2023 March Life Sciences Update

NIH Funding Grows

The top 10 U.S. life sciences markets also attract the most NIH funding garnering 50% of total funding in 2022. Boston, New York City and Suburban Maryland have received the largest flow of funds in the last five years and are home to some of the largest research institutions in the country. In 2022, the top five NIH awards went to Johns Hopkins University in Baltimore ($840 million), University of California, San Francisco ($824 million), University of Pittsburgh ($675 million), Duke University, Raleigh-Durham ($673 million) and the University of Pennsylvania in Philadelphia ($669 million).

Federal funding for national research and development continued to grow. Total U.S. National Institutes of Health (NIH) funding grew by 2.7% YoY in 2022. At $36.7 billion, it set a record high for the seventh year in a row, easily outpacing 2019 funding by 18.9%. NIH funding has accelerated in recent years. Funding growth over the past five years has averaged 7.0% per year, which is faster than the previous five-year average of 2.2%. This also outpaces the long-term average of 5.6%. The NIH budget is expected to grow by $2.5 billion—or 5.6%—in 2023, resulting in a total budget of $47.5 billion, the bulk of which will go to research awards. The NIH also funds medical research outside of the U.S. by issuing research grants to foreign organizations. Canadian funding through 2022 totaled $37.6 million, down 4% YoY, and UK funding totaled $23.9 million, up 64% YoY.

Total Annual U.S. NIH Funding Over Time

Top Markets in NIH Funding for the Previous Five Years (Total Funding 2018-2022)

$40

$36.7

1

Boston

$14.8B

9

San Diego

$5.2B

$35

2

New York City

$12.2B

10 Chicago

$4.8B

$30

Baltimore- Suburban MD (I-270)

11

Houston

$4.0B

$25

3

$9.7B

12

Pittsburgh

$3.4B

$20

4 San Francisco Bay Area $10.4B

Average Annual Growth Rate

13

Ann Arbor

$3.1B

Billions

$15

5

Raleigh-Durham

$8.1B

14 Saint Louis

$3.0B

1995-2022: +5.6%

$10

6 Seattle

$6.4B

2017-2022: +7.0%

15

Atlanta

$2.9B

Los Angeles- Orange County

$5

7

$6.2B

$0

8

Philadelphia

$5.9B

2011

1997

1995

2017

2012

2021

1998

2015

2013

1996

1999

2018

2016

2019

2014

2001

2010

2022

2007

2002

2020

2005

2003

2008

2006

2009

2004

2000

Source: U.S. National Institutes of Health, Cushman & Wakefield Research, 2022 as of December 31 2022

Source: U.S. National Institutes of Health, Cushman & Wakefield Research 2022 as of December 31 2022

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LIFE SCIENCES UPDATE | 2023 MARCH