The economic impact of San Diego’s RNA cluster

EDC study explores the power and impact of RNA before and beyond COVID-19

Together with 1STRAND, EDC released “San Diego’s RNA cluster: Powering public health and the economy,” a comprehensive overview and economic impact assessment of San Diego’s RNA cluster, including direct input from industry representatives and stakeholders.

The power of gene expression manipulation has unlocked possibilities that were once unthought of—advanced treatments for cancer, HIV vaccines, personalized medicine, and more. These scientific achievements, discoveries, and events have catalyzed the growth of RNA innovation and therapeutics.

Home to dozens of RNA firms supporting more than 11,000 jobs, San Diego is especially well positioned to lead in RNA therapeutics innovation, promising a bright future for the region’s Life Sciences ecosystem and the broader economy.

KEY report FINDINGS

  • San Diego’s RNA cluster is a major contributor to the regional economy, with a nearly $6 billion annual impact. For every 100 jobs generated within the cluster, an additional 150 jobs are supported across the region.
  • San Diego’s RNA cluster has capabilities in both research and development (R&D) and manufacturing. While R&D leads RNA activities in the region, San Diego’s expertise in advanced manufacturing offers a solid foundation for further growth.
  • Leveraging its expertise in RNA technology, San Diego proved resilient and important in the fight against COVID-19. The region drew in $59 million from the National Institutes of Health (or NIH) and employment grew nine percent through 2021.
  • Software development jobs continue to grow within San Diego RNA firms. Demand for these professionals is expected to rise as Artificial Intelligence and Machine Learning (AI-ML) are further integrated.
  • Talent attraction is a major challenge for local RNA companies. Compensation is not keeping pace with San Diego’s high cost of living and puts the region seventh out of 10 in average wages among peer metros.

RNA and RNA therapeutics sit at the intersection of four sectors: R&D, manufacturing, trade, and healthcare. These include operations such as medical laboratories, production of biological materials and lab instruments, drug wholesalers, and consulting services to name a few—all of which are part of a broader ecosystem of industries fueling San Diego’s RNA cluster. This broader ecosystem feeds RNA clusters across the country, and San Diego consistently ranks among the top 10 metros in terms of total jobs, job concentration, and average wages. Peer metros includes Life Sciences heavyweights Boston and San Francisco, as well as parts of the North Carolina Research Triangle and tech hubs Seattle and San Jose.

Among peer metros, San Diego ranks:

  • #2 in job growth (nine percent) from 2021
  • #2 in projected job growth (13 percent) by 2027
  • #3 in number of job postings
  • #4 in median advertised salary for RNA jobs at just under $85,000
  • #7 in average hourly compensation ($56.68) for RNA jobs
  • Home to #5 most funded institution in the U.S. in RNA-related projects, and #2 in California – UCSD

The study was produced by EDC on behalf of 1STRAND in June 2023. Learn more about EDC’s research here.

SEE THE FULL REPORT HERE

Learn more on Life Sciences in San Diego

Study: San Diego’s Life Sciences cluster in the early stages of AI-ML boom

EDC study quantifies the impact of AI in region’s Life Sciences cluster

Today alongside underwriter Booz Allen Hamilton, San Diego Regional EDC released the fourth study in a series on the proliferation of Artificial Intelligence and Machine Learning (AI-ML) within San Diego County’s key economic clusters. “Diagnosing the Future: AI and San Diego’s Life Sciences Cluster” quantifies the economic impact of the region’s Life Sciences cluster and explores the proliferation of AI and ML technologies being used to diagnose disease and develop drugs, among other lifesaving products and solutions.

While the pandemic devastated many sectors of our economy, the Life Sciences cluster experienced a striking 11.2 percent job growth (51 percent over the last decade). The cluster boasts a $27 billion annual economic impact, with 1,800 Life Sciences firms employing more than 61,000 San Diegans—nearly three times as many Life Sciences jobs as the national average. Taking advantage of the region’s innovation ecosystem, San Diego’s Life Sciences cluster has increasingly integrated software and technology to maximize its impact, save time, and reduce costs.

Underwritten by Booz Allen Hamilton, the web-based study—lifesciences.sandiegoAI.org—includes company case studies on local use of AI-ML, San Diego’s standing relative to peer metros in AI-ML integration, a timeline on the history of Life Sciences in San Diego, and the business case for economic inclusion within the cluster, among other assessment.

“This series serves to spotlight the importance of AI-ML application within the region’s key industries, helping drive productivity, job growth, and scientific innovation here and around the globe. With so many Life Sciences companies yet to fully tap into AI-ML, the impact we are already seeing in San Diego is just beginning,” said Mark Cafferty, president and CEO, EDC. “As always, EDC is committed to helping these firms thrive, creating more quality jobs for San Diegans.”

KEY FINDINGS

  • San Diego is a top Life Sciences growth market among AI-ML peer metros. The region has nearly three times as many Life Sciences jobs as the national average and commanded more than 13 percent of domestic venture funding into the industry in 2021.
  • San Diego’s Life Sciences companies are in the early stages of AI-ML adoption, paving way for exponential impact. While several San Diego Life Sciences subindustries have leveraged AI-ML technology in significant ways, just 18 percent of local firms are engaging with AI-ML.
  • San Diego Life Sciences companies have an outsized appetite for AI-ML talent but lag peer metros in accessibility and compensation. Local Life Sciences employers’ hiring for AI-ML talent largely demand post-secondary education but offer relatively low advertised compensation as compared to peer metros, which hinders the ability to compete for talent.
  • San Diego’s AI-ML talent pool is active and growing. The region already has a strong and growing supply of more than 15,000 AI-ML professionals across all industries. Rising degree completions in interdisciplinary fields, alongside new programs dedicated to producing AI-ML talent promise to deepen the talent pool.

“Whether for venture capital investment, jobs, talent, or innovation, San Diego is an undeniable leader in Life Sciences—changing the way patients around the world experience healthcare,” said Jennie Brooks, Senior Vice President at Booz Allen Hamilton—board chair and underwriter of the EDC study series—and leader of the firm’s 1,200+ person San Diego office. “For less time and money, the integration of AI-ML can help firms further accelerate scientific discovery, but we need the talent to make it happen. While the Life Sciences proved resilient amid the pandemic, talent gaps are pervasive—with pay and access as the primary threats to our economic competitiveness.”

Life Sciences is an integral and rapidly growing piece of the San Diego regional economy. In 2021 alone, San Diego Life Sciences companies pulled in 13.1 percent of the $38.6 billion invested into Life Sciences nationwide. Supporting this growth, San Diego ranks fourth (4,300 in 2020) in Life Sciences degree completions among peer metros. Future and ongoing investment in Life Sciences companies and talent—most especially around compensation and accessibility—will ensure the longevity of this high impact industry and support its ability to compete.

“Our Informatics and Predictive Sciences team in San Diego is deploying AI-ML to accelerate the drug discovery process. These approaches benefit virtually every aspect of drug discovery from accelerating the rate at which our chemistry teams can optimize compounds, to allowing us to better predict which patient populations are most likely to benefit from a novel medicine. The objective is to enable BMS to bring successful and safe medications to patients faster by leveraging AI-ML,” said Neil Bence, Ph.D., Vice President of Oncology Discovery and San Diego Site Head, Bristol Myers Squibb

The study series is underwritten by Booz Allen Hamilton and produced by San Diego Regional EDC.  Learn more about EDC’s research here.

FULL STUDY AT LIFESCIENCES.SANDIEGOAI.ORG

Read the full AI series

San Diego home to 350+ precision health companies

San Diego is home to more than 350 precision health companies that hold 3,610 patents, according to a study released by yours truly: San Diego Regional EDC. “San Diego’s Precision Health Ecosystem” explores the impact of the region’s precision health cluster and quantifies the number of firms, venture capital and patents, as well the broader cluster across California.

The web-based study – precisionhealthSD.org – includes a historic timeline, cluster map, local and state overviews, and a series of video testimonials from local business leaders.

Large local companies like Illumina and Thermo Fisher Scientific, startups and small businesses like CureMatch, LunaDNA, and EpicentRX, as well as hospitals and research institutes are helping lead the charge in precision health and enabling people to live longer, healthier lives.

Using a person’s unique genes, medical history, and environment, the field of precision health seeks to customize effective therapies and disease treatment. More than genomics and pharmaceuticals, precision health also encompasses a wide range of related fields that allow for the collection, storage, analysis, and use of health data for more precise diagnosis of individual conditions and risk factors.

“From personalized cancer vaccines to record-breaking DNA sequencing of newborns, San Diego companies and research institutes are revolutionizing healthcare as we know it,” said Kirby Brady, research director, San Diego Regional EDC. “Consistently ranked among the top five cities for startups and life sciences, as well as the #1 region for genomics patents in the U.S., San Diego brings more to the table than its beaches – we are changing lives and curing disease from the offices and labs throughout the region.”

KEY FINDINGS

  • San Diego precision health companies secured $1.3 billion in venture capital in 2018, to date.
  • San Diego precision health companies hold 825 registered trademarks, and 3,610 patents.
  • San Diego is home to more than 350 precision health companies, 80 research institutions, 30 hospitals, and five universities.
  • Economic impact of precision health in California (2017):
    • 29,000 direct jobs
    • 99,000 total impacted jobs
    • $17 billion direct economic impact

Precision Health: Why San Diego from San Diego Regional EDC on Vimeo.

The report was produced by San Diego Regional EDC, and sponsored by Alexandria Real Estate Equities, Inc., CBRE, Kaiser Permanente, PricewaterhouseCoopers and Scripps Research.

Read the full study at precisionhealthSD.org. For more research from San Diego Regional EDC, visit sandiegobusiness.org/about-the-region.

San Diego’s Precision Health Ecosystem

Summary

California is home to numerous companies and research institutions that have been on the cutting edge of precision health approaches. The cluster has the potential to encompass nearly all of medicine and become a multibillion-dollar industry cluster, accounting for tens of thousands of jobs in the future.

And, San Diego is a global leader in precision health. The region’s precision health cluster is poised to revolutionize the delivery of healthcare across the globe and holds the promise of enabling each of us to live longer, healthier lives. From personalized cancer vaccines and precision diagnostics, to the rapid DNA sequencing of critically-ill newborns, San Diego has emerged as a world-renowned hub for its foundational research, intellectual property, and the demonstration of precision health.

View the full web report

Study release: San Diego ranks #1 in the US for genomics patents

Today, EDC released the first-ever economic impact report on San Diego’s genomics industry. “Cracking the Code: the Economic Impact of San Diego’s Genomics Industry” explores the economic factors that have led to the proliferation of San Diego’s genomics industry, analyzes the region’s genomics standing relative to other U.S. regions, and quantifies San Diego’s genomics-related firms, talent pool, venture capital and more.

As the #1 most patent intensive genomics market in the U.S., San Diego is leading the charge in a new era of healthcare. Personalized medicine and technology are taking precedence, with local genomics companies, research institutions and universities at the forefront.

KEY FINDINGS

Leadership: San Diego is poised to continue its leadership in the field of precision medicine. With more than 115 genomics-related firms, San Diego has companies that handle every aspect of the genomics value-chain – from sampling and sequencing (e.g. Illumina, Thermo Fisher Scientific) to analysis and interpretation (e.g. AltheaDX, Human Longevity, Inc.) to clinical applications (e.g. Celgene, Arcturus Therapeutics), creating a complete ecosystem. Additionally, San Diego conducts the fundamental scientific research, due in part to the concentration of research institutes, that form the basis for many global genomics therapies and interventions.

Capital: While San Diego is home to just one percent of the U.S. population, it received 22 percent – $292 million – of the venture capital funding in genomics in 2016. Continually, San Diego’s numerous nonprofit research institutes command a large share of federal funding (e.g. NIH). In fact, San Diego received $3.2 million federal contract dollars in 2016 – more than any other U.S. region.

Talent: San Diego produces more genomics-ready graduates, relative to the size of its workforce, than any other U.S. region. With nearly 2,000 average genomics-related degrees (biochemistry, cognitive science and bioinformatics) conferred per year, San Diego’s genomics companies benefit from the preparatory work of the region’s top academic institutions. In that vein, it is projected that the local talent pool for key genomics occupations will grow by an additional 10 percent by 2021.

ADDITIONAL KEY FACTS

  • San Diego’s genomics industry has a $5.6 billion annual economic impact, impacting 35,000 jobs in 2016.
  • Among top life sciences U.S. metros, San Diego’s genomics industry ranks #2 overall, #3 in innovation, #2 in talent, and #4 in growth.*
  • From 2014 to 2016, San Diego generated 371 genomics-related patents. Collectively, 28 local firms generated 120 genomics-related patents in 2016.
  • San Diego is 3.1x more concentrated than the U.S. in key genomics occupations.
  • From 2011 to 2016, San Diego’s genomics talent pool grew by 11 percent, far outpacing the national growth rate of 5.1 percent.

*The genomics scorecard was calculated using a weighted ranking system divided into three categories approximating the genomics ecosystem: innovation, talent, and growth.

EDC’s study was underwritten by Illumina, and sponsored by Alexandria Real Estate, Barney & Barney, Biocom, Eastridge Workforce Solutions, Human Longevity, Inc., Latham & Watkins, Thermo Fisher Scientific and UC San Diego. Additional research support was provided by CBRE.

Read the executive summary here

Cracking the Code: The Economic Impact of San Diego’s Genomics Industry

Summary

The region has provided the fundamental genomic research that has galvanized scientific discovery across the globe. As we enter into an era of personalized medicine and technology, San Diego’s companies, research institutes, and  universities will continue to pioneer discoveries across the interdisciplinary field of genomics.

READ THE FULL PRINTED REPORT