Michigan’s Bio-industry a $55.72 Billion Economic Driver

Newly released assessment shows Michigan’s life sciences industry grew by impressive numbers and retains a lead ranking nationally in several key cluster areas.

Michigan, a state with a sizable biosciences cluster with a rich legacy of life science innovation now boasts of 3,319 establishments and 47,815 individuals directly employed across the state. Coupled with an average wage of $110,204, the cluster’s total economic impact grew by 24% to $55.72 billion. What an astounding achievement!

The data comes from Biotechnology Innovation Organization (BIO) and TEConomy, in partnership with the Council of State Bioscience Associations (CSBA, of which MichBio is an affiliate) that issued its biennial report, The U.S. Bioscience Economy: Driving Economic Growth and Opportunity in States and Regions in early December 2024. The analysis provides a comprehensive national and state-level data on the U.S. bioscience industry’s economic performance, its impacts, and its geographic footprint.

Some key highlights of Michigan’s life science cluster growth found in the state-specific profile:

• 7.8% job growth since 2022, and 12.2% increase from 2019.
• 26.8% growth in establishments since 2022 (and 61.9% change from 2019).
• 8% increase in average annual wage compared to 2022 (a 14.3% change from 2019); 66% higher than the private sector average in Michigan.
• 10th largest nationally in bioscience research expenditures
• $991.1 million in FY2023 NIH funding; a 20.2% increase since 2019
• 5th and 9th largest medical device sector nationally based on # establishments and employment, respectively (a 36.8% and 9.6% increase correspondingly over 2022)
• 6th and 10th largest biopharmaceutical sector nationally based on # establishments and employment, respectively (a 65.8% and 14.7% increase correspondingly over 2022)
• 9th largest nationally in # of establishment comprising the agri-biosciences (i.e., bioeconomy) sector
• #1 biopharmaceutical and medical device Medium Metropolitan Statistical Area (MSA) – Kalamazoo

“The new data reflects a robust expansion of Michigan’s biosciences cluster likely due to both organic growth at established companies, along with a surge in new company formation and technology commercialization,” said Stephen Rapundalo, PhD, President and CEO, MichBio. “It all starts with our world-class research universities where new discoveries are the substrate for new innovation and product development across the medtech, pharma, healthtech and agri-biotech sectors.”

Dr. Rapundalo further noted that “while the overall news bodes well for the statewide life sciences industry, it’s imperative that Michigan continue to develop resources and programs that can fuel the cluster’s future growth while providing good paying jobs for Michigan’s STEM talent. There is significant interest nationally in building regional life science hubs and Michigan must do everything possible to remain competitive.”