The Austin Chamber of Commerce released a study that indicates a major medical school joined with the University of Texas would establish Texas at the forefront of biosciences and biotechnology industries helping to ensure the future prosperity of Texas.

The announcement was made jointly by Chamber Chairman Joe Holt and Opportunity Austin Chairman Gary Farmer. Opportunity Austin, the Chamber’s economic initiative, commissioned the study titled “The Impact of Developing a Major Medical School at The University of Texas at Austin on Regional and State Business Activity” in 2007. The study was completed by The Perryman Group (TPG), a Texas based economic research and consulting firm with decades of experience studying the Texas economy and health care industry. The firm’s principal is Dr. Ray Perryman, a well known State and National economist. The firm has completed numerous studies of the economics of health care and the implications for business activity and quality of life.

The study found that in addition to the possibility of improved quality of health and living a major medical school can offer remarkable economic benefits for the surrounding area. Not only can it advance business activity but it will foster research in a wide range of areas and provide related industries with means to further develop.

“In addition to the numerous economic benefits identified by the study, a medical school will help alleviate the area’s shortage of physicians measured on a per capita basis compared with other cities. Medical schools also provide for helping meet indigent care needs,” said Holt.

Austin is one of the largest cities in the U.S. not served by a medical school. Holt cited a recent trip to San Diego by many Central Texas business and government leaders which included a visit with the Dean of the Medical School of UC San Diego, one of the nation’s premiere medical schools linked to a top tier research university. UCSD has spun out almost 400 biotech companies in and around San Diego, an industry that employs almost 39,000 people and has an $8 billion annual impact on the local economy.

TPG estimates that ongoing operations of a major medical school in Austin would generate close to $2.4 billion in yearly spending in the regional economy and 19,307 jobs. Economic development outcomes could potentially be much higher and may help Texas achieve a market presence in the biosciences similar to that of other states with outstanding medical school and university collaborations. In fact, the stimulus for this initiative could result in hundreds of thousands of jobs throughout the state. The enhanced health care outcomes which may reasonably be expected will also likely generate more than $11 billion annually in net social benefits.

If Texas is able to gain a leading role in these rapidly expanding fields, there is every reason to believe the state can develop into a much more notable site for the biosciences. The joint presence of the excellent scientific research programs at the University of Texas at Austin with a major medical school would greatly expand competitiveness in this arena. The University of Texas at Austin has over 100 research units, a number of which are cutting-edge science research programs.

“The Bio industry, including medical devices and pharmaceuticals, is one of Opportunity Austin’s target sectors for business attraction and expansion,” said Farmer. “It has become crystal clear that we are at a disadvantage when competing in the Bio arena since we don’t currently have a highly regarded, research oriented medial school in Austin. If we could positively resolve that issue, we believe that Central Texas would rapidly develop into one of the premiere locations in America for Bio clusters. In fact, we believe the study demonstrates that significant economic benefits would be enjoyed throughout the entire state of Texas.”

San Diego has proven that amazing successes come from the ability to collaborate in research when combining medical knowledge with technology know-how. Central Texas is perfectly suited for the biotech industry because of our existing expertise in technology manufacturing and clean rooms, not to mention our quality of life and talented workers.

The past decade has seen enormous growth in many industries that were essentially nonexistent before. The future decade promises to bring exponential growth in life sciences industries which are only beginning to emerge.