2019 Biocom EIR Databook

2019

CAL IFO RNI A ECONOMIC IMPACT REPORT DATA BOOK Providing Key Statistics and Information on California’s Life Science Industry

Prepared By: TClower & Associates

Sponsored By:

www.biocom.org

Biocom’s 2019 CALIFORNIA ECONOMIC IMPACT REPORT

California’s life science industry is a critical economic engine and Biocom’s 1,200+ members contribute greatly to the state by discovering life-changing solutions while providing well-paying jobs and cross-industry partnerships that fortify the state gross product.

While there is a strong life science presence across California, much of the industry is concentrated in several distinct regions of robust economic activity. By studying the state as a whole, as well as each region individually, Biocom is able to better communicate industry needs to local, state and federal representatives, as well as better tailor our services to accelerate each of our members’ unique missions.

Biocom is the largest, most experienced leader and advocate for Californiaís life science sector. We work on behalf of more than 1,200 members to drive public policy, build an enviable 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 provides the strongest public voice to research institutions and companies that fuel the local and state-wide economy. Our goal is simple: to help our members produce novel solutions that improve the human condition. In addition to our San Diego headquarters, Biocom operates core offices in Los Angeles and the San Francisco Bay Area, satellite offices in Washington, D.C. and Tokyo, and has a continuous staff presence in Sacramento. Our broad 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.

For more information on Biocom, please visit our website at www.biocom.org. Connect with us on LinkedIn, Facebook, and Twitter (@BIOCOMCA).

www.biocom.org TClower & Associates is a professional services firm providing economic and public policy analysis to clients in the public, private, and non-profit sectors. Dr. Terry L. Clower serves as principal. Dr. Clower is also professor of public policy and director of the Center for Regional Analysis at George Mason University’s Schar School of Policy and Government located in the National Capital Region. Dr. Clower was assisted in this project by Julie Clower, MA and Dr. Keith Waters. The authors gratefully acknowledge the financial and operational support of the Biocom staff, without whose cooperation this databook would not be possible.

Thank You to our sponsors, Deloitte and County of Los Angeles, for their support of this report.

Contents INTRODUCTION .................................................................................................................................. 2 Economic & Demographic Overview .............................................................................................. 3 Population ..................................................................................................................................... 3 Employment .................................................................................................................................. 4 Total Employment ................................................................................................................. 4 Education Attainment ................................................................................................. 11 Total Post-Secondary Degrees Awarded ...................................................................... 12 Life Science Talent Pipeline ......................................................................................... 13 Life Science Employment and Impacts ........................................................................................ 14 California .................................................................................................................................. 16 Bay Area ................................................................................................................................... 20 Southern California ................................................................................................................ 30 San Diego County .................................................................................................................. 35 Orange County ........................................................................................................................ 40 Los Angeles County .............................................................................................................. 44 City of San Diego.................................................................................................................... 49 City of Los Angeles ................................................................................................................ 54 Appendix 1: Defining the Life Science Industry ......................................................................... 58 Appendix 2: Life Science Related Degrees Awarded by Institution ....................................... 59 Appendix 3: Life Science Innovation Company Count.............................................................. 62

1 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

INTRODUCTION The 2019 Biocom California Economic Impact Report Databook provides key economic, demographic, and industry performance data and analysis for the Life Science industry in California and selected sub-state regions. The Life Science industry continues to evolve, embracing innovative activities across a wide range of industry subsectors. Importantly, statistical agencies such as the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, and the U.S. Bureau of Economic Analysis are recognizing industries that have emerged or become more distinctive as Life Science has grown in scope and economic importance. Recent changes to our coding system for industries, the North American Industry Classification System (NAICS), which is a joint effort of statistical agencies in the United States, Mexico, and Canada, illustrate key changes related to Life Sciences.

The 2017 revisions to the NAICS code structure introduced a new industry, Research and Development in Nanotechnology, which separated industrial activities that had largely been classified as R&D in Biotechnology and R&D in Physical, Engineering and Life Sciences. In addition, the body of research examining the California Life Science industry has grown and has allowed a reassessment of our analysis parameters for this industry. Finally, the Biocom team made the decision to narrow the focus towards the most innovative portions of some industries, especially those related to agriculture. A detailed listing of the industries included in this analysis can be found in Appendix 1. Because of the structural changes in our industry definitions, the data and analysis in this edition of the Biocom California Economic Report Databook should not be compared to previous editions.

The Life Science industry is comprised of five (5) industry sectors, which themselves are groupings of industries. The industry sectors making up the Life Science industry in California includes: BioRenewables; Biopharmaceuticals Manufacturing; Medical Devices and Diagnostic Equipment Manufacturing; Life Science Wholesale Trade; and Research, Development, Education and Laboratory Services.

• • •

• •

BioRenewables: This industry sector includes biofuels, specialty enzymes and chemicals, algae research, and key elements of agriculture.

Biopharmaceuticals Manufacturing: The production of medicines, botanicals, pharmaceuticals, in-vitro diagnostic substances, and biological products.

Medical Devices and Diagnostic Equipment Manufacturing: Laboratory equipment and supplies, optical instruments, electromedical apparatus, surgical and medical instruments, dental equipment, and dental product producing laboratories.

Life Science Wholesale Trade: Wholesaling and distributing medical equipment and supplies and the wholesaling of pharmaceuticals and related products.

Research, Development, Education and Laboratory Services (referred to throughout this report as “Research & Lab Services”: Includes research and development in biotechnology, related areas of nano-technology, medical laboratories, and portions of industries representing testing laboratories, other research and development services, and higher education.

2 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Economic & Demographic Overview Population • • • •

California continues to outpace the national average in population growth adding over 2.2 million new residents between 2010 and 2018.

The Bay Area’s pace of growth is faster than the state overall with the strongest growth in Alameda, Contra Costa, San Francisco, Santa Clara, and Solano counties.

In Southern California, Riverside and San Diego counties led population growth and substantially outperformed the rest of the region.

Urbanization trends continue to dominate the population growth narrative with growth rates being highest in the largest counties, with the notable exception of Los Angeles County.

Geography United States California Bay Area Alameda County Contra Costa County Marin County Napa County San Francisco County San Mateo County Santa Clara County Solano County Sonoma County Southern California Imperial County Los Angeles County Orange County Riverside County San Diego County Ventura County

1 July 2010 309,326,085 37,320,903 7,165,389 1,513,043 1,052,559 252,905 136,808 805,550 719,725 1,786,079 413,944 484,776 19,143,810 174,730 9,822,433 3,016,559 2,201,652 3,103,306 825,130

1 July 2018 327,167,434 39,557,045 7,753,023 1,666,753 1,150,215 259,666 139,417 883,305 769,545 1,937,570 446,610 499,942 20,118,402 181,827 10,105,518 3,185,968 2,450,758 3,343,364 850,967

Change 17,841,349 2,236,142 587,634 153,710 97,656 6,761 2,609 77,755 49,820 151,491 32,666 15,166 974,592 7,097 283,085 169,409 249,106 240,058 25,837

Percent Annual Change 0.7% 0.7% 1.0% 1.2% 1.1% 0.3% 0.2% 1.2% 0.8% 1.0% 1.0% 0.4% 0.6% 0.5% 0.4% 0.7% 1.3% 0.9% 0.4%

3,797,144 3,999,742 202.598 0.7% City of Los Angeles* 1,311,886 1,419,488 107,602 1.0% City of San Diego* * 2017 most recent data available.

Sources: US, State, Regions and Counties: US Census Population Estimates Program, Data for July 1 of the designated year. Cities: American Community Survey for 2017.

3 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Employment The data shown for employment counts are based on estimates from Economic Modeling Specialist Incorporated (EMSI). This data source offers two distinct advantages over government data sources such as the U.S. Bureau of Labor Statistics (BLS). First, government disclosure rules require the BLS to mask employment data for sectors with few firms in a given locality to protect business confidentiality. EMSI has developed algorithms to estimate job counts and other data from overall industry and regional hiring patterns without masking. Secondly, EMSI’s models estimate nonemployer jobs, such as sole proprietors and independent contractors, which are not included in timely government jobs data. This is a particularly important consideration for capturing the economic activity of small, innovative firms in the Life Science industry and the growth of “gig” economy-type jobs.

Total Employment • • • •

About 1 in 6 US job gains occurred in California between 2013 and 2018.

California companies, on average, pay substantially higher wages compared to the U.S. The Bay Area continues its impressive run on job growth, with average wages being especially high in Silicon Valley and San Francisco.

Southern California also shows strong job growth over the past five years.

Employment 2013 United States 150,464,122 California 17,598,587 Bay Area 3,840,360 Alameda County 764,489 Contra Costa County 385,952 Marin County 131,972 Napa County 78,640 San Francisco County 683,620 San Mateo County 399,061 Santa Clara County 1,036,993 Solano County 146,236 Sonoma County 213,398 Southern California 9,014,999 Imperial County 68,033 Los Angeles County 4,708,559 Orange County 1,619,803 Riverside County 696,505 San Diego County 1,565,754 Ventura County 356,347 Source: EMSI, TClower& Associates

Job Change (2013-2018) 11,675,046 1,969,831 531,761 112,395 41,116 6,179 8,232 123,461 47,660 152,048 15,973 24,696 900,772 2,247 305,900 184,630 139,107 161,838 17,048

Employment 2018 162,139,168 19,568,418 4,372,121 876,884 427,068 138,151 86,872 807,081 446,721 1,189,041 165,232 238,094 9,915,771 70,280 5,104,459 1,804,433 835,612 1,727,592 373,395

Job Change (2018-2023) 9,400,985 1,200,595 327,347 64,240 26,811 6,833 5,534 77,604 32,152 90,619 10,434 13,121 511,871 3,970 215,238 100,447 81,248 97,317 13,651

Employment 2023 174,540,153 20,769,013 4,699,468 941,124 453,879 144,984 92,406 884,685 478,873 1,279,660 251,215 251,215 10,427,642 74,250 5,319,697 1,904,880 916,860 1,824,909 387,046

Avg Annual Wage $65,133 $76,210 $109,767 $85,470 $77,108 $78,211 $65,146 $125,840 $131,602 $142,471 $68,559 $61,720 $69,215 $50,022 $71,824 $70,749 $53,106 $69,779 $63,204

4 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

The following series of tables provide detailed job growth estimates and projections by industry.

Employment by Industry – California

NAICS 11

Industry Agriculture, Forestry, Fishing and Hunting 21 Mining, Quarrying, Oil and Gas Extraction 22 Utilities 23 Construction 31 Manufacturing 42 Wholesale Trade 44 Retail Trade 48 Transportation and Warehousing 51 Information 52 Finance and Insurance 53 Real Estate and Rental and Leasing 54 Professional, Scientific, and Technical Services 55 Management of Companies and Enterprises 56 Administrative and Support and Waste Management and Remediation Services 61 Educational Services 62 Health Care and Social Assistance 71 Arts, Entertainment, and Recreation 72 Accommodation and Food Services 81 Other Services (except Public Administration) 92 Public Administration 99 Unclassified Total - All Industries Source: EMSI, TClower & Assoc.

Employment 2013 442,535

Job Change (2013-2018) 15,208

Employment 2018 457,744

Job Change (20182023) 8,641

Employment 2023 466,384

28,372

-8,071

20,301

368

20,669

58,929 877,752 1,284,339 723,477 1,703,166 488,271

-969 209,797 65,923 9,359 82,009 169,973

57,961 1,087,549 1,350,262 732,835 1,785,175 658,244

785 86,484 -37,621 -1,156 33,946 82,740

58,746 1,174,033 1,312,641 731,679 1,819,121 740,984

478,614 586,422 344,184

84,969 36,649 34,426

563,583 623,071 378,611

47,383 11,686 15,701

610,966 634,757 394,312

1,380,926

125,956

1,506,882

108,786

1,615,667

218,077

23,397

241,474

8,972

250,446

1,132,722

138,922

1,271,644

79,297

1,350,941

434,997 2,108,087

51,147 339,548

486,145 2,447,636

51,292 391,119

537,437 2,838,754

351,186

49,937

401,123

25,769

426,892

1,442,279

247,017

1,689,296

146,095

1,835,391

858,728

75,061

933,790

32,893

966,683

2,606,637 48,886 17,598,587

183,881 35,690 1,969,831

2,790,518 84,576 19,568,418

98,227 9,189 1,200,595

2,888,744 93,765 20,769,013

5 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Employment by Industry – Bay Area

NAICS

Industry Agriculture, Forestry, 11 Fishing & Hunting 21 Mining, Quarrying, & Oil & Gas Extraction 22 Utilities 23 Construction 31 Manufacturing 42 Wholesale Trade 44 Retail Trade 48 Transportation & Warehousing 51 Information 52 Finance & Insurance 53 Real Estate & Rental & Leasing 54 Professional, Scientific, & Technical Services 55 Management of Companies & Enterprises 56 Administrative & Support & Waste Management & Remediation Services 61 Educational Services 62 Health Care & Social Assistance 71 Arts, Entertainment, & Recreation 72 Accommodation & Food Services 81 Other Services (except Public Administration) 92 Public Administration 99 Unclassified Total - All Industries Source: EMSI, TClower & Assoc.

Employment 2013 22,174

Job Change (2013-2018) 543

Employment 2018 22,717

Job Change (2018-2023) -245

Employment 2023 22,472

2,000

-644

1,356

339

1,695

13,378 196,583 316,279 125,777 347,285 91,615

1,407 48,006 45,666 3,171 14,257 24,891

14,785 244,589 361,945 128,947 361,542 116,506

497 21,244 6,309 -1,590 4,376 8,241

15,282 265,833 368,254 127,357 365,918 124,747

142,102 131,326 73,359

66,281 15,638 7,339

208,383 146,964 80,699

46,220 5,076 3,339

254,603 152,040 84,037

448,601

77,336

525,937

53,997

579,934

71,109

5,447

76,556

4,124

80,680

218,837

27,551

246,388

15,646

262,034

121,694 450,879

13,556 60,575

135,250 511,454

13,610 75,366

148,860 586,820

74,867

7,317

82,184

5,288

87,472

322,343

49,874

372,218

30,498

402,715

191,233

21,040

212,273

12,452

224,725

469,890 9,029 3,840,360

34,280 8,229 531,761

504,171 17,258 4,372,121

19,005 3,557 327,347

523,176 20,815 4,699,468

6 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Employment by Industry – Southern California

NAICS 11

Industry Agriculture, Forestry, Fishing & Hunting 21 Mining, Quarrying, & Oil & Gas Extraction 22 Utilities 23 Construction 31 Manufacturing 42 Wholesale Trade 44 Retail Trade 48 Transportation & Warehousing 51 Information 52 Finance & Insurance 53 Real Estate & Rental & Leasing 54 Professional, Scientific, & Technical Services 55 Management of Companies & Enterprises 56 Administrative & Support & Waste Management & Remediation Services 61 Educational Services 62 Health Care & Social Assistance 71 Arts, Entertainment, & Recreation 72 Accommodation & Food Services 81 Other Services (except Public Administration) 92 Public Administration 99 Unclassified Total - All Industries Source: EMSI, TClower & Assoc.

Employment 2013 73,862

Job Change (2013-2018) -2,715

Employment 2018 71,146

Job Change (2018-2023) -2,809

Employment 2023 68,337

7,515

-2,828

4,687

-100

4,587

25,883 438,141 710,037 395,244 881,055 239,337

-3,370 106,651 -3,971 6,590 41,604 85,337

22,513 544,792 706,066 401,834 922,659 324,674

-1,777 43,864 -50,154 -3,413 15,558 41,449

20,736 588,656 655,912 398,420 938,217 366,123

279,617 320,358 200,505

15,116 9,144 19,304

294,733 329,502 219,808

-3,628 -292 8,552

291,105 329,210 228,360

683,627

33,572

717,199

33,724

750,923

108,919

13,312

122,231

3,292

125,523

600,953

52,362

653,314

27,993

681,307

236,401 1,101,291

27,072 183,093

263,473 1,284,384

26,576 213,323

290,049 1,497,707

208,988

35,948

244,936

15,515

260,451

769,933

141,554

911,488

82,671

994,159

462,002

38,727

500,728

13,164

513,892

1,246,680 24,653 9,014,999

86,091 18,181 900,772

1,332,771 42,834 9,915,771

40,641 7,723 511,871

1,373,412 50,557 10,427,642

7 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Employment by Industry – San Diego County

NAICS 11

Industry Agriculture, Forestry, Fishing & Hunting 21 Mining, Quarrying, & Oil & Gas Extraction 22 Utilities 23 Construction 31 Manufacturing 42 Wholesale Trade 44 Retail Trade 48 Transportation & Warehousing 51 Information 52 Finance & Insurance 53 Real Estate & Rental & Leasing 54 Professional, Scientific, & Technical Services 55 Management of Companies & Enterprises 56 Administrative & Support & Waste Management & Remediation Services 61 Educational Services 62 Health Care & Social Assistance 71 Arts, Entertainment, & Recreation 72 Accommodation & Food Services 81 Other Services (except Public Administration) 92 Public Administration 99 Unclassified Total - All Industries Source: EMSI, TClower & Assoc.

Employment 2013 11,082

Job Change (2013-2018) -625

Employment 2018 Q1 10,457

Job Change (2018-2023) -921

Employment 2023 9,969

440

-96

344

-118

335

6,849 80,168 97,810 46,655 148,891 22,760

-1,732 3,050 15,241 814 7,549 10,018

5,117 103,218 113,052 47,470 156,440 32,778

-786 22,900 14,298 2,434 5,633 10,171

4,616 112,249 115,349 48,677 159,577 37,358

25,759 50,159 34,796

638 2,867 2,010

26,398 53,026 36,806

-142 3,769 1,741

25,576 54,011 37,448

147,081

9,659

156,740

9,160

167,647

20,509

2,151

22,660

1,876

24,349

91,835

7,795

99,630

8,754

103,278

36,337 159,423

1,147 25,406

37,484 184,830

1,004 28,291

40,821 214,052

32,278

4,422

36,699

4,104

39,000

144,559

25,039

169,598

21,382

183,248

73,859

9,014

82,873

6,354

86,611

330,596 3,906 1,565,754

15,057 2,415 161,838

345,652 6,321 1,727,592

16,959 1,972 158,835

353,468 7,269 1,824,909

8 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Employment by Industry – Orange County

NAICS

Industry Agriculture, Forestry, 11 Fishing & Hunting 21 Mining, Quarrying, & Oil & Gas Extraction 22 Utilities 23 Construction 31 Manufacturing 42 Wholesale Trade 44 Retail Trade 48 Transportation & Warehousing 51 Information 52 Finance & Insurance 53 Real Estate & Rental & Leasing 54 Professional, Scientific, & Technical Services 55 Management of Companies & Enterprises 56 Administrative & Support & Waste Management & Remediation Services 61 Educational Services 62 Health Care & Social Assistance 71 Arts, Entertainment, & Recreation 72 Accommodation & Food Services 81 Other Services (except Public Administration) 92 Public Administration 99 Unclassified Total - All Industries Source: EMSI, TClower & Assoc.

Employment 2013 3,238

Job Change (2013-2018) -920

Employment 2018 2,318

Job Change (2018-2023) -988

Employment 2023 1,329

539

60

600

17

771

3,703 96,057 160,904 82,106 157,158 26,534

-655 28,840 1,487 1,198 4,927 3,636

3,048 124,897 162,391 83,304 162,085 30,170

-426 13,228 -5,446 -1,719 491 1,293

2,622 138,125 156,944 81,585 162,576 31,464

27,011 85,315 46,388

2,241 4,584 3,150

29,252 89,899 49,538

1,113 2,570 1,178

30,366 92,469 50,717

140,535

12,163

152,698

5,495

158,193

25,839

8,531

34,370

2,894

37,264

135,095

22,685

157,780

13,722

171,503

33,646 168,257

4,535 31,407

38,181 199,664

4,455 33,259

42,635 232,923

47,600

8,279

55,879

4,070

59,950

149,021

23,796

172,817

14,051

186,868

72,582

9,321

81,903

3,866

85,769

153,745 4,531 1,619,803

12,134 3,231 184,630

165,878 7,762 1,804,433

5,663 1,505 100,447

171,541 9,267 1,904,880

9 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Employment by Industry – Los Angeles County

NAICS 11

Industry Agriculture, Forestry, Fishing & Hunting 21 Mining, Quarrying, & Oil & Gas Extraction 22 Utilities 23 Construction 31 Manufacturing 42 Wholesale Trade 44 Retail Trade 48 Transportation & Warehousing 51 Information 52 Finance & Insurance 53 Real Estate & Rental & Leasing 54 Professional, Scientific, & Technical Services 55 Management of Companies & Enterprises 56 Administrative & Support & Waste Management & Remediation Services 61 Educational Services 62 Health Care & Social Assistance 71 Arts, Entertainment, & Recreation 72 Accommodation & Food Services 81 Other Services (except Public Administration) 92 Public Administration 99 Unclassified Total - All Industries Source: EMSI, TClower & Assoc.

Employment 2013 6,343

Job Change (2013-2018) -314

Employment 2018 6,029

Job Change (2018-2023) -718

Employment 2023 5,310

4,709

-2,602

2,107

-330

1,778

12,188 182,461 376,983 227,481 436,954 157,865

-566 26,908 -22,381 2,133 17,828 48,180

11,622 209,369 354,603 229,614 454,782 206,046

-807 10,055 -44,556 -4,858 5,307 23,775

10,815 219,425 310,047 224,756 460,089 229,820

213,630 153,489 99,944

11,833 2,900 12,354

225,464 156,389 112,298

-4,335 -3,097 5,900

221,128 153,293 118,198

346,878

8,381

355,259

14,164

369,423

57,350

475

57,825

-2,138

55,687

301,738

12,265

314,003

3,840

317,842

150,217 645,469

18,553 96,775

168,770 742,245

16,615 120,941

185,385 863,186

108,851

21,181

130,033

8,255

138,288

376,709

72,801

449,509

43,519

493,028

263,896

15,569

279,466

2,926

282,392

571,716 13,685 4,708,559

43,179 10,447 395,900

614,895 24,132 5,104,459

16,332 4,446 215,238

631,227 28,578 5,319,697

10 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Education Education Attainment Having an educated workforce is a necessary condition for success in the globalized economy.

Economic development in the 21st Century is largely about talent attraction, development, and retention. The data reported for education attainment covers the adult population aged 25 years or older and come from the U.S. Census Bureau’s American Community Survey.

• •

The Bay Area has a distinct competitive advantage in overall education attainment.

In Southern California, Orange County and San Diego County have strong overall education attainment numbers followed closely by Ventura and Los Angeles Counties.

High School Diploma 27.1% 20.8% 16.0% 18.0% 16.6% 10.5% 17.8% 11.5% 14.8% 14.7% 22.9% 19.3% 20.6% 28.2% 20.8% 17.3% 27.4% 18.6% 19.1%

Less than High School 12.0% 16.7% 11.3% 12.0% 11.4% 5.9% 14.2% 11.7% 9.7% 11.5% 13.0% 10.7% 17.9% 28.6% 20.7% 15.0% 17.6% 12.5% 14.8%

11.6% 22.8% 6.1% 17.8% 19.2% City of Los Angeles 18.5% 27.1% 7.8% 19.7% 15.6% City of San Diego Source: Census Bureau, American Community Survey, 2017, Population aged 25+

22.4% 11.2%

United States California Bay Area Alameda County Contra Costa County Marin County Napa County San Francisco County San Mateo County Santa Clara County Solano County Sonoma County Southern California Imperial County Los Angeles County Orange County Riverside County San Diego County Ventura County

Graduate or Professional Degree 12.3% 12.6% 20.0% 19.5% 15.5% 25.8% 12.8% 22.7% 23.0% 24.7% 8.3% 13.3% 11.9% 4.7% 11.1% 14.2% 7.9% 15.0% 11.6%

Bachelor's Degree 19.7% 21.1% 27.5% 26.9% 26.7% 32.8% 23.4% 35.1% 28.6% 26.9% 18.4% 22.6% 21.5% 10.4% 21.1% 26.1% 14.3% 23.7% 21.9%

Associate's Degree 8.5% 7.8% 7.0% 6.1% 8.6% 7.2% 9.4% 4.8% 6.8% 6.4% 9.9% 9.3% 7.5% 5.2% 7.0% 7.7% 8.3% 8.2% 9.1%

Some College 20.4% 21.1% 18.2% 17.5% 21.3% 17.9% 22.5% 14.1% 17.0% 15.6% 27.5% 24.9% 20.6% 23.0% 19.3% 19.7% 24.5% 22.1% 23.4%

11 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Total Post-Secondary Degrees Awarded Post-Secondary Degrees Awarded reflect college diplomas awarded at public and private institutions of higher education, including specialty trade schools. These data help reflect a region’s ability to provide an on-going supply of trained workers and scientists supporting industry growth.

• •

Growth in the issuance of post-secondary degrees in Southern California universities and colleges substantially outpaced U.S. and state averages between 2012 and 2017.

The notable decline in degrees awarded at institutions in the City of San Diego is largely attributable to declining enrollments at one private university.

United States California Bay Area Alameda County Contra Costa County Marin County Napa County San Francisco County San Mateo County Santa Clara County Solano County Sonoma County Southern California Imperial County Los Angeles County Orange County Riverside County San Diego County Ventura County

2012

2017

Change

Percent Change

3,850,406 402,441 76,023 22,318

4,062,832 472,863 83,766 24,440

212,426 70,422 7,743 2,122

5.5% 17.5% 10.2% 9.5%

4,180 859 878 18,241 2,003 22,076 1,584 3,884 223,569 893 104,859 41,197 11,972 58,911 5,737

4,982 843 1,150 18,368 3,003 24,079 2,093 4,808 274,116 1,198 134,255 53,608 15,785 60,536 8,734

802 (16) 272 127 1,000 2,003 509 924 50,547 305 29,396 12,411 3,813 1,625 2,997

19.2% -1.9% 31.0% 0.7% 49.9% 9.1% 32.1% 23.8% 22.6% 34.2% 28.0% 30.1% 31.8% 2.8% 52.2%

39,828 47,220 7,392 18.6% City of Los Angeles 36,526 32,394 (4,132) -11.3% City of San Diego Source: Integrated Post-Secondary Education Data System aggregated by EMSI

12 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Life Science Talent Pipeline Degrees awarded in Science, Technology, Engineering, and Mathematics (STEM) is considered especially important for California’s technology industries, including Life Sciences.

• • •

The growth in STEM degrees has been impressive for most counties included in this Databook.

Growth was particularly strong in Contra Costa County. Imperial County also showed a large percentage increase but over a small base.

Importantly, California’s institutions of higher education have responded to calls for recruiting and graduating more students in STEM disciplines, which supports growth across the Life Science industry as well as other advance technology fields.

United States California Bay Area Alameda County Contra Costa County Marin County Napa County San Francisco County San Mateo County Santa Clara County Solano County Sonoma County Southern California Imperial County Los Angeles County Orange County Riverside County San Diego County Ventura County

2012 603,353 70,662 15,701 5,528 402 153 188 1,891 236 6,445 350 508 35,381 96 16,855 6,350 2,578 8,615 887

2017 778,196 102,089 21,606 6,854 946 96 357 3,410 385 8,269 561 728 52,258 267 25,381 9,386 3,339 12,407 1,478

Change 174,843 31,427 5,905 1,326 544 (57) 169 1,519 149 1,824 211 220 16,877 171 8,526 3,036 761 3,792 591

Percent Change 29.0% 44.5% 37.6% 24.0% 135.3% -37.3% 89.9% 80.3% 63.1% 28.3% 60.3% 43.3% 47.7% 178.1% 50.6% 47.8% 29.5% 44.0% 66.6%

8,211 11,848 3,637 44.3% City of Los Angeles 2,580 3,585 1,005 39.0% City of San Diego Source: Integrated Post-Secondary Education Data System aggregateed by EMSI

13 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Life Science Employment and Impacts For each selected geography, we offer data indicating the status, competitiveness, and economic impacts of the Life Science industry and its component industry sectors. The following describes the data and analyses presented.

•

Employment: Employment totals include estimates of jobs provided by employers (covered employment) and individuals who are self-employed or employed as an independent contractor.

•

Establishments: Firms with one or more employees (not including a sole proprietor) by location. For example, some firms may have multiple locations within a county each of which would be counted as an “establishment” because it would file separate employment status reports with government agencies.

•

Wages: For our sub-state regions, we show the average wages per year for all employees by industry sector.

•

Employment by Selected Occupations: The number of jobs in occupations that are particularly relevant to the Life Sciences.

•

Location Quotient: A location quotient shows the proportion of total employment in a given industry or occupation compared to the average representation of that industry or occupation in the United States economy. A location quotient greater than about 1.2 indicates that a region may possess a competitive advantage for that industry/occupation. Location quotients less than 0.9 typically indicate competitive weakness but may show opportunities for growth.

•

Industry Competitiveness: This measure is based on a shift-share analysis of the jobs data.

Shift-share analyses separate employment change into factors that account for: a) overall economic change in the United States (if the overall economy is growing, so should a given industry), and b) the given industry’s trends at the national level. We show this analysis by comparing Expected Change to Regional Share. Expected Change is the sum of national level influences on local industry employment. Regional Share shows the number of jobs during a five-year period that can be attributed to local/regional/state economic conditions.

The larger the Regional Share compared to Expected Change, the more competitive the region is for that industry, on average

14 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

•

•

•

Economic Impacts: Economic Impacts show how the selected industry impacts overall local/regional/state economic performance. Our measures include direct, indirect, and induced impacts. Direct impacts capture the value of firm spending, such as a medical device manufacturing hiring employees and purchasing raw materials and component parts.

Indirect effects measure the economic value as it flows through the medical devices firm’s supply chain, such as a parts supplier purchasing shipping boxes and transportation services, hiring workers, and obtaining professional services. Induced effects capture the impacts of employees of the direct and indirect firms spending a portion of their earnings for goods and services in the state/regional/local economy. These impacts are measured for: o Output: Value of business transactions o Value added: Equivalent to gross domestic product o Labor Income: Salaries, wages and benefits paid to workers o Employment: Headcount (full-time and part-time) jobs.

Foreign Exports: The value of goods and services sold to buyers outside the United States.

This is a very important economic measure since the sale of export goods brings new money into the state/regional/local economy.

National Institutes of Health New Research Awards: This reports the value of research grants awarded in the field of health research for federal fiscal year 2018 from the National Institutes of Health (NIH). This is an excellent proxy measure for how a region is performing in leading edge Life Science research.

15 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

California Summary California’s Life Science Industry provides over 428,000 jobs statewide, most of which are employed at one of the more than 11,700 establishments representing this sector of the economy. The strongest related occupations are for Biochemists and Biophysicists; Microbiologists; Medical Scientists; and technicians supporting Agricultural and Food Sciences and Biological industries.

Some occupations related to environmental sciences have declined in recent years.

At the state level, California’s Life Science industry has grown over the past five years with an 8% increase in the number of jobs, with the highest increases in the Biopharmaceutical Manufacturing, Research and Lab Services, and Life Science Wholesale sectors. While growth in California’s Life Science industry has slowed, its impact on the state economy has increased. Companies, universities and research institutions in California received over $4.2 billion in new research awards from the National Institutes for Health in FY2018. California based Life Science companies exported almost $85 billion in goods and services in 2018.

Including direct, indirect, and induced economic impacts, the Life Science industry in California: • • • •

Generates over $346 billion in annual economic activity (output) Boosts total state gross product by $195.8 billion Supports almost 1.3 million jobs Increases labor income by more than $104 billion per year.

California Employment by Life Science Sector, 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Employment 31,060 49,942 77,819 27,159 242,303 428,283

California Life Science Establishments, 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Establishments 1,491 600 2,312 1,962 5,360 11,725 16

Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

California Wages, 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices and Diagnostic Equipment Life Science Wholesale Research, Development, and Education Labs All Life Sciences Source: EMSI, TClower & Assoc.

Wages

$44,968 $180,502 $122,905 $129,616 $96,737 $95,750

California Employment by Selected Occupations Title Biochemists and Biophysicists Microbiologists Zoologists & Wildlife Biologists Biological Scientists, All Other Epidemiologists Medical Scientists Life Scientists, All Other Environmental Scientists and Specialists, Including Health Ag. & Food Science Techs Biological Technicians Chemical Technicians Environmental Science and Protection Techs, Inc. Health Life, Physical, and Social Science Technicians, All Other Medical & Clinical Lab Technologists and Technicians Source: EMSI, TClower & Assoc.

2018 Jobs 5,033 5,197 2,142 8,418 917 26,359 1,640 13,434

Avg. Annual Wages $105,653.60 $96,017.51 $72,488.62 $85,770.81 $97,575.62 $104,128.62 $96,483.18 $87,628.03

Location Quotient 1.32 1.72 0.89 1.66 0.93 1.82 1.65 1.27

5-Year Job Growth 234 721 -174 1,672 215 3,390 -130 -1,499

4,590 12,732 6,666 5,250

$43,264.00 $52,811.20 $47,985.60 $57,441.22

1.40 1.35 0.83 1.16

658 1,033 -460 -531

7,502

$54,644.34

0.82

782

31,224

$97,575.62

0.78

1,087

17 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Industry Competitiveness – California (The larger the Regional Share compared to Expected Change, the more competitive the industry)

Total - All Industries BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013 Jobs 17,598,587 31,429 45,650 78,233 24,090 216,814 396,216

2018 Jobs 19,568,418 31,060 49,942 77,819 27,159 242,303 428,284

% Change 11.19% -1.18% 9.4% -0.53% 12.74% 11.76% 8.09%

Expected Change

Regional Share

-467 2,497 4,270 4,223 13,835 15,896

98 1,795 3,502 -1,154 11,655 11,724

Life Science Industry Economic Impacts (Direct, Indirect, Induced) California 2018 Industry Output BioRenewables $45,457,635,219 Biopharmaceutical $133,728,677,745 Manufacturing Medical Devices & $61,718,832,890 Diagnostic Equip Life Science $12,492,977,918 Wholesale Research & Lab $92,763,069,655 Services All Life Sciences $346,161,193,427 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $16,927,057,541 $78,773,084,989

Labor Income $10,203,590,199 $30,267,453,451

Employment 174,851 311,244

$32,705,152,201

$19,419,853,650

229,060

$8,141,172,704

$4,370,229,833

60,637

$59,231,912,129

$40,414,575,741

518,066

$195,778,379,564

$104,675,702,874

1,293,858

California Foreign Exports of Life Science Products and Services 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Exports $6,074,393,836 $20,048,612,920 $23,217,619,886 $2,689,535,284 $32,962,574,254 $84,992,736,181

18 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

National Institutes of Health New Research Awards FY2018 – California (Note: Counties with no awards not listed) County Total Alameda $279,702,712 Contra Costa $7,005,924 Fresno $973,636 Kern $356,689 Los Angeles $1,069,903,406 Marin $21,212,880 Merced $5,408,269 Monterey $430,955 Nevada $265,877 Orange $175,951,673 Placer $224,158 Riverside $29,487,901 Sacramento $900,888 San Bernadino $12,033,240 San Diego $932,798,259 San Francisco $767,473,912 San Joaquin $671,157 San Luis Obispo $1,352,257 San Mateo $71,195,443 Santa Barbara $24,949,358 Santa Clara $557,015,726 Santa Cruz $39,231,503 Solano $812,268 Sonoma $1,708,529 Ventura $2,218,626 Yolo $239,881,190 Total $4,243,166,436 Sources: NIH (4/12/2019), TClower & Associates

19 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Bay Area Summary The Bay Area includes the nine counties surrounding the San Francisco Bay: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma Counties. Bay Area companies in the Life Science industry employed more than 134,000 in 2018, with average earnings exceeding $137,000 per year. There was impressive growth in the Biopharmaceuticals, Medical Devices and Research & Lab Services industry sectors between 2013 and 2018. Life Science Wholesale Trade showed good growth, while BioRenewables employment was essentially flat. Projected job growth over the next five years sees a continuation of that trend with more than 30,000 jobs being created in the Research & Lab Services sector and very good gains in Biopharmaceuticals. This growth is expected to be concentrated in Alameda, San Francisco and San Mateo counties.

Key Life Science occupations in the Bay Area include Biochemists and Biophysicists; Microbiologists; Biological Technicians; and Medical Scientists, each of which has more than twice the industry concentration compared to national averages (LQ>2.0). The most competitive industry sectors are Biopharmaceuticals; Medical Devices and Diagnostic Equipment; and Research & Lab Services. Based on shift-share analyses, the Life Science industry in the Bay Area is highly competitive, but this competitive strength is concentrated in Biopharmaceuticals, and R&D Support.

Total Life Science exports from the Bay Area reached almost $54 billion in 2018. The region received over $1.7 billion in new research awards from the National Institutes for Health in FY2018.

The economic impacts of the Life Science industry in the Bay Area: • • • •

Generates almost $135.6 billion in annual economic activity (output) Boosts total state gross product by $87.7 billion Supports over 367,000 jobs Increases labor income by $42.9 billion per year.

Bay Area Life Science Employment Life Science Employment by County Bay Area Alameda County Contra Costa County Marin County Napa County San Francisco County San Mateo County Santa Clara County Solano County Sonoma County Source: EMSI, TClower & Assoc.

2018 134,589 32,997 5,101 3,201 887 16,564 31,005 38,107 5,317 4,378

Avg. Earnings $137,563 $112,239 $88,063 $158,917 $50,841 $127,848 $225,030 $140,772 $135,292 $79,105

20 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Bay Area Employment by Life Science Sector Life Science Jobs by Sectors Bay Area BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013 2,205 17,203 21,403 3,451 70,063 114,327

Life Science Jobs by Sectors Alameda County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

Life Science Jobs by Sectors Contra Costa County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

Life Science Jobs by Sectors Marin County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

121 2,490 6,068 1,030 17,271 26,980

212 570 1,444 418 2,810 5,453.40

41 109 80 174 1,369 1,773

2018

2023

2,196 23,862 23,473 3,772 81,286 134,589

2018

2,178 26,785 24,477 3,762 115,294 172,497

2023

14 3,640 7,260 1,720 20,235 32,996

2018

184 4,124 7,911 1,768 23,314 37,302

2023

88 753 1,302 444 2,513 5,101.20

2018

63 974 1,207 462 2,545 5,251.37

2023

13 2,218 48 178 744 3,201

7 3,007 54 164 678 3,909

21 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Life Science Jobs by Sectors Napa County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

Life Science Jobs by Sectors San Francisco County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

Life Science Jobs by Sectors San Mateo County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

Life Science Jobs by Sectors Santa Clara County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

2018

410 226 122 10 473 1,241

14 286 217 468 13,411 14,396

236 9,111 2,306 596 8,907 21,157

413 1,516 8,946 1,930 23,543 36,349

2023

368 0 73 34 411 887

2018

14 178 428 1,038 14,906 16,564

2018

215 10,406 1,995 868 17,521 31,005

2018

441 2,905 10,169 1,966 22,535 38,017

340 0 53 40 388 821

2023

12 112 547 1,331 17,000 19,002

2023

174 10,937 1,854 835 24,299 38,100

2023

427 3,444 10,584 1,812 21,980 38,247

22 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Life Science Jobs by Sectors Solano County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

Life Science Jobs by Sectors Sonoma County BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

2018

192 2,723 270 205 898 4,288

2023

181 3,526 285 353 972 5,317

2018

562 156 1,922 249 1,376 4,265

175 3,926 340 423 1,115 5,979

2023

728 210 1,848 153 1,439 4,378

788 243 1,874 116 1,459 4,479

Life Science Industry Establishments by Sector Establishments by Sector & County, 2018 BioRenewables

Bay Area 148 Alameda County 8 Contra Costa 10 County Marin County 3 Napa County 24 San Francisco 3 County San Mateo 10 County Santa Clara 28 County Solano County 15 Sonoma County 47 Source: EMSI, TClower & Assoc.

BioPharmaceutical Manufacturing

141 42 9

Medical Devices & Diagnostic Equip 619

Life Science Wholesale

Research and Lab Services

All Life Sciences

138 54

295 106 57

1,532 320 103

2,735 613 232

5 0 9

16 7 38

24 6 58

36 10 241

134 84 456

31

89

68

277

674

31

235

143

455

1,328

6 9

12 30

16 21

41 50

139 156

23 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Wages in Life Science Sectors by County Wages by Sector & County, 2018 BioRenewables

Bay Area 54,003 Alameda $80,766 Contra Costa $47,883 Marin $46,587 Napa $58,357 San Francisco $69,943 San Mateo $44,422 Santa Clara $59,633 Solano $47,750 Sonoma $50,761 Source: EMSI, TClower & Assoc.

BioPharmaceutical Manufacturing

$245,512 $167,605 $150,431 $305,088 Insufficient Data $218,060 $284,475 $196,370 $246,265 $71,535

Medical Devices & Diagnostic Equip $151,318

$148,484 $103,734 $55,536 $74,649 $96,667 $161,244 $165,003 $86,907 $150,487

Life Science Wholesale

Research & Lab Services

$142,513* $103,483 $96,465 $130,975 $50,142 $157,231 $167,915 $190,135 $60,592 $72,373

$128,661 $103,285 $80,584 $79,113 $39,910 $127,238 $218,119 $135,776 $73,170 $65,839

All Life Sciences

$137,563 $112,239 $88,063 $158,917 $50,841 $127,848 $225,030 $140,772 $135,292 $79,105

*Note:The intra-industry wages in the Life Science Wholesale Trade sectors are highly varied for this reporting period, which likely reflects particular market segments and the degree to which automation is being used by individual companies.

Bay Area Employment by Selected Life Science Occupations Title Biochemists and Biophysicists Microbiologists Zoologists and Wildlife Biologists Biological Scientists, All Other Epidemiologists Medical Scientists Life Scientists, All Other Environmental Scientists and Specialists, Including Health Agricultural & Food Science Technicians Biological Technicians Chemical Technicians Environmental Science and Protection Techs, Inc. Health Life, Physical, and Social Science Technicians, All Other Medical and Clinical Laboratory Technologists and Technicians

2018 Jobs 2,563 1,863 550 3,365 319 10,773 844

Avg. Annual Wages $109,149 $102,053 $77,991 $92,968 $99,615 $109,288 $105,161

Location Quotient 3.00 2.76 1.02 2.97 1.45 3.34 3.80

5-Year Job Growth 270 357 -79 885 81 1,857 -18

3,574

$100,279

1.51

-181

1,290

$51,086

1.76

202

4,485 1,742

$58,787 $52,830

2.13 0.97

692 44

1,274

$65,077

1.26

-45

1,718

$63,709

0.84

63

7,143

$99,615

0.80

665 24

Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Source: EMSI, TClower & Assoc.

Bay Area Industry Competitiveness by Location Quotient (Location Quotients measure industry concentration. A larger location quotient (>1.2) indicates a regional competitive advantage) Location Quotient for Region by Industry Sector 2013 2018 2023 BioRenewables 0.59 0.53 0.47 Biopharmaceutical Manufacturing 2.62 3.25 3.54 Medical Devices & Diagnostic Equip 2.98 2.83 2.72 Life Science Wholesale 0.58 0.58 0.56 Research & Lab Services 1.86 1.83 1.86 All Life Sciences 1.73 1.80 1.83 Source: EMSI, TClower & Assoc.

Bay Area Industry Competitiveness by Shift Share (The larger the Regional Share compared to Expected Change, the more competitive the industry) 2013 Jobs Total - All Industries BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

3,840,360 2,205 17,203 21,403 3,451 70,063 114,327

2018 Jobs 4,372,121 2,196 23,862 23,473 3,772 81,286 134,589

% Change 13.85% -0.40% 56.00% 9.67% 9.29% 16.02%

20.28%

Expected Change

Regional Share

-16 334 1,398 606 4,668 6,990

4 9,249 671 -285 6,554 16,193

Life Science Industry Economic Impacts by Sector (Direct, Indirect, Induced) Bay Area 2018 Industry Output BioRenewables $2,979,532,038 Biopharmaceutical $73,322,509,541 Manufacturing Medical Devices $19,162,949,511 &Diagnostic Equip Life Science $1,862,108,034 Wholesale Research & Lab $38,232,226,635 Services All Life Sciences $135,559,325,759 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $1,087,076,619 $48,031,601,989

Labor Income $662,534,609 $16,796,857,702

Employment 9,490 123,249

$10,798,362,596

$6,423,981,993

58,015

$1,321,343,942

$737,903,023

7,528

$26,428,114,387

$18,272,471,763

169,176

$87,666,499,533

$42,893,749,090

367,458

25 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Alameda County 2018 Industry Output BioRenewables $269,723,696 Biopharmaceutical $8,010,326,207 Manufacturing Medical Devices $5,753,891,276 &Diagnostic Equip Life Science $5,753,891,276 Wholesale Research & Lab $7,735,721,517 Services All Life Sciences $27,523,553,972 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $82,930,425 $4,528,883,101

Labor Income $49,443,892 $1,790,718,429

Employment 578 17,969

$3,184,120,740

$1,875,285,733

18,975

$3,184,120,740

$1,875,285,733

18,975

$4,886,128,976

$3,323,462,208

41,990

$15,866,183,982

$8,914,195,995

98,488

Value Added $35,164,835 $383,426,490

Labor Income $22,248,581 $183,619,460

Employment 394 2,023

$408,943,752

$244,498,560

2,734

$126,202,983

$67,054,324

850

$473,178,465

$325,937,718

4,571

$1,426,916,525

$843,358,643

10,572

Output $9,811,032 $5,210,387,056

Value Added $3,511,050 $3,714,165,142

Labor Income $2,149,474 $1,388,273,600

$14,509,671

$7,084,346

$5,134,409

72

$67,229,351

$45,393,746

$24,934,177

310

$124,034,716

$88,810,240

1,189

$3,894,189,000

$1,509,301,900

9,654

Contra Costa County 2018 Industry Output BioRenewables $103,338,351 Biopharmaceutical $730,688,847 Manufacturing Medical Devices & $785,408,805 Diagnostic Equip Life Science $185,050,117 Wholesale Research & Lab $766,542,795 Services All Life Sciences $2,571,028,915 Source: EMSI, IMPLAN, TClower & Assoc.

Marin County 2018 Industry BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale

Research & Lab $191,733,877 Services All Life Sciences $5,493,670,987 Source: EMSI, IMPLAN, TClower & Assoc.

Employment

41 8,042

26 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Napa County 2018 Industry Output BioRenewables $214,650,925 Medical Devices & $33,980,067 Diagnostic Equip Life Science $11,881,600 Wholesale Research & Lab $71,156,242 Services All Life Sciences $331,668,834 Source: EMSI, IMPLAN, TClower & Assoc.

San Francisco County 2018 Industry Output Biopharmaceutical $1,404,898,918 Manufacturing Medical Devices & $230,757,218 Diagnostic Equip Life Science $475,446,582 Wholesale Research & Lab $4,148,509,863 Services All Life Sciences $6,259,612,581 Source: EMSI, IMPLAN, TClower & Assoc.

San Mateo County 2018 Industry Output BioRenewables $101,398,386 Biopharmaceutical $31,319,248,085 Manufacturing Medical Devices & $1,480,495,777 Diagnostic Equip Life Science $367,855,918 Wholesale Research & Lab $10,923,420,694 Services All Life Sciences $44,192,418,860 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $75,798,463 $14,131,795

Labor Income $42,971,838 $8,143,504

Employment 1,091 130

$7,924,524

$4,127,527

59

$44,104,085

$31,606,057

593

$141,958,867

$86,848,926

1,873

Value Added $1,197,199,849

Labor Income $286,042,015

Employment 953

$126,281,816

$75,346,491

701

$350,818,686

$198,044,054

1,704

$2,914,097,880

$2,067,753,209

21,162

$4,588,398,231

$2,627,185,769

24,520

Value Added $38,331,213 $20,411,251,159

Labor Income $34,017,724 $5,740,689,240

Employment 531 37,930

$846,121,684

$504,965,477

3,902

$263,823,323

$146,688,437

1,465

$7,893,045,176

$5,482,493,939

37,335

$29,452,572,555

$11,908,854,817

81,162

27 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Santa Clara County 2018 Industry Output BioRenewables $302,888,354 Biopharmaceutical $5,352,963,647 Manufacturing Medical Devices & $7,237,700,592 Diagnostic Equip Life Science $994,426,593 Wholesale Research & Lab $9,350,524,170 Services All Life Sciences $23,238,503,356 Source: EMSI, IMPLAN, TClower & Assoc.

Solano County 2018 Industry Output BioRenewables $214,695,672 Biopharmaceutical $8,778,824,755 Manufacturing Medical Devices & $139,274,390 Diagnostic Equip Life Science $115,380,935 Wholesale Research & Lab $200,561,579 Services All Life Sciences $9,448,737,331 Source: EMSI, IMPLAN, TClower & Assoc.

Sonoma County 2018 Industry Output BioRenewables $765,102,336 Biopharmaceutical $204,445,294 Manufacturing Medical Devices & $1,362,888,864 Diagnostic Equip Life Science $56,478,699 Wholesale Research & Lab $289,761,586 Services All Life Sciences $2,678,676,779 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $96,962,683 $3,523,844,997

Labor Income $62,388,221 $1,340,433,583

Employment 1,015 8,354

$4,032,358,400

$2,377,899,502

19,781

$752,379,153

$427,417,829

3,426

$6,745,464,577

$4,798,831,706

39,377

$15,151,009,810

$9,006,970,841

71,953

Value Added $66,592,302 $5,265,828,523

Labor Income $40,914,744 $1,143,230,394

Employment 808 9,946

$64,875,168

$36,006,504

493

$75,851,279

$37,869,285

576

$126,324,141

$95,261,393

1,454

$5,599,471,413

$1,353,282,320

13,277

Value Added $220,148,485 $92,139,897

Labor Income $131,317,579 $46,546,404

Employment 2,403 613

$768,055,924

$455,975,707

4,766

$36,229,925

$18,713,542

298

$165,958,478

$117,962,245

2,351

$1,282,532,709

$770,515,477

10,431

28 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Bay Area Foreign Exports of Life Science Products and Services 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Exports

$846,672,475 $20,308,676,470 $9,784,391,064 $561,324,497 $22,533,040,622 $54,034,105,128

National Institutes of Health New Research Awards FY2018 Bay Area County Alameda Contra Costa Marin Napa San Francisco San Mateo Santa Clara Solano Sonoma

Total

$279,702,712 $7,005,924 $21,212,880 $0 $767,473,912 $71,195,443 $557,015,726 $812,268 $1,708,529 Total $1,706,127,394 Sources: NIH (4/12/2019), TClower & Associates

29 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Southern California Summary The Southern California Life Science industry employed more than 237,000 individuals in 2018. The average earnings for these jobs exceeded $90,000 per year. Job growth by industry sector between 2013 and 2018 showed substantial variation with strong growth in Medical Devices and Research & Lab Services but declines in Biopharmaceuticals, Life Science Wholesale Trade and BioRenewables employment. Over the next five years, Biopharmaceuticals and Research & Lab Services will continue to drive growth along with the Life Science Wholesale Trade sector expecting a return to job growth.

Key Life Science occupations in Southern California include Biochemists and Biophysicists; Microbiologists; Medical Scientists; and Biological Technicians. Overall industry competitive analysis suggests that even though there is growth in Southern California’s Life Science industries, the region is growing at a slower rate than other regions of the nation. The most competitive sector, Medical Devices manufacturing, grew no more than would be expected based on national job trends.

Research & Lab Services lost ground to national averages even while adding jobs to the regional economy.

Total Life Science exports from Southern California totaled more than $45.3 billion in 2018. The region received $2.2 billion in new research awards from the National Institutes for Health in FY2018.

The economic impacts of the Life Science industry in Southern California: • • • •

Generates $160 billion in annual economic activity (output) Adds $86 billion to gross regional product Creates over 663,000 jobs Boosts labor income by $49 billion per year.

Southern California Life Science Employment Life Science Employment by County Southern California Imperial County Los Angeles County Orange County Riverside County San Diego County Ventura County Source: EMSI, TClower & Assoc.

2018 237,042 880 91,713 57,737 10,263 65,572 10,736

Avg. Earnings $90,223 $45,141 $83,349 $90,687 $66,765 $115,170 $70,773

30 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Southern California Employment by Life Science Sector Life Science by Sectors BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013 7,567 25,495 48,934 39,958 109,501 231,456

2018 7,444 22,715 53,832 31,829 121,222 237,042

2023 7,294 21,078 56,273 32,691 131,153 248,490

Southern California Life Science Industry Establishments by Sector Establishments by Sector and County, 2018 BioRenewables

Biopharmaceutical Manufacturing

Life Science Wholesale

327

Medical Devices & Diagnostic Equip 1,171

Southern 244 California Imperial 22 Los Angeles 48 Orange 15 Riverside 36 San Diego 66 Ventura 59 Source: EMSI, TClower & Assoc.

Research & Lab Services

All Life Sciences

2,140

2,413

6,295

1 107 77 15 113 15

2 456 357 67 229 60

4 1,084 548 107 324 74

8 930 437 111 829 97

37 2,624 1,433 336 1,560 305

31 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Wages in Life Science Sectors by County Wages by Sector and County, 2018 BioRenewables

Biopharmaceutical Manufacturing

$43,048

$120,106

$40,373

Insufficient Data

Los Angeles $51,067 Orange $49,135 Riverside $40,009 San Diego $49,473 Ventura $39,874 Source: EMSI, TClower & Assoc.

$86,295 $91,245 $89,354 $147,835 $182,058

Southern California Imperial

Medical Devices & Diagnostic Equip $113,212

Life Science Wholesale

Research &Lab Services

All Life Sciences

$115,121*

$88,155

$90,223

Insufficient Data $94,097 $117,027 $114,787 $128,125 $109,433

$51,804

$73,181

$45,141

$89,469 $127,359 $74,535 $157,003 $210,872

$82,747 $73,756 $67,820 $114,476 $63,927

$83,449 $90,687 $66,765 $115,170 $70,773

*Note: The intra-industry wages in the Life Science Wholesale Trade sectors are highly varied for this reporting period, which likely reflects particular market segments and the degree to which automation is being used by individual companies.

Southern California Employment by Selected Life Science Occupations Title Biochemists and Biophysicists Microbiologists Zoologists and Wildlife Biologists Biological Scientists, All Other Epidemiologists Medical Scientists Life Scientists, All Other Environmental Scientists and Specialists, Including Health Agricultural & Food Science Technicians Biological Technicians Chemical Technicians Environmental Science and Protection Techs, Inc. Health Life, Physical, and Social Science Technicians, All Other Medical and Clinical Laboratory Technologists and Technicians Source: EMSI, TClower & Assoc.

2018 Jobs 1,048 745 362 1,248 49 3,960 31

Avg. Annual Wages $102,312 $101,304 $72,667 $86,081 $90,055 $113,649 $96,028

Location Quotient 3.11 2.79 1.69 2.79 0.57 3.10 0.35

5-Year Job Growth 56 72 -55 163 10 288 -10

1,188

$79,472

1.27

-197

456

$42,598

1.58

33

2,730 797

$52,562 $51,355

3.27 1.13

241 -474

741

$51,121

1.86

-223

1,045

$59,103

1.30

-54

3,775

$90,055

1.06

120

32 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Southern California Industry Competitiveness by Location Quotient (Location Quotients measure industry concentration. A larger location quotient (>1.2) indicates a regional competitive advantage) Location Quotient for Region by Industry Sector 2013 2018 2023 BioRenewables 0.89 0.86 0.83 Biopharmaceutical Manufacturing 1.73 1.47 1.37 Medical Devices & Diagnostic Equip 1.97 2.06 2.15 Life Science Wholesale 1.24 1.24 1.26 Research & Lab Services 1.23 1.17 1.12 All Life Sciences 1.14 1.36 1.35 Source: EMSI, TClower & Assoc.

Southern California Industry Competitiveness by Shift Share (The larger the Regional Share compared to Expected Change, the more competitive the industry) 2013 Jobs Total - All Industries BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

9,014,999 7,567 25,495 48,934 39,958 109,501 231,456

2018 Jobs 9,915,771 7,444 22,715 53,832 31,829 121,222 237,042

% Change 9.99% -1.63% -10.90% 10.01% -20.34% 10.70% 1.09%

Expected Change

Regional Share

-100 2,079 2,416 4,542 7,473 16,410

-11 -4,860 2,481 -215 4,249 1,644

Life Science Industry Economic Impacts by Sector (Direct, Indirect, Induced) Southern California 2018 Industry Output Value Added BioRenewables $19,455,954,902 $7,189,942,559 Biopharmaceutical $45,070,739,979 $23,022,647,371 Manufacturing Medical Devices & $40,982,565,286 $21,500,914,438 Diagnostic Equip Life Science $14,038,956,327 $9,070,717,548 Wholesale Research & Lab $40,584,280,630 $25,390,831,747 Services All Life Sciences $160,132,497,124 $86,175,053,663 Source: EMSI, IMPLAN, TClower & Assoc.

Labor Income $4,197,234,698 $10,195,797,413

Employment 69,683 122,932

$12,573,046,111

154,405

$4,803,772,725

70,164

$17,376,384,668

245,887

$49,146,235,615

663,071

33 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Southern California Foreign Exports of Life Science Products and Services 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Exports $1,941,770,784 $5,737,263,447 $14,974,088,738 $10,172,250,231 $12,524,484,008 $45,349,857,209

National Institutes of Health New Research Awards FY2018 Southern California County Los Angeles Orange Riverside San Diego Ventura

Total

$1,069,903,406 $175,951,673 $29,487,901 $932,798,259 $2,218,626 Total $ 2,210,359,865 Sources: NIH (4/12/2019), TClower & Associates

34 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

San Diego County Summary San Diego County’s Life Science industry provided more than 65,500 jobs in 2018 with average annual earnings exceeding $115,000 per year. There was solid job growth in Biopharmaceuticals, Medical Devices and Research & Lab Services between 2013 and 2018. Total employment in BioRenewables rose slightly, while Life Science Wholesale dropped almost 2,000 jobs. Industry growth is expected to continue over the next five years following recent trends, except for Life Science Wholesale Trade, which will stabilize.

Many of the key Life Science occupations in San Diego County show high to very high location quotients, which is a demonstration of the county’s long-time dominance in this industry. For example, proportionately, San Diego County boasts over 3 times the national average concentration of Biochemists and Biophysicists. Exceptionally strong occupation sectors also include Microbiologists, Biological Scientists, Medical Scientists, and Biological Technicians. Comparing these data to the broader Southern California geography demonstrates the high concentration of all regional Life Science jobs in San Diego County. However, overall competitiveness is showing the effects of rising national competition in important industry sectors. For example, San Diego County continues to have a dominating presence of Biopharmaceutical Manufacturing with a current location quotient of 7.6, but this is lower than the 2013 figure and is expected to continue to decline over the next five years. The most competitive sector in San Diego County is Medical Devices, which shows a growing location quotient and very positive shift-share analysis.

Total Life Science exports from San Diego County totaled almost $20.4 billion in 2018. San Diego County institutions and companies received almost $933 million in new research awards from the National Institutes for Health in FY2018.

The economic impacts of the Life Science industry in San Diego County • • • •

Generates $39.4 billion in county economic activity (output) Adds $22.6 billion to local gross product Supports almost168,000 jobs Increases labor income in the county by $13.3 billion per year.

San Diego Life Science Employment Life Sciences Employment by County San Diego Source: EMSI, TClower & Assoc.

2018 65,572

Avg. Earnings $115,170

35 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

San Diego County Employment by Life Science Sector Life Science by Sectors BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013 1,480 6,044 8,371 6,415 35,957 58,267

2018 1,529 7,304 11,706 4,446 40,587 65,572

2023 1,538 7,849 13,439 4,602 45,443 72,871

San Diego Life Science Industry Establishments by Sector Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Establishments 66 113 229 324 829 1,561

Wages in Life Science Sectors Wages by Sector and County, 2018 BioRenewables

Biopharmaceutical Manufacturing

San Diego $49,473 County Source: EMSI, TClower & Assoc.

$147,835

Medical Devices & Diagnostic Equip $128,125

Life Science Wholesale $157,003*

Research & Lab Services

All Life Sciences

$114,476

$115,170

*Note: The intra-industry wages in the Life Science Wholesale Trade sectors are highly varied for this reporting period, which likely reflects particular market segments and the degree to which automation is being used by individual companies.

36 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

San Diego County Industry Competitiveness by Location Quotient (Location Quotients measure industry concentration. A larger location quotient (>1.2) indicates a regional competitive advantage) Location Quotient for Region by Industry Sector 2013 2018 2023 BioRenewables 0.93 0.89 0.85 Biopharmaceutical Manufacturing 11.13 7.64 6.53 Medical Devices & Diagnostic Equip 2.34 2.93 3.55 Life Science Wholesale 1.09 0.96 0.95 Research & Lab Services 2.72 2.74 2.85 All Life Sciences 3.64 3.03 2.95 Source: EMSI, TClower & Assoc.

San Diego County Employment by Selected Life Science Occupations Title Biochemists and Biophysicists Microbiologists Zoologists and Wildlife Biologists Biological Scientists, All Other Epidemiologists Medical Scientists Life Scientists, All Other Environmental Scientists and Specialists, Including Health Agricultural & Food Science Technicians Biological Technicians Chemical Technicians Environmental Science and Protection Techs, Inc. Health Life, Physical, and Social Science Technicians, All Other Medical and Clinical Laboratory Technologists and Technician Source: EMSI, TClower & Assoc.

2018 Jobs 1,048 745 362 1,248 49 3,960 31 1,188

Avg. Annual Wages $102,312 $101,304 $72,667 $86,081 $90,055 $113,649 $96,028 $79,472

Location Quotient 3.11 2.79 1.69 2.79 0.57 3.10 0.35 1.27

5-Year Job Growth 56 72 -55 163 10 288 -10 -197

456

$42,598

1.58

33

2,730 797 741

$52,562 $51,355 $51,121

3.27 1.13 1.86

241 -474 -223

1,045

$59,103

1.30

-54

3,775

$90,055

1.06

120

37 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

San Diego County Industry Competitiveness by Shift Share (The larger the Regional Share compared to Expected Change, the more competitive the industry) 2013 Jobs Total - All Industries BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

1,565,754 1,480 6,044 8,371 6,415 35,957 58,266

2018 Jobs 1,727,592 1,529 7,304 11,706 4,446 40,587 65,572

% Change 10.34% 3.31% 21.00% 39.83% -30.68% 12.88% 12.54%

Expected Change

Regional Share

-4 1,081 303 703 3,593

52 180 3,030 -446 1.037 3,833

5,676

Life Science Industry Economic Impacts by Sector (Direct, Indirect, Induced) San Diego County 2018 Industry Output BioRenewables $1,124,321,262 Biopharmaceutical $9,724,973,131 Manufacturing Medical Devices & $8,869,804,793 Diagnostic Equip Life Science $1,837,684,337 Wholesale Research & Lab $17,799,964,329 Services All Life Sciences $39,356,747,852 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $314,605,448 $5,190,264,602

Labor Income $171,041,031 $2,328,433,746

Employment 3,808 28,197

$4,617,433,501

$2,639,439,240

31,445

$1,197,504,285

$624,508,972

9,308

$11,304,721,704

$7,562,700,261

95,222

$22,624,529,540

$13,326,123,250

167,980

38 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

San Diego County Foreign Exports of Life Science Products and Services 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Exports $822,464,962 $3,693,623,438 $4,448,170,050 $1,903,893,355 $9,516,038,327 $20,384,190,131

National Institutes of Health New Research Awards FY2018 County Total San Diego $932,798,259 Sources: NIH (4/12/2019), TClower & Associates

39 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Orange County Summary Orange County had almost 57,000 Life Science industry jobs in 2018 with annual earnings for these jobs averaging over $90,000 per year. There was solid job growth in Medical Devices manufacturing in Orange County between 2013 and 2018 with a smaller gain in Research & Lab Services; however, other Life Science industry sectors experienced job losses with the Life Science Wholesale Trade sector dropping 23% over five years.

Occupations with substantial job numbers that showed competitive advantage based on location quotients include Microbiologists, Medical Scientists, and Chemical Technicians. Most other industry occupations are proportionately equivalent to national averages, with a couple of occupations being notably underrepresented.

The key competitive Life Science industry sector in Orange County is Medical Devices and Diagnostic Equipment Manufacturing with a location quotient of 6.3 in 2018, which rose from 5.7 in 2013. This means that there are 6 times the national average employees in this industry sector on a proportional basis. Life Science Wholesale Trade and Biopharmaceuticals just clear our competitive threshold at 1.2. The shift share analysis shows even more clearly that Orange County’s Life Science industry is becoming more concentrated in the Medical Devices sector.

Total Life Science exports from Orange County totaled more than $16 billion in 2018 driven by $9 billion in Medical Devices and Diagnostic Equipment shipments. Orange County institutions and companies received $176 million in new research awards from the National Institutes for Health in FY2018.

The economic impacts of the Life Science industry in Orange County • • • •

Generates $35.7 billion in county economic activity (output) Boosts local value added (gross product) by $19.5 billion Supports 141,000 jobs Increases labor income in the county by $11 billion per year.

Orange County Life Science Employment Life Sciences Employment by County Orange Source: EMSI, TClower & Assoc.

2018 57,737

Avg. Earnings $90,687

40 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Orange County Employment by Life Science Sector Life Science by Sectors BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

2018

425 4,244 22,660 12,200 16,743 56,272

2023 384 4,087 26,229 9,335 17,701 57,737

288 3,822 28,598 9,401 18,370 60,479

Research & Lab Services

All Life Sciences

Orange County Life Science Industry Establishments by Sector, 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Establishments 15 77 357 548 437 1,433

Wages in Life Science Sectors Wages by Sector, 2018 BioRenewables

Biopharmaceutical Manufacturing

Orange $49,135 Source: EMSI, TClower & Assoc.

$91,245

Medical Devices & Diagnostic Equip $117,027

Life Science Wholesale $127,359*

$73,756

$90,687

*Note: The intra-industry wages in the Life Science Wholesale Trade sectors are highly varied for this reporting period, which likely reflects particular market segments and the degree to which automation is being used by individual companies.

41 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Orange County Employment by Selected Life Science Occupations Title Biochemists and Biophysicists Microbiologists Zoologists and Wildlife Biologists Biological Scientists, All Other Epidemiologists Medical Scientists Life Scientists, All Other Environmental Scientists and Specialists, Including Health Agricultural & Food Science Technicians Biological Technicians Chemical Technicians Environmental Science and Protection Techs, Inc. Health Life, Physical, and Social Science Technicians, All Other Medical and Clinical Laboratory Technologists and Technicians Source: EMSI, TClower & Assoc.

2018 Jobs 164 394 23 488 35 1,838 199 806

Avg. Annual Wages $86,103 $77,347 $76,153 $72,891 $93,588 $92,731 $94,260 $80,006

Location Quotient 0.46 1.41 0.10 1.04 0.38 1.38 2.17 0.83

5-Year Job Growth -21 24 -3 117 6 -36 -12 -5

155

$39,062

0.51

12

609 964 530

$46,197 $46,925 $55,976

0.70 1.30 1.27

-30 14 3

728

$49,395

0.87

151

2,864

$93,588

0.77

96

Orange County Industry Competitiveness by Location Quotient (Location Quotients measure industry concentration. A larger location quotient (>1.2) indicates a regional competitive advantage) Location Quotient for Region by Industry Sector 2013 2018 2023 BioRenewables 0.23 0.16 0.11 Biopharmaceutical Manufacturing 1.52 1.39 1.32 Medical Devices & Diagnostic Equip 5.67 6.31 7.09 Life Science Wholesale 2.06 1.97 1.97 Research & Lab Services 1.36 1.25 1.21 All Life Sciences 2.17 2.22 2.34 Source: EMSI, TClower & Assoc.

42 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Orange County Industry Competitiveness by Shift Share (The larger the Regional Share compared to Expected Change, the more competitive the industry) 2013 Jobs Total - All Industries

2018 Jobs

1,619,803 425 4,244 22,660 12,200 16,743 56,272

BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

1,804,433 384 4,087 26,229 9,335 17,701 57,737

% Change 11.40% -9.66% -4.00% 15.75% -23.49% 5.72% 2.60%

Expected Change

Regional Share

-1 112 1,037 1,370 916 3,434

-33 -268 2,532 -312 41 1,960

Life Science Industry Economic Impacts by Sector (Direct, Indirect, Induced) Orange County 2018 Industry Output BioRenewables $1,106,532,892 Biopharmaceutical $8,653,007,605 Manufacturing Medical Devices & $17,295,081,444 Diagnostic Equip Life Science $4,211,753,928 Wholesale Research & Lab $4,473,005,967 Services All Life Sciences $35,739,381,836 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $285,636,014 $4,163,071,437

Labor Income $144,131,236 $1,769,569,416

Employment 2,456 22,834

$9,373,469,092

$5,497,921,157

65,258

$2,855,552,674

$1,535,368,793

20,019

$2,871,061,974

$2,050,269,689

30,665

$19,548,791,191

$10,997,260,291

141,232

Orange County Foreign Exports of Life Science Products and Services 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Exports $446,400,842 $569,072,216 $9,100,640,880 $4,624,175,033 $1,623,381,029 $16,363,670,000

National Institutes of Health New Research Awards FY2018 County Total Orange County $175,951,673 Sources: NIH (4/12/2019), TClower & Assoc.

43 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Los Angeles County Summary Los Angeles County is home to almost 92,000 Life Science industry jobs in 2018 with average annual earnings at about $83,000. Employment by Life Science industry sectors in LA County shows highly variable performance between 2013 and 2018, with Biopharmaceuticals and Research & Lab Services sectors showing growth, while Medical Devices, BioRenewables, and Life Science Wholesale Trade all losing jobs.

There are no individual industry sectors in LA County that currently meet our threshold of a location quotient greater than or equal to 1.2 for being considered competitive at the national level. The shiftshare analysis further indicates lack of competitiveness in Medical Devices, Biopharmaceuticals and Life Science Wholesale Trade, however, as this is a relative measure, this is easily explained by the many other industries that exist in LA County that are much larger, such as Entertainment & Digital Media. Research & Lab Services does show rising levels of local competitiveness over the last fiveyear period.

The Life Science industry in Los Angeles County exported almost $9 billion of goods and services in 2018. Los Angeles County institutions and companies received over $1 billion in new research awards from the National Institutes for Health in FY2018. The Life Science industry remains a highly important economic engine for Los Angeles County.

The economic impacts of the Life Science industry in Los Angeles County • • • •

Generates $42.5 billion in county economic activity (output) Adds $23.5 billion to gross county product Supports almost 191,000 jobs Increases labor income by $13.8 billion per year.

Los Angeles County Life Science Employment Life Sciences Employment by County Los Angeles Source: EMSI, TClower & Assoc.

2018 91,713

Avg. Earnings $83,449

Los Angeles County Employment by Life Science Sector Life Science by Sectors BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013 913 7,512 13,457 15,605 50,926 88,412

2018

2023 830 7,750 12,690 13,821 56,622 91,713

673 7,451 11,726 14,419 60,514 94,782

44 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Life Science Industry Establishments by Sector, 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Establishments 48 107 456 1,084 930 2,624

Wages in Life Science Sectors by County Wages by Sector, 2018 BioRenewables

Los Angeles $51,067 County, California Source: EMSI, TClower & Assoc.

Biopharmaceutical Manufacturing $86,295

Medical Devices & Diagnostic Equip $94,097

Life Science Wholesale $89,469

Research & Lab Services

All Life Sciences

$82,747

$83,449

45 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Los Angeles County Employment by Selected Life Science Occupations Title Biochemists and Biophysicists Microbiologists Zoologists and Wildlife Biologists Biological Scientists, All Other Epidemiologists Medical Scientists Life Scientists, All Other Environmental Scientists and Specialists, Including Health Agricultural & Food Science Technicians Biological Technicians Chemical Technicians Environmental Science and Protection Techs, Inc. Health Life, Physical, and Social Science Technicians, All Other Medical and Clinical Laboratory Technologists and Technicians Source: EMSI, TClower & Assoc.

2018 Jobs 535 521 168 1,341 151 5,859 225 2,440

Avg. Annual Wages $105,315 $76,858 $86,908 $82,938 $80,911 $89,422 $98,113 $86,472

Location Quotient 0.54 0.66 0.27 1.01 0.59 1.55 0.87 0.88

5-Year Job Growth 19 90 -3 324 30 963 -20 -374

463

$40,206

0.54

56

2,285 1,445 790

$54,475 $44,574 $63,436

0.93 0.69 0.67

276 -31 -137

1,881

$48,075

0.79

267

9,639

$80,911

0.92

216

Los Angeles County Industry Competitiveness by Location Quotient (Location Quotients measure industry concentration. A larger location quotient (>1.2) indicates a regional competitive advantage) Location Quotient for Region by Industry Sector 2013 2018 2023 BioRenewables 0.14 0.14 0.12 Biopharmaceutical Manufacturing 1.16 0.93 0.85 Medical Devices & Diagnostic Equip 1.19 1.03 0.92 Life Science Wholesale 1.01 1.10 1.14 Research & Lab Services 1.14 1.15 1.15 All Life Sciences 0.93 0.87 0.84 Source: EMSI, TClower & Assoc.

46 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Los Angeles County Industry Competitiveness by Shift Share (The larger the Regional Share compared to Expected Change, the more competitive the industry) 2013 Jobs Total - All Industries BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

4,708,559 913 7,512 13,457 15,605 50,926 88,412

2018 Jobs 5,104,459 830 7,750 12,690 13,821 56,622 91,713

% Change 8.41% -9.10% 3.00% -5.70% -11.43% 11.19% 3.69%

Expected Change

Regional Share

-5 962 797 1,840 2,694 7,251

-85 -725 -1,562 728 3,003 635

Life Science Industry Economic Impacts by Sector (Direct, Indirect, Induced) Los Angeles County 2018 Industry Output BioRenewables $1,246,580,218 Biopharmaceutical $12,891,997,258 Manufacturing Medical Devices & $8,158,417,656 Diagnostic Equipment Life Science $5,526,945,920 Wholesale Research & Lab $14,668,349,054 Services All Life Sciences $42,492,290,106 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $297,573,083 $6,006,023,722

Labor Income $169,058,369 $2,667,010,008

Employment 2,960 33,370

$4,186,752,641

$2,460,210,963

30,099

$3,584,023,420

$1,882,158,382

27,563

$9,384,364,501

$6,644,257,353

96,982

$23,458,737,367

$13,822,695,075

190,974

47 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Los Angeles County Foreign Exports of Life Science Products and Services 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

Exports $391,319,353 $869,244,388 $2,128,292,116 $2,145,800,136 $3,440,369,550 $8,975,025,544

National Institutes of Health New Research Awards FY2018 County Total Los Angeles County $1,069,903,406 Sources: NIH (4/12/2019), TClower & Assoc.

48 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

City of San Diego Summary The City of San Diego’s Life Science industry provided almost 36,000 jobs in 2018 with average annual earnings of about $128,000 per year. There was solid job growth in Biopharmaceuticals, Medical Devices and Research & Lab Services sectors between 2013 and 2018. Total employment in BioRenewables, by far the smallest sector of this industry, was essentially flat, while Life Science Wholesale Trade dropped about 1,300 positions.

Almost all key Life Science occupations in the City of San Diego have strong to very strong location quotients based on the city’s long-time dominance in this industry. For example, proportionately the City of San Diego boasts more than 4 times the concentration of Biochemists and Biophysicists as the national average. Exceptionally strong occupation sectors also include Microbiologists (LQ=3.6), Biological Scientists (LQ=3.16), Medical Scientists (LQ=4.14), and Biological Technicians (LQ=4.27).

The shift-share for all industries, beyond the Life Science industry, indicates the city, while still growing, is not growing as quickly as expected. This likely reflects an increasing number of regional competitors, either traditional or newly emerging, such as North Carolina, the National Capital Region, Illinois, the Pacific Northwest, Massachusetts, and Texas.

Total Life Science exports from the City of San Diego totaled over $12.9 billion in 2018. San Diego (city) institutions and companies received $921 million in new research awards from the National Institutes for Health in FY2016, including La Jolla.

The economic impacts of the Life Science industry in the City of San Diego: • • • •

Generates $18.6 billion in economic activity (output) Adds $11 billion to local gross product Supports over 80,000 jobs Increases labor income in the county by about $6.9 billion per year.

City of San Diego Life Science Employment Life Sciences Employment City of San Diego Source: EMSI, TClower & Assoc.

2018 35,855

Avg. Earnings $128,587

49 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

City of San Diego Employment by Life Science Sector Life Science by Sectors BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013

2018

240 3,216 3,306 4,036 22,315 33,114

2023 249 3,624 4,171 2,714 25,097 35,855

248 3,737 4,740 2,794 28,374 39,894

Life Science Establishments by Sector Life Science by Sectors BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: TClower & Assoc.

2018 11 56 82 198 513 860

Wages in Life Science Sectors Wages by Sector, 2018 BioRenewables

Biopharmaceutical Manufacturing

City of San $48,815 Diego Source: EMSI, TClower & Assoc.

$154,352

Medical Devices & Diagnostic Equip $139,547

Life Science Wholesale $155,120*

Research & Lab Services

All Life Sciences

$126,440

$128,587

*Note: The intra-industry wages in the Life Science Wholesale Trade sectors are highly varied for this reporting period, which likely reflects particular market segments and the degree to which automation is being used by individual companies.

50 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

City of San Diego Industry Competitiveness by Location Quotient (Location Quotients measure industry concentration. A larger location quotient (>1.2) indicates a regional competitive advantage) Location Quotient for Region by Industry Sector 2013 2018 2023 BioRenewables 0.33 0.31 0.29 Biopharmaceutical Manufacturing 20.27 14.61 12.57 Medical Devices & Diagnostic Equip 2.61 2.67 2.95 Life Science Wholesale 1.40 1.23 1.18 Research & Lab Services 4.21 4.41 4.53 All Life Sciences 5.76 4.64 4.30 Source: EMSI, TClower & Assoc.

City of San Diego Employment by Selected Life Science Occupations Title Biochemists and Biophysicists Microbiologists Zoologists and Wildlife Biologists Biological Scientists, All Other Epidemiologists Medical Scientists Life Scientists, All Other Environmental Scientists and Specialists, Including Health Agricultural & Food Science Technicians Biological Technicians Chemical Technicians Environmental Science and Protection Techs, Inc. Health Life, Physical, and Social Science Technicians, All Other Medical and Clinical Laboratory Technologists and Technicians Source: EMSI, TClower & Assoc.

2018 Jobs 700 471 189 691 24 2,581 18 667

Avg. Annual Wages $102,318 $101,295 $72,645 $86,079 $90,047 $113,648 $96,026 $79,467

Location Quotient 4.25 3.61 1.82 3.16 0.57 4.14 0.43 1.46

5-Year Job Growth 31 47 -43 117 4 193 -6 -98

227

$42,598

1.60

14

1,738 454 404

$52,562 $51,355 $51,189

4.27 1.31 2.08

186 -248 -114

579

$59,197

1.48

-41

2,247

$90,047

1.30

149

51 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

City of San Diego Industry Competitiveness by Shift Share (The larger the Regional Share compared to Expected Change, the more competitive the industry) 2013 Jobs Total - All Industries BioRenewables Biopharmaceutical Manufacturing Medical Devices and Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

762,042 240 3,216 3,306 4,036 22,315 33,114

2018 Jobs

% Change

847,747 249 3,624 4,171 2,714 25,097 35,855

11.25% 3.73% 13.00% 26.14% -32.74% 12.47% 8.28%

Expected Change

Regional Share

-2 528 141 432 2,387 3,487

10 -119 722 -289 394 719

Life Science Industry Economic Impacts by Sector (Direct, Indirect, Induced) City of San Diego 2018 Industry Output BioRenewables $157,964,316 Biopharmaceutical $3,547,027,506 Manufacturing Medical Devices & $3,099,073,239 Diagnostic Equip Life Science $1,020,406,450 Wholesale Research & Lab $10,748,526,053 Services All Life Sciences $18,572,997,564 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $39,070,302 $1,867,187,763

Labor Income $19,934,343 $917,767,883

Employment 461 10,533

$1,604,415,950

$932,792,945

10,579

$666,964,295

$348,997,426

4,999

$6,828,332,867

$4,731,306,710

53,658

$11,005,971,177

$6,950,799,307

80,229

52 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

City of San Diego Foreign Exports of Life Science Products and Services 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, IMPLAN, TClower & Assoc.

Exports $150,086,858 $2,476,734,937 $1,715,000,619 $1,489,295,942 $7,108,335,733 $12,939,454,089

National Institutes of Health New Research Awards FY2018 City Total San Diego (not inc. La Jolla)* $91,971,138 La Jolla $828,971,909 Total City of San Diego $920,943,047 * The City of San Diego includes the La Jolla zip codes, which NIH recognizes as a separate area.

Sources: NIH (4/12/2019), TClower & Associates

53 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

City of Los Angeles Summary The City of Los Angeles’ Life Science industry provided over 21,000 jobs in 2018 with average annual earnings of about $79,000 per year. There was solid job growth in Biopharmaceuticals, Life Science Wholesale Trade and Research & Lab Services between 2013 and 2018. Medical Devices manufacturing declined slightly over the past five years. Projected growth for the next five years in strongest in Research & Lab Services with the other sectors expected to be relatively stable.

The only Life Science occupation in the City of Los Angeles that meets our criteria as being competitive based on location quotients is Medical Scientists (LQ=1.3). Other occupations’ location quotients suggest that Los Angeles could attract more of this industry activity based on broad market conditions. Interestingly, shift share analytics show that the Research & Lab Services sector is performing well in Los Angeles City compared to national averages and could be well-positioned for future growth.

Total Life Science exports from the City of Los Angeles totaled $4 billion in 2018. The brightest spot in our review of Los Angeles (city) is the ability of its home institutions and companies to attract NIH funding. Universities, companies and research institutes in the City of Los Angeles received almost $816 million in new research awards from the National Institutes for Health in FY2018.

The economic impacts of the Life Science industry in the City of Los Angeles: • • • •

Generates $12 billion in economic activity (output) Adds $7 billion to local gross product Supports over 58,700 jobs Increases labor income in the county by about $4.1 billion per year.

City of Los Angeles Life Science Employment Life Sciences Employment City of Los Angeles Source: EMSI, TClower & Assoc.

2018 21,230

Avg. Earnings $78,817

City of Los Angeles Employment by Life Science Sector Life Science by Sectors BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research and Lab Servicest All Life Sciences Source: EMSI, TClower & Assoc.

2013 236 1,407 461 1,948 14,943 18,995

2018

2023 236 1,388 427 2,219 16,961 21,231

223 1,303 392 2,325 18,232 22,475 54

Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Life Science Establishments by Sector Life Science by Sectors BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: TClower & Assoc.

2018 14 31 15 174 279 513

Wages in Life Science Sectors Wages by Sector, 2018 BioRenewables

Biopharmaceutical Manufacturing

City of Los $61,142 Angeles Source: EMSI, TClower & Assoc.

$103,164

Medical Devices & Diagnostic Equip $70,707

Life Science Wholesale $89,984

Research & Lab Services $78,298

All Life Sciences $78,817

City of Los Angeles Industry Competitiveness by Location Quotient (Location Quotients measure industry concentration. A location quotient (>1.2) indicates a regional competitive advantage) Location Quotient for Region by Industry Sector 2013 2018 2023 BioRenewables 0.07 0.23 0.21 Biopharmaceutical Manufacturing 2.01 1.55 1.35 Medical Devices & Diagnostic Equip 0.98 0.86 0.79 Life Science Wholesale 0.93 1.03 1.10 Research & Lab Services 1.70 1.68 1.66 All Life Sciences 1.14 1.07 1.02 Source: EMSI, TClower & Assoc.

55 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

City of Los Angeles Employment by Selected Life Science Occupations Title Biochemists and Biophysicists Microbiologists Zoologists and Wildlife Biologists Biological Scientists, All Other Epidemiologists Medical Scientists Life Scientists, All Other Environmental Scientists and Specialists, Including Health Agricultural & Food Science Technicians Biological Technicians Chemical Technicians Environmental Science and Protection Techs, Inc. Health Life, Physical, and Social Science Technicians, All Other Medical and Clinical Laboratory Technologists and Technicians Source: EMSI, TClower & Assoc.

2018 Jobs 87 93 45 304 35 1,298 58 594

Avg. Annual Wages $105,372 $76,876 $86,446 $82,938 $80,909 $89,392 $98,120 $86,416

Location Quotient 0.33 0.45 0.27 0.87 0.51 1.30 0.84 0.81

5-Year Job Growth -8 15 -1 74 6 218 -3 -90

125

$40,206

0.55

21

510 270 186

$54,475 $44,574 $63,485

0.78 0.49 0.60

48 1 -23

484

$48,055

0.77

51

2,116

$80,909

0.76

75

City of Los Angeles Industry Competitiveness by Shift Share (The larger the Regional Share compared to Expected Change, the more competitive the industry)

Total - All Industries BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research and Lab Services All Life Sciences Source: EMSI, TClower & Assoc.

2013 Jobs 1,235,107

2018 Jobs 1,353,057

% Change 9.55%

236 1,407 461 1,948 14,943 18,9951

233 1,388 427 2,219 16,961 21,230

-0.11% -1.00% -7.46% 13.93% 13.50% 11.77%

Expected Change

Regional Share

1 245 18 275 694 1,230

3 -264 -51 200 1,324 1,212

56 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Life Science Industry Economic Impacts by Sector (Direct, Indirect, Induced) City of Los Angeles 2018 Industry Output BioRenewables $808,890,735 Biopharmaceutical $1,863,559,941 Manufacturing Medical Devices & $188,128,551 Diagnostic Equip Life Science $5,921,238,821 Wholesale Research & Lab $3,253,025,328 Services All Life Sciences $12,034,843,376 Source: EMSI, IMPLAN, TClower & Assoc.

Value Added $156,486,181 $836,348,405

Labor Income $81,957,554 $359,655,856

Employment 1,247 4,571

$93,471,870

$59,141,879

779

$3,850,337,597

$2,000,244,618

28,574

$2,130,597,729

$1,590,389,716

23,606

$7,067,241,782

$4,091,389,623

58,778

City of Los Angeles Foreign Exports of Life Science Products and Services 2018 Industry Sector BioRenewables Biopharmaceutical Manufacturing Medical Devices & Diagnostic Equip Life Science Wholesale Research & Lab Services All Life Sciences Source: EMSI, IMPLAN, TClower & Assoc.

Exports $491,503,906 $1,264,215,327 $79,480,154 $784,570,685 $1,442,635,968 $4,062,406,041

National Institutes of Health New Research Awards FY2018 City Total Los Angeles $815,625,879 Sources: NIH (4/12/2019), TClower & Associates

57 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Appendix 1 Defining the Life Science Industry NAICS Industry Description INDUSTRIAL BIOTECHNOLOGY AND BIOFUELS 111000 Crop Production (15%) 113210 Forest Nurseries and Gathering of Forest Products (15%) 311221 Wet Corn Milling 311224 Soybean Oilseed Processing 325193 Ethyl Alcohol Manufacturing 325199 All Other Basic Organic Chemical Manufacturing 325220 Cellulosic Fiber Manufacturing 325311 Nitrogenous Fertilizer Manufacturing (15%) 325312 Phosphatic Fertilizer Manufacturing (15%) 325314 Fertilizer (Mixing Only) Manufacturing (15%) 325320 Pesticide and Other Agricultural Chemical Manufacturing (15%) BIOPHARMACEUTICALS 325411 Medicinal and Botanical Manufacturing 325412 Pharmaceutical Preparation Manufacturing 325413 In-Vitro Diagnostic Substance Manufacturing 325414 Biological Product (except Diagnostic) Manufacturing MEDICAL DEVICES AND DIAGNOSTICS EQUIPMENT 327215 Glass Product Manufacturing Made of Purchased Glass (20%) 333314 Optical Instrument and Lens Manufacturing (10%) 334510 Electromedical and Electrotherapeutic Apparatus Manufacturing 334513 Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables (3%) 334516 Analytical Laboratory Instrument Manufacturing 334517 Irradiation Apparatus Manufacturing 339112 Surgical and Medical Instrument Manufacturing 339113 Surgical Appliance and Supplies Manufacturing 339114 Dental Equipment and Supplies Manufacturing 339115 Ophthalmic Goods Manufacturing 339116 Dental Laboratories LIFE SCIENCE TRADE 423450 Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers 424210 Drugs and Druggists' Sundries Merchant Wholesalers (94%) RESEARCH AND LAB SERVICES 541380 Testing Laboratories (12%) 541713 Research and Development in Nano-Technology (75%) 541714 Research and Development in Biotechnology 541715 R & D in the Physical, Engineering, and Life Sciences (except Biotechnology) (46%) 611310 Colleges, Universities, and Professional Schools (Private) (25%) 621511 Medical Laboratories 902612 Colleges, Universities, Professional Schools (State Government) (25%) 903612 Colleges, Universities, Professional Schools (Local Government) (10%) 58 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Appendix 2 Life Science Related Degrees Awarded by Institution Data in this Appendix shows degrees awarded in Academic Year 2017 in Life Science related fields

by Institution. There are 75 programs (by CIP code) included in Life Science related fields as shown below. For brevity, we have only shown those institutions with at least 20 total graduates in the designated programs.

Code

Description

Code

Description

Code

Description

14.0501

Bioengineering and Biomedical Engineering

26.0503

Medical Microbiology and Bacteriology

26.0912

26.0101

Biology/Biological Sciences, General

26.0504

Virology

26.0999

26.0102

26.0505

Parasitology

26.1001

26.0202

Biomedical Sciences, General Biochemistry

Aerospace Physiology and Medicine Physiology, Pathology, and Related Pharmacology

26.0506

Mycology

26.1002

26.0203 26.0204

Biophysics Molecular Biology

26.0507 26.0508

26.1003 26.1004

26.0205

Molecular Biochemistry

26.0599

26.1005

Molecular Toxicology

26.0206

Molecular Biophysics

26.0801

Immunology Microbiology and Immunology Microbiological Sciences and Immunology Genetics, General

Molecular Pharmacology Neuropharmacology Toxicology

26.1006

26.0207

Structural Biology

26.0802

Molecular Genetics

26.1007

26.0208

Photobiology

26.0803

26.1099

26.0209

Radiation Biology/Radiobiology Biochemistry and Molecular Biology Biochemistry, Biophysics, Molecular Biology Botany/Plant Biology

26.0804

Microbial and Eukaryotic Genetics Animal Genetics

26.1101

Environmental Toxicology Pharmacology and Toxicology Pharmacology and Toxicology, Other Biometry/Biometrics

26.0805

Plant Genetics

26.1102

Biostatistics

26.0806

Human/Medical Genetics

26.1103

Bioinformatics

26.0807

26.1104

Plant Pathology/Phytopathology Plant Physiology Plant Molecular Biology Botany/Plant Biology, Other Cell/Cellular Biology and Histology Anatomy Developmental Biology and Embryology Cell/Cellular and Molecular Biology Cell Biology and Anatomy

26.0899

Genome Sciences/Genomics Genetics, Other

26.0901 26.0902 26.0903 26.0904

Physiology, General Molecular Physiology Cell Physiology Endocrinology

26.1201 26.1308 26.1309 26.1401

Computational Biology Biomathematics, Bioinformatics Biotechnology Systematic Biology Epidemiology Molecular Medicine

26.0905 26.0907

Reproductive Biology Cardiovascular Science

26.1501 26.1502

Neuroscience Neuroanatomy

26.0908

Exercise Physiology

26.1503

26.0909

26.1504

Cell/Cellular Biology and Anatomical Sciences Microbiology, General

26.0910

Vision Science/Physiological Optics Pathology/Experimental Pathology Oncology and Cancer Biology

Neurobiology and Anatomy Neurobiology and Behavior

26.0210 26.0299 26.0301 26.0305 26.0307 26.0308 26.0399 26.0401 26.0403 26.0404 26.0406 26.0407 26.0499 26.0502

26.0911

26.1199

26.1599 26.9999

Neurobiology and Neurosciences Biological and Biomedical Sciences

59 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Life Science Related Degrees Awarded at California Institutions—AY2017 Institution University of California-San Diego University of California-Los Angeles University of California-Davis University of California-Berkeley University of California-Irvine University of California-Riverside University of California-Santa Cruz University of California-Santa Barbara University of Southern California San Francisco State University Cal-Poly State University-San Luis Obispo University of California-Merced San Diego State University California State University-Northridge Stanford University California State University-Sacramento California State University-Long Beach California State University-Fullerton California State University-San Marcos California State University-Los Angeles San Jose State University California State Polytechnic University-Pomona California State University-East Bay Humboldt State University Santa Clara University University of San Diego California State University-Channel Islands California State University-Chico California State University-Fresno University of California-San Francisco Reedley College San Diego Miramar College California State University-San Bernardino California State University-Monterey Bay University of the Pacific California State University-Stanislaus Sierra College California State University-Bakersfield California State University-Dominguez Hills Sonoma State University University of San Francisco Long Beach City College San Diego Mesa College Bakersfield College California Baptist University

Associate's 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 132 123 0 0 0 0 98 0 0 0 0 85 85 84 0

Bachelor's 1,651 1,360 1,424 1,014 734 686 608 532 255 398 332 328 280 292 106 280 261 278 252 246 189 216 200 180 146 158 101 140 122 0 0 0 111 108 99 102 0 94 91 86 65 0 0 0 83

Master's 163 95 32 77 97 31 3 15 167 56 49 6 54 34 82 13 30 8 31 17 67 27 23 6 15 0 46 4 20 49 0 0 7 0 8 0 0 3 6 9 27 0 0 0 0

Doctor's 118 168 116 142 91 49 14 7 89 0 0 8 4 0 117 0 0 0 0 0 0 0 0 0 0 0 0 0 0 90 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 60

Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Institution Associate's Bachelor's Orange Coast College 81 0 Loyola Marymount University 0 79 San Diego City College 79 0 Clovis Community College 76 0 Occidental College 0 75 Fresno City College 62 0 Antelope Valley College 61 0 Chapman University 0 61 Diablo Valley College 60 0 Biola University 0 58 University of La Verne 0 56 Scripps College 0 56 Sacramento City College 55 0 Point Loma Nazarene University 0 55 Pomona College 0 54 California Institute of Technology 0 21 Mission College 52 0 California Lutheran University 0 52 Chabot College 45 0 Taft College 45 0 Loma Linda University 0 0 Los Medanos College 41 0 University of Redlands 0 41 Westmont College 0 40 Saint Mary's College of California 0 40 National University 23 16 Las Positas College 36 0 Notre Dame de Namur University 0 36 Claremont McKenna College 0 35 Mount Saint Mary's University 0 34 Azusa Pacific University 0 34 Pepperdine University 0 33 Pacific Union College 0 33 Moorpark College 32 0 Dominican University of California 0 22 Whittier College 0 31 La Sierra University 0 30 De Anza College 29 0 Citrus College 28 0 Cosumnes River College 28 0 Mills College 0 26 Folsom Lake College 25 0 Fresno Pacific University 0 24 Pitzer College 0 22 Concordia University-Irvine 0 22 Fullerton College 22 0 College of San Mateo 21 0 Source: Integrated Post-Secondary Education Data System aggregated by EMSI

Master's

Doctor's 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 10 0 0 0 0 34 0 0 0 0 1 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 22 0 0 0 0 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 61

Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

Appendix 3 Life Science Innovation Company Count In this year’s databook we introduce a new data item: ’Life Science Innovation Company’ refers to companies in a subset of industry subsectors encompassing those who are doing work at the cutting edge of our industry. In previous sections, we report the number of establishments by region/county/sector. As noted in the data description, establishments are unique locations for a given enterprise. A company with multiple locations will show multiple establishments. This is because state and federal workforce agencies require reporting by location. However, this means that the number of establishments may inflate the number of actual companies located in a given geographic area. In the tables below, we use data from Database USA, which is aggregated by EMSI, to show the number of unique companies in selected Life Science industries. The industries selected do not align exactly with the sector definitions shown in Appendix 1, except for Biopharmaceutical Manufacturing. Because of these differences, and because the underlying data sources are different, it is not appropriate to compare specific establishment counts as presented in this databook with the unique company counts presented below. Finally, in identifying companies with multiple locations within a given geography, we rely on the Business Name identified by Database USA and do not count entities where there is an exact name match. It is possible that some Business Names may show a variation that results in counting the same company twice. In addition, the Business Name may not accurately reflect business ownership, such as when two firms merge, but keep using separate names.

As an example, Biopharmaceutical Manufacturer XYZ might have two facilities in San Diego County and one facility in Los Angeles County. In this report, XYZ will have two establishments in San Diego County and one in Los Angeles county, but will only count once in each region as a ’Life Science Innovation Company’.

Sectors included in the Life Science Innovation Company counts: NAICS Industry Description INDUSTRIAL BIOTECHNOLOGY AND BIOFUELS 311224 Soybean Oilseed Processing 325193 Ethyl Alcohol Manufacturing 325199 All Other Basic Organic Chemical Manufacturing 325220 Cellulosic Fiber Manufacturing BIOPHARMACEUTICALS 325411 Medicinal and Botanical Manufacturing 325412 Pharmaceutical Preparation Manufacturing 325413 In-Vitro Diagnostic Substance Manufacturing 325414 Biological Product (except Diagnostic) Manufacturing

62 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

MEDICAL DEVICES AND DIAGNOSTICS EQUIPMENT 334510 Electromedical and Electrotherapeutic Apparatus Manufacturing 334516 Analytical Laboratory Instrument Manufacturing 334517 Irradiation Apparatus Manufacturing 339112 Surgical and Medical Instrument Manufacturing 339113 Surgical Appliance and Supplies Manufacturing RESEARCH AND LAB SERVICES 541713 Research and Development in Nano-Technology 541714 Research and Development in Biotechnology 541715 R & D in the Physical, Engineering, and Life Sciences (except Biotechnology)

Life Science Innovation Company Counts By modified Life Science sectors Number of Companies 2019 BioRenewables

Bay Area Alameda County Contra Costa County Marin County Napa County San Francisco County San Mateo County Santa Clara County Solano County Sonoma County

6 2

Los Angeles County Orange County San Diego County City of Los Angeles City of San Diego Source: EMSI, TClower & Assoc.

BioPharmaceutical Manufacturing

Research and Development

Totals

1

20 39 32 2 5

42 12 4 1 6 22 34 4 5

1,230 301 109 66 14 140 175 322 42 61

1,512 381 124 77 17 167 236 389 48 73

6 1 2

113 28 91

106 45 64

787 331 478

1,012 405 635

2

13 70

12 33

115 281

140 386

2 1

146 36 5 7

Medical Devices & Diagnostic Equip 130

63 Prepared for Biocom, the trade association for the State of California. When referencing this document, please use “Biocom’s 2019 California Economic Impact Report” for citation.

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