California had the largest life sciences research and development (R&D) expenditures of any state in 2019 and the total estimated direct economic output of the state’s life sciences industry was $237.7 billion, according to the latest California Life Sciences Sector Report, released on April 13.
“In 2020, the life sciences sector directly employed 313,230 Californians and was responsible for paying $158,555 in average wages and salary during the year, which is above the average for all industries considered together for the state,” the report states. “In both 2020 and 2021, California universities and research institutions received almost $5.0 billion from NIH, an increase over the $4.6 billion in 2019. This is critical to the life sciences industry, as NIH is the largest public funder of biomedical research in the world, contributing substantially to the biomedical knowledge base and economic growth when that foundational research is commercialized by the private sector through investments and partnerships.”
The report also mentions that “California’s life sciences sector contributed significantly to COVID-19 vaccine research and development,” adding: “As of January 2022, out of all 79 COVID-19 vaccine developments in the United States, more than a quarter have been sponsored by or primarily supported by organizations in California and over half of them (i.e., 43) have clinical trials taking place in California.”
The annual report is created in a collaboration with KPMG.
“The life sciences ecosystem played a vital role, contributing to California’s economy during the recent global pandemic demonstrating resilience while advancing innovation and human health,” the report finds.