California’s Life Science Industry Generates More Than $400B Annually

The life sciences industry is a virtual gold mine for the Golden State.

Biocom California’s new report shows the state’s life sciences industry directly provides more than 465,000 jobs and generates $414.2 billion in total business output. Biocom California’s 2024 Economic Impact Report provides more details about these facts and other key findings about the state’s life sciences industry, including information on economic, demographic, investment, and industry performance data. The full report analysis and regional fact sheets are available on the organization’s website.
 
“California has always been a leader in life sciences innovation, and our 2024 Economic Impact Report shows the sustained value of the industry to the state’s economy,” Biocom California President/CEO Joe Panetta said. “Accelerating the success of the life sciences industry requires a mission-driven mindset to nurture growth. The scientific breakthroughs that create lasting impact on human well-being involve significant financial risk, and the efforts are worth it. This is evidenced by the lasting economic impact of the industry’s work, as well as the advancements that generate dramatic improvements in patient health.”
 
Key facts from the report:

• The Medical Devices and Equipment sector generated $72.38 billion in total economic output last year.
• In aggregate, the industry supported approximately 1.24 million jobs in 2023, including direct, indirect, and induced employment.
• The Medical Devices and Equipment sector employed 244,610 workers.
• Public research funding to life sciences in organizations in California remains robust, with researchers in the state receiving $6.02 billion in total research funding from the National Institutes of Health (NIH) and the National Science Foundation (NSF) in 2023.
• In 2023, the life sciences industry in California experienced a modest 0.6% contraction in employment, influenced by nationwide workforce reductions by major biopharmaceutical companies.
• Although overall employment declined modestly, sub-sectors like pharmaceutical manufacturing, in-vitro diagnostics manufacturing, and biotechnology R&D saw job gains, especially in regions outside of core markets.
• More than $840 million in investments in biotechnology manufacturing and R&D infrastructure across all California life science clusters ensures that facilities are available to meet the industry’s growing needs.

Biocom California is the advocate for California’s life sciences sector, working on behalf of more than 1,800 members to drive public policy, build a network of industry leaders, create access to capital, introduce STEM education programs and create robust value-driven purchasing programs. Founded in 1995 in San Diego, Biocom California provides the strongest public voice to research institutions and companies that fuel the local and state-wide economy. It helps members produce novel solutions that improve the human condition. In addition to the organization’s 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.