PwC reports high productivity of UK Life Sciences

According to the PwC report, “The Economic contribution of the UK Life Sciences industry”, the average productivity of UK Life Sciences employees, expressed as Gross Value Added (GVA), was £104,000 (US$127,338) in 2015 compared to the UK GVA average of £49,000 (US$59,996). Furthermore, the 222,000 employees of the UK Life Sciences sector, with its major clusters in East Anglia, Wales, and the South East of England, made a turnover of  £60.7bn (US$37.5bn) in 2015. The report was commissioned by the Association of the British Pharmaceutical Industry (ABPI) and supported by the Association of the British Healthcare Industry (ABHI), the BioIndustry Association (BIA), and the British In Vitro Diagnostics Association (BIVDA).

Virginia Acha, ABPI Executive Director – Research, Medical and Innovation, said: “The Life Sciences sector has been recognised by the Prime Minister as being of strategic importance for the UK. In both the UK and global healthcare markets, the sector plays a vital role in helping to tackle long-term health challenges. This report reflects, for the first-time, how our sector also plays a vital role in contributing to the UK economy. The UK’s productivity problem is well-known, and whether in advanced medicines manufacturing, med-tech or world-leading biopharma R&D, this report emphasises the true value UK Life Sciences has to offer. If we are serious about improving our productivity, increasing public and private investment in science and innovation across the UK will be a fundamental piece of the puzzle.”

The highest Life Science productivity, however, can be found in Switzerland. According to figures from consultancy BAK Basel, productivity was US$286,000 per employee in 2014. The 39,500 employees in the Swiss pharmaceutical sector contributed to pharma exports worth US$70.8bn in 2014. Swiss Life Sciences productivity, particularly  at the Pharma hub Basel, outperformed productivity of global life sciences clusters such as Boston area (US$277,000 per employee), Øresund (US$268,000 per employee), the San Francisco Bay Area (US$244,000 per employee) or Paris (US$180,000 per employee). Productivity figures will be updated by BAK Basel this summer.