As subset of the biopharmaceutical industry, animal health is among the most innovative industries in the United States. Innovative industries invest in R&D and protect their intellectual property (IP) with patents, trademarks, and copyrights.
As an IP-intensive industry, the economic performance of animal health manufacturers far exceeds non-IP-intensive industries and the average for manufacturing industries. Animal health manufacturers invest an average of 7.3% of sales in R&D, more than double the overall U.S. manufacturing average of 3.4%.
Animal health workers earned over a 41% premium than their counterparts in the non-IP intensive industries. The productivity of animal health manufacturers was 35% higher than in non-IP-intensive industries. Exports per worker in the animal health industry were nearly 63% higher than in the non-IP-intensive industries.
Strong demand for U.S. products in foreign markets led to more than $2.5 billion in animal health exports in 2021. This production supports 4,366 direct jobs, which is 18.1% of all animal health manufacturing jobs. While the U.S. manufacturing sector experiences trade deficits, the U.S. animal health manufacturers realize a trade surplus of nearly $800 million.
The animal health industry operated 837 facilities in 41 states.*
*as of 8/2022
Discoveries and advancements in animal health can also be applied to human health. For example, animal health research has contributed significantly to human vaccines. Current animal health research is being leveraged to expedite research for human heart disease, cancer, allergies, and arthritis.