The economic impact of health-care innovation on the province’s economic activity is significant. In all, there are three types of impacts:
- Direct impacts – are associated with expenditures directly within the industry.
- Indirect impacts – are spinoff activities due to other firms supplying goods and services to the industry.
- Induced impacts – are also spinoff activities generated when (direct and indirect) employees and business owners spend their incomes in other areas of the economy (e.g. retail sales).
2019 provincial impacts
Eastern Health consulted with the Department of Finance, Government of Newfoundland and Labrador, and using their economic/financial model, we were able to estimate the direct, indirect and induced economic benefits of health-care innovation on provincial Gross Domestic Product (GDP), employment and employment income, as follows:
- Provincial GDP: $4.5 million
- Labour compensation: $4.3 million (wages and benefits)
- Labour: 51 jobs created
This data was generated by using, and in consultation with, the Government of Newfoundland Labrador Department of Finance.
Gross Domestic Product (GDP) is a measure of the value of goods and services produced in the economy in a year. In addition, labour compensation is the sum of the additional wages, salaries and benefits paid to workers in the province due to the local innovation activity.