CALIFORNIA'S BIOMEDICAL INDUSTRY IS
POISED FOR GROWTH DESPITE INCREASING GLOBAL COMPETITION
~ Release of 2011
California Biomedical Industry Report ~
February 2011
(Sacramento, CA, February
2, 2011) - Eighty percent of biomedical company CEOs
in California report that their companies have been
courted by other countries, state governments or regional
economic development associations in the past year,
according to survey findings included in the 2011 California
Biomedical Industry Report, published by the California
Healthcare Institute, BayBio and PwC. Yet the survey
found surprising consensus among CEOs, planning to increase
jobs, manufacturing, research and development operations
within California versus elsewhere.
-
For the first time in the report's 17-year history,
nearly twice as many biomedical CEOs said they intend
to increase manufacturing within California (41
percent) versus outside the state (21 percent) over
the next two years.
-
Sixty-eight percent of CEOs said they expect to
expand the overall size of their workforce within
California, while only 31 percent will increase
workforce levels outside the state.
-
Seventy-eight percent of CEOs surveyed said that
they maintained or expanded R&D operations within
California over the past year, and 88 percent plan
to do so over the next two years, with the majority
of those (62 percent) saying that they expect to
expand R&D within California.
-
The key attributes cited for locating in California
were the availability of a highly skilled, entrepreneurial
workforce and California culture of innovation,
supported by access to leading research universities.
-
While relocating out of state was not a strategy
cited by CEOs surveyed, when asked about the most
attractive U.S. biomedical markets outside California,
76 percent said Greater Boston, followed distantly
by North Carolina (31 percent), Minneapolis-St.
Paul (25 percent), and the Washington-DC corridor.
The survey is
good news for a state that is the home to the biggest
concentration of biomedical companies, researchers,
entrepreneurs, suppliers, venture capitalists and workers
in the world. Despite increased competition and a proliferation
of biomedical and medical technology innovation overseas,
California remains the industry's global leader and
it stands to grow even larger as the U.S. epicenter
of innovation for the advancement of medicines, tests
and treatments for some of the most difficult diseases.
At the forefront of new developments in biologics, the
fastest growing segment of the global biopharmaceutical
industry, California has the largest clustering of companies
and clinical development products in this area of any
state in the U.S. or any single country in the world.
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