New Data Finds Medtech Industry Thrives in The Bay State
WASHINGTON, D.C. – New data released by the Advanced Medical Technology Association (AdvaMed) found that the medical technology (medtech) industry is a critically important employer in Massachusetts and contributes billions of dollars to state revenues and payroll. AdvaMed commissioned a new economic research report by Macro Policy Advisors to study the industry’s economic impact on states across the country, and the results were overwhelmingly positive for Massachusetts.
The removal of the tax on medical devices has enabled the Massachusetts medtech industry to excel. As a result of policies that value growth and innovation, medtech revenues have had countless benefits on Massachusetts state revenues and payroll. These economic benefits are particularly important as Massachusetts experiences reduced tax revenues caused by lockdowns during the coronavirus pandemic. For example:
- In 2020, the medtech industry contributed over $1.639 billion in state payroll, which generated an additional $1.448 billion in payroll across the state.
- In 2020, the medtech industry created over $7.65 billion in Massachusetts revenues, generating an additional $4.84 billion in indirect revenues.
- Massachusetts’s medtech industry employed 20,400 workers, generating an additional 32,100 jobs.
- In 2020, the medtech industry’s pay premium was higher than the average pay premium in 38 states, including Massachusetts.
“Massachusetts’s medtech industry is thriving thanks to the removal of the medical device tax and other policies that hindered innovation and growth. This new data demonstrates that the industry not only creates lifesaving medical breakthroughs but also generates economic benefits to Massachusetts and its workers,” said Scott Whitaker, President and CEO of AdvaMed. “Repealing the tax on medical devices has allowed medtech to grow and employ more than 20,400 Massachusetts workers. As Massachusetts recovers from the coronavirus pandemic and supports policies that value innovation, the medtech industry will continue to grow and benefit Massachusetts workers.”
“This report reaffirms the impact of the medtech industry to the Massachusetts economy. Now more than ever, medtech is playing a critical role to Commonwealth’s recovery from the global pandemic, which our workers have been battling on the front lines for more than 18 months,” said Brian Johnson, President of MassMEDIC. “The best bet for the future of our state is to continue investing in this critical ecosystem with sound public policy, support from our partners in government, and continued investment in our healthcare infrastructure.”
The study also finds that the medtech industry has had overwhelmingly positive impacts on workers across the nation. The economists determined:
- Nationally, medtech employed 438,000 people, at an average annual salary of $88,096—49% higher than the average across all industries and 18% higher than the corresponding premium of all manufacturing jobs.
- Every 5 medtech industry jobs create an additional 7 jobs across the country.
- Between 2014-19, national medtech employment grew by 4.1%, compared to a 3.3% increase in overall manufacturing employment.
- Of the nearly 15,000 medtech establishments across the nation, 94% were small businesses that employed fewer than 100 employees.
The report was produced by The Macro Policy Institute (MPI)—an independent nonprofit organization that partners with private think tanks, academic institutions and policy advocacy organizations to develop unbiased investigations and reasoned responses to the macroeconomic policy concerns of today.
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AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.