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Cracking the Code:
The Economic Impact of San Diego’s Genomics Industry BIO International June 19, 2017
“The ultimate promise of the genome is for health preservation. There’s a beautiful story around genomics that’s about personal wellness and societal health.” - Dawn Barry, Vice President, Applied Genomics, Illumina
Defining the Industry Local universities, research institutes and commercial entities that work collaboratively to unlock the power of the human genome.
Health IT
Tech companies that provide data storage and software solutions, enabling practitioners to deliver datadriven personalized medicine.
Biotechnology R&D
Genomics
Biomedical Device MFG
Companies that research, develop and manufacture new drugs and therapies for personalized medicine.
Pharmaceuticals
Companies with sequencing technologies that produce NextGeneration Sequencing (NGS) devices.
Economic Impact
115+ FIRMS
$5.6B
ECONOMIC IMPACT
10,055 DIRECT JOBS
Economic Impacts Impact Type
Employment
Valued Added
Wages
($Millions)
($Millions)
Direct
10,055 $
2,954.6 $
1,577.0
Indirect
12,720 $
1,532.3 $
1,033.3
Induced
12,240 $
1,084.9 $
606.7
Tot al Im pact
35,015 $
5,571.8 $
3,217.0
Mult iplier
3.5
1.9
2.0
Direct Employment by Industry
50%
18%
Scientific R&D
Biopharmaceutical MFG
Diagnostic Laboratories
Software & IT Services
14%
12%
Med Devices & Supplies
7%
Economic Impacts $373M Annually
State & Local Tax Impact ($Millions)
$7.8
Employee/Employer Social Contribution
$26.9
Corporate Profits
$116.3
Personal Income, Property and Licensing
$222.0
Corporate Sales, Property and Licensing
0
50
100
150
200
250
Genomics Scorecard
Concept & Methodology • Score the top 10 life science markets on the relative strength of their genomics ecosystem
• “Scorecard” approach to simplify complicated measures. • Three main categories (9 measures total) • Simple / classic standardization and curving techniques (50-100 range) • Think typical school / classroom grading
Limitations • Genomics is not a typical classification in data sources, so we must come up with more creative measures
• Data must be comparable and consistent across geographic units • Data must be presented in a way that people can understand • Data should represent strength of the market
Comparison Markets MSA
Principal City
Boston-Cambridge-Newton, MA-NH
Boston
Chicago-Naperville-Elgin, IL-IN-WI
Chicago
Indianapolis-Carmel-Anderson, IN
Indianapolis
Minneapolis-St. Paul-Bloomington, MN-WI
Minneapolis
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
Philadelphia
Raleigh, NC
Raleigh
Salt Lake City, UT
Salt Lake City
San Diego-Carlsbad, CA
San Diego
San Francisco-Oakland-Hayward, CA
San Francisco
San Jose-Sunnyvale-Santa Clara, CA
San Jose
Criteria: 1. SIZE: Metro population must be greater than 1M 2. CONCENTRATION: Top 10 most concentrated markets based on life science employment
Comparative Data Talent • TALENT PIPELINE Degree Completions in GenomicsRelated Fields (per 10k workers)
• TALENT POOL Number of People Employed in Key Occupations (LQ)
Innovation • FEDERAL FUNDING Avg. Annual Federal Funding for Genomics 2014-2016 (per $mil GDP)
• VENTURE CAPITAL Avg. Annual VC Dollars Received by Genomics Companies 2014-2016 (per $mil GDP)
Growth • JOB POSTINGS Unique Genomics Job Postings in 2016 (per 10k workers)
• PROJECTED GROWTH Projected Genomics Occupation Growth 2016-2021 (%)
• TALENT SPECIALIZATION Concentration of Key Occupations in Genomics Industry
• PATENTS Patents in Genomic Technologies (per 100k workers)
• HISTORIC GROWTH Historic Genomics Occupation Growth 2011-2016 (%)
Overall Rankings
Genomics Scorecard
BOTTOM
MIDDLE
TOP
Overall Rank
MSA
Talent
Innovation
Growth
Overall Score
Score
Rank
Score
Rank
Score
Rank
1
Boston
91.3
98.2
1
92.1
1
83.7
5
2
San Diego
90.2
95.0
2
90.4
2
85.4
4
3
San Francisco
87.7
89.5
3
83.0
4
90.7
2
4
San Jose
82.3
75.9
7
83.6
3
87.3
3
5
Salt Lake City
77.0
74.4
8
64.4
7
92.3
1
6
Philadelphia
76.0
86.8
4
71.9
5
69.4
10
7
Raleigh
75.4
81.7
5
62.4
10
82.3
6
8
Indianapolis
73.5
79.9
6
62.4
9
78.2
7
9
Minneapolis
72.1
73.7
9
69.3
6
73.2
8
10
Chicago
68.7
73.4
10
62.4
8
70.3
9
Innovation Capital fuels growth in genomics. San Diego’s exceptional track record for generating lucrative intellectual property and developing strong life sciences companies allows us to command a large share of genomics-related VC.
$38M
371
$292M
Federal Funding
Patents in Genomics
VC Dollars Received
2016
2014 - 2016
2016
Specialized Talent The genomics industry benefits from the talent being supplied by the region’s top academic institutions. Quality of life and abundant job opportunities are two primary reasons San Diego has a higher-than-average concentration of genomics talent; a fundamental ingredient for a healthy ecosystem.
6,957
3.1X
1,956
Employed in Key Genomics Occupations
Concentration in Key Genomics Occupations
Genomics-Related Degrees Conferred
2016
2016
2015
Growth Companies are born out of our research institutions. Technological advancements drive demand for talent. San Diego’s strong growth over the past five years is projected to continue into the future.
11%
2,939
10%
Industry Growth
Unique Job Postings
Projected Growth
2011-2016
2016
2016 - 2021
San Diego is… Collaboration & Leadership
End-to-End Genomics
An Attractive Market for Investment
A Platform for Precision Medicine
“It’s much more than genomics; San Diego is the ultimate place for research, sequencing technologies and the demonstration of human longevity, giving us a natural platform for precision medicine. Ultimately it’s about better personalized health and that’s what the vision for our region is.” - Mark Stevenson, Executive Vice President and President, Life Sciences Solutions, Thermo Fisher Scientific
UNDERWRITTEN BY
RESEARCH SUPPORT BY
SPONSORED BY
Kirby Brady Research Director, San Diego Regional EDC [email protected]
The Economic Impact of San Diego’s Genomics Industry BIO International June 19, 2017
“The ultimate promise of the genome is for health preservation. There’s a beautiful story around genomics that’s about personal wellness and societal health.” - Dawn Barry, Vice President, Applied Genomics, Illumina
Defining the Industry Local universities, research institutes and commercial entities that work collaboratively to unlock the power of the human genome.
Health IT
Tech companies that provide data storage and software solutions, enabling practitioners to deliver datadriven personalized medicine.
Biotechnology R&D
Genomics
Biomedical Device MFG
Companies that research, develop and manufacture new drugs and therapies for personalized medicine.
Pharmaceuticals
Companies with sequencing technologies that produce NextGeneration Sequencing (NGS) devices.
Economic Impact
115+ FIRMS
$5.6B
ECONOMIC IMPACT
10,055 DIRECT JOBS
Economic Impacts Impact Type
Employment
Valued Added
Wages
($Millions)
($Millions)
Direct
10,055 $
2,954.6 $
1,577.0
Indirect
12,720 $
1,532.3 $
1,033.3
Induced
12,240 $
1,084.9 $
606.7
Tot al Im pact
35,015 $
5,571.8 $
3,217.0
Mult iplier
3.5
1.9
2.0
Direct Employment by Industry
50%
18%
Scientific R&D
Biopharmaceutical MFG
Diagnostic Laboratories
Software & IT Services
14%
12%
Med Devices & Supplies
7%
Economic Impacts $373M Annually
State & Local Tax Impact ($Millions)
$7.8
Employee/Employer Social Contribution
$26.9
Corporate Profits
$116.3
Personal Income, Property and Licensing
$222.0
Corporate Sales, Property and Licensing
0
50
100
150
200
250
Genomics Scorecard
Concept & Methodology • Score the top 10 life science markets on the relative strength of their genomics ecosystem
• “Scorecard” approach to simplify complicated measures. • Three main categories (9 measures total) • Simple / classic standardization and curving techniques (50-100 range) • Think typical school / classroom grading
Limitations • Genomics is not a typical classification in data sources, so we must come up with more creative measures
• Data must be comparable and consistent across geographic units • Data must be presented in a way that people can understand • Data should represent strength of the market
Comparison Markets MSA
Principal City
Boston-Cambridge-Newton, MA-NH
Boston
Chicago-Naperville-Elgin, IL-IN-WI
Chicago
Indianapolis-Carmel-Anderson, IN
Indianapolis
Minneapolis-St. Paul-Bloomington, MN-WI
Minneapolis
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
Philadelphia
Raleigh, NC
Raleigh
Salt Lake City, UT
Salt Lake City
San Diego-Carlsbad, CA
San Diego
San Francisco-Oakland-Hayward, CA
San Francisco
San Jose-Sunnyvale-Santa Clara, CA
San Jose
Criteria: 1. SIZE: Metro population must be greater than 1M 2. CONCENTRATION: Top 10 most concentrated markets based on life science employment
Comparative Data Talent • TALENT PIPELINE Degree Completions in GenomicsRelated Fields (per 10k workers)
• TALENT POOL Number of People Employed in Key Occupations (LQ)
Innovation • FEDERAL FUNDING Avg. Annual Federal Funding for Genomics 2014-2016 (per $mil GDP)
• VENTURE CAPITAL Avg. Annual VC Dollars Received by Genomics Companies 2014-2016 (per $mil GDP)
Growth • JOB POSTINGS Unique Genomics Job Postings in 2016 (per 10k workers)
• PROJECTED GROWTH Projected Genomics Occupation Growth 2016-2021 (%)
• TALENT SPECIALIZATION Concentration of Key Occupations in Genomics Industry
• PATENTS Patents in Genomic Technologies (per 100k workers)
• HISTORIC GROWTH Historic Genomics Occupation Growth 2011-2016 (%)
Overall Rankings
Genomics Scorecard
BOTTOM
MIDDLE
TOP
Overall Rank
MSA
Talent
Innovation
Growth
Overall Score
Score
Rank
Score
Rank
Score
Rank
1
Boston
91.3
98.2
1
92.1
1
83.7
5
2
San Diego
90.2
95.0
2
90.4
2
85.4
4
3
San Francisco
87.7
89.5
3
83.0
4
90.7
2
4
San Jose
82.3
75.9
7
83.6
3
87.3
3
5
Salt Lake City
77.0
74.4
8
64.4
7
92.3
1
6
Philadelphia
76.0
86.8
4
71.9
5
69.4
10
7
Raleigh
75.4
81.7
5
62.4
10
82.3
6
8
Indianapolis
73.5
79.9
6
62.4
9
78.2
7
9
Minneapolis
72.1
73.7
9
69.3
6
73.2
8
10
Chicago
68.7
73.4
10
62.4
8
70.3
9
Innovation Capital fuels growth in genomics. San Diego’s exceptional track record for generating lucrative intellectual property and developing strong life sciences companies allows us to command a large share of genomics-related VC.
$38M
371
$292M
Federal Funding
Patents in Genomics
VC Dollars Received
2016
2014 - 2016
2016
Specialized Talent The genomics industry benefits from the talent being supplied by the region’s top academic institutions. Quality of life and abundant job opportunities are two primary reasons San Diego has a higher-than-average concentration of genomics talent; a fundamental ingredient for a healthy ecosystem.
6,957
3.1X
1,956
Employed in Key Genomics Occupations
Concentration in Key Genomics Occupations
Genomics-Related Degrees Conferred
2016
2016
2015
Growth Companies are born out of our research institutions. Technological advancements drive demand for talent. San Diego’s strong growth over the past five years is projected to continue into the future.
11%
2,939
10%
Industry Growth
Unique Job Postings
Projected Growth
2011-2016
2016
2016 - 2021
San Diego is… Collaboration & Leadership
End-to-End Genomics
An Attractive Market for Investment
A Platform for Precision Medicine
“It’s much more than genomics; San Diego is the ultimate place for research, sequencing technologies and the demonstration of human longevity, giving us a natural platform for precision medicine. Ultimately it’s about better personalized health and that’s what the vision for our region is.” - Mark Stevenson, Executive Vice President and President, Life Sciences Solutions, Thermo Fisher Scientific
UNDERWRITTEN BY
RESEARCH SUPPORT BY
SPONSORED BY
Kirby Brady Research Director, San Diego Regional EDC [email protected]
