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NIH Supporting Medical Research and Our Economy - Public Policy

Congressional Education

The National Institutes of Health:
Supporting Medical Research and Our Economy

For decades, the National Institutes of Health (NIH) has been the world leader in biomedical research. NIH-funded research has led to significant improvements in the health of all Americans. Deaths from cancer, heart disease, and stroke have dropped dramatically, and the quality of life for those with diabetes and HIV/AIDS has improved considerably.

Not only do the grants to NIH-funded researchers all across the United States support critical medical research, they also provide an economic stimulus to local communities in the form of additional business for local employers and high wage jobs for their employees.

Since 2004, the annual budget for the NIH has not kept pace with inflation. Reduced NIH funding equals fewer jobs, slower scientific progress, and a loss of one of America’s greatest resources: the best and the brightest scientists of today…and tomorrow.

What did NIH funding mean for the national economy in FY07?

  • $22.846 billion in grants and contracts to U.S. universities and research institutions
  • $50.537 billion in increased output of goods and services to the country
  • 350,894 new jobs nationwide, with an average annual salary of $52,112
  • $18.286 billion in taxable wages

 The NIH budget was increased by 1.3% in FY08.
What would a 6.6%* increase have meant for the national economy? **

  • $1.416 billion in additional grants and contracts to U.S. universities and research institutions
  • $3.133 billion in new goods and services nationwide
  • 9,185 more jobs nationwide
  • $1.133 billion in additional taxable wages

What does NIH funding mean for your state’s economy? (click on your state below)

Alabama Alaska Arizona
Arkansas California Colorado
Connecticut Delaware Florida
Georgia Hawaii Idaho
Illinois Indiana Iowa
Kansas Kentucky Louisiana
Maine Maryland Massachusetts
Michigan Minnesota Mississippi
Missouri Montana Nebraska
Nevada New Hampshire New Jersey
New Mexico New York North Carolina
North Dakota Ohio Oklahoma
Oregon Pennsylvania Rhode Island
South Carolina South Dakota Tennessee
Texas Utah Vermont
Virginia Washington West Virginia
Wisconsin Wyoming

 

More information:

In Your Own Backyard: How NIH Funding Helps Your State's Economy. A Report from Families USA, June 2008. (www.familiesusa.org)

NIH Dollars Awarded by State (http://report.nih.gov/award/trends/State_Congressional/StateOverview.cfm)

* The amount needed to offset past budgets with flat funding and adjust for biomedical research inflation rates.
** Figures are increases above FY07.
SOURCE: In Your Own Backyard: How NIH Funding Helps Your State's Economy. A Report from Families USA, June 2008. www.familiesusa.org