More than 770 health care innovation companies are operating in Washington state, representing 6 percent of jobs in the state’s health-care industry, but producing more than 13 percent of the industry’s overall output, as measured by the value of the goods and services they produce.
That’s one of the findings from a new study commissioned by the Washington State Department of Commerce and Cambia Grove, the health-care innovation hub established in downtown Seattle this year by Portland-based Cambia Health Solutions.
The study, conducted by ECONorthwest, is the first of its kind, defining and establishing a benchmark for the health-care innovation sector in the state. The findings could also change the perception of health-care innovation startups in the broader health-care industry, said Nicole Bell, executive director at Cambia Grove.
“The health care industry incumbents need to get involved with young businesses and entrepreneurs,” she said. “If the core businesses begin to hire, invest in, work with and pilot with these innovators, then it flips the prior notion that our industry had, which was that these innovators and their businesses add costs to the system, rather than remove costs from the system.”
More broadly, the groups hope that the study will generate attention across the country and better position the state to compete in health care innovation.
“If we grow in partnership in our region and begin to test these concepts that can transform us to an economically sustainable healthcare system, then we’ve met a goal, and we’re focused on something that I don’t believe any other region is really thinking about,” Bell said.
This is one of several efforts to bring more attention to health-care and life-sciences innovation in the Seattle region and beyond. As another example, the Washington Biotechnology & Biomedical Association recently announced that it’s rebranding itself as Life Sciences Washington, in part to encompass more companies involved in life-sciences innovation.
In the new study from Cambia Grove and the state Commerce Department, companies identified as health-care innovation firms include health-care research, medical manufacturing, drug development, health IT, retail and wholesale, among others. They are primarily centered around Seattle but stretch as far as Spokane, Vancouver, and Bellingham, Wash.
The study identifies 772 firms operating in what it describes as the Health Care Innovation Sub-sector, representing 22,500 jobs, and $2 billion in direct compensation. The largest number of firms are in research and development, followed by medical manufacturing and retail and wholesale.
One example of the new companies in this sector is scientific wellness startup Arivale, whose co-founder, genomics pioneer Lee Hood, will be speaking Monday night at a private event introducing the report.
Click here for a PDF of the report’s findings.
