The Prince Edward Island Bioscience Cluster
Description: The Prince Edward Island Bioscience Cluster Economic Impact Analysis Prepared by: Jupia Consultants Inc. February 2020 The PEI bioscience cluster is: Now one of the most important export-led sectors of the provincial economy directly
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slide1. The Prince Edward Island Bioscience Cluster Economic Impact Analysis Prepared by: Jupia Consultants Inc.
February 2020<br>
slide2. The PEI bioscience cluster is: Now one of the most important export-led sectors of the provincial economy directly contributing $214 million in GDP in 2018. Including indirect and induced economic impacts, the total GDP contribution in 2018 rose to $282 million.<br>
slide3. The growth of PEI’s bioscience cluster in recent years Source: PEI BioAlliance. # of bioscience cluster firms* Bioscience-related employment** *Some of these firms are pre-revenue.
*Direct jobs in the firms and organizations in the cluster.<br>
slide4. Direct economic output of the PEI bioscience sector Direct economic output of the PEI bioscience sector was $405 million in 2018.
This represents an increase of 95% since 2012.<br>
slide5. The PEI bioscience sector generates employment 1,861 direct employment (full-time equivalent)
Up 72% since 2012
2,943 total employment (full-time equivalent)
1 out of every 28 workers on PEI
Direct labour income $120 million
Total labour income supported $151 million
Up 47% since 2012*
$1 out of every $23 of all employment income
on the Island in 2018
*Excluding the impact of capital expenditures as they were not modelled in the previous report<br>
slide6. The PEI bioscience cluster is: A significant contributor of tax revenue to government. Operations and capital spending by the bioscience cluster in 2018 is estimated to have generated $63.6 million worth of tax revenue* including
$25.9 million to federal government
$31.2 million to provincial government
$6.5 million to local government *The model did not estimate the impact of corporate income tax payments.<br>
slide7. Gross domestic product (GDP) of selected PEI export-focused industries ($millions) *The most recent comprehensive data on tourism industries GDP published by Statistics Canada is for 2014. It includes tourist only expenditures related to transportation, accommodations, food and beverage, recreation and related travel services.
**This does not include the communications sector which is primarily related to local telephone, Internet and television services on the Island.
Shown in current dollars for 2016 except tourism (2014) and the bioscience cluster (2018).
Source: Statistics Canada Tables 36-10-0402-01 and 24-10-0042-01.<br>
slide8. The PEI bioscience cluster is: A high-value industry employing highly skilled and well-paid workers.
The average employment income across all workers in the bioscience cluster is 44 percent higher than the average for all workers on the Island.
The bioscience cluster employs directly 2.2 percent of the provincial workforce.
With indirect and induced impacts, the sector accounts for 3.4 percent of the total - or one of every 28 workers on the Island.<br>
slide9. Average wage including overtime by selected sectors, PEI (2018) *Average wage of firms and organizations in the biosciences cluster. Other sectors, source: Statistics Canada Table 14-10-0204-01.<br>
slide10. The PEI bioscience cluster is: A top source of international exports for the PEI economy. Just 13 firms in the bioscience cluster exported over $186 million worth of products internationally in 2018, or an amount equivalent to 12 percent of the value of all international exports.<br>
slide11. The PEI bioscience cluster is: A driver of innovation. A survey of the PEI bioscience sector revealed that 26 firms spent more than $19 million on research and development in 2018. This represented an investment in R&D of more than eight percent of the firms’ revenue. These firms had 70 active patent applications and 73 granted patents as of December 31, 2018.<br>
slide12. The PEI bioscience cluster is: A magnet for international talent. Among the PEI bioscience firms surveyed in 2018, there were 26 founders from outside Canada. Forty-three percent of the 30 bioscience firms surveyed had at least one founder who was not born in Canada.<br>
slide13. The PEI bioscience cluster attracts a high proportion of newcomers Source: Statistics Canada 2016 Census. Newcomers as a share of selected sectors of the PEI workforce:<br>
slide14. The PEI bioscience cluster is: Attracting national and international investment to PEI. The surveyed bioscience firms raised $37 million in new capital in 2018. Private sector investment is up by 51% between 2015 and 2018.<br>
slide15. The future of PEI’s bioscience sector The bioscience cluster on PEI is an excellent example of collaboration leading to success.
Partners include post-secondary education, government and other research infrastructure with economic development partners such as ACOA, NRC, and Innovation PEI.
What about the future? PEI needs innovation-focused economic growth. The bioscience cluster is well positioned to drive growth in the years ahead.<br>
February 2020<br>
slide2. The PEI bioscience cluster is: Now one of the most important export-led sectors of the provincial economy directly contributing $214 million in GDP in 2018. Including indirect and induced economic impacts, the total GDP contribution in 2018 rose to $282 million.<br>
slide3. The growth of PEI’s bioscience cluster in recent years Source: PEI BioAlliance. # of bioscience cluster firms* Bioscience-related employment** *Some of these firms are pre-revenue.
*Direct jobs in the firms and organizations in the cluster.<br>
slide4. Direct economic output of the PEI bioscience sector Direct economic output of the PEI bioscience sector was $405 million in 2018.
This represents an increase of 95% since 2012.<br>
slide5. The PEI bioscience sector generates employment 1,861 direct employment (full-time equivalent)
Up 72% since 2012
2,943 total employment (full-time equivalent)
1 out of every 28 workers on PEI
Direct labour income $120 million
Total labour income supported $151 million
Up 47% since 2012*
$1 out of every $23 of all employment income
on the Island in 2018
*Excluding the impact of capital expenditures as they were not modelled in the previous report<br>
slide6. The PEI bioscience cluster is: A significant contributor of tax revenue to government. Operations and capital spending by the bioscience cluster in 2018 is estimated to have generated $63.6 million worth of tax revenue* including
$25.9 million to federal government
$31.2 million to provincial government
$6.5 million to local government *The model did not estimate the impact of corporate income tax payments.<br>
slide7. Gross domestic product (GDP) of selected PEI export-focused industries ($millions) *The most recent comprehensive data on tourism industries GDP published by Statistics Canada is for 2014. It includes tourist only expenditures related to transportation, accommodations, food and beverage, recreation and related travel services.
**This does not include the communications sector which is primarily related to local telephone, Internet and television services on the Island.
Shown in current dollars for 2016 except tourism (2014) and the bioscience cluster (2018).
Source: Statistics Canada Tables 36-10-0402-01 and 24-10-0042-01.<br>
slide8. The PEI bioscience cluster is: A high-value industry employing highly skilled and well-paid workers.
The average employment income across all workers in the bioscience cluster is 44 percent higher than the average for all workers on the Island.
The bioscience cluster employs directly 2.2 percent of the provincial workforce.
With indirect and induced impacts, the sector accounts for 3.4 percent of the total - or one of every 28 workers on the Island.<br>
slide9. Average wage including overtime by selected sectors, PEI (2018) *Average wage of firms and organizations in the biosciences cluster. Other sectors, source: Statistics Canada Table 14-10-0204-01.<br>
slide10. The PEI bioscience cluster is: A top source of international exports for the PEI economy. Just 13 firms in the bioscience cluster exported over $186 million worth of products internationally in 2018, or an amount equivalent to 12 percent of the value of all international exports.<br>
slide11. The PEI bioscience cluster is: A driver of innovation. A survey of the PEI bioscience sector revealed that 26 firms spent more than $19 million on research and development in 2018. This represented an investment in R&D of more than eight percent of the firms’ revenue. These firms had 70 active patent applications and 73 granted patents as of December 31, 2018.<br>
slide12. The PEI bioscience cluster is: A magnet for international talent. Among the PEI bioscience firms surveyed in 2018, there were 26 founders from outside Canada. Forty-three percent of the 30 bioscience firms surveyed had at least one founder who was not born in Canada.<br>
slide13. The PEI bioscience cluster attracts a high proportion of newcomers Source: Statistics Canada 2016 Census. Newcomers as a share of selected sectors of the PEI workforce:<br>
slide14. The PEI bioscience cluster is: Attracting national and international investment to PEI. The surveyed bioscience firms raised $37 million in new capital in 2018. Private sector investment is up by 51% between 2015 and 2018.<br>
slide15. The future of PEI’s bioscience sector The bioscience cluster on PEI is an excellent example of collaboration leading to success.
Partners include post-secondary education, government and other research infrastructure with economic development partners such as ACOA, NRC, and Innovation PEI.
What about the future? PEI needs innovation-focused economic growth. The bioscience cluster is well positioned to drive growth in the years ahead.<br>