Economic benefits of downtown Phoenix’s TGen more than doubled in 2 years
[Source: Betty Beard, Arizona Republic] — A new study shows that TGen, the downtown Phoenix-based bioscience research group, last year produced about $8 for every $1 invested by the state — more than twice its economic benefits of two years earlier. The study by the Tripp Umbach company in Pittsburgh estimates that the 2008 economic benefit reached $77.4 million, compared with $21.7 million in 2006. TGen’s economic benefits have grown because it has almost 300 employees, its research has helped create or incubate seven companies to commercialize technology, it contracts with outside businesses such as software developers, and the bulk of its $65 million annual budget comes from federal and corporate grants.
The Translational Genomics Research Institute, as it is officially known, commissioned the 2006 and 2008 studies to show that the state and public investments that created TGen in 2002 have more than paid for themselves and continue to produce results, said Jeffrey Trent, TGen president and research director. Arizona pays about $5.5 million a year into TGen, using tobacco funds earmarked for health research. Phoenix contributed the building, and the group receives substantial donations, such as $685,000 awarded by Safeway earlier this year for breast-cancer research.
Even though TGen continues to attract multimillion-dollar contracts and grants, Trent said he hopes the group can continue to receive money from the state earmarked for medical research. It expects to continue receiving the $5.5 million a year through 2012. “We are focusing on leveraging state dollars vs. replacing state dollars,” Trent said. “Bioscience was never intended to be the sole component that would change the economy in Arizona. But I think it is an important knowledge-based pillar that the state has invested in, and I think if it continues to invest, it is likely to have an economic impact.”
The Tripp Umbach report released Tuesday said that TGen operations in 2008 produced $8.09 for every $1 invested by the state, 461 direct and indirect full-time jobs, $2.7 million in state taxes and a direct annual economic benefit of $44.5 million. Adding the business spin-offs and commercialization, TGen produced about $14.07 for every $1 in state investment, $5.7 million in taxes and $77.4 million in total annual economic impact. [Note: Read the full article at Economic benefits of downtown Phoenix’s TGen more than doubled in 2 years.]
Posted on September 30, 2009, in Downtown Vitality, Education, Employment, Health Care, Office Space, Science and tagged Arizona's Bioscience Roadmap, City of Phoenix, Downtown Phoenix, Jeffrey Trent, Phoenix Biomedical Campus, State Legislature, TGen, Tripp Umbach. Bookmark the permalink. Leave a comment.