Report Shows Golden Gains for Golden State’s Life Sciences Industry

Talk about economic engines: California’s life sciences industry generated $396 billion in total business output last year, a new report has concluded.

The 2025 Life Science Economic Impact Report, released by Biocom California, provides a comprehensive assessment of the industry’s economic footprint, innovation output and national leadership. According to the report, California’s life sciences industry supported approximately 1.15 million jobs and played a central role in developing at least 12 novel therapies approved by the U.S. Food and Drug Administration (FDA) in 2024—more than any other state.

“California’s life science industry remains a cornerstone of economic vitality and a global leader in health innovation,” Biocom California President/CEO Tim Scott said. “Even amid economic tightening and political uncertainty, our sector continues to drive the discovery and delivery of life-changing treatments, medical devices and diagnostics around the world. In a second consecutive year of economic headwinds, California’s life science entrepreneurs remain a force of unstoppable resilience. They continue to advance bold science, build new ventures and deliver innovation that improves lives around the world. We are honored to champion their work at every stage. From policy advocacy and capital connections to workforce development, group purchasing, and strategic partnerships, our commitment to supporting our members has never been stronger.”

This year’s report features stories that highlight the medicines born in California and the scientific visionaries behind them. It is a tribute to the scientists, founders and teams across the state whose work delivers hope and health to patients worldwide.

Key findings from the 2025 Life Science Economic Impact Report:

• California’s life sciences industry directly employed more than 452,000 Californians in 2024, with a broader economic footprint supporting approximately 1.15 million jobs in the state.
• The Golden State’s life science ecosystem contributed directly to at least 12 of 50 novel therapies approved by the FDA in 2024 including medicines to treat cancer, rare diseases, mental health disorders, infectious diseases, and other conditions.
• The state leads the nation in biomanufacturing, providing more than 141,000 direct life science manufacturing jobs, representing 31.2% of California’s life sciences payroll employment.
• California research institutions received $5.7 billion in funding from the National Institutes of Health (NIH) and National Science Foundation (NSF) in 2024—the highest of any U.S. state.
• The state attracted $63.1 billion in private capital, including major venture and mergers and acquisitions (M&A) transactions, despite headwinds in the capital markets.

Life-Saving Therapies Nurtured by Public, Private Investment

California is the most productive hub for developing treatments for disease, many of which are supported by public investment. The national grants (NIH, NSF) supported numerous health-related areas of research, including Alzheimer’s disease and related dementias, stimulants, pain management, Lyme and tick-borne diseases, antimicrobial resistance, universal flu vaccine, mental health research, and others.

Also critical to California’s life sciences industry is private investment via venture capital and corporate M&A transactions. Total 2024 private sector investment in California came to $63.1 billion, which includes private equity and funding realized through the initial public offering process. Venture investment, typically raised by earlier stage companies, is important to establish early data showing the potential of new therapeutic approaches, which often originate in academia. M&A investment is frequently necessary to fully realize the potential of those new therapeutic approaches, as venture-funded companies frequently lack the resources to execute large, late-stage clinical studies and the corporate infrastructure necessary for commercialization of innovative technologies.

A Biomanufacturing Leader

Biocom California’s Economic Impact Report found that 31.2% of life science payroll jobs in 2024 were in biomanufacturing, for a total of 141,000 jobs. Robust manufacturing capabilities are vital for global health impact, emergency preparedness, compliance with environmental and regulatory requirements. Such capabilities tend to have an out-sized impact on local economies due to labor-intensive processes, supply chain complexity and high-value raw material inputs.

Importantly, biomanufacturing offers a pathway to living-wage careers, averaging $135,147 per year in the state for individuals with associate’s degrees. In fact, 42% of life science degrees awarded in the state in 2024 were at the associate’s level.

“The life science industry provides valuable jobs to Californians from a wide range of educational backgrounds,” Scott stated. “The prevalence of jobs specifically in manufacturing demonstrates a robust path into the life science industry for California residents from all economic backgrounds, and many community colleges are partnering with industry leaders to develop educational curricula to meet the needs of biomanufacturing companies.”

Biocom California is the leader and advocate for the state’s life sciences sector. The organization works on behalf of its members to drive public policy, build a network of industry leaders, create access to capital, introduce cutting-edge STEM education programs and create robust value-driven purchasing programs.

Founded in 1995 in San Diego, Biocom California provides a strong public voice to research institutions and companies that fuel the local and state-wide economy. In addition to its San Diego headquarters, Biocom California operates core offices in Los Angeles and the San Francisco Bay Area, with satellite offices in Sacramento, Washington, D.C., and Tokyo. Its membership benefits apply to biotechnology, pharmaceutical, medical device, genomics and diagnostics companies of all sizes, as well as to research universities and institutes, clinical research organizations, investors and service providers.