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Medical product industries cluster in Tampa Bay

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Medical product industries cluster in Tampa Bay
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1 online resource (iv, 68 p.) : ;
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University of South Florida -- Center for Economic Development Research
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Center for Economic Development Research
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Tampa, Fla
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Medical supplies industry -- Statistics -- Florida -- Tampa Bay Region   ( lcsh )
Economic conditions -- Tampa Bay Region (Fla.)   ( lcsh )
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statistics   ( marcgt )
non-fiction   ( marcgt )

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Statement of Responsibility:
an analysis performed by Center for Economic Development Research, College of Business Administration, University of South Florida.
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Title from PDF of cover (viewed Sept. 8, 2009).
General Note:
"October 2002."

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University of South Florida Library
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University of South Florida
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aleph - 002027736
oclc - 436059781
usfldc doi - C63-00054
usfldc handle - c63.54
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Medical Product Industries Cluster in Tampa Bay An Analysis Performed by CENTER FOR ECONOMIC DEVELOPMENT RESEARCH College of Business Administration 1101 Channelside Dr., 2nd Floor N., Tampa, Florida 33602 Office: (813) 905-5854 or Fax: (813) 905-5856 October, 2002

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i Table of Contents Preface ............................................................................................................................... ...........................................ii Executive Summary ............................................................................................................................... ....................iii Section 1: Introduction ............................................................................................................................... ................1 Section 2: An Operational Definition of the Medical Product Industries Cluster .................................................2 Section 3: Baseline Contributions of the Primary Industries ..................................................................................8 Section 4: Employment Structure of the Primary Industries ...............................................................................24 Section 5: Economic Contribution of the Primary Industries ...............................................................................29 Appendix A: Employment Medical Product Industries Clustering ...................................................................45 Appendix B: Output Medical Product Industries Clustering .............................................................................48 Appendix C: Income Medical Product Industries Clustering ............................................................................51 Appendix D: Aggregated ES-202 Employment ......................................................................................................54 Appendix E: Economic Contribution – Medical Product Industries Cluster ......................................................57

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ii Preface The Florida Medical Manufacturers Consortium is a trade association of medical device manufacturers and related businesses. The Consortium motivated this study and, through sponsorship by Pinellas County Economic Development, commissioned the Center for Economic Development Research (CEDR), College of Business Administration, University of South Florida, to conduct this study of the medical devices industries cluster in Tampa Bay. The purpose of the study is to analyze the medical product industries cluster in Tampa Bay to determine the levels of economic activity. CEDR provides information and conducts research on issues related to economic growth and development in the Nation, in the state of Florida, and particularly in the central Florida region. The Center serves the faculty, staff, and students of the College of Business Administration, the University, and individuals and organizations in the University’s service area. CEDR’s activities are designed to further the objectives of the University and specifically the objectives of the College of Business Administration Robert Anderson, Dean, College of Business Administration (COBA), USF Dennis G. Colie, Director and Principal Investigator, Center for Economic Development Research (CEDR), COBA, USF Alexander A. McPherson, Research Associate, CEDR, COBA, USF

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iii Executive Summary The overall purpose of this study is to analyze the medical product industries cluster in the Tampa Bay region. We quantify the cluster’s baseline economic activity and its economic contribution to the region. We categorized the selected primary industries by segment: 1) the Pharmaceuticals segment, 2) the Biotech segment, and 3) the Medical Devices segment. Then we use the IMPLAN ProfessionalTM input-output model to identify the supplier chains (indirect industries) of the primary industries and to derive a measure of the “magnitude of clustering.” We find that in the sense of a cluster exhibiting common supplier-links, the Pharmaceuticals segment of the selected primary industries is not a “good fit” with the Biotech and Medical Devices segments. However, the selected industries in the Biotech segment and the Medical Devices segment exhibit common supplier-linkages. Next, using the REMITM economic policy-insight model, we estimate the baseline economic activity of the primary industries. Employment, output and employee income measure the baseline economic activity. Our findings for Tampa Bay for 2002 are: Segment Employment Output (Billions 2001$) Income (Millions nominal$) Biotech 878 $0.154 $031 Medical Devices 7,331 $1.213 $451 8,208 $1.367 $482 Pharmaceuticals 1,873 $0.740 $093 10,081 $2.107 $575 Most of the more than 10,000 jobs (about 70%) are in Pinellas County and total jobs for the three segments constitute almost 1.2% of total employment in Pinellas County. The Pharmaceuticals, Biotech and Medical Devices segments are expected to produce nearly $2.1 billion of economic activity in the Tampa Bay region during 2002 and most of this activity (almost 63%) occurs in Pinellas County. Similarly, residents of Tampa Bay working in these industry segments are expected to earn $575 million during 2002, with almost 65% of these wage and salary disbursements paid to residents of Pinellas County. Data on workers covered by the national Unemployment Insurance program in 2001 gauge the employment structure of the primary industries in Tampa Bay. Segment Firms Covered Jobs Jobs paying <$35K Jobs paying $35K to $60K Biotech 55 724 8.9% 91.1% Medical Devices 131 8,221 15.8% 83.6% 186 8,945 15.2% 84.2% Pharmaceuticals 17 1,350 5.9% 94.1% 203 10,295 14.0% 85.5%

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iv We assess the economic contribution of the primary industries using the traditional counter-factual approach. With this approach, we use the REMITM model to remove the actual output produced by the primary industries. The model tabulates the direct effects of the removal of the primary economic activities as well as the ripple, or secondary, effects throughout Tampa Bay. We provide three measurements of the economic contribution for each segment of the primary industries: 1) employment, 2) output, and 3) personal income. We expect that the economic contributions of the segments during 2002 will be: Segment Employment Output (Billions 2001$) Income (Millions nominal$) Biotech 5,109 $0.305 $163 Medical Devices 35,875 $4.080 $1,282 Pharmaceuticals 9,129 $1.305 $348 We consider the Medical Product Industries cluster to encompass the Biotech and Medical Devices segments. The economic contribution of the cluster is slightly greater than the sum of the individual segment’s contributions, because of the dynamic properties of the regional economy. In Tampa Bay, the economic contribution of the cluster is about 40,900 jobs, with the workers in these jobs earning just over $1.44 billion in wages and producing more than $5.38 billion of output. Almost half of this economic activity takes place in Pinellas County.

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1 Section 1: Introduction The medical product and associated industries are a growing part of Tampa Bay’s economy. The overall purpose of this study is to analyze the medical product industries cluster in the Tampa Bay region to quantify the cluster’s baseline economic activity and its economic contribution to the region. We begin the study by defining the Medical Product Industries cluster in Tampa Bay. We define the cluster by examining industries generally associated with medical product activity for commonality of supplier chains. We develop a “picture” of the cluster in terms of primary industries and supplier industries (indirect industries). The results of this analysis are reported in Section 2, An Operational Definition of the Medical Product Industries Cluster. In Section 3, Baseline Contributions of the Primary Industries, we estimate the economic activity of the primary industries of the Medical Product Industries cluster. The measures of the baseline economic activity are employment, output, and income. In Section 4, Employment Structure of the Primary Industries we report the number of firms and the number of employees for the primary industries of the Medical Product Industries cluster. Additionally, we analyze the range of wages paid to workers in the primary industries. Finally, in Section 5, Economic Contribution of the Primary Industries we estimate the total impact of the primary industries of the Medical Product Industries cluster on the economy of the Tampa Bay region. The total impact includes the baseline economic activity of the primary industries, plus the indirect impact as the baseline activity ripples through the regional economy. The measures of economic contribution are employment, output, and income. Throughout our report of findings, we group the primary industries into three segments: Pharmaceuticals, Biotech, and Medical Devices. In Sections 3, 4 and 5 we separately report findings for each segment. We believe that the aggregation of the segments to form an industry cluster may arguably include the Biotech and Medical Devices segments, but not the Pharmaceuticals segment. Therefore, we have placed the aggregations of our findings in Appendixes A through E. Generally, we report the aggregate economic activity, employment structure, and economic contribution for the combined Pharmaceuticals, Biotech and Medical Devices segments, as well as reporting an aggregation for only the Biotech and Medical Devices segments.

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2 Section 2: An Operational Definition of the Medical Product Industries Cluster The purpose of this section is to describe the Medical Product Industries cluster in Tampa Bay. Harvard economist, Michael Porter, in The Competitive Advantage of Nations (1990) and in On Competition (1998), develops a model in which competitive advantages are generated by the spatial concentration of firms in an industry as they interact with regional and national factors conducive to their profitability. As applied to a regional economy, Porter’s model relates the growth of a regional industry to regional infrastructure, to the spatial proximity of upstream industries that supply inputs into the production process, and to the proximity of downstream customers who purchase the industry’s products and services.1 Porter calls the grouping of an industry along with its upstream suppliers and downstream customers an industry cluster. In order to develop a picture of the Medical Product Industries cluster in Tampa Bay, we start with selected primary industries and use the IMPLAN ProfessionalTM input-output model to identify the supplier chains (indirect industries) for the primary industries.2 The selected primary industries are listed below by Standard Industrial Classification (SIC) code or code groupings and their corresponding IMPLAN sector number. We call the consolidation of primary industries the Medical Product Industries group. The Medical Product Industries group consists of: PHARMACEUTICALS SEGMENT IMPLAN sector 195, Drugs = SICs 2833 (medicinal chemicals and botanical products), 2834 (pharmaceutical preparations), 2835 (in vitro and in vivo diagnostic substances), and 2836 (biological products, except diagnostic substances). BIOTECH SEGMENT Part of IMPLAN sector 509, Research, Development and Testing Services = SIC 8731 (commercial physical and biological research).3 MEDICAL DEVICES SEGMENT IMPLAN sector 218, Gaskets, Packing and Sealing Devices = SIC 3053 (gaskets, packing and sealing devices). IMPLAN sector 219, Fabricated Rubber Products, N.E.C. = SIC 3060 (fabricated rubber products, not elsewhere classified). IMPLAN sector 403, Mechanical Measuring Devices = SICs 3823 (industrial instruments for measurement, display, and control of process variables; related products), 3824 (totalizing fluid 1 Porter represents regional competitive advantage as a “diamond”, the four corners of which are made up of the competitive nature of the industry, the interaction of firms in the industry with suppliers, the interaction with informed domestic customers, and the traditional country-specific factor cost and supply conditions. 2 Detailed results were reported in CEDR’s “Medical Products Industries Clustering in Tampa Bay, Preliminary Report,” April, 2002. 3 In addition to SIC 8731, IMPLAN sector 509 includes SIC 8732 (commercial economic, sociological, and educational research), SIC 8733 (noncommercial research organizations), and SIC 8734 (testing laboratories). In the process used to describe the cluster, we cannot model the SICs of IMPLAN sector 509 separately. We address this limitation in the body of this report.

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3 meters and counting devices), and 3829 (measuring and controlling devices, not elsewhere classified). IMPLAN sector 405, Analytical Instruments = SIC 3826 (laboratory analytical instruments).4 IMPLAN sector 406, Optical Instruments and Lenses = SIC 3827 (optical instruments and lenses). IMPLAN sector 407, Surgical and Medical Instruments = SIC 3841 (surgical and medical instruments and apparatus). IMPLAN sector 408, Surgical Appliances and Supplies = SIC 3842 (orthopedic, prosthetic, and surgical appliances and supplies). IMPLAN sector 409, Dental Equipment and Supplies = SIC 3843 (dental equipment and supplies). IMPLAN sector 410, X-ray Apparatus = SIC 3844 (x-ray apparatus and tubes and related irradiation apparatus). IMPLAN sector 411, Electromedical Apparatus = SIC 3845 (electromedical and electrotherapeutic apparatus). IMPLAN sector 412, Ophthalmic Goods = SIC 3851 (ophthalmic goods). To measure the “magnitude of clustering,” we introduce into the model a $100 million increase in the output of each primary industry. We then measure the consequent percentage increase (as a percent of the increased primary output) in other regional industries. The greater the percentage, the more economic activity there is between an indirect industry and the primary industries. To better organize the inter-industry relationships, three tiers are used. Tier 1 relationships occur when an indirect industry’s output increases by more than 1% of the increase in primary output. A Tier 2 relationship is between 0.5% and 1%. All remaining inter-industry relationships fall in Tier 3. Because we cannot measure the “magnitude of clustering” for the Commercial Physical and Biological Research industry separately from other research industries with IMPLAN’s sector classifications (IMPLAN sector 509), we examine the clustering effect with and without sector 509. Tables 2.1 and 2.2 present the frequency with which individual Tier 1 supplier-industries service primary industry sectors. The statistics in Table 2.1 include IMPLAN sector 509, which is excluded as a primary industry sector in Table 2.2. Following the tables is an explanation of our findings. When the Research, Development and Testing Services group (IMPLAN sector 509) is excluded from the model, the Tier 1 supplier-industries of Table 2.2 are the same as the Tier 1 industries of Table 2.1. However, there are some small differences in the “magnitude of clustering” as evidenced by the relative changes in frequencies attained by the industries. The Wholesale Trade industry is the top Tier 1 industry in the cluster as well as a Tier 1 supplier-industry for each primary industry and primary industry group. We estimate that 4 There was no firm in the Laboratory Analytical Instruments industry (SIC 3826) operating in Tampa Bay in 1999.

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4 between 17.4% and 24.3% of Wholesale Trade economic activity in Tampa Bay is linked to the clustering of Medical Product Industries.

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5

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6

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7 Except the Pharmaceuticals segment, all of the selected primary industries or industry groups exhibit “clustering” in the sense that they tend to have the same supplier-industries. The Pharmaceuticals segment has only four supplier-industries or supplier industry groups in common with any industry of the Biotech segment and the Medical Devices segment. The four common supplier-links are 1) Wholesale Trade, 2) Other Business Services, 3) Accounting, Auditing and Bookkeeping and 4) Research, Development and Testing Services. If we exclude Research, Development and Testing Services (IMPLAN sector 509) from the primary industries, the Pharmaceuticals segment has only three supplier-industries in common with any industry of the Biotech and Medical Devices segments. Thus, we find that in the sense of a cluster exhibiting common supplier-links, the Pharmaceuticals segment of the selected primary industries for Medical Product Industries’ clustering in Tampa Bay is not a “good fit” with the Biotech and Medical Devices segments. However, the selected industries in the Biotech segment and the Medical Devices segment exhibit common supplier-linkages. Based on the input-output analysis, the cluster of medical products firms in Tampa Bay is broadly defined to include the primary industries of the Biotech segment and the Medical Devices segment plus their Tier 1 and Tier 2 supplier-industries. The analysis also supports a narrow definition, which would exclude Tier 2 supplier-industries and thereby regard Tier 2 industries as tangential to the clustering of medical products firms.

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8 Section 3: Baseline Contributions of the Primary Industries Using the REMITM model, we estimate the economic contributions of the primary industries. We divide the primary industries into three segments: 1) Pharmaceuticals segment, 2) Biotech segment and 3) Medical Devices segment. The industries included in each segment are listed in Section 2 of this report. We measure the baseline economic contributions of the primary industries by employment, output, and personal income.5 That is, the industries hire a number of workers (employment), who produce goods and services of value (output).6 The value-added – less indirect business taxes – from production is distributed among the workers (wage and salary disbursements) and the owners (rental, dividend and interest income) of the capital that the workers use in the production process. Table 3.1 (Pharmaceuticals segment) shows estimates of employment by location (place of work) from 2002 to 2007 for the Drugs Industry Group. Panel A shows total employment in each county and a summation of the counties’ employment for the Tampa Bay region. Panel B reflects employment by the Drugs Industry Group. Panel C gives the percentage of total employment contributed by jobs in the Drugs Industry Group for each location 5 Personal income is a Bureau of Economic Analysis (BEA) concept based on place of residence. It is the sum of wage and salary disbursements, other labor income, proprietors’ income, rental income, personal dividend income, personal interest income, and transfer payments, less personal contributions for social insurance. In this analysis, however, only the wage and salary disbursements portion of personal income is reported. 6 Output equals sales plus or minus an inventory adjustment.

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9 Table 3.1 Pharmaceuticals segment Medical Products Industry Cluster REMI Baseline Primary Industries: SIC 283 Drugs Industry Group EMPLOYMENT Panel A Employment (000s) Total Location 2002 20032004 2005 2006 2007 Hernando 43.852 44.59545.307 45.949 46.509 47.072 Hillsborough 783.506 798.732814.520 829.625 845.062 861.097 Manatee 159.296 162.159165.157 167.954 170.695 173.471 Pasco 105.737 107.122108.435 109.637 110.764 111.969 Pinellas 580.113 586.852594.073 600.892 607.839 615.298 Polk 245.968 250.046253.927 257.481 260.942 264.494 Sarasota 215.068 218.125221.103 223.857 226.467 229.258 Tampa Bay 2133.540 2167.6312202.522 2235.395 2268.278 2302.659 Panel B Drugs Group Employment (000s) Manufacturing > Non-durables > Chemicals Location 2002 20032004 2005 2006 2007 Hernando 0.000 0.0000.000 0.000 0.000 0.000 Hillsborough 0.487 0.4950.501 0.507 0.513 0.519 Manatee 0.120 0.1230.125 0.128 0.130 0.133 Pasco 0.021 0.0220.023 0.024 0.025 0.025 Pinellas 1.209 1.2241.236 1.249 1.265 1.280 Polk 0.002 0.0030.003 0.003 0.003 0.003 Sarasota 0.034 0.0350.035 0.036 0.036 0.037 Tampa Bay 1.873 1.9021.923 1.947 1.972 1.997 Panel C Drugs Group Employment (% of Total) Manufacturing > Non-durables > Chemicals Location 2002 20032004 2005 2006 2007 Hernando 0.00% 0.00%0.00% 0.00% 0.00% 0.00% Hillsborough 0.06% 0.06%0.06% 0.06% 0.06% 0.06% Manatee 0.08% 0.08%0.08% 0.08% 0.08% 0.08% Pasco 0.02% 0.02%0.02% 0.02% 0.02% 0.02% Pinellas 0.21% 0.21%0.21% 0.21% 0.21% 0.21% Polk 0.00% 0.00%0.00% 0.00% 0.00% 0.00% Sarasota 0.02% 0.02%0.02% 0.02% 0.02% 0.02% Tampa Bay 0.09% 0.09%0.09% 0.09% 0.09% 0.09% There are approximately 1,900 jobs in this segment in the Tampa Bay region. Most of these jobs, about 1,200 or 0.2% of countywide employment, are in Pinellas County. Table 3.2 (Biotech segment) shows estimates of employment by location (place of work) from 2002 to 2007 for the Commercial Physical and Biological Research industry. Panel A shows total employment in each county and a summation of the counties’ employment for the Tampa Bay region. Panel B reflects employment by the Commercial Physical and Biological

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10 Research industry. Panel C gives the percentage of total employment contributed by jobs in the Commercial Physical and Biological Research industry for each location. Table 3.2 Biotech Segment Medical Products Industry Cluster REMI Baseline Primary Industry: SIC 8731 Commercial Physical and Biological Research EMPLOYMENT Panel A Employment (000s) Total Location 20022003 2004 2005 2006 2007 Hernando 43.85244.595 45.307 45.949 46.509 47.072 Hillsborough 783.506798.732 814.520 829.625 845.062 861.097 Manatee 159.296162.159 165.157 167.954 170.695 173.471 Pasco 105.737107.122 108.435 109.637 110.764 111.969 Pinellas 580.113586.852 594.073 600.892 607.839 615.298 Polk 245.968250.046 253.927 257.481 260.942 264.494 Sarasota 215.068218.125 221.103 223.857 226.467 229.258 Tampa Bay 2133.5402167.631 2202.522 2235.395 2268.278 2302.659 Panel B Commercial Physical and Biological Research Employment (000s) Non-manufacturing > Services Location 20022003 2004 2005 2006 2007 Hernando 0.0000.000 0.000 0.000 0.000 0.000 Hillsborough 0.2230.231 0.239 0.248 0.256 0.265 Manatee 0.0230.024 0.025 0.026 0.027 0.028 Pasco 0.0710.073 0.075 0.078 0.080 0.082 Pinellas 0.4110.425 0.438 0.452 0.465 0.479 Polk 0.0300.031 0.032 0.034 0.035 0.036 Sarasota 0.1200.125 0.129 0.133 0.137 0.141 Tampa Bay 0.8780.909 0.940 0.970 1.000 1.031 Panel C Commercial Physical and Biological Research Employment (% of Total) Non-manufacturing > Services Location 20022003 2004 2005 2006 2007 Hernando 0.00%0.00% 0.00% 0.00% 0.00% 0.00% Hillsborough 0.03%0.03% 0.03% 0.03% 0.03% 0.03% Manatee 0.01%0.02% 0.02% 0.02% 0.02% 0.02% Pasco 0.07%0.07% 0.07% 0.07% 0.07% 0.07% Pinellas 0.07%0.07% 0.07% 0.08% 0.08% 0.08% Polk 0.01%0.01% 0.01% 0.01% 0.01% 0.01% Sarasota 0.06%0.06% 0.06% 0.06% 0.06% 0.06% Tampa Bay 0.04%0.04% 0.04% 0.04% 0.04% 0.04% There are approximately 900 jobs in the Biotech segment in the Tampa Bay region. Just under half, about 410, of those jobs are in Pinellas County. In both Pinellas County and Pasco County, employment in the Biotech segment comprises approximately 0.07% of all jobs in each county.

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11 Table 3.3 (Medical Devices segment) shows estimates of employment by location (place of work) from 2002 to 2007 for the industries included in this segment. Panel A shows total employment in each county and a summation of the counties’ employment for the Tampa Bay region. Panel B reflects employment in the Medical Devices segment. Panel C gives the percentage of total employment contributed by jobs in the Medical Devices segment for each location.

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12 Table 3.3 Medical Devices Segment Medical Products Industry Cluster REMI Baseline Primary Industries: SIC 3053 Gaskets, Packing & Sealing Devices SIC 3061 Molded, Extruded, & Lathe-cut Mechanical Rubber Goods SIC 3069 Fabricated Rubber Products, nec SIC 3823 Industrial Instruments for Measurement, Display, and Control SIC 3824 Totalizing Fluid Meters and Counting Devices SIC 3826 Laboratory Analytical Instruments SIC 3827 Optical Instruments and Lenses SIC 3829 Measuring and Controlling Devices, nec SIC 3840 Medical Instruments & Supplies SIC 3851 Opthamalic Goods EMPLOYMENT Panel A Employment (000s) Total Location 2002 2003 2004 2005 2006 2007 Hernando 43.852 44.595 45.307 45.949 46.509 47.072 Hillsborough 783.506 798.732 814.520 829.625 845.062 861.097 Manatee 159.296 162.159 165.157 167.954 170.695 173.471 Pasco 105.737 107.122 108.435 109.637 110.764 111.969 Pinellas 580.113 586.852 594.073 600.892 607.839 615.298 Polk 245.968 250.046 253.927 257.481 260.942 264.494 Sarasota 215.068 218.125 221.103 223.857 226.467 229.258 Tampa Bay 2133.540 2167.631 2202.522 2235.395 2268.278 2302.659 Panel B Medical Devices Employment (000s) Location 2002 2003 2004 2005 2006 2007 Hernando 0.147 0.153 0.160 0.167 0.171 0.176 Hillsborough 0.568 0.558 0.550 0.540 0.527 0.516 Manatee 0.619 0.626 0.626 0.617 0.610 0.599 Pasco 0.029 0.028 0.027 0.027 0.027 0.027 Pinellas 5.298 5.385 5.455 5.484 5.503 5.488 Polk 0.409 0.395 0.386 0.378 0.365 0.357 Sarasota 0.260 0.259 0.261 0.260 0.260 0.258 Tampa Bay 7.331 7.403 7.465 7.474 7.463 7.422 Panel C Medical Devices Employment (% of Total) Location 2002 2003 2004 2005 2006 2007 Hernando 0.33% 0.34% 0.35% 0.36% 0.37% 0.37% Hillsborough 0.07% 0.07% 0.07% 0.07% 0.06% 0.06% Manatee 0.39% 0.39% 0.38% 0.37% 0.36% 0.35% Pasco 0.03% 0.03% 0.03% 0.02% 0.02% 0.02% Pinellas 0.91% 0.92% 0.92% 0.91% 0.91% 0.89% Polk 0.17% 0.16% 0.15% 0.15% 0.14% 0.14% Sarasota 0.12% 0.12% 0.12% 0.12% 0.11% 0.11% Tampa Bay 0.34% 0.34% 0.34% 0.33% 0.33% 0.32%

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13 There are approximately 7,400 jobs in the Medical Devices segment in the Tampa Bay region. Most of those jobs, about 72%, are in Pinellas County. Jobs in the Medical Devices segment comprise almost 1% of total employment in Pinellas County. Pinellas County is the predominant location for jobs in each of the three segments of Medical Product Industries that we examined. Aggregated estimates of employment by location (place of work) from 2002 to 2007 for the Pharmaceuticals, Biotech and Medical Devices segments are in Appendix A. There are approximately 10,000 jobs in the Pharmaceuticals, Biotech and Medical Devices segments in the Tampa Bay region. Most of those jobs, almost 70%, are in Pinellas County. Table 3.4 (Pharmaceuticals segment) shows estimates of output by location (place of business) from 2002 to 2007 for the Drugs Industry Group. Panel A shows total output in each county and a summation of the counties’ output for the Tampa Bay region. Panel B reflects output by the Drugs Industry Group. Panel C gives the percentage of total output contributed by the Drugs Industry Group for each location.

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14 Table 3.4 Pharmaceuticals Segment Medical Products Industry Cluster REMI Baseline Primary Industries: SIC 283 Drugs Industry Group OUTPUT Panel A Output (Bil. 01$) Total Location 2002 2003 2004 2005 2006 2007 Hernando 2.678 2.764 2.852 2.927 3.002 3.077 Hillsborough 61.824 64.024 66.197 68.280 70.494 72.719 Manatee 12.013 12.428 12.830 13.196 13.575 13.940 Pasco 6.770 6.953 7.128 7.291 7.460 7.625 Pinellas 46.062 47.608 49.127 50.561 52.057 53.551 Polk 19.757 20.388 20.988 21.540 22.111 22.670 Sarasota 14.881 15.325 15.758 16.164 16.586 17.010 Tampa Bay 163.985 169.491 174.878 179.959 185.285 190.592 Panel B Drugs Group Output (Bil. 01$) Manufacturing > Non-durables > Chemicals Location 2002 2003 2004 2005 2006 2007 Hernando 0.000 0.000 0.000 0.000 0.000 0.000 Hillsborough 0.201 0.209 0.216 0.223 0.232 0.240 Manatee 0.051 0.053 0.055 0.056 0.059 0.061 Pasco 0.012 0.013 0.013 0.014 0.014 0.015 Pinellas 0.455 0.470 0.487 0.505 0.523 0.543 Polk 0.001 0.001 0.001 0.001 0.001 0.001 Sarasota 0.020 0.020 0.021 0.021 0.022 0.023 Tampa Bay 0.740 0.766 0.794 0.821 0.851 0.884 Panel C Drugs Group Output (% of Total) Manufacturing > Non-durables > Chemicals Location 2002 2003 2004 2005 2006 2007 Hernando 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Hillsborough 0.33% 0.33% 0.33% 0.33% 0.33% 0.33% Manatee 0.42% 0.43% 0.43% 0.43% 0.43% 0.44% Pasco 0.18% 0.19% 0.19% 0.20% 0.19% 0.20% Pinellas 0.99% 0.99% 0.99% 1.00% 1.01% 1.01% Polk 0.01% 0.01% 0.01% 0.01% 0.00% 0.00% Sarasota 0.13% 0.13% 0.13% 0.13% 0.13% 0.14% Tampa Bay 0.45% 0.45% 0.45% 0.46% 0.46% 0.46% We expect the Drugs Industry Group to produce $740 million, or almost 0.5%, of economic activity (output) in the Tampa Bay region during 2002. Approximately 62%, or $455 million, of this economic activity is attributable to businesses that are located in Pinellas County. By 2007, output of the Drugs Industry Group is expected to grow to $884 million in the Tampa Bay region.

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15 Table 3.5 (Biotech Segment) shows estimates of output by location (place of business) from 2002 to 2007 for the Commercial Physical and Biological Research industry. Panel A shows total output in each county and a summation of the counties’ output for the Tampa Bay region. Panel B reflects output by the Commercial Physical and Biological Research industry. Panel C gives the percentage of total output contributed by the Commercial Physical and Biological Research industry for each location. Table 3.5 Biotech Segment Medical Products Industry Cluster REMI Baseline Primary Industry: SIC 8731 Commercial Physical and Biological Research OUTPUT Panel A Output (Bil. 01$) Total Location 2002 2003 2004 2005 2006 2007 Hernando 2.678 2.764 2.852 2.927 3.002 3.077 Hillsborough 61.824 64.024 66.197 68.280 70.494 72.719 Manatee 12.013 12.428 12.830 13.196 13.575 13.940 Pasco 6.770 6.953 7.128 7.291 7.460 7.625 Pinellas 46.062 47.608 49.127 50.561 52.057 53.551 Polk 19.757 20.388 20.988 21.540 22.111 22.670 Sarasota 14.881 15.325 15.758 16.164 16.586 17.010 Tampa Bay 163.985 169.491 174.878 179.959 185.285 190.592 Panel B Commercial Physical and Biological Research Output (Bil. 01$) Non-manufacturing > Services Location 2002 2003 2004 2005 2006 2007 Hernando 0.000 0.000 0.000 0.000 0.000 0.000 Hillsborough 0.038 0.040 0.043 0.046 0.049 0.052 Manatee 0.004 0.004 0.004 0.005 0.005 0.005 Pasco 0.010 0.011 0.012 0.013 0.013 0.014 Pinellas 0.076 0.081 0.086 0.091 0.096 0.102 Polk 0.005 0.005 0.006 0.006 0.006 0.007 Sarasota 0.021 0.022 0.023 0.025 0.026 0.028 Tampa Bay 0.154 0.164 0.174 0.185 0.196 0.207 Panel C Commercial Physical and Biological Research Output (% of Total) Non-manufacturing > Services Location 2002 2003 2004 2005 2006 2007 Hernando 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Hillsborough 0.06% 0.06% 0.06% 0.07% 0.07% 0.07% Manatee 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% Pasco 0.15% 0.16% 0.17% 0.17% 0.18% 0.18% Pinellas 0.17% 0.17% 0.18% 0.18% 0.19% 0.19% Polk 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% Sarasota 0.14% 0.14% 0.15% 0.15% 0.16% 0.16% Tampa Bay 0.09% 0.10% 0.10% 0.10% 0.11% 0.11%

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16 We expect the Commercial Physical and Biological Research industry to produce $154 million of economic activity (output) in the Tampa Bay region during 2002. Approximately 49%, or $76 million, of this economic activity is attributable to businesses that are located in Pinellas County. By 2007, output of the Commercial Physical and Biological Research industry is expected to grow to $207 million in the Tampa Bay region. Table 3.6 (Medical Devices segment) shows estimates of output by location (place of business) from 2002 to 2007 for the Medical Devices segment. Panel A shows total output in each county and a summation of the counties’ output for the Tampa Bay region. Panel B reflects output by the Medical Devices segment. Panel C gives the percentage of total output contributed by the Medical Devices segment for each location.

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17 Table 3.6 Medical Devices Segment Medical Products Industry Cluster REMI Baseline Primary Industries: SIC 3053 Gaskets, Packing & Sealing Devices SIC 3061 Molded, Extruded, & Lathe-cut Mechanical Rubber Goods SIC 3069 Fabricated Rubber Products, nec SIC 3823 Industrial Instruments for Measurement, Display, and Control SIC 3824 Totalizing Fluid Meters and Counting Devices SIC 3826 Laboratory Analytical Instruments SIC 3827 Optical Instruments and Lenses SIC 3829 Measuring and Controlling Devices, nec SIC 3840 Medical Instruments & Supplies SIC 3851 Opthamalic Goods OUTPUT Panel A Output (Bil. 01$) Total Location 2002 2003 2004 2005 2006 2007 Hernando 2.678 2.764 2.852 2.927 3.002 3.077 Hillsborough 61.824 64.024 66.197 68.280 70.494 72.719 Manatee 12.013 12.428 12.830 13.196 13.575 13.940 Pasco 6.770 6.953 7.128 7.291 7.460 7.625 Pinellas 46.062 47.608 49.127 50.561 52.057 53.551 Polk 19.757 20.388 20.988 21.540 22.111 22.670 Sarasota 14.881 15.325 15.758 16.164 16.586 17.010 Tampa Bay 163.985 169.491 174.878 179.959 185.285 190.592 Panel B Medical Devices Output (Bil. 01$) Location 2002 2003 2004 2005 2006 2007 Hernando 0.037 0.041 0.045 0.048 0.051 0.053 Hillsborough 0.137 0.144 0.149 0.153 0.158 0.159 Manatee 0.109 0.114 0.117 0.119 0.120 0.121 Pasco 0.002 0.002 0.002 0.002 0.002 0.002 Pinellas 0.781 0.823 0.856 0.888 0.915 0.943 Polk 0.099 0.103 0.106 0.109 0.111 0.112 Sarasota 0.047 0.049 0.051 0.053 0.054 0.056 Tampa Bay 1.213 1.276 1.327 1.372 1.411 1.446 Panel C Medical Devices Output (% of Total) Location 20022003 2004 2005 2006 2007 Hernando 1.40%1.48% 1.59% 1.62% 1.69% 1.73% Hillsborough 0.22%0.22% 0.22% 0.22% 0.22% 0.22% Manatee 0.91%0.92% 0.91% 0.90% 0.88% 0.87% Pasco 0.02%0.03% 0.03% 0.03% 0.03% 0.03% Pinellas 1.70%1.73% 1.74% 1.76% 1.76% 1.76% Polk 0.50%0.51% 0.51% 0.51% 0.50% 0.49% Sarasota 0.31%0.32% 0.33% 0.33% 0.33% 0.33% Tampa Bay 0.74%0.75% 0.76% 0.76% 0.76% 0.76%

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18 We expect the Medical Devices segment to produce over $1.2 billion of economic activity (output) in the Tampa Bay region during 2002. Approximately 65%, or $781 million, of this economic activity is attributable to businesses that are located in Pinellas County. By 2007, output of the Medical Devices segment is expected to grow to almost $1.5 billion in the Tampa Bay region. Aggregated estimates of output by location (place of business) from 2002 to 2007 for the Pharmaceuticals, Biotech and Medical Devices segments are in Appendix B. We expect that the Pharmaceuticals, Biotech and Medical Devices segments will produce nearly $1.4 billion of economic activity in the Tampa Bay region during 2002. Most of this activity, almost 63%, occurs in Pinellas County. Table 3.7 (Pharmaceuticals segment) shows estimates of income by location (place of residence) from 2002 to 2007 for the Drugs Industry Group. Here, we report wage and salary disbursements, which are a portion of the personal income block of the REMITM model. In the model, wage and salary disbursements are disaggregated at the major industry group level.7 Panel A shows total wage and salary disbursements in each county and a summation of disbursements for the counties’ of the Tampa Bay region. Panel B reflects wage and salary disbursements by the Drugs Industry Group. Panel C gives the percentage of total wage and salary disbursements that are contributed by the Drugs Industry Group for each location. 7 Other components of personal income are only available for the major divisions of an economy, i.e. 1-digit SIC code level. In 2001, total personal income of Tampa bay residents was $106.942 billion, and wage and salary disbursements were $55.013 billion or 51.44% of total personal income.

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19 Table 3.7 Pharmaceuticals Segment Medical Products Industry Cluster REMI Baseline Primary Industries: SIC 283 Drugs Industry Group PERSONAL INCOME Panel A Personal Income (Bil. nominal) Total Wage & Salary Disbursements Location 2002 2003 2004 2005 2006 2007 Hernando 0.686 0.725 0.766 0.807 0.848 0.892 Hillsborough 20.616 21.898 23.251 24.670 26.203 27.847 Manatee 3.051 3.212 3.385 3.569 3.764 3.974 Pasco 1.735 1.819 1.905 1.995 2.090 2.191 Pinellas 14.379 15.102 15.870 16.680 17.550 18.485 Polk 5.173 5.447 5.726 6.015 6.320 6.644 Sarasota 4.554 4.799 5.048 5.306 5.575 5.865 Tampa Bay 50.194 53.002 55.951 59.042 62.350 65.898 Panel B Drugs Group Personal Income (Bil. Nominal) Manufacturing > Non-durables > Chemicals Location 2002 2003 2004 2005 2006 2007 Hernando 0.000 0.000 0.000 0.000 0.000 0.000 Hillsborough 0.028 0.029 0.031 0.032 0.034 0.036 Manatee 0.005 0.005 0.006 0.006 0.006 0.007 Pasco 0.000 0.000 0.000 0.000 0.000 0.000 Pinellas 0.058 0.061 0.064 0.067 0.070 0.075 Polk 0.000 0.000 0.000 0.000 0.000 0.000 Sarasota 0.002 0.002 0.002 0.002 0.002 0.002 Tampa Bay 0.093 0.098 0.103 0.108 0.114 0.120 Panel C Drugs Group Personal Income (% of Total) Manufacturing > Non-durables > Chemicals Location 2002 2003 2004 2005 2006 2007 Hernando 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Hillsborough 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% Manatee 0.16% 0.17% 0.17% 0.17% 0.17% 0.17% Pasco 0.03% 0.03% 0.02% 0.02% 0.02% 0.02% Pinellas 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% Polk 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Sarasota 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% Tampa Bay 0.18% 0.19% 0.18% 0.18% 0.18% 0.18% We expect residents of Tampa Bay working in the Drugs Industry Group to receive $93 million in wages and salaries during 2002. About 62%, or $58 million, will be paid to Pinellas County residents. Including estimated future inflation, we expect that by 2007 residents of the Tampa Bay region working in the Drugs Industry Group will earn $120 million of wages and salaries.

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20 Table 3.8 (Biotech segment) shows estimates of income (wage and salary disbursements only) by location (place of residence) from 2002 to 2007 for the Commercial Physical and Biological Research industry. Panel A shows total wage and salary disbursement in each county and a summation of disbursements for the counties’ of the Tampa Bay region. Panel B reflects wage and salary disbursements by the Commercial Physical and Biological Research industry. Panel C gives the percentage of total wage and salary disbursements contributed by the Commercial Physical and Biological Research industry for each location. Table 3.8 Biotech Segment Medical Products Industry Cluster REMI Baseline Primary Industry: SIC 8731 Commercial Physical and Biological Research PERSONAL INCOME Panel A Personal Income (Bil. nominal) Total Wage & Salary Disbursements Location 2002 2003 2004 2005 2006 2007 Hernando 0.686 0.725 0.766 0.807 0.848 0.892 Hillsborough 20.616 21.898 23.251 24.670 26.203 27.847 Manatee 3.051 3.212 3.385 3.569 3.764 3.974 Pasco 1.735 1.819 1.905 1.995 2.090 2.191 Pinellas 14.379 15.102 15.870 16.680 17.550 18.485 Polk 5.173 5.447 5.726 6.015 6.320 6.644 Sarasota 4.554 4.799 5.048 5.306 5.575 5.865 Tampa Bay 50.194 53.002 55.951 59.042 62.350 65.898 Panel B Commercial Physical and Biological Research Personal Inc (Bil. nominal) Non-manufacturing > Services Location 2002 2003 2004 2005 2006 2007 Hernando 0.000 0.000 0.000 0.000 0.000 0.000 Hillsborough 0.010 0.011 0.012 0.013 0.014 0.015 Manatee 0.001 0.001 0.001 0.001 0.001 0.001 Pasco 0.002 0.002 0.002 0.002 0.002 0.002 Pinellas 0.014 0.015 0.017 0.018 0.019 0.021 Polk 0.001 0.001 0.001 0.001 0.001 0.001 Sarasota 0.004 0.004 0.004 0.005 0.005 0.005 Tampa Bay 0.031 0.034 0.036 0.039 0.043 0.046 Panel C Commercial Physical and Biological Research Personal Inc (% of Total) Non-manufacturing > Services Location 2002 2003 2004 2005 2006 2007 Hernando 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Hillsborough 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% Manatee 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% Pasco 0.10% 0.10% 0.11% 0.11% 0.11% 0.11% Pinellas 0.10% 0.10% 0.10% 0.11% 0.11% 0.11% Polk 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% Sarasota 0.08% 0.08% 0.09% 0.09% 0.09% 0.09% Tampa Bay 0.06% 0.06% 0.07% 0.07% 0.07% 0.07% We expect residents of Tampa Bay working in the Commercial Physical and Biological Research industry to receive $31 million in wages and salaries during 2002. About 45%, or $14

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21 million, will be paid to Pinellas County residents. Including estimated future inflation, we expect that by 2007 residents of the Tampa Bay region working in the Commercial Physical and Biological Research industry will earn $46 million of wages and salaries. Table 3.9 (Medical Devices segment) shows estimates of income (wage and salary disbursements only) by location (place of residence) from 2002 to 2007 for the Medical Devices segment. Panel A shows total wage and salary disbursement in each county and a summation of disbursements for the counties’ of the Tampa Bay region. Panel B reflects wage and salary disbursements by the Medical Devices segment. Panel C gives the percentage of total wage and salary disbursements contributed by the Medical Devices segment for each location.

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22 Table 3.9 Medical Devices Segment Medical Products Industry Cluster REMI Baseline Primary Industries: SIC 3053 Gaskets, Packing & Sealing Devices SIC 3061 Molded, Extruded, & Lathe-cut Mechanical Rubber Goods SIC 3069 Fabricated Rubber Products, nec SIC 3823 Industrial Instruments for Measurement, Display, and Control SIC 3824 Totalizing Fluid Meters and Counting Devices SIC 3826 Laboratory Analytical Instruments SIC 3827 Optical Instruments and Lenses SIC 3829 Measuring and Controlling Devices, nec SIC 3840 Medical Instruments & Supplies SIC 3851 Opthamalic Goods PERSONAL INCOME Panel A Personal Income (Bil. nominal) Total Wage & Salary Disbursements Location 2002 2003 2004 2005 2006 2007 Hernando 0.686 0.725 0.766 0.807 0.848 0.892 Hillsborough 20.616 21.898 23.251 24.670 26.203 27.847 Manatee 3.051 3.212 3.385 3.569 3.764 3.974 Pasco 1.735 1.819 1.905 1.995 2.090 2.191 Pinellas 14.379 15.102 15.870 16.680 17.550 18.485 Polk 5.173 5.447 5.726 6.015 6.320 6.644 Sarasota 4.554 4.799 5.048 5.306 5.575 5.865 Tampa Bay 50.194 53.002 55.951 59.042 62.350 65.898 Panel B Medical Devices Personal Income (Bil. Nominal) Manufacturing > Durables > Instruments Location 2002 2003 2004 2005 2006 2007 Hernando 0.004 0.004 0.005 0.005 0.005 0.006 Hillsborough 0.052 0.052 0.054 0.056 0.058 0.060 Manatee 0.025 0.025 0.026 0.028 0.028 0.029 Pasco 0.001 0.001 0.001 0.001 0.001 0.001 Pinellas 0.299 0.315 0.332 0.347 0.362 0.376 Polk 0.036 0.036 0.037 0.038 0.040 0.040 Sarasota 0.035 0.036 0.037 0.039 0.040 0.042 Tampa Bay 0.451 0.470 0.492 0.513 0.534 0.555 Panel C Medical Devices Personal Income (% of total) Manufacturing > Durables > Instruments Location 2002 2003 2004 2005 2006 2007 Hernando 0.51% 0.48% 0.59% 0.62% 0.59% 0.67% Hillsborough 0.25% 0.24% 0.23% 0.23% 0.22% 0.21% Manatee 0.80% 0.79% 0.78% 0.78% 0.74% 0.74% Pasco 0.07% 0.06% 0.06% 0.06% 0.06% 0.06% Pinellas 2.08% 2.09% 2.09% 2.08% 2.06% 2.03% Polk 0.69% 0.67% 0.65% 0.63% 0.63% 0.60% Sarasota 0.77% 0.75% 0.74% 0.73% 0.72% 0.72% Tampa Bay 0.90% 0.89% 0.88% 0.87% 0.86% 0.84%

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23 We expect residents of Tampa Bay working for a firm in the Medical Devices segment to receive $451 million in wages and salaries during 2002. About 66%, or $299 million, will be paid to Pinellas County residents. Including estimated future inflation, we expect that by 2007 residents of the Tampa Bay region working in the Medical Devices segment will earn $555 million of wages and salaries. Aggregated estimates of income by location (place of residence) from 2002 to 2007 for the Pharmaceuticals, Biotech and Medical Devices segments are in Appendix C. We expect that employees, who live in Tampa Bay, of firms in the Pharmaceuticals, Biotech and Medical Devices segments will earn $574 million of wages and salaries during 2002. Residents of Pinellas County earn most of these disbursements, almost 65%.

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24 Section 4: Employment Structure of the Primary Industries We use ES-202 data to compile the number of employees, average annual wages, and the number of firms for each of the primary industries. The Bureau of Labor Statistics (BLS) Covered Employment and Wages data (also called the ES-202 data) is based on the national Unemployment Insurance program for which premiums are collected monthly by state agencies. ES-202 data is gathered from the information sent to a state agency by firms that employ “covered workers”. For this study, we use annualized average ES-202 data from the year 2001, which is the most recent period available to us. We choose three ranges of average wage to organize and present our findings. The ranges are 1) below $35,000, 2) between $35,000 and $60,000, and 3) above $60,000. For each location, we divide total wages paid by an industry during 2001 by the average number of employees during the year to obtain an average wage for the year.

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25 Table 4.1 reveals that the 17 Tampa Bay firms in the Pharmaceuticals segment were employing 1,350 workers during 2001. Employers were paying annualized wages of less than $35,000 to 79 workers (6%), and were paying annualized wages of between $35,000 and $60,000 to 1,271 workers (94%). There were no annualized wages over $60,000 in the Pharmaceuticals segment in 2001. Seven Pharmaceuticals firms, which are based in Pinellas County, employ 1,258 workers, or 93% of all workers employed by the Pharmaceuticals segment in the Tampa Bay region. Most of these workers are earning an annualized wage between $35,000 and $60,000 (24 out of the 1,258 are earning less than $35,000). Hillsborough County is the home base of the second largest number of firms (6 firms) in the Pharmaceuticals segment in the Tampa Bay region.

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26 Table 4.2 reveals that the 55 Tampa Bay firms in the Biotech segment were employing an average of 724 workers during 2001. Employers were paying annualized wages of less than $35,000 to 64 workers (8.9%) and annualized wages between $35,000 and $60,000 to 660 workers (91.1%). An equal number of Biotech firms (19 each) are based in Hillsborough and Pinellas counties. The firms employ 305 and 331 workers, respectively, for a total of 88% of all workers employed by the Biotech segment in the Tampa Bay region. The three firms in Pasco County are the only Biotech firms in Tampa Bay to pay average wages above $60,000.

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27 Table 4.3 reveals that the 131 Tampa Bay firms in the Medical Devices segment were employing 8,221 workers during 2001. Employers were paying annualized wages of less than $35,000 to 1,300 workers (15.8%) and annualized wages of between $35,000 and $60,000 to 6,870 workers (83.6%). Medical Devices firms based in Pinellas County employ 6,094 workers, or 74% of all workers employed by Medical Devices firms in the Tampa Bay region.

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28 Aggregated employment by average annual wage and number of firms for the Pharmaceuticals, Medical Devices, and Biotech segments are in Appendix D.

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29 Section 5: Economic Contribution of the Primary Industries We assess the economic contribution of the primary industries using the traditional counter-factual approach. With this approach, we use the REMITM model to remove the actual output produced by the primary industries. (See Tables 3.4, 3.5 and 3.6 for the primary industries’ baseline output.) The model tabulates the direct effects of the removal of the primary economic activities as well as the ripple, or secondary, effects throughout Tampa Bay. We provide three measurements of the economic contribution for each segment of the primary industries: 1) employment, 2) output, and 3) personal income. Table 5.1 reports the contribution of the Pharmaceuticals segment measured by employment. Panel A shows total employment in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary Pharmaceuticals industries’ output from the economy. Panel B shows total employment in each county and a summation for the Tampa Bay region after the hypothetical removal of the primary pharmaceutical industries’ output from the economy. Panels C and D show the difference in employment before removal and after removal of the primary pharmaceutical industries’ output. In Panel C the difference is expressed as thousands of jobs that would be lost. In Panel D the difference is expressed as the percentage of jobs lost from the total employment base after the hypothetical removal of the primary pharmaceutical industries’ output from the economy. As expressed in Panels C or D of Table 5.1, the difference in employment measures the economic contribution of the Pharmaceuticals segment In terms of the number of jobs, Pinellas County benefits most from the economic activities of the Pharmaceuticals segment in Tampa Bay. In Pinellas County, the segment is contributing about 5,225 jobs during 2002. As a percentage of total employment, Pinellas County also benefits most from the economic activities of the Pharmaceuticals segment. In Pinellas County, the segment is contributing approximately 0.9% of total employment during 2002. The Pharmaceuticals segment is contributing over 9,000 jobs to the Tampa Bay region.

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30 Total Employment before Removal (000s) Location200220032004200520062007 Hernando43.85244.59545.30745.94946.50947.072 Hillsborough783.506798.732814.520829.625845.062861.097 Manatee159.296162.159165.157167.954170.695173.471 Pasco105.737107.122108.435109.637110.764111.969 Pinellas580.113586.852594.073600.892607.839615.298 Polk245.968250.046253.927257.481260.942264.494 Sarasota215.068218.125221.103223.857226.467229.258 Tampa Bay2133.5402167.6312202.5222235.3952268.2782302.659 Total Employment after Removal (000s) Location200220032004200520062007 Hernando43.82044.56345.27645.91946.48047.042 Hillsborough780.699795.927811.769826.935842.399858.458 Manatee158.873161.736164.738167.546170.288173.063 Pasco105.560106.938108.255109.457110.585111.787 Pinellas574.888581.716589.068595.983602.991610.472 Polk245.770249.848253.734257.294260.759264.313 Sarasota214.801217.869220.852223.615226.225229.013 Tampa Bay2124.4112158.5972193.6922226.7492259.7272294.148 Difference in Employment after Removal (000s) Location200220032004200520062007 Hernando-0.032-0.032-0.031-0.030-0.029-0.030 Hillsborough-2.807-2.805-2.751-2.690-2.663-2.639 Manatee-0.423-0.423-0.419-0.408-0.407-0.408 Pasco-0.177-0.184-0.180-0.180-0.179-0.182 Pinellas-5.225-5.136-5.005-4.909-4.848-4.826 Polk-0.198-0.198-0.193-0.187-0.183-0.181 Sarasota-0.267-0.256-0.251-0.242-0.242-0.245 Tampa Bay-9.129-9.034-8.830-8.646-8.551-8.511 Difference in Employment after Removal (% change) Location200220032004200520062007 Hernando-0.07%-0.07%-0.07%-0.07%-0.06%-0.06% Hillsborough-0.36%-0.35%-0.34%-0.33%-0.32%-0.31% Manatee-0.27%-0.26%-0.25%-0.24%-0.24%-0.24% Pasco-0.17%-0.17%-0.17%-0.16%-0.16%-0.16% Pinellas-0.91%-0.88%-0.85%-0.82%-0.80%-0.79% Polk-0.08%-0.08%-0.08%-0.07%-0.07%-0.07% Sarasota-0.12%-0.12%-0.11%-0.11%-0.11%-0.11% Tampa Bay-0.43%-0.42%-0.40%-0.39%-0.38%-0.37% Panel A Panel B Panel C Panel D Table 5.1 Pharmaceuticals Segment REMI Counter-factual Removal of Output Primary Industries: SIC 283 Drugs Industry Group EMPLOYMENT

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31 Table 5.2 reports the contribution of the Biotech segment measured by employment. Panel A shows total employment in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary biotech industries’ output from the economy. Panel B shows total employment in each county and a summation for the Tampa Bay region after the hypothetical removal of the primary biotech industries’ output from the economy. Panels C and D show the difference in employment before removal and after removal of the primary biotech industries’ output. In Panel C the difference is expressed as thousands of jobs that would be lost. In Panel D the difference is expressed as the percentage of jobs lost from the total employment base after the hypothetical removal of the primary biotech industries’ output from the economy. As expressed in Panels C or D of Table 5.2, the difference in employment measures the economic contribution of the Biotech segment In terms of the number of jobs, Pinellas County benefits most from the economic activities of the Biotech segment in Tampa Bay. In Pinellas County, the segment is contributing over 2,400 jobs during 2002. As a percentage of total employment, Pinellas County also benefits most from the economic activities of the Biotech segment. In Pinellas County, the segment is contributing approximately 0.4% of total employment during 2002. The Biotech segment is contributing over 5,100 jobs to the Tampa Bay region. Table 5.3 reports the contribution of the Medical Devices segment measured by employment. Panel A shows total employment in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary medical product industries’ output from the economy. Panel B shows total employment in each county and a summation for the Tampa Bay region after the hypothetical removal of the primary medical product industries’ output from the economy. Panels C and D show the difference in employment before removal and after removal of the primary medical product industries’ output. In Panel C the difference is expressed as thousands of jobs that would be lost. In Panel D the difference is expressed as the percentage of jobs lost from the total employment base after the hypothetical removal of the primary medical product industries’ output from the economy. As expressed in Panels C or D of Table 5.2, the difference in employment measures the economic contribution of the Medical Devices segment In terms of the number of jobs, Pinellas County benefits most from the economic activities of the Medical Devices segment in Tampa Bay. In Pinellas County, the segment is contributing slightly more than 18,000 jobs during 2002. As a percentage of total employment, Pinellas County also benefits most from the economic activities of the Medical Devices segment. In Pinellas County, the segment is contributing approximately 3.2% of total employment during 2002. Employment in the industries of the Medical Devices segment also makes up about 2.2% of the total jobs in Sarasota County. The Medical Devices segment is contributing over 35,800 jobs to the Tampa Bay region.

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33 Total Employment before Removal (000s) Location200220032004200520062007 Hernando43.85244.59545.30745.94946.50947.072 Hillsborough783.506798.732814.520829.625845.062861.097 Manatee159.296162.159165.157167.954170.695173.471 Pasco105.737107.122108.435109.637110.764111.969 Pinellas580.113586.852594.073600.892607.839615.298 Polk245.968250.046253.927257.481260.942264.494 Sarasota215.068218.125221.103223.857226.467229.258 Tampa Bay2133.5402167.6312202.5222235.3952268.2782302.659 Total Employment after Removal (000s) Location200220032004200520062007 Hernando43.33944.07644.79245.43346.00546.579 Hillsborough776.768792.089808.114823.438839.109855.324 Manatee157.149160.026163.108165.960168.770171.604 Pasco105.247106.628107.934109.148110.285111.496 Pinellas562.087569.007576.702583.921591.274599.063 Polk242.619246.695250.637254.255257.779261.392 Sarasota210.456213.661216.764219.626222.329225.182 Tampa Bay2097.6652132.1822168.0512201.7812235.5512270.640 Difference in Employment after Removal (000s) Location200220032004200520062007 Hernando-0.513-0.519-0.515-0.516-0.504-0.493 Hillsborough-6.738-6.643-6.406-6.187-5.953-5.773 Manatee-2.147-2.133-2.049-1.994-1.925-1.867 Pasco-0.490-0.494-0.501-0.489-0.479-0.473 Pinellas-18.026-17.845-17.371-16.971-16.565-16.235 Polk-3.349-3.351-3.290-3.226-3.163-3.102 Sarasota-4.612-4.464-4.339-4.231-4.138-4.076 Tampa Bay-35.875-35.449-34.471-33.614-32.727-32.019 Difference in Employment after Removal (% change) Location200220032004200520062007 Hernando-1.18%-1.18%-1.15%-1.14%-1.10%-1.06% Hillsborough-0.87%-0.84%-0.79%-0.75%-0.71%-0.67% Manatee-1.37%-1.33%-1.26%-1.20%-1.14%-1.09% Pasco-0.47%-0.46%-0.46%-0.45%-0.43%-0.42% Pinellas-3.21%-3.14%-3.01%-2.91%-2.80%-2.71% Polk-1.38%-1.36%-1.31%-1.27%-1.23%-1.19% Sarasota-2.19%-2.09%-2.00%-1.93%-1.86%-1.81% Tampa Bay-1.68%-1.64%-1.57%-1.50%-1.44%-1.39% Table 5.3 Medical Devices Segment REMI Counter-factual Removal of Output EMPLOYMENT Primary Industries: SIC 3053 Gaskets, Packing & Sealing Devices SIC 3061 Molded, Extruded, & Lathe-cut Mechanical Rubber Goods SIC 3069 Fabricated Rubber Products, nec SIC 3823 Industrial Instruments for Measurement, Display, and Control SIC 3840 Medical Instruments & Supplies SIC 3851 Opthamalic Goods Panel A Panel B Panel C Panel D SIC 3824 Totalizing Fluid Meters and Counting Devices SIC 3826 Laboratory Analytical Instruments SIC 3827 Optical Instruments and Lenses SIC 3829 Measuring and Controlling Devices, nec

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34 Table 5.4 reports the contribution of the Pharmaceuticals segment by output. Panel A shows total output in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary pharmaceutical industries’ output from the economy. Panel B shows total output in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary pharmaceutical industries’ output from the economy. Panels C and D show the difference in output before removal and after removal of the primary pharmaceutical industries’ output. In Panel C the difference is expressed as output that would be lost. In Panel D the difference is expressed as the percentage of output lost from total output after the hypothetical removal of the primary pharmaceutical industries’ output from the economy. As expressed in Panels C or D of Table 5.4, the difference in output measures the economic contribution of the Pharmaceuticals segment In terms of output, Pinellas County benefits most from the economic activities of the Pharmaceuticals segment in Tampa Bay. The segment is contributing almost $750 million of output to Pinellas County’s economy during 2002. As a percentage of the county’s total economy, as measured by output, the Pharmaceuticals segment is contributing 1.65% in 2002. The Pharmaceuticals segment is contributing $1.3 billion to the economy of the Tampa Bay region during 2002. That is 0.8% of the region’s total economic activity. Table 5.5 reports the contribution of the Biotech segment by output. Panel A shows total output in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary biotech industries’ output from the economy. Panel B shows total output in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary biotech industries’ output from the economy. Panels C and D show the difference in output before removal and after removal of the primary biotech industries’ output. In Panel C the difference is expressed as output that would be lost. In Panel D the difference is expressed as the percentage of output lost from total output after the hypothetical removal of the primary biotech industries’ output from the economy. As expressed in Panels C or D of Table 5.5, the difference in output measures the economic contribution of the Biotech segment In terms of output, Pinellas County benefits most from the economic activities of the Biotech segment in Tampa Bay. The segment is contributing almost $144 million of output to Pinellas County’s economy during 2002. As a percentage of the county’s total economy, as measured by output, the Pharmaceuticals segment is contributing 0.3% in 2002. The Biotech segment is contributing $305 million to the economy of the Tampa Bay region during 2002. That is almost 0.2% of the region’s total economic activity.

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35 Total Output (Bil. 01$) before Removal Location200220032004200520062007 Hernando2.6782.7642.8522.9273.0023.077 Hillsborough61.82464.02466.19768.28070.49472.719 Manatee12.01312.42812.83013.19613.57513.940 Pasco6.7706.9537.1287.2917.4607.625 Pinellas46.06247.60849.12750.56152.05753.551 Polk19.75720.38820.98821.54022.11122.670 Sarasota14.88115.32515.75816.16416.58617.010 Tampa Bay163.985169.491174.878179.959185.285190.592 Total Output (Bil. 01$) after Removal Location200220032004200520062007 Hernando2.6752.7632.8472.9243.0013.072 Hillsborough61.43063.62365.79267.87370.08072.298 Manatee11.94012.35312.75113.12113.49513.859 Pasco6.7486.9297.1047.2657.4347.599 Pinellas45.31646.85148.36549.78951.27152.752 Polk19.72820.36220.95821.51322.08422.641 Sarasota14.84315.28815.72016.12916.54716.970 Tampa Bay162.679168.169173.538178.614183.910189.193 Difference inOutput after Removal (Bil. 01$) Location200220032004200520062007 Hernando-0.003-0.001-0.004-0.002-0.001-0.004 Hillsborough-0.394-0.401-0.404-0.406-0.414-0.421 Manatee-0.073-0.075-0.078-0.075-0.081-0.081 Pasco-0.022-0.024-0.024-0.027-0.027-0.025 Pinellas-0.747-0.758-0.762-0.772-0.786-0.800 Polk-0.029-0.027-0.030-0.028-0.028-0.029 Sarasota-0.038-0.036-0.038-0.035-0.039-0.040 Tampa Bay-1.305-1.322-1.341-1.345-1.375-1.399 Difference in Output after Removal (% change) Location200220032004200520062007 Hernando-0.12%-0.04%-0.16%-0.08%-0.04%-0.14% Hillsborough-0.64%-0.63%-0.61%-0.60%-0.59%-0.58% Manatee-0.61%-0.61%-0.61%-0.57%-0.60%-0.58% Pasco-0.33%-0.35%-0.34%-0.36%-0.36%-0.33% Pinellas-1.65%-1.62%-1.58%-1.55%-1.53%-1.52% Polk-0.15%-0.13%-0.14%-0.13%-0.13%-0.13% Sarasota-0.25%-0.24%-0.24%-0.22%-0.23%-0.23% Tampa Bay-0.80%-0.78%-0.77%-0.75%-0.74%-0.73% Table 5.4 Pharmaceuticals Segment REMI Counter-factual Removal of Output Primary Industries: SIC 283 Drugs Industry Group OUTPUT Panel A Panel B Panel C Panel D s

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36

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37 Table 5.6 reports the contribution of the Medical Devices segment by output. Panel A shows total output in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary medical product industries’ output from the economy. Panel B shows total output in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary medical product industries’ output from the economy. Panels C and D show the difference in output before removal and after removal of the primary medical product industries’ output. In Panel C the difference is expressed as output that would be lost. In Panel D the difference is expressed as the percentage of output lost from total output after the hypothetical removal of the primary medical product industries’ output from the economy. As expressed in Panels C or D of Table 5.4, the difference in output measures the economic contribution of the Medical Devices segment In terms of output, Pinellas County benefits most from the economic activities of the Medical Devices segment in Tampa Bay. The segment is contributing slightly more than $1.9 billion of output to Pinellas County’s economy during 2002. As a percentage of Pinellas county’s total economy, as measured by output, the Medical Devices segment is contributing 4.35% in 2002. The Medical Devices segment is also a large contributor to Hillsborough County’s economy. During 2002, we estimate that the segment is contributing $795 million, or 1.3%, to Hillsborough County’s economy. The Medical Devices segment is contributing over $4 billion to the economy of the Tampa Bay region during 2002. This equates to almost 2.5% of the region’s total economic activity.

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38 Total Output (Bil. 01$) before Removal Location200220032004200520062007 Hernando2.6782.7642.8522.9273.0023.077 Hillsborough61.82464.02466.19768.28070.49472.719 Manatee12.01312.42812.83013.19613.57513.940 Pasco6.7706.9537.1287.2917.4607.625 Pinellas46.06247.60849.12750.56152.05753.551 Polk19.75720.38820.98821.54022.11122.670 Sarasota14.88115.32515.75816.16416.58617.010 Tampa Bay163.985169.491174.878179.959185.285190.592 Total Output (Bil. 01$) after Removal Location200220032004200520062007 Hernando2.5992.6812.7622.8352.9092.981 Hillsborough61.02963.21965.39767.48469.70371.932 Manatee11.79712.21012.61712.98813.36713.735 Pasco6.7296.9117.0847.2477.4167.584 Pinellas44.14345.65747.18048.61150.11051.604 Polk19.31419.94120.53521.08921.65822.217 Sarasota14.29414.73515.16215.56515.98116.399 Tampa Bay159.905165.355170.737175.819181.144186.453 Difference in Output after Removal (Bil. 01$) Location200220032004200520062007 Hernando-0.080-0.083-0.089-0.092-0.093-0.096 Hillsborough-0.795-0.805-0.800-0.795-0.791-0.787 Manatee-0.215-0.218-0.213-0.209-0.209-0.204 Pasco-0.041-0.042-0.044-0.044-0.044-0.041 Pinellas-1.919-1.951-1.947-1.949-1.947-1.947 Polk-0.443-0.447-0.453-0.452-0.453-0.453 Sarasota-0.586-0.590-0.595-0.599-0.605-0.611 Tampa Bay-4.080-4.136-4.141-4.139-4.142-4.139 Difference in Output after Removal (% change) Location200220032004200520062007 Hernando-3.06%-3.09%-3.24%-3.23%-3.19%-3.22% Hillsborough-1.30%-1.27%-1.22%-1.18%-1.13%-1.09% Manatee-1.83%-1.78%-1.69%-1.61%-1.56%-1.49% Pasco-0.61%-0.61%-0.62%-0.61%-0.60%-0.54% Pinellas-4.35%-4.27%-4.13%-4.01%-3.89%-3.77% Polk-2.29%-2.24%-2.21%-2.14%-2.09%-2.04% Sarasota-4.10%-4.00%-3.93%-3.85%-3.79%-3.72% Tampa Bay-2.49%-2.44%-2.37%-2.30%-2.24%-2.17% SIC 3827 Optical Instruments and Lenses SIC 3829 Measuring and Controlling Devices, nec SIC 3840 Medical Instruments & Supplies SIC 3851 Opthamalic Goods Table 5.6 Medical Devices Segment REMI Counter-factual Removal of Output Primary Industries: OUTPUT SIC 3053 Gaskets, Packing & Sealing Devices SIC 3061 Molded, Extruded, & Lathe-cut Mechanical Rubber Goods SIC 3069 Fabricated Rubber Products, nec SIC 3823 Industrial Instruments for Measurement, Display, and Control SIC 3824 Totalizing Fluid Meters and Counting Devices SIC 3826 Laboratory Analytical Instruments Panel A Panel B Panel C Panel D

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39 Table 5.7 reports the contribution of the Pharmaceuticals segment measured by income, i.e. private, non-farm, wage and salary disbursements. Panel A shows total income in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary pharmaceutical industries’ output from the economy. Panel B shows total income in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary pharmaceutical industries’ output from the economy. Panels C and D show the difference in income before removal and after removal of the primary pharmaceutical industries’ output. In Panel C the difference is expressed as income that would be lost. In Panel D the difference is expressed as the percentage of income lost from total income after the hypothetical removal of the primary pharmaceutical industries’ output from the economy. As expressed in Panels C or D of Table 5.4, the difference in income measures the economic contribution of the Pharmaceuticals segment In terms of income, Pinellas County benefits most from the economic activities of the Pharmaceuticals segment in Tampa Bay. The segment is contributing $195 million of income to workers in Pinellas County during 2002. As a percentage of Pinellas County’s total wage and salary disbursements, the Pharmaceuticals segment is contributing almost 1.4% of income in 2002. The Pharmaceuticals segment also contributes $117 million of income to workers in Hillsborough County in 2002. The Pharmaceuticals segment is contributing $348 million to non-farm payroll in the Tampa Bay region during 2002. This equates to almost 0.7% of the region’s total non-farm payrolls. Table 5.8 reports the contribution of the Biotech segment measured by income, i.e. private, non-farm, wage and salary disbursements. Panel A shows total income in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary biotech industries’ output from the economy. Panel B shows total income in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary biotech industries’ output from the economy. Panels C and D show the difference in income before removal and after removal of the primary biotech industries’ output. In Panel C the difference is expressed as income that would be lost. In Panel D the difference is expressed as the percentage of income lost from total income after the hypothetical removal of the primary biotech industries’ output from the economy. As expressed in Panels C or D of Table 5.4, the difference in income measures the economic contribution of the Biotech segment In terms of income, Pinellas County benefits most from the economic activities of the Biotech segment in Tampa Bay. The segment is contributing $76 million of income to workers in Pinellas County during 2002. As a percentage of Pinellas County’s total wage and salary disbursements, the Biotech segment is contributing 0.4% of income in 2002. Regionally, the Biotech segment is contributing $163 million to non-farm payroll in the Tampa Bay during 2002. This equates to about 0.3% of the region’s total non-farm payrolls.

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40 Personal Income (Bil. nominal) Total Wage & Salary Disbursements before Removal Location200220032004200520062007 Hernando0.6860.7250.7660.8070.8480.892 Hillsborough20.61621.89823.25124.67026.20327.847 Manatee3.0513.2123.3853.5693.7643.974 Pasco1.7351.8191.9051.9952.0902.191 Pinellas14.37915.10215.87016.68017.55018.485 Polk5.1735.4475.7266.0156.3206.644 Sarasota4.5544.7995.0485.3065.5755.865 Tampa Bay50.19453.00255.95159.04262.35065.898 Personal Income (Bil. nominal) Total Wage & Salary Disbursements after Removal Location200220032004200520062007 Hernando0.6850.7240.7650.8060.8470.891 Hillsborough20.49921.77123.11824.53426.06227.703 Manatee3.0373.1973.3703.5533.7483.957 Pasco1.7301.8141.9001.9902.0842.186 Pinellas14.18414.89415.65516.45817.32018.248 Polk5.1665.4405.7186.0076.3126.637 Sarasota4.5454.7895.0375.2965.5655.854 Tampa Bay49.84652.62955.56358.64461.93865.476 Difference in Wage & Salary Disbursements after Removal (000s) Location200220032004200520062007 Hernando-0.001-0.001-0.001-0.001-0.001-0.001 Hillsborough-0.117-0.127-0.133-0.136-0.141-0.144 Manatee-0.014-0.015-0.015-0.016-0.016-0.017 Pasco-0.005-0.005-0.005-0.005-0.006-0.005 Pinellas-0.195-0.208-0.215-0.222-0.230-0.237 Polk-0.007-0.007-0.008-0.008-0.008-0.007 Sarasota-0.009-0.010-0.011-0.010-0.010-0.011 Tampa Bay-0.348-0.373-0.388-0.398-0.412-0.422 Difference in Wage & Salary Disbursements after Removal (% change) Location200220032004200520062007 Hernando-0.15%-0.14%-0.13%-0.12%-0.12%-0.11% Hillsborough-0.57%-0.58%-0.58%-0.55%-0.54%-0.52% Manatee-0.46%-0.47%-0.45%-0.45%-0.43%-0.43% Pasco-0.29%-0.28%-0.26%-0.25%-0.29%-0.23% Pinellas-1.37%-1.40%-1.37%-1.35%-1.33%-1.30% Polk-0.14%-0.13%-0.14%-0.13%-0.13%-0.11% Sarasota-0.20%-0.21%-0.22%-0.19%-0.18%-0.19% Tampa Bay-0.69%-0.70%-0.69%-0.67%-0.66%-0.64% Table 5.7 Pharmaceuticals Segment REMI Counter-factual Removal of Output Primary Industries: SIC 283 Drugs Industry Group PERSONAL INCOME Panel A Panel B Panel C Panel D

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41

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42 Table 5.9 reports the contribution of the Medical Devices segment measured by income, i.e. private, non-farm, wage and salary disbursements. Panel A shows total income in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary medical product industries’ output from the economy. Panel B shows total income in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary medical product industries’ output from the economy. Panels C and D show the difference in income before removal and after removal of the primary medical product industries’ output. In Panel C the difference is expressed as income that would be lost. In Panel D the difference is expressed as the percentage of income lost from total income after the hypothetical removal of the primary medical product industries’ output from the economy. As expressed in Panels C or D of Table 5.4, the difference in income measures the economic contribution of the Medical Devices segment In terms of income, Pinellas County benefits most from the economic activities of the Medical Devices segment in Tampa Bay. The segment is contributing $654 million of income to workers in Pinellas County during 2002. As a percentage of Pinellas County’s total wage and salary disbursements, the Medical Devices segment is contributing almost 4.8% of income in 2002. The Medical Devices segment also contributes $272 million of income to workers in Hillsborough County in 2002. The Medical Devices segment is contributing nearly $1.3 billion to non-farm payroll in the Tampa Bay region during 2002. This equates to 2.55% of the region’s total non-farm payrolls.

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43 Personal Income (Bil. nominal) Total Wage & Salary Disbursements before Removal Location200220032004200520062007 Hernando0.6860.7250.7660.8070.8480.892 Hillsborough20.61621.89823.25124.67026.20327.847 Manatee3.0513.2123.3853.5693.7643.974 Pasco1.7351.8191.9051.9952.0902.191 Pinellas14.37915.10215.87016.68017.55018.485 Polk5.1735.4475.7266.0156.3206.644 Sarasota4.5544.7995.0485.3065.5755.865 Tampa Bay50.19453.00255.95159.04262.35065.898 Personal Income (Bil. nominal) Total Wage & Salary Disbursements after Removal Location200220032004200520062007 Hernando0.6740.7130.7520.7930.8340.877 Hillsborough20.34421.60722.95324.37025.90427.549 Manatee2.9933.1503.3223.5043.7003.909 Pasco1.7201.8041.8901.9802.0752.177 Pinellas13.72514.40515.15015.94316.80017.725 Polk5.0635.3305.6055.8916.1956.518 Sarasota4.3934.6314.8765.1315.3985.684 Tampa Bay48.91251.64054.54857.61260.90664.439 Difference in Wage & Salary Disbursements after Removal (000s) Location200220032004200520062007 Hernando-0.012-0.012-0.014-0.014-0.014-0.015 Hillsborough-0.272-0.291-0.298-0.300-0.299-0.298 Manatee-0.058-0.062-0.063-0.065-0.064-0.065 Pasco-0.015-0.015-0.015-0.015-0.015-0.014 Pinellas-0.654-0.697-0.720-0.737-0.750-0.760 Polk-0.110-0.117-0.121-0.124-0.125-0.126 Sarasota-0.161-0.168-0.172-0.175-0.177-0.181 Tampa Bay-1.282-1.362-1.403-1.430-1.444-1.459 Difference in Wage & Salary Disbursements after Removal (% change) Location200220032004200520062007 Hernando-1.78%-1.68%-1.86%-1.77%-1.68%-1.71% Hillsborough-1.34%-1.35%-1.30%-1.23%-1.15%-1.08% Manatee-1.94%-1.97%-1.90%-1.86%-1.73%-1.66% Pasco-0.87%-0.83%-0.79%-0.76%-0.72%-0.64% Pinellas-4.77%-4.84%-4.75%-4.62%-4.46%-4.29% Polk-2.17%-2.20%-2.16%-2.10%-2.02%-1.93% Sarasota-3.66%-3.63%-3.53%-3.41%-3.28%-3.18% Tampa Bay-2.55%-2.57%-2.51%-2.42%-2.32%-2.21% SIC 3827 Optical Instruments and Lenses SIC 3829 Measuring and Controlling Devices, nec SIC 3840 Medical Instruments & Supplies SIC 3851 Opthamalic Goods Panel A Panel B Panel C Panel D Table 5.9 Medical Devices Segment REMI Counter-factual Removal of Output Primary Industries: PERSONAL INCOME SIC 3053 Gaskets, Packing & Sealing Devices SIC 3061 Molded, Extruded, & Lathe-cut Mechanical Rubber Goods SIC 3069 Fabricated Rubber Products, nec SIC 3823 Industrial Instruments for Measurement, Display, and Control SIC 3824 Totalizing Fluid Meters and Counting Devices SIC 3826 Laboratory Analytical Instruments

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44 An aggregate of our estimate of the economic contribution for all three segments, Pharmaceuticals, Biotech and Medical Devices is in Appendix E. Additionally, an aggregate estimate of the economic contribution of the Biotech and Medical Devices segments is in Appendix F. The aggregations are not strictly summations of the contributions of each segment. Rather the REMITM economic model, which we use to generate our estimates, employs dynamic feedback loops that consider the simultaneous impacts of each segment’s economic activity.

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45 Appendix A: Employment Medical Product Industries Clustering Tables A.1 and A.2 show aggregated employment estimates. In Table A.1, we aggregate jobs in all three segments: Pharmaceuticals, Biotech and Medical Devices. Because the Pharmaceuticals segment of the selected primary industries for Medical Product Industries’ clustering in Tampa Bay does not seem to be a “good fit” with the Biotech and Medical Devices segments, we also display aggregate employment for the latter two segments in Table A.2. (The Pharmaceuticals segment does not seem to be a “good fit” in the sense of commonality of supplier-industries. See Section 1 of this report.) Table A.1 shows aggregated estimates of employment by location (place of work) from 2002 to 2007 for the Pharmaceuticals, Biotech and Medical Devices segments. Panel A shows total employment in each county and a summation of the counties’ employment for the Tampa Bay region. Panel B reflects aggregate employment in the segments. Panel C gives the percentage of employment contributed by jobs in the three segments for each location. There are approximately 10,000 jobs in the Pharmaceuticals, Biotech and Medical Devices segments in the Tampa Bay region. Most of those jobs, almost 70%, are in Pinellas County. Jobs in the three segments comprise almost 1.2% of total employment in Pinellas County. Table A.2 shows aggregated estimates of employment by location (place of work) from 2002 to 2007 for the Biotech and Medical Devices segments. Panel A shows total employment in each county and a summation of the counties’ employment for the Tampa Bay region. Panel B reflects aggregate employment in the segments. Panel C gives the percentage of employment contributed by jobs in the two segments for each location. Because employment in the Pharmaceuticals segment is relatively small, there are only slight differences between the findings of Tables A.1 and A.2.

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46 Table A.1 Pharmaceuticals, Biotech & Medical Devices Segments REMI Baseline EMPLOYMENT Panel A Employment (000s) Total Location 2002 2003 2004 2005 2006 2007 Hernando 43.852 44.595 45.307 45.949 46.509 47.072 Hillsborough 783.506 798.732 814.520 829.625 845.062 861.097 Manatee 159.296 162.159 165.157 167.954 170.695 173.471 Pasco 105.737 107.122 108.435 109.637 110.764 111.969 Pinellas 580.113 586.852 594.073 600.892 607.839 615.298 Polk 245.968 250.046 253.927 257.481 260.942 264.494 Sarasota 215.068 218.125 221.103 223.857 226.467 229.258 Tampa Bay 2133.540 2167.631 2202.522 2235.395 2268.278 2302.659 Panel B Pharmaceuticals, Biotech & Medical Devices Segments Employment (000s) Location 2002 20032004 2005 2006 2007 Hernando 0.147 0.1530.160 0.167 0.171 0.176 Hillsborough 1.278 1.2841.290 1.295 1.296 1.300 Manatee 0.762 0.7730.777 0.772 0.767 0.761 Pasco 0.121 0.1230.126 0.129 0.132 0.134 Pinellas 6.918 7.0337.129 7.185 7.234 7.247 Polk 0.441 0.4290.421 0.415 0.403 0.397 Sarasota 0.414 0.4180.425 0.429 0.433 0.436 Tampa Bay 10.081 10.21410.327 10.391 10.436 10.450 Panel C Pharmaceuticals, Biotech & Medical Devices Segments Employment (% of Total) Location 2002 20032004 2005 2006 2007 Hernando 0.33% 0.34%0.35% 0.36% 0.37% 0.37% Hillsborough 0.16% 0.16%0.16% 0.16% 0.15% 0.15% Manatee 0.48% 0.48%0.47% 0.46% 0.45% 0.44% Pasco 0.11% 0.12%0.12% 0.12% 0.12% 0.12% Pinellas 1.19% 1.20%1.20% 1.20% 1.19% 1.18% Polk 0.18% 0.17%0.17% 0.16% 0.15% 0.15% Sarasota 0.19% 0.19%0.19% 0.19% 0.19% 0.19% Tampa Bay 0.47% 0.47%0.47% 0.46% 0.46% 0.45%

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47 Table A.2 Biotech & Medical Devices Segments REMI Baseline EMPLOYMENT Panel A Employment (000s) Total Location 2002 2003 2004 2005 2006 2007 Hernando 43.852 44.595 45.307 45.949 46.509 47.072 Hillsborough 783.506 798.732 814.520 829.625 845.062 861.097 Manatee 159.296 162.159 165.157 167.954 170.695 173.471 Pasco 105.737 107.122 108.435 109.637 110.764 111.969 Pinellas 580.113 586.852 594.073 600.892 607.839 615.298 Polk 245.968 250.046 253.927 257.481 260.942 264.494 Sarasota 215.068 218.125 221.103 223.857 226.467 229.258 Tampa Bay 2133.540 2167.631 2202.522 2235.395 2268.278 2302.659 Panel B Biotech & Medical Devices Segments Employment (000s) Location 2002 2003 2004 2005 2006 2007 Hernando 0.147 0.153 0.160 0.167 0.171 0.176 Hillsborough 0.791 0.789 0.789 0.788 0.783 0.781 Manatee 0.642 0.650 0.652 0.644 0.637 0.628 Pasco 0.100 0.101 0.103 0.105 0.107 0.109 Pinellas 5.709 5.809 5.893 5.936 5.969 5.967 Polk 0.439 0.426 0.418 0.412 0.400 0.394 Sarasota 0.380 0.383 0.390 0.393 0.397 0.399 Tampa Bay 8.208 8.312 8.404 8.444 8.464 8.453 Panel C Biotech Medical & Devices Segments Employment (% of Total) Location 2002 2003 2004 2005 2006 2007 Hernando 0.33% 0.34% 0.35% 0.36% 0.37% 0.37% Hillsborough 0.10% 0.10% 0.10% 0.09% 0.09% 0.09% Manatee 0.40% 0.40% 0.39% 0.38% 0.37% 0.36% Pasco 0.09% 0.09% 0.09% 0.10% 0.10% 0.10% Pinellas 0.98% 0.99% 0.99% 0.99% 0.98% 0.97% Polk 0.18% 0.17% 0.16% 0.16% 0.15% 0.15% Sarasota 0.18% 0.18% 0.18% 0.18% 0.18% 0.17% Tampa Bay 0.38% 0.38% 0.38% 0.38% 0.37% 0.37%

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48 Appendix B: Output Medical Product Industries Clustering Tables B.1 and B.2 show aggregated output estimates. In Table B.1, we aggregate output in all three segments: Pharmaceuticals, Biotech and Medical Devices. Because the Pharmaceuticals segment of the selected primary industries for Medical Product Industries’ clustering in Tampa Bay does not seem to be a “good fit” with the Biotech and Medical Devices segments, we also display aggregate output for the latter two segments in Table B.2. (The Pharmaceuticals segment does not seem to be a “good fit” in the sense of commonality of supplier-industries. See Section 1 of this report.) Table B.1 shows aggregated estimates of output by location (place of business) from 2002 to 2007 for the Pharmaceuticals, Biotech and Medical Devices segments. Panel A shows total output in each county and a summation of the counties’ output for the Tampa Bay region. Panel B reflects aggregate output in the segments. Panel C gives the percentage of output contributed by jobs in the three segments for each location.

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49 Table B.1 Pharmaceuticals, Biotech & Medical Devices Segments REMI Baseline OUTPUT Panel A Output (Bil. 01$) Total Location 2002 2003 2004 2005 2006 2007 Hernando 2.678 2.764 2.852 2.927 3.002 3.077 Hillsborough 61.824 64.024 66.197 68.280 70.494 72.719 Manatee 12.013 12.428 12.830 13.196 13.575 13.940 Pasco 6.770 6.953 7.128 7.291 7.460 7.625 Pinellas 46.062 47.608 49.127 50.561 52.057 53.551 Polk 19.757 20.388 20.988 21.540 22.111 22.670 Sarasota 14.881 15.325 15.758 16.164 16.586 17.010 Tampa Bay 163.985 169.491 174.878 179.959 185.285 190.592 Panel B Pharmaceuticals, Biotech & Medical Devices Segments Output (Bil. 01$) Location 2002 2003 2004 2005 2006 2007 Hernando 0.037 0.041 0.045 0.048 0.051 0.053 Hillsborough 0.376 0.393 0.408 0.422 0.438 0.451 Manatee 0.164 0.171 0.176 0.179 0.183 0.187 Pasco 0.024 0.027 0.028 0.029 0.030 0.032 Pinellas 1.313 1.375 1.430 1.484 1.535 1.588 Polk 0.105 0.109 0.113 0.116 0.119 0.120 Sarasota 0.087 0.091 0.096 0.099 0.103 0.107 Tampa Bay 2.106 2.207 2.295 2.378 2.459 2.537 Panel C Pharmaceuticals, Biotech & Medical Devices Segments Output (% of Total) Location 2002 2003 2004 2005 2006 2007 Hernando 1.40% 1.48% 1.59% 1.62% 1.69% 1.73% Hillsborough 0.61% 0.61% 0.62% 0.62% 0.62% 0.62% Manatee 1.36% 1.38% 1.37% 1.36% 1.35% 1.34% Pasco 0.36% 0.38% 0.39% 0.40% 0.40% 0.42% Pinellas 2.85% 2.89% 2.91% 2.94% 2.95% 2.96% Polk 0.53% 0.54% 0.54% 0.54% 0.54% 0.53% Sarasota 0.59% 0.59% 0.61% 0.61% 0.62% 0.63% Tampa Bay 1.28% 1.30% 1.31% 1.32% 1.33% 1.33% Combined, the Pharmaceuticals, Biotech and Medical Devices segments will produce over $2.1 billion of output in Tampa Bay during 2002. This approximate $2.1 billion of output constitutes almost 1.3% of Tampa Bay’s economy. About 62%, or more than $1.3 billion, of this economic activity is attributable to businesses that are located in Pinellas County. The aggregate output of the three segments in the Tampa Bay region is expected to grow to approximately $2.5 billion by 2007.

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50 Table B.2 shows aggregated estimates of output by location (place of business) from 2002 to 2007 for the Biotech and Medical Devices segments. Panel A shows total output in each county and a summation of the counties’ output for the Tampa Bay region. Panel B reflects aggregate output in the segments. Panel C gives the percentage of output contributed by jobs in the two segments for each location. Table B.2 Biotech & Medical Devices Segments REMI Baseline OUTPUT Panel A Output (Bil. 01$) Total Location 2002 2003 2004 2005 2006 2007 Hernando 2.678 2.764 2.852 2.927 3.002 3.077 Hillsborough 61.824 64.024 66.197 68.280 70.494 72.719 Manatee 12.013 12.428 12.830 13.196 13.575 13.940 Pasco 6.770 6.953 7.128 7.291 7.460 7.625 Pinellas 46.062 47.608 49.127 50.561 52.057 53.551 Polk 19.757 20.388 20.988 21.540 22.111 22.670 Sarasota 14.881 15.325 15.758 16.164 16.586 17.010 Tampa Bay 163.985 169.491 174.878 179.959 185.285 190.592 Panel B Biotech & Medical Devices Segments Output (Bil. 01$) Location 2002 2003 2004 2005 2006 2007 Hernando 0.037 0.041 0.045 0.048 0.051 0.053 Hillsborough 0.175 0.184 0.192 0.199 0.206 0.211 Manatee 0.113 0.118 0.121 0.123 0.125 0.126 Pasco 0.012 0.014 0.014 0.015 0.016 0.016 Pinellas 0.858 0.904 0.943 0.980 1.012 1.044 Polk 0.104 0.108 0.112 0.115 0.118 0.119 Sarasota 0.067 0.071 0.075 0.078 0.081 0.084 Tampa Bay 1.366 1.440 1.501 1.557 1.607 1.653 Panel C Biotech & Medical Devices Segments Output (% of Total) Location 2002 2003 2004 2005 2006 2007 Hernando 1.40% 1.48% 1.59% 1.62% 1.69% 1.73% Hillsborough 0.28% 0.29% 0.29% 0.29% 0.29% 0.29% Manatee 0.94% 0.95% 0.94% 0.93% 0.92% 0.91% Pasco 0.18% 0.19% 0.20% 0.21% 0.21% 0.21% Pinellas 1.86% 1.90% 1.92% 1.94% 1.94% 1.95% Polk 0.53% 0.53% 0.53% 0.53% 0.53% 0.52% Sarasota 0.45% 0.46% 0.47% 0.48% 0.49% 0.49% Tampa Bay 0.83% 0.85% 0.86% 0.87% 0.87% 0.87% Output of the Pharmaceuticals segment ($740 million in 2002) equals 35% of the aggregate output of all three segments ($2.106 billion in 2002). Hence, when we exclude the Pharmaceuticals segment from aggregated output in Table B.2, the remainder, almost $1.4 billion, constitutes slightly over 0.8% of Tampa Bay’s economy versus 1.3% with Pharmaceuticals included.

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51 Appendix C: Income Medical Product Industries Clustering Tables C.1 and C.2 show aggregated income estimates. Our income estimates are for wage and salary disbursements only. In Table C.1, we aggregate wage and salary disbursements for all three segments: Pharmaceuticals, Biotech and Medical Devices. Because the Pharmaceuticals segment of the selected primary industries for Medical Product Industries’ clustering in Tampa Bay does not seem to be a “good fit” with the Biotech and Medical Devices segments, we also display aggregate output for the latter two segments in Table C.2. (The Pharmaceuticals segment does not seem to be a “good fit” in the sense of commonality of supplier-industries. See Section 1 of this report.) Table C.1 shows aggregated estimates of wage and salary disbursements by location (place of residence) from 2002 to 2007 for the Pharmaceuticals, Biotech and Medical Devices segments. Panel A shows total wage and salary disbursements in each county and a summation of the disbursements for the counties’ of the Tampa Bay region. Panel B reflects wage and salary disbursements by all three of the segments. Panel C gives the percentage of wage and salary disbursements contributed by the three segments for each location.

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52 Table C.1 Pharmaceuticals, Biotech & Medical Devices Segments REMI Baseline PERSONAL INCOME Panel A Personal Income (Bil. nominal) Total Wage & Salary Disbursements Location 2002 2003 2004 2005 2006 2007 Hernando 0.686 0.725 0.766 0.807 0.848 0.892 Hillsborough 20.616 21.898 23.251 24.670 26.203 27.847 Manatee 3.051 3.212 3.385 3.569 3.764 3.974 Pasco 1.735 1.819 1.905 1.995 2.090 2.191 Pinellas 14.379 15.102 15.870 16.680 17.550 18.485 Polk 5.173 5.447 5.726 6.015 6.320 6.644 Sarasota 4.554 4.799 5.048 5.306 5.575 5.865 Tampa Bay 50.194 53.002 55.951 59.042 62.350 65.898 Panel B Pharmaceuticals, Biotech & Medical Devices Segments Wage & Salary Disbursements (Bil. nominal) Location 2002 2003 2004 2005 2006 2007 Hernando 0.004 0.004 0.005 0.005 0.005 0.006 Hillsborough 0.089 0.092 0.096 0.101 0.105 0.110 Manatee 0.030 0.032 0.033 0.035 0.035 0.037 Pasco 0.003 0.003 0.004 0.004 0.004 0.004 Pinellas 0.371 0.392 0.412 0.431 0.452 0.471 Polk 0.037 0.037 0.039 0.039 0.041 0.042 Sarasota 0.041 0.042 0.043 0.045 0.047 0.050 Tampa Bay 0.574 0.602 0.632 0.661 0.690 0.721 Panel C Pharmaceuticals, Biotech & Medical Devices Segments Wage & Salary Disbursements (% of Total) Location 2002 2003 2004 2005 2006 2007 Hernando 0.51% 0.48% 0.59% 0.62% 0.59% 0.67% Hillsborough 0.43% 0.42% 0.41% 0.41% 0.40% 0.40% Manatee 0.99% 0.98% 0.97% 0.97% 0.93% 0.94% Pasco 0.19% 0.19% 0.19% 0.19% 0.19% 0.19% Pinellas 2.58% 2.59% 2.60% 2.59% 2.57% 2.55% Polk 0.71% 0.69% 0.67% 0.65% 0.65% 0.63% Sarasota 0.89% 0.88% 0.86% 0.86% 0.85% 0.85% Tampa Bay 1.14% 1.14% 1.13% 1.12% 1.11% 1.09% Residents of Tampa Bay, who work for firms in the Pharmaceuticals, Biotech and Medical Devices segments, will earn $574 million in wages and salary disbursements during 2002. These wage and salary disbursements constitute almost 1.2% of total disbursements in Tampa Bay. Nearly 65%, or $371 million, of these disbursements will be paid to residents of Pinellas County. Including estimated future inflation, the aggregate wage and salary disbursements of the three segments in the Tampa Bay region are expected to grow to approximately $721 million by 2007.

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53 Table C.2 shows aggregated estimates of wage and salary disbursements by location (place of residence) from 2002 to 2007 for the Medical Devices and Biotech segments. Panel A shows total wage and salary disbursements in each county and a summation of the disbursements for the counties’ of the Tampa Bay region. Panel B reflects wage and salary disbursements for the two segments. Panel C gives the percentage of wage and salary disbursements contributed by the two segments for each location. Table C.2 Biotech & Medical Devices Segments REMI Baseline PERSONAL INCOME Panel A Personal Income (Bil. nominal) Total Wage & Salary Disbursements Location 2002 2003 2004 2005 2006 2007 Hernando 0.686 0.725 0.766 0.807 0.848 0.892 Hillsborough 20.616 21.898 23.251 24.670 26.203 27.847 Manatee 3.051 3.212 3.385 3.569 3.764 3.974 Pasco 1.735 1.819 1.905 1.995 2.090 2.191 Pinellas 14.379 15.102 15.870 16.680 17.550 18.485 Polk 5.173 5.447 5.726 6.015 6.320 6.644 Sarasota 4.554 4.799 5.048 5.306 5.575 5.865 Tampa Bay 50.194 53.002 55.951 59.042 62.350 65.898 Panel B Biotech & Medical Devices Segments Wage & Salary Disbursements (Bil. nominal) Location 2002 2003 2004 2005 2006 2007 Hernando 0.004 0.004 0.005 0.005 0.005 0.006 Hillsborough 0.061 0.063 0.066 0.069 0.071 0.074 Manatee 0.025 0.026 0.027 0.029 0.029 0.030 Pasco 0.003 0.003 0.003 0.003 0.004 0.004 Pinellas 0.313 0.331 0.348 0.365 0.382 0.397 Polk 0.037 0.037 0.038 0.039 0.041 0.042 Sarasota 0.039 0.040 0.042 0.044 0.045 0.048 Tampa Bay 0.482 0.504 0.529 0.553 0.576 0.601 Panel C Biotech & Medical Devices Segments Wage & Salary Disbursements (% of Total) Location 2002 2003 2004 2005 2006 2007 Hernando 0.51% 0.48% 0.59% 0.62% 0.59% 0.67% Hillsborough 0.30% 0.29% 0.28% 0.28% 0.27% 0.27% Manatee 0.83% 0.81% 0.80% 0.80% 0.76% 0.76% Pasco 0.17% 0.17% 0.16% 0.17% 0.17% 0.17% Pinellas 2.18% 2.19% 2.20% 2.19% 2.17% 2.15% Polk 0.71% 0.68% 0.67% 0.65% 0.65% 0.63% Sarasota 0.85% 0.84% 0.82% 0.82% 0.81% 0.81% Tampa Bay 0.96% 0.95% 0.95% 0.94% 0.92% 0.91% Because wage and salary disbursements in the Pharmaceuticals segment are a relatively small portion of the total disbursements of all three segments $93 million out of $574 million there are only slight differences between the findings of Tables C.1 and C.2.

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54 Appendix D: Aggregated ES-202 Employment Tables D.1 and D.2 show aggregated employment from annualized average ES-202 data for the year 2001. In Table D.1, we aggregate ES-202 data in all three segments: Pharmaceuticals, Medical Devices, and Biotech. Because the Pharmaceuticals segment of the primary industries for Medical Product Industries’ clustering in Tampa Bay does not seem to be a “good fit” with the Medical Devices and Biotech segments, we also show aggregate ES-202 data for the latter two segments in Table D.2. Table D.1 sums up the number of employees by average annual wages and the number of firms in the Pharmaceuticals, Medical Devices, and Biotech segments in the Tampa Bay region. In 2001, there were 203 firms employing 10,336 workers. These employers were paying 14% of the workers annualized wages less than $35,000, 85% of the workers annualized wages between $35,000 and $60,000, and 1% of the workers annualized wages over $60,000. Firms based in either Pasco County or Sarasota County employed the majority of workers earning over $60,000. The Pinellas County firms employ many more workers than the other counties in the Tampa Bay region.

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55 Table D.2 sums up the number of employees by average wages and the number of firms in the Medical Devices and Biotech segments in the Tampa Bay region. In 2001, there were 186 firms employing 8,986 workers. These employers were paying 15% of the workers annualized wages less than $35,000, 84% of the workers annualized wages between $35,000 and $60,000, and 1% of the workers annualized wages over $60,000. Similar to the findings reported in Table D.1, firms based in either Pasco County or Sarasota County employed most of workers earning Number of Employees by Average Annualized Wage SICDescription<$35K$35-60K>$60K<$35K$35-60K>$60K<$35K$35-60K>$60K 2833-2836Pharmaceuticals Segment24000370000 8731Biotech Segment00003050100 *Medical Devices Segment816549327762572090 Total3216549361962582090 Number of Firms FirmsFirmsFirms Total5458 Number of Employees by Average Annualized Wage SICDescription<$35K$35-60K>$60K<$35K$35-60K>$60K<$35K$35-60K>$60K 2833-2836Pharmaceuticals Segment200241,23402100 8731Biotech Segment0041033100240 *Medical Devices Segment8280196,075062655 Total102841437,6400272895 Number of Firms FirmsFirmsFirms Total89519 Number of Employees by Average Annualized Wage SICDescription<$35K$35-60K>$60K<$35K$35-60K>$60K 2833-2836Pharmaceuticals Segment800791,2710 8731Biotech Segment63006466041 *Medical Devices Segment5090351,3006,87051 Total5800351,4438,80192 Number of Firms FirmsFirms Total23203 Includes SIC 3053, 3060, 3823, 3824, 3826, 3827, 3829, 3841-3845, and 3851. Table D.1 ES 202 Employment Data Primary Industries: Pharmaceuticals Segment, Biotech Segment, and Medical Devices Segment EMPLOYEES SarasotaTampa Bay HernandoHillsboroughManatee PascoPinellasPolk

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56 over $60,000. Also, Pinellas County firms employ many more workers than other counties in the Tampa Bay region. Number of Employees by Average Annualized Wage SICDescription<$35K$35-60K>$60K<$35K$35-60K>$60K<$35K$35-60K>$60K 8731Biotech Segment00003050100 *Medical Devices Segment816549327762572090 Total816549358262582090 Number of Firms FirmsFirmsFirms Total4398 Number of Employees by Average Annualized Wage SICDescription<$35K$35-60K>$60K<$35K$35-60K>$60K<$35K$35-60K>$60K 8731Biotech Segment0041033100240 *Medical Devices Segment8280196,075062655 Total82841196,406062895 Number of Firms FirmsFirmsFirms Total78818 Number of Employees by Average Annualized Wage SICDescription<$35K$35-60K>$60K<$35K$35-60K>$60K 8731Biotech Segment63006466041 *Medical Devices Segment5090351,3006,87051 Total5720351,3647,53092 Number of Firms FirmsFirms Total22186 Includes SIC 3053, 3060, 3823, 3824, 3826, 3827, 3829, 3841-3845, and 3851. Table D.2 Medical Product Industries Cluster ES 202 Employment Data Primary Industries: Biotech Segment, and Medical Devices Segment EMPLOYEES SarasotaTampa Bay HernandoHillsboroughManatee PascoPinellasPolk

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57 Appendix E: Economic Contribution – Medical Product Industries Cluster The tables in this appendix show aggregated estimates of economic contribution of the Medical Product Industries cluster in Tampa Bay. In Tables E.1 through E.3, we aggregate the estimates of economic contribution for all three segments: Pharmaceuticals, Biotech and Medical Devices segments. Because the Pharmaceuticals segment of the selected primary industries for Medical Product Industries’ clustering in Tampa Bay does not seem to be a “good fit” with the Medical Devices and Biotech segments, we also display the aggregate economic contribution for these two segments in Tables E.4 through E.6. (The Pharmaceuticals Segment does not seem to be a “good fit” in the sense of commonality of supplierindustries. See Section 1 of this report.) Table E.1 reports the contribution of all three segments measured by employment. Panel A shows total employment in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary industries’ output from the economy. Panel B shows total employment in each county and a summation for the Tampa Bay region after the hypothetical removal of the primary industries’ output from the economy. Panels C and D show the difference in employment before removal and after removal of the primary industries’ output. In Panel C the difference is expressed as thousands of jobs that would be lost. In Panel D the difference is expressed as the percentage of jobs lost from the total employment base after the hypothetical removal of the primary industries’ output from the economy. As expressed in Panels C or D of Table E.1, the difference in employment measures the economic contribution of the Medical Product Industries cluster in Tampa Bay when all three segments are considered to be a included in the cluster. In terms of the number of jobs, Pinellas County benefits most from the economic activities of the cluster in Tampa Bay. In Pinellas County, the cluster is contributing about 25,680 jobs during 2002. As a percentage of total employment, Pinellas County also benefits most from the economic activities of the cluster. In Pinellas County, the cluster is contributing approximately 4.6% of total employment during 2002. The Medical Product Industries cluster is contributing over 51,160 jobs to the Tampa Bay region, or 3.3% of total regional employment.

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59 Table E.2 reports the contribution of the cluster by output. Panel A shows total output in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary industries’ output from the economy. Panel B shows total output in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary industries’ output from the economy. Panels C and D show the difference in output before removal and after removal of the primary industries’ output. In Panel C the difference is expressed as output that would be lost. In Panel D the difference is expressed as the percentage of output lost from total output after the hypothetical removal of the primary industries’ output from the economy. As expressed in Panels C or D of Table E.2, the difference in output measures the economic contribution of the Medical Product Industries cluster in Tampa Bay when all three segments are considered to be a included in the cluster. In terms of output, Pinellas County benefits most from the economic activities of the cluster in Tampa Bay. The cluster is contributing over $2.8 billion of output to Pinellas County’s economy during 2002. As a percentage of the county’s total economy, as measured by output, the cluster is contributing 6.5% in 2002. The Medical Product Industries cluster is contributing $5.85 billion to the economy of the Tampa Bay region during 2002. That is 3.57% of the region’s total economic activity.

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61 Table E.3 reports the contribution of the cluster measured by income, i.e. private, nonfarm, wage and salary disbursements. Panel A shows total income in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary industries’ output from the economy. Panel B shows total income in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary industries’ output from the economy. Panels C and D show the difference in income before removal and after removal of the primary industries’ output. In Panel C the difference is expressed as income that would be lost. In Panel D the difference is expressed as the percentage of income lost from total income after the hypothetical removal of the primary industries’ output from the economy. As expressed in Panels C or D of Table E.3, the difference in income measures the economic contribution of the Medical Product Industries cluster in Tampa Bay when all three segments are considered to be a included in the cluster. In terms of income, Pinellas County benefits most from the economic activities of the cluster in Tampa Bay. The cluster is contributing slightly over $920 million of income to workers in Pinellas County during 2002. As a percentage of Pinellas County’s total wage and salary disbursements, the cluster is contributing slightly over 6.8% of income in 2002. The cluster also contributes $445 million of income to workers in Hillsborough County in 2002. The Medical Product Industries cluster is contributing $1.89 billion to non-farm payroll in the Tampa Bay region during 2002. This equates to almost 3.8% of the region’s total nonfarm payrolls.

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63 Table E.4 reports the contribution of the Medical Devices and Biotech segments measured by employment. Panel A shows total employment in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary industries’ output from the economy. Panel B shows total employment in each county and a summation for the Tampa Bay region after the hypothetical removal of the primary industries’ output from the economy. Panels C and D show the difference in employment before removal and after removal of the primary industries’ output. In Panel C the difference is expressed as thousands of jobs that would be lost. In Panel D the difference is expressed as the percentage of jobs lost from the total employment base after the hypothetical removal of the primary industries’ output from the economy. As expressed in Panels C or D of Table E.4, the difference in employment measures the economic contribution of the Medical Devices and Biotech segments in Tampa Bay. In terms of the number of jobs, Pinellas County benefits most from the economic activities of the cluster in Tampa Bay. In Pinellas County, the two segments are contributing about 20,500 jobs during 2002. As a percentage of total employment, Pinellas County also benefits most from the economic activities of these segments. In Pinellas County, the two segments are contributing approximately 3.7% of total employment during 2002. The Medical Devices and Biotech segments are contributing over 42,000 jobs to the Tampa Bay region, or about 2.0% of total regional employment.

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65 Table E.5 reports the contribution of the Medical Devices and Biotech segments by output. Panel A shows total output in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary industries’ output from the economy. Panel B shows total output in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary industries’ output from the economy. Panels C and D show the difference in output before removal and after removal of the primary industries’ output. In Panel C the difference is expressed as output that would be lost. In Panel D the difference is expressed as the percentage of output lost from total output after the hypothetical removal of the primary industries’ output from the economy. As expressed in Panels C or D of Table E.5, the difference in output measures the economic contribution of the medical devices and Biotech segments in Tampa. In terms of output, Pinellas County benefits most from the economic activities of the two segments in Tampa Bay. The segments are contributing almost $2.1 billion of output to Pinellas County’s economy during 2002. As a percentage of the county’s total economy, as measured by output, the segments are contributing about 4.7% in 2002. The Medical Devices and Biotech segments are contributing slightly more than $4.5 billion to the economy of the Tampa Bay region during 2002. That is about 2,8% of the region’s total economic activity.

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67 Table E.6 reports the contribution of the Medical Devices and Biotech segments measured by income, i.e. private, non-farm, wage and salary disbursements. Panel A shows total income in each county and a summation for the Tampa Bay region before the hypothetical removal of the primary industries’ output from the economy. Panel B shows total income in each county and a summation for the Tampa Bay region after the hypothetical removal on the primary industries’ output from the economy. Panels C and D show the difference in income before removal and after removal of the primary industries’ output. In Panel C the difference is expressed as income that would be lost. In Panel D the difference is expressed as the percentage of income lost from total income after the hypothetical removal of the primary industries’ output from the economy. As expressed in Panels C or D of Table E.6, the difference in income measures the economic contribution of the Medical Devices and Biotech segments in Tampa Bay. In terms of income, Pinellas County benefits most from the economic activities of the two segments in Tampa Bay. The segments are contributing about $730 million of income to workers in Pinellas County during 2002. As a percentage of Pinellas County’s total wage and salary disbursements, the segments are contributing slightly over 5.3% of income in 2002. These segments also contribute $328 million of income to workers in Hillsborough County in 2002. The Medical Devices and Biotech segments are contributing $1.48 billion to non-farm payroll in the Tampa Bay region during 2002. This equates to almost 3.0% of the region’s total non-farm payrolls.

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