New Data Finds MedTech Industry Thrives in The North Star 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 Minnesota 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 Minnesota.
The removal of the tax on medical devices has enabled the Minnesota medtech industry to excel. As a result of policies that value growth and innovation, medtech revenues have had countless benefits on Minnesota state revenues and payroll. These economic benefits are particularly important as Minnesota experiences reduced tax revenues caused by lockdowns during the coronavirus pandemic. For example:
- In 2020, the medtech industry contributed over $1.88 billion in state payroll, which generated an additional $1.7 billion in payroll across the state.
- In 2020, the medtech industry created over $8 billion in Minnesota revenues, generating an additional $5.8 billion in indirect revenues.
- Minnesota’s medtech industry employed 26,500 workers, generating an additional 41,500 jobs.
- In 2020, the medtech industry’s pay premium was higher than the average pay premium in 38 states, including Minnesota.
“This new data clearly shows that our industry not only creates lifesaving medical technologies but also generates tremendous economic benefit to Minnesota and its workers,” said Scott Whitaker, President and CEO of AdvaMed, the leading global trade organization for medical device manufacturers. “Repeal of the federal tax on medical devices has allowed the medtech industry to grow and employ more than 26,500 Minnesota workers, not to mention expand the critical research and development necessary to improve and save patients’ lives. As we begin to emerge from the coronavirus pandemic, we encourage state leaders to continue supporting policies that recognize the critical role medical innovation plays in the state and its workers’ lives.”
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.