Biocom California's 2025 Economic Impact Report Highlights Importance of the State's Life Science Industry -- One of the Top Industries in the Fourth Largest Economy in the World
SOUTH SAN FRANCISCO, Calif. & LOS ANGELES & SAN DIEGO--(BUSINESS WIRE)--Biocom California, the association representing the California life science industry, today released its 2025 Life Science Economic Impact Report, providing the most comprehensive report to date of the industry's economic footprint, innovation output and national leadership.
'California's life science industry remains a cornerstone of economic vitality and a global leader in health innovation."
According to the report, the life science industry in California generated $396 billion in total business output, supported approximately 1.15 million jobs and played a central role in the development of at least 12 novel therapies approved by the U.S. Food and Drug Administration in 2024—more than any other state.
'California's life science industry remains a cornerstone of economic vitality and a global leader in health innovation,' said Tim Scott, president and CEO of Biocom California. 'Even amid economic tightening and political uncertainty, our sector continues to drive the discovery and delivery of life-changing treatments, medical devices and diagnostics around the world.'
Scott continued: 'In a second consecutive year of economic headwinds, California's life science entrepreneurs remain a force of unstoppable resilience. They continue to advance bold science, build new ventures and deliver innovation that improves lives around the world. We are honored to champion their work at every stage. From policy advocacy and capital connections to workforce development, group purchasing, and strategic partnerships, our commitment to supporting our members has never been stronger.'
This year's report features stories that highlight the medicines born in California and the scientific visionaries behind them. It is a tribute to the scientists, founders and teams across the state whose work delivers hope and health to patients worldwide.
Key Findings from Biocom California's 2025 Life Science Economic Impact Report:
California's life science industry generated $396 billion in total business output and directly employed more than 452,000 Californians in 2024, with a broader economic footprint supporting approximately 1.15 million jobs in the state.
The state's life science ecosystem contributed directly to at least 12 of the 50 novel therapies approved by the U.S. F.D.A. in 2024 including medicines to treat cancer, rare diseases, mental health disorders, infectious diseases and more.
The state leads the nation in biomanufacturing, providing over 141,000 direct life science manufacturing jobs, representing 31.2% of California's life science payroll employment.
California research institutions received $5.7 billion in funding from the National Institutes of Health (NIH) and National Science Foundation (NSF) in 2024—the highest of any U.S. state.
The state attracted $63.1 billion in private capital, including major venture and mergers and acquisitions (M&A) transactions, despite headwinds in the capital markets.
Life-Saving Therapies Nurtured by Public and Private Investment
California is the most productive hub for the development of innovative treatments of disease, many of which are supported by public investment. In 2024, California researchers received a total of $5.7 billion in federal funding from the NIH and NSF, more than any other U.S. state. These grants supported a range of health-related areas of research, including Alzheimer's disease and related dementias, stimulants, pain management, Lyme and tick-borne diseases, antimicrobial resistance, universal flu vaccine, mental health research and others.
Also critical to the health of the life science industry is private investment in the form of venture capital and corporate M&A transactions. Total 2024 private sector investment in California came to $63.1 billion, which includes private equity and funding realized through the initial public offering process. Venture investment, typically raised by earlier stage companies, is important to establish early data showing the potential of new therapeutic approaches, which often originate in academia. M&A investment is frequently necessary to fully realize the potential of those new therapeutic approaches, as venture-funded companies frequently lack the resources to execute large, late-stage clinical studies and the corporate infrastructure necessary for commercialization of innovative technologies.
California is the Biomanufacturing Leader
Biocom California's Economic Impact Report found that 31.2% of life science payroll jobs in 2024 were in biomanufacturing, for a total of 141,000 jobs. Robust manufacturing capabilities are vital for global health impact, emergency preparedness, compliance with environmental and regulatory requirements. Such capabilities tend to have an out-sized impact on local economies due to labor-intensive processes, supply chain complexity and high-value raw material inputs.
Importantly, biomanufacturing offers a pathway to living-wage careers, averaging $135,147 per year in California, for individuals with associate's degrees. In fact, 42% of life science degrees awarded in the state in 2024 were at the associate's level.
'The life science industry provides valuable jobs to Californians from a wide range of educational backgrounds,' said Scott. 'The prevalence of jobs specifically in manufacturing demonstrates a robust path into the life science industry for California residents from all economic backgrounds, and many community colleges are partnering with industry leaders to develop educational curricula to meet the needs of biomanufacturing companies.'
California Brings Life-Saving Medicines to Patients
In 2024, 50 unique novel drugs were approved by the U.S. FDA, and at least 12 of those came from California-headquartered companies addressing disease areas such as cancer, muscular dystrophy, heart disease and more.
'Patients from all over the world benefit from the innovation driven by the life science ecosystem in California, and citizens of the state benefit from the direct jobs and the overall economic impact,' concluded Mr. Scott. 'We invite the public as well as state and federal legislators and municipalities to learn more about the industry, its life-saving therapies and its economic impact. The California life science industry is a force behind the world's fourth largest economy and a source of pride for Californians.'
To access the full report, visit https://www.biocom.org/eir
About Biocom California
Biocom California is the leader and advocate for California's life science sector. We work on behalf of our 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 California 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 California operates core offices in Los Angeles and the San Francisco Bay Area, with satellite offices in Sacramento, Washington, D.C. and Tokyo. 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 California, please visit our website at www.biocom.org. Connect with us on LinkedIn, Facebook and X.
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