Life Sciences & Biotech
The Life Sciences industry in Northern California is vigorously thriving, and San Francisco is a major catalyst of this development. The sector has generated close to $113.8 billion in output, increased labor income by $34 billion per year, augmented total state gross product by $68.6 billion, and helped support 302,000 direct and indirect jobs in the region. Furthermore, the sector continues to experience significant growth over the past decade, with exports reaching almost $10 billion (2015), and with average earnings exceeding 122,000 per year in San Francisco.
San Francisco is the birthplace of the contemporary biotech industry and it is home to close to 300 Life Science firms, with two of them raked in the top three US Biotech Firms by Forbes (2015). Additionally, the Bay Area hosts one of the world’s top-tier Life Sciences clusters, including biotech programs at four major research universities; Stanford University, UC Berkeley, UC San Francisco, and the University of San Francisco. These institutions help form the high-level personnel necessary to distinguish the San Francisco’s Biotech & Life Science Ecosystem from others around the world.
This singular level of educational excellence is a major driver of investment. Northern California universities received $1.4 billion in research funding from the National Institutes of Health (NHI). UC San Francisco alone received $573 million (FY2016), which was the most received by any educational institution in California and the United States.
Furthermore, due to its consistently successful research to product translatability, San Francisco’s Life Sciences firms have attracted large amounts of investment. California attracts the most Venture Capitalist investment in its Biotech industry in the entire country, amounting to $4.4 billion in 2016, with more than 70% of that figure coming from the San Francisco Bay Area alone, $3.1 billion. This amounts to close to 50% more than the next state on that list, Massachusetts. VC investment in Biotech is only second to the software industry in San Francisco, making it the thriving and expanding location for firms in the Life Sciences sector.