Latest Economic Report shows Biomedical Driving the Cleveland Plus Economy

4/27/2009

Team Northeast Ohio (Team NEO) released the latest edition of the quarterly Cleveland Plus® Economic Review today with a focus on the region’s biomedical sector. Findings include that Northeast Ohio GRP for the biomedical sector (including pharmaceuticals & therapeutics; medical devices & equipment; and research & development) has grown at an average of 7.4% annually, outpacing the nation’s average sector growth. Fueling this growth are historical assets including the region’s strength in healthcare, the legacy of skilled manufacturing, and new venture capital funding from outside of Ohio.
 
Specifically, the report indicates:

  • NEO Bio Sector Outpacing U.S.
  • NEO Bio GRP  has grown more than 37% over the past five years
  • The share of the total NEO GRP for biomedical sector has increased 33% - from 2.1 to 2.8 over the past five years 
  • The Cleveland Plus region’s bio sector has grown an average of 7.4% annually, outpacing the U.S. average of 6.8%
  • In the past 5 years, the State of Ohio has attracted $783.9 million in VC funds
  • The Cleveland Plus region has attracted 60% of these funds: $493.2 million since 2006

In 2008 alone, the State of Ohio attracted the second largest amount of outside venture capital and biomedical funding in the Midwest – with $817 million in venture capital (VC) and National Institute of Health (NIH) grants in 2008

The state of Ohio is investing $2.3 billion in technology funding between Ohio’s Third Frontier Project and Building Ohio Jobs program

In addition, every issue of Team NEO’s quarterly Cleveland Plus® Economic Review provides updates of basic economic indicators for the 16-county economy including: current estimates of the region’s annual growth rate, as defined by Gross Regional Product (GRP), and up-to-date information regarding Northeast Ohio’s total employment  rate.  This quarterly report also looks at the Industrial real estate landscape.  The following is a summary of the findings:

  • Northeast Ohio’s economy is expected to continue modest growth in 2008
  • Projections reflect soft conditions in the economy, showing estimates at .4% for 2007 and 2008.
  • The economy has grown at an annual rate of 1.6% over the past 15 years.

Nationally soft economy reflected in Northeast Ohio Job Total

  • Total employment is just under 2 million workers in Q4 2008, down 3% from Q4 2007
  • NEO unemployment rate trending better than national rate
  • Over the last 18 months, the rise in unemployment in Northeast Ohio has been less than the U.S. as a whole

Demand for industrial space remains strong

  • Occupied industrial space is higher than at any point in the previous five years.
  • Vacancy rates of 7.4% are at their lowest point in the past five years.

Cleveland Plus March 2009 Quarterly Economic Review
View more documents from Team Neo.

Team NEO publishes the Cleveland Plus Economic Review quarterly to provide a holistic picture of Northeast Ohio’s economy.  It is the only regular source of collective economic data for the 16-county region.  The non-profit organization uses the information to attract businesses worldwide to the Cleveland Plus region.  This edition is possible with the generous assistance of Dominion East Ohio Gas.

Team NEO advances Northeast Ohio’s economy by attracting businesses worldwide to the 16-county Cleveland Plus region.  The organization is a joint venture of the region's largest metro chambers of commerce.  Since 2007, the organization has attracted more than 20 new companies, 2,200 new jobs and more than $70M in annual payroll to Northeast Ohio, leading to a total regional annual impact of $150M.

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