The productivity of the UK’s Life Sciences sector is more than double the UK average, says a new report launched today [6 March].
The PwC report, 'The Economic contribution of the UK Life Sciences industry', commissioned by the Association of the British Pharmaceutical Industry (ABPI) and supported by the Association of the British Healthcare Industry (ABHI), the BioIndustry Association (BIA), and the British In Vitro Diagnostics Association (BIVDA), shows that the average productivity of UK Life Sciences employees, expressed as Gross Value Added (GVA), is £104,000 compared to the UK GVA average of £49,000.
Other key findings include:
- UK Life Sciences contributed £30.7bn to the economy in 2015, providing an estimated tax contribution of £8.6bn to the exchequer
- Each Life Sciences job supports 2.5 jobs elsewhere in the UK economy, meaning the sector supports a total of 482,000 jobs
- Jobs are distributed throughout the UK, with every region containing a UK head office of a Life Sciences firm
- Major clusters of Life Sciences activity can be found in East Anglia, Wales, and the South East of England.
Dr Virginia Acha, ABPI Executive Director – Research, Medical and Innovation, said:
"The Life Sciences sector has been recognised by the Prime Minister as being of strategic importance for the UK. In both the UK and global healthcare markets, the sector plays a vital role in helping to tackle long-term health challenges. This report reflects, for the first-time, how our sector also plays a vital role in contributing to the UK economy.
The UK's productivity problem is well-known, and whether in advanced medicines manufacturing, med-tech or world-leading biopharma R&D, this report emphasises the true value UK Life Sciences has to offer. If we are serious about improving our productivity, increasing public and private investment in science and innovation across the UK will be a fundamental piece of the puzzle."
Jo Pisani, Partner at PwC and author of the report, said:
"PwC are pleased to support the UK Life Sciences Industry by producing this important report. The sector is a major contributor to employment, taxes and GDP – providing high skilled and highly productive jobs across the UK."