the general fund for the State of Arizona.
TGen has developed a national, and international, reputation for its pioneering work and is emulated broadly across the personalized medicine field.
Because of TGen, Arizona is recognized as a desirable location for biomedical investment. Multiple companies have formed as a result of the commercialization of research performed at TGen, generating additional economic and employment impacts for the state.
To continue these positive returns, the report concludes that it would benefit the Arizona to continue support of TGen, as the institute leads the translational research industry and the application of genomics to patient care.
“It is a testament to the value and resilience of TGen that its economic and employment impacts have grown, even in an increasingly competitive environment,” said Todd Sanders, President and CEO of the Greater Phoenix Chamber of Commerce, which awarded TGen with its 2014 Economic Driver IMPACT Award. “As a home-grown enterprise, TGen is a vital catalyst for Arizona’s continuing transformation as a national center for biomedical innovations, and deserves continued support by the state.”