Biotech innovation provides better-than-average salaries and pumps hundreds of billions of dollars into the U.S. economy annually—and the societal benefits of this innovation can be measured in hundreds of trillions, according to recent research.
Industries based on intellectual property, including biotech, are responsible for $11.4 trillion in U.S. gross domestic product, or 44% of total private sector GDP, according to a report released by the U.S. Patent and Trademark Office (USPTO) on Aug. 3. Out of this total, pharmaceuticals contributed $247 billion to the U.S. GDP in 2024, the report says.
When looking at the broader societal value of biotech, the impact is much greater, according to a recent analysis produced by a University of Chicago economist for the U.S. Chamber of Commerce.
“Medical innovations in four disease areas: HIV, heart disease, breast cancer, and obesity generated $167.5 trillion in societal value over a 30-year horizon across all four disease areas,” the U.S. Chamber report finds.
The importance of patents to biotech
The USPTO report highlights the importance of patents to the overall U.S. economy, with patent-reliant industries providing 65.8 million jobs, or 44% of total private sector jobs. These are also better-paying jobs, “with average weekly earnings 53% higher than those received by workers in other industries,” USPTO says.
Pharmaceuticals rely on several types of IP, according to the report, including utility patents, design patents, and trademarks.
The biopharma sector is one of the most research-intensive industries, which means IP provides its value. When a biotech firm sells investors on the promise of an innovative new drug, what they are really selling is IP developed through research. That’s why biotech firms need a strong patent system to safeguard their IP. Research has shown that venture capital funding for life sciences startups plummeted after legal changes weakened the patent system.
Given the importance of IP to biotech, the Biotechnology Innovation Organization (BIO) advocates policy to strengthen patent protections. BIO continues to expand its efforts in this area, working on Capitol Hill, through courts, and in international fora, with initiatives like BIO’s IP Task Force.
The importance of biotech to society
Beyond providing jobs, biotech provides treatments that patients need. The U.S. Chamber of Commerce report looks at the social benefits of medical innovation and assesses the monetary value of “saving lives, extending lifespans, and driving economic growth through increased productivity and tax revenue.”
The study analyzes the period 30 years after the introduction of breakthrough therapies for HIV (1995–2024), heart disease (1986–2024), and breast cancer (1991–2020), and projects the benefits of obesity drugs (2021–2050).
“HIV patients who would have died within two years in 1995 now live full lifespans—an average of 40 additional years,” says a summary of the report. It notes that heart disease and breast cancer patients are living years longer. It projects that “new obesity treatments are poised to add nearly a year of life while dramatically reducing the chronic disease burden that has plagued millions of Americans.”
Based on these findings, “every dollar invested in medical R&D has returned 27 dollars in societal value—demonstrating that innovation is an investment, not a cost,” according to the U.S. Chamber.
As these studies underline, biotech’s productive output, job creation, and additional years of healthy living provide huge benefits for America’s economy and society.
