1. Economic Impact of the
Pennsylvania Biotechnology Center of Bucks County
March 2016
Researched and prepared by: Richard Stein, Principal,
KLIOS Consulting LLC

2. Table of Contents
I. Executive Summary
II. Introduction: Pennsylvania Biotechnology Center of Bucks County
A Successful Experiment
III. Activity Report 2013-2015
IV. Aggregate Economic Impact
V. Impact Detail
A. Direct Economic Impact
B. Indirect Economic Impact
C. Job Impact
VI. Future Impact
VII. Case Studies
A. Atrin Pharmaceuticals
B. FlowMetric, Inc.
C. OrthogenRx, Inc.
VIII. Appendix A: Methodology
IX. Appendix B: Facilities Overview
About this Study

3. I. Executive Summary
The creation and development of business and innovation centers for the biotechnology
industry is designed to replicate the functioning hubs of the industry in the United States,
such as Research Triangle Park in Durham, Kendall Square in Boston, and South San
Francisco. This design is intended to attract technology, talent, and capital into
concentrated geographies, in order to spur new discovery, business formation, technology
transfer and commercialization.
To be sure, biotechnology business and innovation centers can attract a variety of
resources under one roof, to create powerful synergies that increase the opportunity for
accelerated economic growth. While large scale efforts in the large biotechnology hubs
are often the examples touted in best practice studies, there are other good examples of
success on a smaller scale that are also creating economic growth opportunities.
One such effort is the Pennsylvania Biotechnology Center of Bucks County (the
“Center”) in Doylestown, PA. Incorporated as the Bucks County Biotechnology Center
(BCBC), the Center was created in 2006 by the Hepatitis B Foundation in a partnership
with Delaware Valley College (now called Delaware Valley University), with support
from the Commonwealth of Pennsylvania Redevelopment Authority and the assistance of
Ben Franklin Technology Partners of Southeastern Pennsylvania. The Center is both a
translational research and business center for the Life Sciences industry. As a nonprofit
research organization, the Center is dedicated to: the creation of a world-class
biotechnology center; the promotion of regional economic development and job creation;
and the education and training of tomorrow’s researchers. The Center is truly unique,
with its diverse resources and core group of scientists and educators motivated to work
collaboratively with commercial colleagues on common research themes.
From the very beginning, the Center has been an economic driver that has increased jobs
and revenues in the region and beyond. Notably, it represented an adaptive re-use of a
light industrial site which had fallen into disuse. Briefly, in 2005, the D. A. Lewis Print
Distribution Center, which at one point boasted 145+ jobs, was closing, and the property
was for sale. The property was purchased by BCBC and converted into a modern
research facility.
Two earlier studies examined the economic impact of BCBC since its creation: a 2009
report looked at the Center's impact from 2006 through 2008 (three years), and a 2013
report examined the period 2009 through the first half of 2013 (4.5 years). This report
examines the period 2013 through 2015 (three years).
The current total economic impact from the Pennsylvania Biotechnology Center and its
affiliated organizations over the study period from 2013 through 2015 amounts to $1.8
billion for the Commonwealth of Pennsylvania.
• 87 percent of aggregate impact ($1.6 billion) accrues to Bucks County, PA while
an additional $227 million spills over to benefit the Commonwealth at large.
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4. The economic impact can be classified into three categories: direct, indirect and induced.
• Direct impact is a result of spending and economic activity at the Center. For the
study period, this amounts to $593 million.
• Indirect impact is economic impact generated elsewhere as a result of initial
economic activity at the Center. For the study period, this amounts to $837
million.
• Induced impact is economic benefit related to additional household spending
created as a result of the Center's activity and the related indirect economic
activity. For the study period, this amounts to $373 million.
The corresponding labor impact includes direct (primary impact) and indirect (secondary)
jobs. That includes:
• 325 jobs directly associated with the Center.
• 402 indirect jobs as a result of additional spending and output:
o 237 jobs in Bucks County.
o 165 jobs elsewhere in Pennsylvania.
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5. II. Introduction: Pennsylvania Biotechnology Center of Bucks County
— A Successful Experiment
The Model:
The Pennsylvania Biotechnology Center of Bucks County (the “Center”) has been a
striking success, thriving through the great recession and continuing to grow through the
recovery. It uses an unusual, if not unprecedented, model in which stable, marquis
nonprofit tenants, (Drexel University College of Medicine and the Baruch S. Blumberg
Institute (“Blumberg”) dedicated to translational research actively spin out new
companies, while also attracting new entrepreneurs to the Center, that, in turn, create
other new companies. These activities create a thriving innovation ecosystem. In
addition, the nonprofit lead tenants bring programs, seminars, common equipment
resources and a level of openness that creates a culture of collaboration and community.
The Blumberg leadership is also actively engaged in assisting companies and other
entities at the Center interact and collaborate with each other. This includes the search for
new business engagements. Activities at the Center include cross use of services, joint
ventures, reciprocal hiring, and joint grant applications.
Quantifying Economic Impact
Economic impact analysis provides a framework to measure direct economic activity
relating to new inputs, research, development, and other interventions within the local
economy and to model how those interventions flow through the rest of the economy
(interindustry linkages). Among the measures that can be tracked are economic outputs
in the local economy as well as job creation and retention. The ripple effects as direct
economic activity generates activity in other industrial sectors, as well as the household
sector, can be measured through the application of a set of economic multipliers. In total,
these measures quantify the impact of new economic activity.
By replacing the D.A. Lewis manufacturing facility, when it was about
to cease operations at the site, the Pennsylvania Biotechnology Center
of Bucks County created a new source
of economic activity in the region.
Without its presence, it is unlikely that
a productive center for biotechnology
research and business development
would be functioning in the heart of
Bucks County. In addition to being a
locus for new entrepreneurial activity, the Center
provides a safety net to repurpose scientists displaced
from large pharma, allowing them to start businesses based on their own industry
knowledge and intellectual property.
To be sure, the Center is much more than real estate. It is a unique scientific community
to advance scientific research in chronic and infectious diseases and cancer. New
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6. discoveries form and new companies develop to advance science for the commercial
market. Other companies have located near the Center’s research to access the knowledge
community. Furthermore, the Center brings together renowned academics to lecture and
interact with the community, which also attracts visitors and business people to Bucks
County.
In March of 2015, Drexel University closed its research unit, called the Drexel Institute
for Biotechnology and Virology Research (DIBVIR) at the Center. Since DIBVIR had
been a major nonprofit “anchor tenant” at the Center, carrying out many of the scholarly
activities with Blumberg, having significant beneficial and stimulating impact upon the
Center’s cooperative and resource sharing intellectual environment, there was
considerable concern. Moreover, from a business perspective, DIBVIR was the Center’s
main tenant, leasing ~9,000 square feet of space and employing nearly 30 full time staff.
The potential loss to the Center was substantial.
The loss was completely avoided, however, by the growth of Blumberg and Blumberg’s
immediate assumption of the DIBVIR lease and retention of most of its staff. As a result,
there was no loss in revenue, employee numbers, or even, arguably, cultural impact upon
the Center, since Blumberg continued all of the same activities previously carried out by
DIBVIR. Blumberg acquired all of DIBVIR’s major equipment and continued a policy of
resource sharing with the Center. Indeed, Blumberg even cooperated with the Center in
allowing previously used Drexel space to be used by other growing and new tenants, such
as Arbutus Biopharma, FlowMetric and FORGE Life Science.
III. Activity Report 2013-2015
The Center continues its mission to establish a supportive environment for translational-
focused research on hepatitis and infectious disease, and to also support biotechnology
ventures that would form onsite and provide benefit and additional activity to the Greater
Philadelphia region’s burgeoning life sciences sector. It is a unique model of economic
development, in that it:
1. Conducts mission oriented research through the anchor institutions of the Baruch
S. Blumberg Institute (and, until March 2015, the Drexel Institute for
Biotechnology & Virology Research of Drexel University);
2. Cultivates support from government agencies (notably the National Institutes of
Health) and the investment community;
3. Nurtures early-stage companies for the targeted outcomes of discovering better
ways to treat infectious diseases and cancer;
4. Nurtures other technological innovation that impacts biomedical research and the
larger life sciences industry.
Today, the Center plays an important role in the interface between sound academic
science and the resulting business opportunities. Blumberg’s prominent research
endeavors have served as a catalyst for the recruitment of renowned research faculty, new
business formation of both diagnostic and therapeutic companies, and the relocation of
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7. companies to the Center with existing synergies to Blumberg’s research. The strategic
plan for the Center and research affiliates remains to conduct translational research; spin-
out technologies from that research; support biotechnology ventures that grow the
economic base of Bucks County; and provide jobs for a highly-skilled and educated
workforce.
The Center was even able to prosper during and after the Great Recession, a feat that
many other operations found particularly challenging.
Examples of Success
Every technology incubator has successes and failures. That said, the number of
successful operations at the Center has been noteworthy. A few examples that illustrate
this are provided here:
Novira Therapeutics. Today, Novira is a company poised for explosive growth and on
the verge of introducing an entirely new way of treating chronic hepatitis B. In
December, 2015, Novira was acquired by Janssen of Johnson & Johnson for an
undisclosed amount of money. Novira currently has 23 scientists and staff, one drug
(NVR 3-778) to treat hepatitis B in phase II clinical trials, and an attractive pipeline of
drugs in development.
Two years ago, when scientist entrepreneurs Lalo Flores, Ph.D. and George Hartman,
Ph.D., came to the Center, they had just themselves — and an idea. They were
developing their idea “virtually” by working with labs and professionals from around the
world. At the Center, they obtained their own lab and office, and an environment entirely
committed to nurturing the development of hepatitis B therapeutics. They added high
quality talent to their Center team, and significant investment shortly followed. It is
estimated that their staff will double or triple in size over the next few years. The
question is where will this growth happen? The hope of the Center is that Novira’s
growth will occur within this current emerging biotechnology corridor, which will
“surround” the biotech center, adding to a permanent knowledge community.
Arbutus Biopharma (formerly OnCore Biopharma). Tekmira Pharmaceuticals Corp., a
publicly traded company, integrated with OnCore BioPharma, a Center company since
2014. Tekmira/OnCore is led by Chief Scientific Officer Dr. Michael Sofia, inventor of
Sovaldi, a cure for the hepatitis C virus. With the integration announcement, Tekmira
changed its corporate name to Arbutus Biopharma Corporation, a therapeutic solutions
company focused on developing a cure for chronic hepatitis B virus infection (HBV).
The combined entity currently fields the largest portfolio of HBV product candidates in
the industry and is led by an experienced and proven leadership team with notable prior
experience. The footprint of Arbutus at the Center has grown substantially since then,
raising $150 million to support R&D efforts, and anticipating four drugs in clinical trials
in 2016.
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8. FlowMetric, Inc. Another notable success has been the story of FlowMetric. This is a
good example of very highly skilled talent that was let go from the downsizing of large
pharma in the region. A group of these people understood the technology and the market
of the very high-end expensive service of flow cytometry. The Center gave them space to
launch the endeavor, the opportunity to collaborate with other scientists within the
community, shared equipment, and additional access to contacts for their go-to market
strategy within large and small pharma.
In 2012, FlowMetric was recognized as the best Contract Research Organization by the
Pennsylvania Biotech Industry Organization. Marcum LLP and Philadelphia SmartCEO
Magazine honored Flow Metric’s CEO, Mr. Renold Capocasale, as the 2014 Marcum
Innovator of the Year for the Mid-Sized Biotech/Healthcare category.
In December 2013, the company spun off FlowMetric Diagnostics, an intellectual
property division; and created FlowMetric Europe, a subsidiary of FlowMetric based in
Italy, which does the same work at the US company– pre-clinical through clinical drug
development projects for both American and European companies.
FlowMetric launched its mobile medical lab — called the Mo-POD — during BIO 2015,
an international life sciences industry convention. “What this allows you to do is
analyze, track and monitor infectious diseases
from Ebola to tuberculosis anywhere in the
world,” said Renold. “It’s completely self-
contained and self-powered [using solar power],
and it only requires a person to give two drops of
blood.” The unit represents a fully-functional,
self-contained flow cytometry laboratory delivering
personalized medicine to patients anywhere in the
world.
A demonstration of Flowemetric’s Mo-POD.
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9. OrthogenRx. Biotech device companies spend years before they reach the point of filing
with the FDA, except OrthogenRx. OrthogenRx is a late-stage development company
formed in 2012. It develops, markets and
sells ‘generic’ or equivalent orthopedic
Class III medical devices. In September
2015, OrthogenRx received a FDA
Approved Letter for their Pre-Market
Approval (PMA) application of GenVisc
850®
(sodium hyaluronate), and in record
time. The OrthogenRx team filed their first
PMA just three and a half months after it
obtained seed funding. At 12 months they
received an Approval Letter from the FDA,
by 16 months they had undergone two FDA
inspections with no major findings and just
20 months from seed funding they had an
approval in hand. The industry standard is
6-8 years of development and an investment
of $70- $100 million to obtain a PMA, the
OrthogenRx team obtained its PMA
approval within 18 months with seed
funding of $1.4 million. Through lower
cost of goods, and more efficient and novel
distribution channels, it has been estimated that OrthogenRx products could eventually
save the government Medicare system $228 million, commercial insurance companies
$200 million and patients $58 million (through reduced co-pays) over a 5 year period.
IV. Aggregate Economic Impact
The total economic impact from the Pennsylvania Biotechnology Center of Bucks
County and its affiliated organizations—the Hepatitis B Foundation (founding
organization), the Baruch S. Blumberg Institute, and the Bucks County Biotechnology
Keystone Innovation Zone (KIZ) as well as a co-located but unrelated warehouse and
distribution facility1
over the study period, amounts to $1.8 billion for the
Commonwealth of Pennsylvania. Of that, 87 percent ($1.6 billion) accrues to Bucks
County, while an additional $337 million spills over to benefit the Commonwealth at
large.
1
The operation, The Candlewic Company, has been a longtime occupant at the site, preceding the
opening of the Center in 2006. It currently leases space from the Center.
Dr. Mike Daley, Founder and CEO, OrthogenRX with
Jennifer Hartt, Director of Investments, Life Sciences,
Ben Franklin Technology Partners and Bucks County
County Commissioner Rob Loughery at the press
event for GenVisc850. (September 2015)
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10. The economic impact can be classified into three categories: direct, indirect and induced.
Economic Impact, Pennsylvania Biotechnology Center of Bucks County ($Millions)*
Bucks County
(A)
Pennsylvania other
(B)
Total Pennsylvania
(A+B)
Direct (1) 593 0 593
Indirect (2) 793 44 837
Induced (3) 190 183 373
Total
(1+2+3)
1,576 227 1,803
*Numbers may not add due to rounding.
Direct
$593
Indirect
$837
Induced
$373
Total Economic Impact ($Millions)
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11. The corresponding labor impact includes 325 jobs directly associated with organizations
at the Center (and the co-located warehouse and distribution facility). Spending and
output related to those jobs spills over and is associated with another 237 jobs in Bucks
County and 165 jobs elsewhere in Pennsylvania—in total, 727 direct (primary impact)
and indirect (secondary) jobs.
V. Impact Detail
To determine the economic output of the Center’s activities, the appropriate multipliers
for Pennsylvania and Bucks County are applied to each category of output and then
totaled.
A. Direct Economic Impact
Direct economic expenditures can be broken down further into two sub-categories of
output: Professional & Scientific Services and Investment. These categories best
represent the economic activities at the Center.
Direct Impact 2013-2015*
Professional & Scientific Services $119 million
New Investment $474 million
*numbers rounded $593 million
B. Indirect and Induced Economic Impact
The indirect and induced effects generated additional spending throughout the economy.
Economic multipliers based on the type of spending are used to calculate interindustry
(supply chain) and personal or household spending impacts.
Bucks County
Pennsylvania
(other)
Indirect Economic Impact $793 million $44 million
Induced Economic Impact $190 million $183 million
Labor Impact, Pennsylvania Biotechnology Center of Bucks County (Jobs)
Bucks County (A) Pennsylvania other (B) Total Pennsylvania (A+B)
Direct (1) 325 0 325
Indirect (2) 237 165 402
Total (1+2) 562 165 727
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12. C. Job Impact
A total of 727 jobs were impacted through the activities at the Center during this study
period:
Direct jobs at the Pennsylvania Biotechnology Center 325
Indirect jobs created & retained in Bucks County 237
Indirect jobs created & retained elsewhere in Pennsylvania 165
Total Direct and Indirect 727
Indirect job impact is based on revenues received for goods and services. Revenues
generated at the Center totaled $67 million during the study period. This impacts 237
jobs created and/or retained locally and another 165 elsewhere in Pennsylvania in
addition to the 325 direct jobs at the Center, for a total of 727 jobs.
D. Comparison with Prior Analysis
In addition to the current analysis two prior studies of the Center were conducted, using a
similar methodology: a 2009 report looked at the Center's impact from 2006 through
2008 (three years), and a 2013 report examined the period 2009 through the first half of
2013 (4.5 years). It is possible to compare the results of each study, side-by-side, and
therefore get some idea of the Center's impact since its origin.
Direct (Bucks)
325
Indirect (Bucks)
237
Indirect (PA elsewhere)
165
Labor Impact (Jobs)
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13. 2013 Analysis 2009 Analysis
Study period 2013-2015 (3 yr) 2009-2013:half I (4.5 yr) 2006-2008 (3 yr)
$Millions $Millions $Millions
Total impact (direct/indirect/induced) $1,803 100% $579 100% $165 100%
- Bucks $1,576 87.4% $507 87.5% $130 79.2%
- PA other $227 12.6% $72 12.5% $34 20.8%
Direct impact (Bucks) $593 100% $190 100% $75 100%
- Professional & Scientific $118 20.0% $173 90.9% $20 27.0%
- New Investment $474 80.0% $8 4.2% 0 0.0%
- R.E. $0 0.0% $9 4.8% $15 19.6%
- Corporate Development $0 0.0% $0 0.0% $40 53.4%
Indirect impact $837 100% $253 100% $34 100%
- Bucks $793 94.7% $245 97.0% $21 61.3%
- PA other $44 5.3% $8 3.0% $13 38.7%
Induced $373 100% $136 100% $55 100%
- Bucks $190 51.0% $72 52.6% $34 61.9%
- PA other $183 49.0% $65 47.4% $21 38.1%
Labor impact
Total jobs in PA 727 100% 572 100% 537 100%
325 44.7% 263 46.0% 210 39.1%
402 55.3% 309 54.0% 327 60.9%
- Bucks 237 184 172
- PA other 165 126 155
Current Analysis
(2016)
Bucks:PA
other split
Bucks:PA
other split
Bucks:PA
other split
Direct jobs – PA Biotech Center
Indirect jobs (employed/retained in
PA)
DATA COMPARISON 2006-2015
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14. VI. Future Impact
In its early stages, the focus of the Center was to attract other scientific organizations,
both nonprofit and for-profit, in order to create the synergistic dynamic needed for
success. That success has been realized, and the Center is now home to more than 47
different organizations, and experiences continuing demand for additional space. This
comes from its current tenants due to their organic growth and also from outside
organizations who view the Center as a place where they see the potential for their ideas
to take root and succeed.
The vision in 2016 is the same as it was in 2013: weave an even stronger knowledge
community consisting of high-value personnel in Doylestown that will be known in the
Region and the State as a true accelerator of biotechnology growth.
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15. VII. Case Studies
In addition to the economic impact model that was used to generate the preceding
estimates, a set of questions was administered to a sample group of companies located at
the Center. The purpose was to document the multiple roles that the Center plays in the
operations of its tenants.
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16. A. Atrin Pharmaceuticals
Overview
Atrin Pharmaceuticals (www.atrinpharma.com) formed in 2011. It is a dynamic
biopharmaceutical firm focused on the discovery and development of proprietary
medications for the treatment of cancer, using groundbreaking technology. Its
bioresearch has led to the development of a portfolio of drug candidates with multiple
mechanisms of action that could result in the treatment of a wide spectrum of cancers
currently lacking effective therapies.
Atrin Pharmaceuticals began operations in 2011, at which time it located at the Center.
Initial source of funding was from friends, family, angel groups and most recently, the
Ben Franklin Technology Partners. Since then, funding sources for Atrin has changed
and expanded. Giving the progress made, the next round of financing can come from
angel investors or venture capital.
Atrin Pharmaceuticals Co-founder and CEO Oren Gilad was an Ernst and Young
Entrepreneur of The Year 2015 Award finalist in Greater Philadelphia. Atrin is led by an
experienced Board of Directors and management team as well as by an active Scientific
Advisory Board composed of highly respected research scientists and physicians in the
field of Oncology.
Role of the Pennsylvania Biotechnology Center
Principals at Atrin state they “chose to join the Center at the company’s inception
because it provides the most ideal conditions for business growth and success. The PABC
incubator presents an ideal environment for budding new companies that benefit from a
unique community of science and business support. The Center also provides the
resources needed for making new discoveries. These include shared equipment, scientific
services, and a unique collaborative scientific and clinical community with other biotech
start-up companies and academic research faculty.”
Future Company Plans
Immediate future plans include taking its lead compounds into clinical trials with the
ultimate goal of achieving FDA approval for clinical use of its cancer therapeutics. Atrin
Pharmaceuticals also plans to further develop and extend its proprietary technology, and
continue developing partnerships with academic institutions and pharmaceutical
companies.
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17. B. FlowMetric
Overview
FlowMetric Inc. (www.flowmetric.com) is a privately held company that provides state-
of-the-art flow cytometry and cell sorting services. FlowMetric supports several
programs across the entire drug development value chain for a number of pharmaceutical,
biotech and CRO organizations. The company began operations in 2010. Initial funding
was provided by the company founders, followed by a private offering. Company
revenue now includes fees for the services that it offers. In 2012, FlowMetric was
recognized as the best Contract Research Organization by the Pennsylvania Biotech
Industry Organization. Marcum LLP and Philadelphia SmartCEO Magazine honored Mr.
Capocasale as the 2014 Marcum Innovator of the Year for the Mid-Sized
Biotech/Healthcare category.
In December 2013, the company spun off FlowMetric Diagnostics, an intellectual
property division; and created FlowMetric Europe, a subsidiary of FlowMetric based in
Italy, which does the same work at the US company– pre-clinical through clinical drug
development projects for both American and European companies.
In 2015, FlowMetric launched its mobile medical lab — called the Mo-POD —to the
international life sciences community. The unit represents a fully-functional, self-
contained flow cytometry laboratory delivering personalized medicine to patients
anywhere in the world.
Company staff consists of several individuals with extensive scientific and business
experience inside large pharmaceutical and biotech companies, other major industries and
the venture capital sector.
Role of the Pennsylvania Biotechnology Center
Company principals cite …”a collegial environment reminiscent of [early] days in big
pharma.” The availability of laboratory space and the financial benefits of operating in a
Keystone Innovation Zone (KIZ) are also important reasons for residing at the facility.
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18. C. OrthogenRx
Overview
OrthogenRx, Inc. (www.orthogenrx.com) is a late stage development company formed in
2012, which develops, markets and sells ‘generic’ or equivalent orthopedic Class III
medical devices at a lower cost and with more efficient operating processes, thereby
maintaining favorable operating margins.
In September 2015, OrthogenRx received a FDA Approved Letter for their Pre-Market
Approval (PMA) application of GenVisc 850®
(sodium hyaluronate).
OrthotgenRx began operations in 2012, and soon moved to the Center. Initial funding
came from Angel Investors, Ben Franklin Technology Partners, Venture Capital for
Bucks County and the Small Business Administration.
The senior management team has over 60 years’ experience in related management
positions, and over 28 years’ experience specifically with product development,
commercialization, sales/marketing and reimbursement of products of medical devices.
Role of the Pennsylvania Biotechnology Center
Company principals cite several advantages to the location, including accommodation for
small start-up, centralized place for holding meetings/conferences, support services,
interactive environment and shared resources; situated within a Keystone Innovation
Zone.
Principals state the Center’s flexibility and internal support of staff has helped them grow
its company and attract additional talent. Additionally, the tax credit available through
the KIZ program is extremely important as a start-up with significant expenditures.
Comments include programs, conferences, seminars providing an invaluable networking
and educational opportunity. OrthogenRx CEO believes that “the PA Biotech center is
truly unique in Bucks County in providing this opportunity to make this all happen.
Locating to the Biotech Center has provided opportunities to obtain referrals to quality
and affordable vendors and consultants that have played a pivotal role in the business
strategy.”
Future Company Plans
Immediate future plans are to market and sell GenVisc 850®
in the US and to get
Medicare reimbursement in place, allowing GenVisc to be reimbursed under Part B,
which will allow physicians to be reimbursed by Medicare or private insurers. A number
of additional products are in the pipeline for 2017 launch, and OrthgenRx wants to
successfully complete its Series A funding round.
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19. VIII. Appendix A: Methodology
The Economic Impact of the Center is calculated by aggregating the spending activity or
wages, research, product development, and other expenditures of the organizations and
companies for the study period.
The definition of the total economic impact is the direct impact of the activities at the
Center, including research and development over the period, as well as other economic
activity by companies located at the facility. Direct effects include the jobs and output
produced in the local economy by the organizations and businesses located at the Center.
In addition, the study examined the indirect and induced impacts on the economy as a
result of economic activity at the Center. Direct spending ripples through the economy
and yields spillover benefit to additional industrial sectors, including those linked to
economic activity at the Center through the provision of goods and services, as well as
the household sector. At every point, there is new spending as well as new jobs created.
That spending and those jobs continue to ripple through the economy for additional
rounds of economic activity. Economic multipliers quantify the total impact within the
Commonwealth of successive rounds of spending as a result of direct expenditures at the
Center, as well as additional employment related to the new spending.
• Indirect impacts refer to the additional rounds of expenditures made by
organizations and businesses with industry (supply chain) linkages to the Center.
Initial spending by entities at the Center supports additional rounds of spending
throughout the supply chain.
• Induced effects refer to the increased household consumption of goods and
services (for example, housing, utilities, retail spending) throughout the economy.
To determine indirect and induced impacts, economic multipliers are applied to all
economic activity at the Center. The multipliers express the additional dollars of output
as a result of new economic activity by companies and organizations located at the
Center.
The study utilized a methodology and model based on the Regional Input-Output
Modeling System (RIMS II) produced by the US Department of Commerce Bureau of
Economic Analysis. This methodology produces multipliers used in economic impact
studies to estimate the total impact of a project on a region.
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20. IX. Appendix B: Facilities Overview
18

21. 19

22. About this Study
Data collection, analysis and initial report layout was completed by Judith Marchand,
Baruch S. Blumberg Institute. The methodology and data was reviewed and report layout
finalized by KLIOS Consulting LLC.
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