The biomedical industry is a critical factor in California’s efforts to achieve economic recovery, according to a report by the California Healthcare Institute (CHI) and PricewaterhouseCoopers LLP.
The report finds the industry is one of the most recession-resilient sectors in the state’s hard-hit economy and a critical driver of innovation, job growth, and revenue. But it also points to signs that the industry in the state is facing unprecedented challenges as other regions compete for biomedical research and manufacturing jobs.
California is home to the largest concentration of biomedical companies in the world, employing 274,000 people and supporting 750,000 direct and indirect jobs statewide. The industry is the second largest sector of the state’s high tech work force.
Based on a survey of leading biomedical employers, the survey found the sector is holding steady and positioned for growth.
“While the biomedical industry has weathered the recession, it faces unprecedented challenges, (including) access to capital, the educational funding crisis, and uncertainty surrounding healthcare reform, said David Gollaher, president and ceo, CHI.
“Now more than ever, the sustainability of (the industry) depends on decisions made in Sacramento and Washington,” Gollaher added.
Said Tracy Lefteroff, national life sciences partner, Pricewaterhouse Coopers: “We can see the importance of contributions from the biomedical sector in patterns of new public and private investments such as VC funding, financing for capital expansion, and M&A, and a revived market for public offerings as well as tax credits and incentives to fuel R&D.”