Report: Medical industry robust in Massachusetts

Massachusetts continues to lead the nation in R&D jobs and federal research funding per capita, though smaller biotech clusters in New York and Washington, D.C., are growing at faster rates, according to the Massachusetts Biotechnology Council's annual industry report.

In 2012, the state's biopharma industry added 365 jobs for a total of 56,462, including 27,883 in biotechnology research and development — more than in any other state.

From 2007-12, Massachusetts added 3,227 jobs in biotech research and development, second only to California's 4,304. But the Bay State's 13.1-percent growth over that period was outpaced by Washington's 53.8 percent, New York's 41.7 percent and California's 22.5 percent growth.

"It says we maintain a very strong position nationally and globally, but it does also raise questions about what's next," said Peter Abair, MassBio's director of economic and global affairs. "We need to consider what's going on in smaller clusters like D.C. and New York and see if we can learn from that."

In addition to the jobs the biopharma industry added, the medical device industry added 205 jobs last year for a total of 23,151, a figure that is closer to more than 70,000 if jobs at companies that manufacture components of medical devices are included, said Thomas Sommer, president of the Massachusetts Medical Device Industry Council.

"It's modest growth," Sommer said. "It reflects the fact that the industry is challenged by the 2.3 percent medical device excise tax that went into effect Jan. 1."

Only California and Minnesota employed more people in the medical device industry last year, with 74,377 people and 29,087 people, respectively, according to the MassBio report.

Massachusetts also trailed California in National Institutes of Health funding in 2012. California received $3.47 billion — more than any other state — while Massachusetts came in second with $2.56 billion.

On a per-capita basis, however, Massachusetts led all states by far, with $391 per person, compared to $93 in California. And half of the top 18 NIH-funded research hospitals are in the Bay State.

Venture investment in Massachusetts biotechs declined from an all-time high of $1.07 billion in 2011 to $838 million last year, or 21 percent of all U.S. venture capital. Nationally, venture investment in biotech declined 15 percent in 2012.

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