About the ABPI

The ABPI exists to make the UK the best place in the world to research, develop and use new medicines. We represent companies of all sizes who invest in discovering the medicines of the future. 

Our members supply cutting edge treatments that improve and save the lives of millions of people. We work in partnership with Government and the NHS so patients can get new treatments faster and the NHS can plan how much it spends on medicines. Every day, we partner with organisations in the life sciences community and beyond to transform lives across the UK.

Production of growth and jobs figures:

  • The growth potential of the sectors identified in this release (life sciences, aerospace and clean energy) was produced by WPI Economics for the ABPI in April 2019. These sectors were selected on the basis that they are the most highly productive of the industries Government is working with in its sector deals (see Figure 4 and information about sector deals, below).
  • Growth and jobs projections were calculated by mapping existing data on the current direct contribution to the UK economy of the three sectors, then subjecting this to conservative assumptions about future growth potential, which indicated that £44bn per annum would be added to the economy by 2025 from a baseline of £30bn in 2017 (£14bn net additional direct GVA). A link outlining the methodology and data sources can be seen by following this link: https://wpi-strategy.com/technical-note-projecting-growth-jobs-innovation-economy/
  • The projected impacts are summarised below in Figure 1:

Figure 1: GVA and Employment impacts to 2025

Direct Gross Value Added (GVA) impact (2017) - £30bn

Consisting of:

  • Life Sciences: £14bn
  • Aerospace: £10bn
  • Clean Energy: £6bn

Direct Gross Value Added (GVA) impact (2025) - £44bn

Consisting of:

  • Life Sciences: £22.5bn
  • Aerospace: £14.6bn
  • Clean Energy: £7bn

Employment (2017) – 350,000

Consisting of:

  • Life Sciences: 190,000
  • Aerospace: 110,000
  • Clean Energy: 50,000

Employment (2025) – 406,000

Consisting of:

  • Life Sciences: 221,400
  • Aerospace: 27,200
  • Clean Energy: 57,400

Figure 2: productivity (GVA per employee) in industries with sector deals

  • Life Sciences - £72,000
  • Aerospace - £91,000
  • Clean Energy £122,000
  • Rail - £69,000
  • Construction - £48,000
  • Automotive - £40,000
  • Creative Industries - £50,000

Note: comparable figures for artificial intelligence and nuclear sectors, which also have sector deals, are not available

Sector deals are partnerships between government and industry on sector-specific issues can create significant opportunities to boost productivity, employment, innovation and skills. They have to date focused on innovative sectors that use science and technology to create new value or to transform production methods. Information about sector deals can be found at this link from HM Government: https://www.gov.uk/government/publications/industrial-strategy-sector-deals/introduction-to-sector-deals

 

Media enquiries


+44 (0) 20 7747 7147​​