This study examines the economic impact of the University of Virginia Cancer Center and of a proposed state funding increase of $5 million each year. These funds would be used for expanding clinical trials, improving translational research, and augmenting outreach activities, particularly in the Southwest region of Virginia. In addition to improving citizen health and technology transfer, the funds will move the Center towards National Cancer Institute (NCI) Comprehensive Cancer Center status. This designation would bring additional funding from the NCI and other public and private sources.
This study examines the economic impact of the Center using REMI PI+, a respected, peer-reviewed regional model. Only the most easily quantified aspects of Cancer Center operations such as payroll and procurement and startup activity are used in the model. Since the Center also affects the economy by improving citizen health and productivity, encouraging technological progress, stimulating agglomeration economies, and increasing amenities, the economic impacts are conservative estimates.
Results indicate that the Center currently generates at least 1,535 jobs in the Virginia economy. $127.4 million in total industrial output, $77.8 million in gross domestic product, and $8.6 million in state tax revenue. Proposed state funding increases would stimulate additional external research funding and startup activity. Based on extrapolations of national NCI Comprehensive Center funding patterns, it is projected that increased state funding would create between 500 and 1,300 jobs, $42.4 and $107.7 million in output, $26.5 and $67.6 million in gross domestic product, and $3.6 million and $9.4 million in tax revenues by 2020.