Canada’s life sciences are also an economic engine

Impact of Canada’s life sciences industry

The life sciences field includes everything from biotechnology and pharmaceuticals to biomedical research and diagnostics. It’s the branch of science that studies living organisms and leverages that knowledge to improve health, fight disease and develop new medical technologies.

In 2022, Canada’s life sciences industry proved to be a cornerstone of both national innovation and economic growth. With $3.2 billion invested in research and development, the sector didn’t just push scientific boundaries, it also supported over 110,000 full-time jobs across the country, reflecting a nearly 8% increase from the year before. That means more researchers, engineers, technicians and healthcare professionals building the future of medicine right here at home.

But the story goes deeper than dollars and jobs. The industry’s research and development-to-sales ratio, reaching as high as 11%, shows a strong commitment to reinvesting in Canadian science, talent and infrastructure. This isn’t just a business sector; it’s an ecosystem where scientific curiosity meets practical impact.

Nowhere is that impact more tangible than in clinical research. With over 3,200 clinical trials underway across Canada, the country has become a respected global hub for testing and validating new therapies. These trials are critical. They’re where life-changing treatments are first evaluated, where innovation takes shape and where Canadians contribute directly to advances in global health.

“Canada's leadership in clinical trials is something to be proud of—and something we must protect and amplify,” said Hamelin. “It's a competitive advantage that creates jobs, fuels innovation and delivers real health benefits to Canadians.”

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The industry’s economic contribution

In 2022, Canada’s life sciences sector didn’t just make scientific breakthroughs,it delivered real economic power. The industry contributed a total of $18.4 billion in gross value added (GVA) to the Canadian economy, and just over half of that — $9.6 billion — came directly from the sector’s own operations. That’s a 16.4% increase from the previous year, a sign of steady and significant growth.

But the story doesn’t stop at what the sector does on its own. There’s a ripple effect. The indirect impacts, the value created through the supply chain and supporting industries, added another $5 billion to the economy, making up 27.2% of the total GVA.

Then there’s the induced impact, which reflects the broader economic activity generated when employees spend their earnings in local communities. That figure rose 18% to $3.8 billion, accounting for 20.9% of the total.

Taken together, the research and development pharmaceutical sector made up 0.7% of Canada’s total GDP at basic prices in 2022, a steady contribution, unchanged from the year before, but one that underpins thousands of jobs and countless innovations.

Geographically, the heart of this economic activity beats strongest in Ontario and Quebec, the twin powerhouses of Canada’s life sciences ecosystem. In 2022, these two provinces alone generated $15.4 billion of the sector’s total GVA. Ontario led with $9 billion, followed by Quebec with $6.4 billion. The labour side of the equation was just as impressive, with $10.6 billion in wages and employment-related value, again, heavily concentrated in Ontario ($5.1 billion) and Quebec ($3.7 billion).

Canada’s life sciences sector is not only a key driver of innovation but also a significant contributor to the economy. Its influence spans across research institutions, supply chains, and local businesses, with a broad and lasting impact on the country’s economic landscape.