Wednesday, May 27, 2009

Life Science industry prospers in Solano County

Life Science industry prospers in Solano County
Scott Reynolds, Chairman of the Board

As I reported in previous articles last year, the county of Solano, the Solano Economic Development Corporation, and Collaborative Economics partnered to produce the Solano County Index of Economic and Community Progress. That Index identified seven industry clusters.

As you may recall, a cluster is a geographic concentration of independent, internationally competitive firms in related industries, and includes a significant number of companies that sell their products and services outside the region. One of those clusters is the Life Science Industry Cluster.

In February of this year, an in-depth analysis of the Life Science Industry Cluster was presented to the community. This analysis highlighted the fact that the growth of the county’s Life Science Industry Cluster – pharmaceutical manufacturing, medical devices, biotechnology, research and development, and testing laboratories – is outpacing the Bay Area and the State of California. This is not surprising as Solano County is well-positioned to play an expanding role in the continued development of the life science industry as it is located along vital transportation arteries, is located between two University of California research campuses
(Davis and Berkeley) and is home to Touro University on Mare Island.

In recent years, employment has expanded significantly as well as employment concentration and average earnings in life sciences. Employment in Solano County’s Life Science Cluster Industry grew at an annual rate of 35 percent between 2000 and 2006. In contrast, life sciences in the rest of the San Francisco Bay Area reported annual average losses of 3 percent over the same period. Employment in life sciences and related industries is 60 percent more highly concentrated in the county than in the state as a whole.

Average earnings are also on the rise, a statistic which suggests that the quality of jobs is also improving. Between 2006 and 2007 alone, average earnings in life sciences in Solano County increased 26 percent while average earnings in the county as a whole remained unchanged.

With respect to jobs, the percentage of the Solano County residents employed in the Life Science Industry Cluster increased 8 percent between 2000 and 2007, while the percentage of commuters decreased. Thus, Solano County residents are filling more and more of the county’s jobs in life sciences. By 2007, workers with
a high school diploma represented 28 percent of the county’s life science work force after increasing 11 percent from 2000. Up from 10 percent in 2000, those with a graduate or professional degree represented 14 percent in 2007.

It shall be obvious from this analysis that the life science industry requires skilled employees. Thus, a strong, local public education system which provides the opportunity for a company to hire local employees that will help provide research, development and manufacturer treatments is critical to its continued growth. It has been stated that no academic discipline is more important to the continued success of the life science industry than science education itself.

Fortunately – and unknown to many of us – Solano County recognizes this and has initiated different training efforts that aim to development the region’s workforce skills in the life science industry. These include comprehensive programs at the local community college as well as out-reach programs in local high schools
that offer students training at the community college. Other training resources at advanced levels include the University of California at Davis, California Maritime Academy in Vallejo, and Touro University on Mare Island.

In addition, a regional consortium, Bio Tech Systems, was created in 2005 to help produce a workforce trained and educated in biotechnology for the life science industry in the Sacramento, Solano and Yolo county region. And, locally, Solano County has developed the Bio Tech Academy, a framework for helping high school students on to a career ladder in the life science industry. This academy helps youth find viable career paths and helps meet the growing demand for skilled workers in the life science industry.

At Solano Community College, the Biotechnology Program has prepared students to join the workforce in the biotechnology industry in the Bay Area. Students in the program study the technologies used in the manufacturing of pharmaceuticals protein products from various engineered cells. The program has almost doubled in size since its inception and attracts students with bachelor’s degrees for additional training to work in a biopharmaceutical manufacturing plant.

The College of Osteopathic Medicine at Touro University on Mare Island performs comprehensive research in the health sciences: drug design, diabetes and lipid metabolism, cardiovascular biomarkers, electrophysiology, and osteopathic manipulative medicine.

According to Bay Bio’s 2009 Impact Report, California’s life sciences industry created an annual average of 9,000 high paying jobs that were ultimately responsible for 1,200 approved treatments. Another 210 treatments are on track to be in the hands of patients in the next five to 10 years, which translate to a projected industryinvestment of $50 billion.

In order to capture some of this potential, our community leaders need the information generated by the Solano County Index of Economic and Community Progress and, specifically, the Life Science Industry Cluster Study. Through better understanding and education, hopefully, you too can be a part of the development of this cluster and assist in the capture of the tremendous potential it offers.

These are exciting times in Solano County in life sciences.