{"id":16655,"date":"2024-11-20T09:00:47","date_gmt":"2024-11-20T08:00:47","guid":{"rendered":"https:\/\/www.ifpma.org\/?post_type=news&p=16655"},"modified":"2024-11-20T11:05:01","modified_gmt":"2024-11-20T10:05:01","slug":"new-study-demonstrates-the-economic-impact-of-the-global-pharmaceutical-industry","status":"publish","type":"news","link":"https:\/\/www.ifpma.org\/news\/new-study-demonstrates-the-economic-impact-of-the-global-pharmaceutical-industry\/","title":{"rendered":"New study demonstrates the economic impact of the global pharmaceutical industry"},"content":{"rendered":"

New data<\/a> sets out the economic impacts of the global pharmaceutical industry, focusing on contributions to Gross Domestic Product (GDP), job creation, and research and development (R&D) activities.<\/p>\n

The analysis was carried out by the independent economic research institute WifOR, commissioned by IFPMA<\/a>. IFPMA represents the innovative pharmaceutical industry at the international level, engaging in official relations with the United Nations and multilateral organizations.<\/p>\n

Key insights from the report include:<\/p>\n

Employment<\/strong>: In 2022, the industry facilitated the creation of approximately 74.9 million jobs, both directly and through spillover effects[1]<\/a>. Of these, 7.8 million people were directly employed by the industry, 44.7 million jobs were supported indirectly, and 22.4 million jobs supported through induced effects in the supply chain. These figures highlight the sector’s crucial role in managing supply chain operations to supply pharmaceuticals to the healthcare sector and patients worldwide.<\/p>\n

Economic contribution<\/strong>: In 2022, the pharmaceutical industry contributed USD 2,295 billion to the global GDP, including direct and spillover effects. The direct contribution amounts to USD 755 billion, which is equivalent to 0.7% of the estimated global GDP in the same year, or about the GDP of Switzerland in 2022.<\/p>\n

R&D<\/strong>: In 2022, the pharmaceutical sector\u2019s R&D activities alone added USD 227 billion to global GDP in 2022, 30% of its direct contribution to the world economy. Its R&D activities directly employed 1.1 million people globally, reflecting a 175% increase since 2014 and illustrating the magnitude of the sector\u2019s investment in R&D. The people engaged in R&D activities are highly trained researchers, specialists with a high-level of technical expertise and training, and other supporting staff who contribute directly to carrying out R&D projects and activities.<\/p>\n

The data does not take into account the additional economic benefits that medicines and vaccines provide as a result of the improving and safeguarding public health.<\/p>\n

With the anticipated rise of chronic diseases, an aging world population, diseases exacerbated by climate change and growing incidence of novel viral diseases and antimicrobial resistance, there is a greater need to consider healthcare as an investment by countries all around the world. Health investments create value through positive returns for the health sector, the economy, employment, and, overall, for the wealth of society.<\/p>\n

Access the full report \u201cThe Economic Impact of the Global Pharmaceutical Industry\u201d here<\/a>.<\/p>\n

Commenting on the report, Prof. Dr. Dennis A. Ostwald, founder & CEO of WifOR, said: <\/strong><\/p>\n

\u201cOur analysis shows that the pharmaceutical industry contributed USD 2,295 billion to GDP in 2022, an overall increase of 25% compared to 2017. For every job supported directly by the pharmaceutical industry\u2019s activities, an additional 8.54 jobs were supported along the global supply chain. This illustrates the sector’s critical role in managing complex supply chain operations involving numerous providers of materials, equipment, and services to supply biopharmaceutical products to the healthcare sector\u201d.<\/em><\/p>\n

Commenting on the report, IFPMA Director General, Dr. David Reddy said:<\/strong><\/p>\n

\u201cPharmaceutical companies are bringing new medicines and vaccines to people around the world, helping to transform lives, support healthcare systems and boost economic growth. \u00a0<\/em><\/p>\n

\u201cToday\u2019s data from WifOR shines a light on the industry\u2019s economic impact, highlighting that in 2022 pharmaceutical companies directly employed 7.8 million people globally, and supported 44.7 million jobs indirectly, and 22.4 million jobs through induced effects in the supply chain. Industry R&D activities directly employed over 1 million people and contributed a GDP of over USD 227 billion.<\/em><\/p>\n

\u201cThrough its robust investment in R&D, the industry not only enhances healthcare outcomes worldwide but also fosters high-skilled employment. As governments around the world face significant economic, health and societal challenges, our industry is committed to bringing our expertise and experience to overcome them\u201d. <\/em><\/p>\n

[1]<\/a> Spillover effects include employment enabled along the global value chains and induced by household income spent in the wider economy.<\/p>\n","protected":false},"excerpt":{"rendered":"

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