According to a report released last week by the California Healthcare Institute (CHI) and PricewaterhouseCoopers LLP (PwC), the biomedical industry is one of the most recession-resilient sectors in California’s hard-hit economy and a critical driver of innovation, job growth, and revenue that will help lead the state to economic recovery. However, the reports points to signs that the California biomedical industry is facing unprecedented challenges and that its biomedical leadership is being tested as other regions compete for research and manufacturing jobs.
California is currently home to the largest concentration of biomedical companies in the world. California’s biomedical industry employs nearly 275,000 people, representing one in six of the 1.6 million biomedical jobs in the United States. The industry supports more than 750,000 direct and indirect jobs statewide and is the second largest sector of California’s high-tech workforce.
Additionally, California’s biomedical industry attracts the greatest portion of venture capital (VC) funding of any industry in California and of any other state, receiving 42% of all venture capital investments in biotech and medical device companies nationally. As a result, there are currently 869 biopharmaceutical products in development in the state, from pre-clinical and clinical development through registration. Nearly one-third of the pipeline (272 products) focuses on treating cancer, according to 2009 research from IMS Health.
California is the birthplace of biotechnology, and our state’s biomedical innovation delivers not only global advances in healthcare but the jobs that drive our economy. While the biomedical industry has weathered the recession, it faces unprecedented challenges – access to capital, the educational funding crisis, and uncertainty surrounding healthcare reform. Now more than ever, I believe the sustainability of California’s biomedical industry depends on decisions made in Sacramento and Washington.
View a previously written post by Mouli Cohen about high-tech innovation