California Biomedical Industry - California Healthcare Institute

California Biomedical Industry DefinedCalifornia Biomedical IndustryReport HighlightsNumber of California biomedicalcompanies:2,244Total estimated revenues:$114 billionTotal estimated employment:267,772Total estimated wages and salariespaid: $19.4 billionAverage annual biomedical industrywage: $72,332Total NIH grants awarded:$3.2 billionTotal estimated venture capitalinvestment in California biomedicalcompanies:$2.6 billionTotal biomedical exports:$15.4 billionWhat is an industry? The Googledictionary suggests various definitions:a particular branch of economic orcommercial activity; a domain inwhich a great deal of time and effortis expended; and, simply, “hardwork.” Actually, all of these apply toCalifornia’s biomedical industry, abroad, diverse field that encompassesscientists, engineers, entrepreneurs,manufacturers, marketers and, as thisreport makes clear, almost every typeof professional. What ultimately bringsthe industry together, though, is acommon purpose: innovation of bettermedicines, tests and treatments forpatients in need.Despite the rapid proliferation ofbiotech and medical technology aroundthe world, California remains theindustry’s global leader. Over the pastdecade or so, as other states and nationshave striven to discover the secret tocreating high-tech jobs, California’sbiomedical clusters – from the BayArea to San Diego – have been studiedintensely. How did biotechnologyoriginate in San Francisco? Whatconditions enabled the new science toflourish? How did basic research makethe great leap to successful commercialdevelopment? And, perhaps mostimportant of all, what has made thestate’s biomedical industry sustainablein the face of growing competition?The answers are not simple. Afterall, there was no master plan; theindustry grew organically within theunique conditions of the Californiaenvironment. What is evident inretrospect, however, is that the stateconstitutes an extraordinary ecosystemin which many different elementswork together, spawning at differenttimes Hollywood, Silicon Valley and,most recently, the biomedical industry.Some of the essential elements areeasy to name. Leading-edge science;experienced venture capital; a diverse,well-educated workforce; a group ofserial entrepreneurs. But others aremore subtle. A culture that appreciatesrisk takers and that does not penalizefailure; healthy skepticism about timehonoredinstitutions; freedom to ignoreboundaries.Looking at today’s lifesciences industry, one seesamazing variety and dynamicconvergence.Traditional categories within the lifesciences have blurred because scientistsare venturing into ever more complexspace. What used to be the realm ofchemists and clinicians has expandedto include engineers, mathematicians,biologists, software designersethicists, and architects. Researchersare pursuing diseases to their rootcauses, below the cellular level, tounderstand the molecular triggers forgene expression. Doctors and engineersare collaborating to embed advancedwireless technologies in medical devicesthat can manage diabetics’ insulin levelsor cardiac patients’ arrhythmias moreprecisely, and with better outcomes,than anyone a decade ago could haveimagined.And the players keep changing roles.Physicians become researchers,and scientists become companyfounders. Legislators become patientadvocates, and math majors becomebiostatisticians. Most are driven by apassion to make a difference, and whenthey see a way to make a more lastingimpact or to improve people’s lives, theychange course.Just as technology is closing the gapsbetween people in their daily lives, it isrevolutionizing public health. In a worldwith five billion cell phones, almosteverybody — physicians, researchers,investors, caregivers, patients andinterested bystanders — has access tomore information and more ways toconnect with others who have similarinterests. Patients are taking moreresponsibility for their own treatmentsand health. Specialists are reading MRI4 | California Biomedical Industry 2011 Report