Tremendous progress has occurred in the development of advanced medical technology in the last 50 years. Medical progress and improvements in the technologies that physicians, nurses and other care-givers use to treat patients allow for improved outcomes, health system savings, and even stimulate the U.S. economy. 

The total economic output by the industry in the U.S. amounts to $381 billion annually, including direct and indirect and induced impacts on industry suppliers and other sectors.

The industry is responsible for nearly 2 million jobs in the U.S., including both direct and indirect employment. Medical technology directly accounts for nearly 519,000 U.S. jobs. 

Medtech Supports Well-paying Careers and Job Growth

Every $1 billion in advanced medical technology revenue in the U.S. generates an additional $1.69 billion in national economic output, almost 13,000 jobs, and $778 million in personal income. 

The medical technology industry employs people in all 50 states.  Minnesota and Utah have the highest concentration of medical technology jobs relative to total employment—over three times the national average. Delaware, Massachusetts, and Indiana followed, with over two times the national average.   

Medtech Grows State Revenues and Economies

The medical technology industry has a healthy economic future.  Medical technology is one of the few manufacturing sectors still expanding in the U.S., and the industry continues to innovate and grow. Patent activity in the medical technology sector increased 15.7 percent from 2010 to 2012, representing the strongest growth in patent activity among 12 leading technology sectors. Medical technology not only creates jobs, but its use helps keep the American workforce healthy. 

Between 1980 and 2010, advanced medical technology helped reduce the number of days spent in hospitals by 59 percent.  

The use of minimally invasive surgical procedures reduced workplace absenteeism by 53,000 person-years. 

The use of key medical technologies in four disease areas (diabetes, colorectal cancer, musculoskeletal disease, and cardiovascular disease) expanded U.S. GDP by $106.2 billion and provided a net annual benefit of $23.6 billion to the economy due to better treatment, reduced disability, and increased productivity. 

Overall National Facts 

Direct impact on U.S. jobs	519,000
Number of medical technology firms in the U.S	Over 6,500
Overall impact on U.S. jobs (direct & indirect)	Nearly 2 million
Percentage of medical technology firms with less than 50 employees	More than 80%
Total economic output (direct & indirect)	$380 billion annually
Average total compensation per worker (including benefits)	$84,000
Annual U.S. medtech exports	Over $44 billion
Total personal income for U.S. workers (direct & indirect)	Over $113 billion
Trade surplus	About 14%

Jobs by State

Find out how many jobs the medical technology industry supports in each state.

Source: The Economic Impact of the Medical Technology Industry