Research from the Fraser of Allander Institute (FAI), mapping out the economic contribution of Scotland’s pharmaceutical sector, has been released by the Association of the British Pharmaceutical Industry (ABPI) Scotland.
Scotland
This analysis covers the contribution of Scottish pharma to Scotland’s economy and business output, highlighting that the pharma industry may be a driving force behind long-term sustainable economic growth.
‘The economic contribution of the Pharmaceutical Sector in Scotland’, shows that researching, making and distributing medicines is worth £2.7 billion a year to Scotland's industrial output, with Scotland's pharmaceutical sector also boasting the biggest jobs growth of any of the Scottish government's key ‘Growth Sectors’ in recent years.
According to the analysis performed by the FAI, the pharma industry currently employs over 5,000 people in Scotland and indirectly supports more than 16,000 jobs elsewhere within the country’s economy.
“This new Fraser of Allander analysis highlights the vital contribution Scotland's pharmaceutical industry makes to the health and wealth of our economy,” said Alison Culpan, director of ABPI Scotland. “We are a sector that Scotland should be proud of — contributing far higher levels of productivity than the national average, employing people in highly skilled jobs across the length and breadth of the country, often in disadvantaged or rural areas.”
Additionally, the report showed that Scotland’s pharma sector had also accounted for an increasing proportion of the UK pharmaceutical industry turnover and employment. The latest figures demonstrated that the pharma industry in Scotland represents 4.3% of all UK pharmaceutical industry sales (in 2015). Furthermore, there was an impact on the total UK share of pharma industry employment, with data showing that the industry in Scotland supports 9.3% of total jobs in the UK (in 2015).
“Scotland — and the UK's — productivity challenge is well known, but this report shows our industry can be a driving force behind long-term sustainable economic growth,” Culpan continued. “So, whether it is increasing the use of real world data in NHS Scotland to generate research insights and improve care; incentivising further research collaboration between world-leading companies and universities; or, simply making sure that the medicines we make here are used here, the value that can be gained from investing in our industry's future is clear.
“As we navigate the challenges of leaving the EU, it's more important than ever for the Scottish government to be ambitious, working in collaboration with ABPI Scotland, our members and the wider Life Sciences community, to secure an environment for our industry to flourish, ultimately reaping rewards for patients and our economy.”
“The pharmaceutical industry makes an important contribution to economic growth in Scotland. The contribution of the sector extends beyond the activities of pharmaceutical companies themselves, with their output supporting employment and income right across the Scottish economy,” explained Professor Graeme Roy, director of the FAI. “This report also reflects the changing nature of the sector and the importance of a broad range of activities from high-valued R&D, sales and marketing, through to product and client servicing. At the same time, the lines between sectors, whether that be in University research or biotechnology, are increasingly interlinked. There are significant opportunities for Scotland in the years ahead to build on recent successes.”