Letter to Stakeholders re: 2015 California Biomedical Industry Report
Letter to Stakeholders
California is an innovation machine. From groundbreaking studies at world-class universities, to entrepreneurial startups to global leading corporations, the state has shown the world how to build a thriving life sciences community. Favorable policies have helped make California the world’s leader in biomedical research and development. That success has, in turn, rippled through the state’s economy. In 2013, life sciences companies employed more than 270,000 Californians, with average wages that topped $100,000.
Equally important, this innovation ecosystem permeates the state. In 2014, academic researchers in California are projected to receive 7,400 NIH grants totaling $3.3 billion, by far the most in the nation. Many of the studies funded by these grants will lead to new insights into human biology and possibly new therapies and diagnostics. With 11 of the world’s top 100 universities (according to the Shanghai Index), California is well-positioned to continue this dominance. Ultimately, intellectual discovery attracts venture capital. California companies are projected to receive more than $3.8 billion in VC funding in 2014. These investments, as well as those from the NIH and other groups, have spurred even more innovation and helped the state recover from a devastating recession.
As you read through this report, you will see other statistics that validate the breadth and quality of our life sciences community. However, a word of caution is always in order. Open up any company’s financial report and you will find these words: Past performance does not guarantee future results. The same is true on the state level. While California’s biomedical sector has done well, we face increasing competition from other states and nations. We cannot forget the sound ideas that got us here. But also, we must find new ways to grow the innovation economy and remain world leaders in the life sciences. That future will not get built on its own. The heavy lifting belongs to us.
President & CEO
California Healthcare Institute
Partner, Pharmaceutical & Life Sciences Advisory PwC