HOW SAN DIEGO STACKS UP UNDERWRITTEN BY illumina The genomics scorecard uses innovation, talent and growth metrics to compare the top ten life sciences U.S. metros with populations over one million. San Diego’s composite score ranks it as the number two genomics market in the nation. RESEARCH SUPPORT BY CRACKING #9 Minneapolis #1 Boston SPONSORED BY THE CODE: #10 Chicago #6 Philadelphia #5 Salt Lake City #8 Indianapolis #3 San Francisco THE ECONOMIC IMPACT OF #4 San Jose #7 Raleigh S A N D I E G O ’ S #2 SAN DIEGO GENOMICS INDUSTRY SAN DIEGO RANKS INNOVATION TALENT GROWTH #2 #2 #4 INNOVATION TALENT GROWTH PATENT INTENSITY, GRADUATE PIPELINE, UNIQUE JOB FEDERAL FUNDING, TRANSFERABLE POSTINGS, FIVE-YEAR VENTURE CAPITAL SKILLS, OCCUPATIONAL INVESTMENT OCCUPATIONAL GROWTH, PROJECTED CONCENTRATION OCCUPATIONAL GROWTH INDUSTRY VOICES One thing you immediately discover when you come “ to San Diego is this collaboration not seen anywhere else; it’s collaboration to combine the parts and pieces across industries, make sense of the data and apply it to solve problems.” Dawn Barry, Vice President, Applied Genomics, Illumina For a copy of the complete study, visit Boston has the pharmaceutical industry and the Bay Area sandiegobusiness.org/research “ has Silicon Valley, but San Diego is where the fundamental PRODUCED BY For an expanded, interactive version of the timeline, research that drives precision medicine is happening. visit GenomicsSD.org Here, genomics has its own identity.” Dr. Jorge Garces, President & CEO, AltheaDx Released in June 2017 EXECUTIVE SUMMARY SAN DIEGO IS THE WHY SAN DIEGO? LIFE CHANGING TALENT EPICENTER OF GENOMICS FUNDING THE FUTURE The genomics industry benefits from the talent graduating from the region’s top academic San Diego has an exceptional track record for creating institutions. San Diego’s quality of life and abundant job opportunities are among the top The region has provided the intellectual property and strong life sciences companies, reasons the region has a higher-than-average concentration of genomics talent; fundamental genomic research which allows the region to command a large share of $38M a fundamental ingredient for a healthy ecosystem. that has galvanized scientific 115+ genomics-related venture capital. In 2016, San Diego discovery across the globe. received nearly a quarter of all genomics VC in the U.S. FEDERAL FUNDING FIRMS 2016 As we enter into an era of $5.6B Government is in the business “ personalized medicine and of stimulating new discoveries. 1,968 2,939 3.1X technology, San Diego’s ECONOMIC Even if only a fraction of IMPACT projects succeed, the economic companies, research institutes 10K+ impacts are huge. San Diego’s AVERAGE ANNUAL UNIQUE GENOMICS-RELATED MORE CONCENTRATED and universities will continue to $292M 371 genomics ecosystem is successful GENOMICS-RELATED JOB POSTINGS THAN U.S. IN KEY pioneer discoveries across the DIRECT because of the initial investment DEGREES CONFERRED IN 2016 GENOMICS OCCUPATIONS interdisciplinary field of genomics. JOBS of government, the hard VC RECEIVED PATENTS IN GENOMICS work of researchers and the 2016 2014–2016 3.5 inventiveness of entrepreneurs.” 1 SAN DIEGO UNIVERSITIES GRADUATE MORE GENOMICS JOB MULTIPLIER: FOR EVERY DIRECT JOB IN 1 SAN DIEGO IS THE MOST PATENT INTENSIVE DEpri.g Beinnogm Riecsn ,a Dt UireCc Stoarn, CDeiengtoer for TALENT THAN ANY OTHER U.S. REGION* THE GENOMICS INDUSTRY, ANOTHER 2.5 ARE * MEASURED PER 10K JOBS GENOMICS MARKET IN THE U.S. SUPPORTED ELSEWHERE IN THE ECONOMY MAPPING THE GENOMICS INDUSTRY SURVEY SAYS: A COLLABORATIVE BUSINESS CLIMATE EMPLOYERS SEEK SPECIALIZED SKILLS AND TRAINING LOCAL FIRMS ARE SATISFIED WITH ACCESS TO... There’s a mindset here that if one of us succeeds, Companies value candidates with SURVEY SAYS: “ EDUCATION AND EXPERIENCE MATTER BIOTECHNOLOGY we all succeed; the collaboration within technical training and work-related Technical training R&D experience. Additionally, employers in San Diego’s genomics industry is amazing.” the genomics industry are more likely 86% 74% 84% Chrisa Mott, Head of Human Resources, Human Longevity, Inc. to recruit advanced degree holders. A four-year degree GENOMICS 78% The study of the function ofc goemnpolmetees s, eatn o ofr ggeanneistmic ’s BIOMEDICAL CUSTOMERS SUPPLIERS 88% 55% 1+ year of industry experience HEALTH IT DEVICE initnesrtdriusccitpiolinnsa,r iys fianel d MFG OF FIRMS RATE SAN DIEGO AS EITHER OF FIRMS SAY IT IS VERY IMPORTANT 61% drawing from multiple A GOOD OR EXCELLENT PLACE TO FOR CANDIDATES TO HAVE SOFTWARE A graduate degree industries. DO BUSINESS SKILLS SUCH AS PROGRAMMING AND 54% 80% 78% DATA ANALYTICS; AN INDICATOR OF PHARMACEUTICAL THE INCREASED IMPORTANCE OF 0 20 40 60 80 100 MFG DATA-DRIVEN HEALTH SOLUTIONS VERY IMPORTANT SOMEWHAT IMPORTANT OTHER FIRMS RESEARCH WITHIN INDUSTRY INSTITUTES NOT AT ALL IMPORTANT IT DEPENDS A HISTORY OF 1998 2003 2005 2008 2014 2017 THE FUTURE GENOMICS Illumina is founded, launching a new The Human Genome Craig Venter co-founds Invitrogen and Applied Biosystems Cost to sequence a Edico Genome takes rapid genome Five years from now the discussion Orange indicates a San Diego era of gene sequencing technologies Project is completed Synthetic Genomics combine to form Life Technologies genome falls below $1K analysis technology into the cloud “ won’t just be about genomics, but milestone how we are using our personal genetic data to drive health and wellness.” Michael Heltzen, CEO, BlueSEQ 1994 1999 2003 2007 2013 2016 Sequenom is founded, pioneering Genomics Institute of the Novartis Craig Venter sequences Introduction of Next Generation Life Technologies is acquired The Scripps Research Institute is awarded DNA-based prenatal testing Research Foundation is launched genome using shotgun method Sequencing (NGS) increases output 70x by Thermo Fisher Scientific $120M grant for large-scale genomics study For the full version, visit GenomicsSD.org SAN DIEGO IS THE WHY SAN DIEGO? LIFE CHANGING TALENT EPICENTER OF GENOMICS FUNDING THE FUTURE The genomics industry benefits from the talent graduating from the region’s top academic San Diego has an exceptional track record for creating institutions. San Diego’s quality of life and abundant job opportunities are among the top The region has provided the intellectual property and strong life sciences companies, reasons the region has a higher-than-average concentration of genomics talent; fundamental genomic research which allows the region to command a large share of $38M a fundamental ingredient for a healthy ecosystem. that has galvanized scientific 115+ genomics-related venture capital. In 2016, San Diego discovery across the globe. received nearly a quarter of all genomics VC in the U.S. FEDERAL FUNDING FIRMS 2016 As we enter into an era of $5.6B Government is in the business “ personalized medicine and of stimulating new discoveries. 1,968 2,939 3.1X technology, San Diego’s ECONOMIC Even if only a fraction of IMPACT projects succeed, the economic companies, research institutes 10K+ impacts are huge. San Diego’s AVERAGE ANNUAL UNIQUE GENOMICS-RELATED MORE CONCENTRATED and universities will continue to $292M 371 genomics ecosystem is successful GENOMICS-RELATED JOB POSTINGS THAN U.S. IN KEY pioneer discoveries across the DIRECT because of the initial investment DEGREES CONFERRED IN 2016 GENOMICS OCCUPATIONS interdisciplinary field of genomics. JOBS of government, the hard VC RECEIVED PATENTS IN GENOMICS work of researchers and the 2016 2014–2016 3.5 inventiveness of entrepreneurs.” 1 SAN DIEGO UNIVERSITIES GRADUATE MORE GENOMICS JOB MULTIPLIER: FOR EVERY DIRECT JOB IN 1 SAN DIEGO IS THE MOST PATENT INTENSIVE DEpri.g Beinnogm Riecsn ,a Dt UireCc Stoarn, CDeiengtoer for TALENT THAN ANY OTHER U.S. REGION* THE GENOMICS INDUSTRY, ANOTHER 2.5 ARE * MEASURED PER 10K JOBS GENOMICS MARKET IN THE U.S. SUPPORTED ELSEWHERE IN THE ECONOMY MAPPING THE GENOMICS INDUSTRY SURVEY SAYS: A COLLABORATIVE BUSINESS CLIMATE EMPLOYERS SEEK SPECIALIZED SKILLS AND TRAINING LOCAL FIRMS ARE SATISFIED WITH ACCESS TO... There’s a mindset here that if one of us succeeds, Companies value candidates with SURVEY SAYS: “ EDUCATION AND EXPERIENCE MATTER BIOTECHNOLOGY we all succeed; the collaboration within technical training and work-related Technical training R&D experience. Additionally, employers in San Diego’s genomics industry is amazing.” the genomics industry are more likely 86% 74% 84% Chrisa Mott, Head of Human Resources, Human Longevity, Inc. to recruit advanced degree holders. A four-year degree GENOMICS 78% The study of the function ofc goemnpolmetees s, eatn o ofr ggeanneistmic ’s BIOMEDICAL CUSTOMERS SUPPLIERS 88% 55% 1+ year of industry experience HEALTH IT DEVICE initnesrtdriusccitpiolinnsa,r iys fianel d MFG OF FIRMS RATE SAN DIEGO AS EITHER OF FIRMS SAY IT IS VERY IMPORTANT 61% drawing from multiple A GOOD OR EXCELLENT PLACE TO FOR CANDIDATES TO HAVE SOFTWARE A graduate degree industries. DO BUSINESS SKILLS SUCH AS PROGRAMMING AND 54% 80% 78% DATA ANALYTICS; AN INDICATOR OF PHARMACEUTICAL THE INCREASED IMPORTANCE OF 0 20 40 60 80 100 MFG DATA-DRIVEN HEALTH SOLUTIONS VERY IMPORTANT SOMEWHAT IMPORTANT OTHER FIRMS RESEARCH WITHIN INDUSTRY INSTITUTES NOT AT ALL IMPORTANT IT DEPENDS A HISTORY OF 1998 2003 2005 2008 2014 2017 THE FUTURE GENOMICS Illumina is founded, launching a new The Human Genome Craig Venter co-founds Invitrogen and Applied Biosystems Cost to sequence a Edico Genome takes rapid genome Five years from now the discussion Orange indicates a San Diego era of gene sequencing technologies Project is completed Synthetic Genomics combine to form Life Technologies genome falls below $1K analysis technology into the cloud “ won’t just be about genomics, but milestone how we are using our personal genetic data to drive health and wellness.” Michael Heltzen, CEO, BlueSEQ 1994 1999 2003 2007 2013 2016 Sequenom is founded, pioneering Genomics Institute of the Novartis Craig Venter sequences Introduction of Next Generation Life Technologies is acquired The Scripps Research Institute is awarded DNA-based prenatal testing Research Foundation is launched genome using shotgun method Sequencing (NGS) increases output 70x by Thermo Fisher Scientific $120M grant for large-scale genomics study For the full version, visit GenomicsSD.org SAN DIEGO IS THE WHY SAN DIEGO? LIFE CHANGING TALENT EPICENTER OF GENOMICS FUNDING THE FUTURE The genomics industry benefits from the talent graduating from the region’s top academic San Diego has an exceptional track record for creating institutions. San Diego’s quality of life and abundant job opportunities are among the top The region has provided the intellectual property and strong life sciences companies, reasons the region has a higher-than-average concentration of genomics talent; fundamental genomic research which allows the region to command a large share of $38M a fundamental ingredient for a healthy ecosystem. that has galvanized scientific 115+ genomics-related venture capital. In 2016, San Diego discovery across the globe. received nearly a quarter of all genomics VC in the U.S. FEDERAL FUNDING FIRMS 2016 As we enter into an era of $5.6B Government is in the business “ personalized medicine and of stimulating new discoveries. 1,968 2,939 3.1X technology, San Diego’s ECONOMIC Even if only a fraction of IMPACT projects succeed, the economic companies, research institutes 10K+ impacts are huge. San Diego’s AVERAGE ANNUAL UNIQUE GENOMICS-RELATED MORE CONCENTRATED and universities will continue to $292M 371 genomics ecosystem is successful GENOMICS-RELATED JOB POSTINGS THAN U.S. IN KEY pioneer discoveries across the DIRECT because of the initial investment DEGREES CONFERRED IN 2016 GENOMICS OCCUPATIONS interdisciplinary field of genomics. JOBS of government, the hard VC RECEIVED PATENTS IN GENOMICS work of researchers and the 2016 2014–2016 3.5 inventiveness of entrepreneurs.” 1 SAN DIEGO UNIVERSITIES GRADUATE MORE GENOMICS JOB MULTIPLIER: FOR EVERY DIRECT JOB IN 1 SAN DIEGO IS THE MOST PATENT INTENSIVE DEpri.g Beinnogm Riecsn ,a Dt UireCc Stoarn, CDeiengtoer for TALENT THAN ANY OTHER U.S. REGION* THE GENOMICS INDUSTRY, ANOTHER 2.5 ARE * MEASURED PER 10K JOBS GENOMICS MARKET IN THE U.S. SUPPORTED ELSEWHERE IN THE ECONOMY MAPPING THE GENOMICS INDUSTRY SURVEY SAYS: A COLLABORATIVE BUSINESS CLIMATE EMPLOYERS SEEK SPECIALIZED SKILLS AND TRAINING LOCAL FIRMS ARE SATISFIED WITH ACCESS TO... There’s a mindset here that if one of us succeeds, Companies value candidates with SURVEY SAYS: “ EDUCATION AND EXPERIENCE MATTER BIOTECHNOLOGY we all succeed; the collaboration within technical training and work-related Technical training R&D experience. Additionally, employers in San Diego’s genomics industry is amazing.” the genomics industry are more likely 86% 74% 84% Chrisa Mott, Head of Human Resources, Human Longevity, Inc. to recruit advanced degree holders. A four-year degree GENOMICS 78% The study of the function ofc goemnpolmetees s, eatn o ofr ggeanneistmic ’s BIOMEDICAL CUSTOMERS SUPPLIERS 88% 55% 1+ year of industry experience HEALTH IT DEVICE initnesrtdriusccitpiolinnsa,r iys fianel d MFG OF FIRMS RATE SAN DIEGO AS EITHER OF FIRMS SAY IT IS VERY IMPORTANT 61% drawing from multiple A GOOD OR EXCELLENT PLACE TO FOR CANDIDATES TO HAVE SOFTWARE A graduate degree industries. DO BUSINESS SKILLS SUCH AS PROGRAMMING AND 54% 80% 78% DATA ANALYTICS; AN INDICATOR OF PHARMACEUTICAL THE INCREASED IMPORTANCE OF 0 20 40 60 80 100 MFG DATA-DRIVEN HEALTH SOLUTIONS VERY IMPORTANT SOMEWHAT IMPORTANT OTHER FIRMS RESEARCH WITHIN INDUSTRY INSTITUTES NOT AT ALL IMPORTANT IT DEPENDS A HISTORY OF 1998 2003 2005 2008 2014 2017 THE FUTURE GENOMICS Illumina is founded, launching a new The Human Genome Craig Venter co-founds Invitrogen and Applied Biosystems Cost to sequence a Edico Genome takes rapid genome Five years from now the discussion Orange indicates a San Diego era of gene sequencing technologies Project is completed Synthetic Genomics combine to form Life Technologies genome falls below $1K analysis technology into the cloud “ won’t just be about genomics, but milestone how we are using our personal genetic data to drive health and wellness.” Michael Heltzen, CEO, BlueSEQ 1994 1999 2003 2007 2013 2016 Sequenom is founded, pioneering Genomics Institute of the Novartis Craig Venter sequences Introduction of Next Generation Life Technologies is acquired The Scripps Research Institute is awarded DNA-based prenatal testing Research Foundation is launched genome using shotgun method Sequencing (NGS) increases output 70x by Thermo Fisher Scientific $120M grant for large-scale genomics study For the full version, visit GenomicsSD.org HOW SAN DIEGO STACKS UP UNDERWRITTEN BY illumina The genomics scorecard uses innovation, talent and growth metrics to compare the top ten life sciences U.S. metros with populations over one million. San Diego’s composite score ranks it as the number two genomics market in the nation. RESEARCH SUPPORT BY CRACKING #9 Minneapolis #1 Boston SPONSORED BY THE CODE: #10 Chicago #6 Philadelphia #5 Salt Lake City #8 Indianapolis #3 San Francisco THE ECONOMIC IMPACT OF #4 San Jose #7 Raleigh S A N D I E G O ’ S #2 SAN DIEGO GENOMICS INDUSTRY SAN DIEGO RANKS INNOVATION TALENT GROWTH #2 #2 #4 INNOVATION TALENT GROWTH PATENT INTENSITY, GRADUATE PIPELINE, UNIQUE JOB FEDERAL FUNDING, TRANSFERABLE POSTINGS, FIVE-YEAR VENTURE CAPITAL SKILLS, OCCUPATIONAL INVESTMENT OCCUPATIONAL GROWTH, PROJECTED CONCENTRATION OCCUPATIONAL GROWTH INDUSTRY VOICES One thing you immediately discover when you come “ to San Diego is this collaboration not seen anywhere else; it’s collaboration to combine the parts and pieces across industries, make sense of the data and apply it to solve problems.” Dawn Barry, Vice President, Applied Genomics, Illumina For a copy of the complete study, visit Boston has the pharmaceutical industry and the Bay Area sandiegobusiness.org/research “ has Silicon Valley, but San Diego is where the fundamental PRODUCED BY For an expanded, interactive version of the timeline, research that drives precision medicine is happening. visit GenomicsSD.org Here, genomics has its own identity.” Dr. Jorge Garces, President & CEO, AltheaDx Released in June 2017 EXECUTIVE SUMMARY pART X: INSERT SECTION NAME SUBSECTION CRACKING THE CODE: THE ECONOMIC IMpACT OF SA N DI E G O ’ S GENOMICS INDUSTRy pRODUCED By FULL REpORT CRACKING THE CODE: THE ECONOMIC IMPACT OF SAN DIEGO’S GENOMICS INDUSTRY | 1 FOREwORD Fifteen years ago, if I walked into a room of non-scientists, the term genomics was not part of the everyday lexicon. And perhaps it still isn’t. But today, genomics is becoming recognized as an industry that is shaping the future of medicine, science and quality of life across the globe - and San Diego has played a defining role in its growth and progress. When I travel internationally and tell people that I am from San Diego they often first remark about our beautiful weather. Yet with each passing year, they are recognizing us more and more as a world-class destination for biotechnology, scientific research and innovation. At San Diego Regional EDC, this is something we are very proud of - proud to live in a region that is at the forefront of developing cures for diseases, proud to be one of the most patent intensive regions in the country and proud to be home to world-changing genomics companies like Illumina and scientific pioneers like J. Craig Venter. Yet with all of our assets and resources, we simply cannot call San Diego the epicenter of genomics without the data to back it up. This is why EDC and our partners, investors and sponsors embarked on this economic impact study. For months, our research team has pored over data, conducted surveys and interviews with industry experts and condensed the information so that San Diegans - and those looking to learn more about our region - can make informed decisions about our economy. It has not been easy work. But with this study, we are one of the first regions in the country to quantify the economic impact of a specific, regional genomics industry. At a time when NIH funding is in jeopardy and fundamental science is being called into question, we must prioritize understanding the real facts around genomics and the life sciences. Part of this is better understanding the industry’s impact on jobs, business growth and economic opportunities. Our hope is that policy makers, economic development groups and companies can use this information to plan for the future - to ensure that our children are better equipped for jobs and careers, and that we understand the long-term importance of investing in this work. When all is said and done, San Diego may not be number one in genomics (but we are pretty close). We care deeply about the integrity of this data and we must remain true to that. But through the many executive interviews we conducted, we came to realize that there was something else happening here that the data and research cannot quite do justice to. What came through in opinions, documents and data alike, was that an unmistakable ‘culture of collaboration’ is the cornerstone San Diego’s growing industry - much like it is the cornerstone of our region. Simply put - San Diego businesses and institutions work together to conduct the fundamental research that powers global innovation and changes the world around us. This is why Jonas Salk first came to San Diego. It is why companies like Thermo Fisher Scientific, Illumina and Human Longevity, Inc. continue to grow here. There is just something special about San Diego. And that is something that no economic impact study can ever truly measure and that few other regions will ever be able to replicate. Mark Cafferty, President & CEO, San Diego Regional EDC CRACKING THE CODE: THE ECONOMIC IMPACT OF SAN DIEGO’S GENOMICS INDUSTRY | ii TABLE OF CONTENTS ONE pART 1: INTRODUCTION THREE pART 2: OBjECTIvES FOUR pART 3: A BRIEF HISTORy OF GENOMICS SEvEN pART 4: ECONOMIC IMpACT THIRTEEN pART 5: EvALUATING OUR ECOSySTEM FIFTEEN INNOvATION NINETEEN TALENT TwENTy-THREE GROwTH TwENTy-SIX pART 6: FUTURE OF THE INDUSTRy THIRTy AppENDICES CRACKING THE CODE: THE ECONOMIC IMPACT OF SAN DIEGO’S GENOMICS INDUSTRY |iii “ One thing you immediately discover when you come to San Diego is this collaboration not seen anywhere else – it’s collaboration to combine the parts and pieces, make sense of the data and apply it to solve problems.” Dawn Barry, Vice President, Applied Genomics, Illumina CRACKING THE CODE: THE ECONOMIC IMPACT OF SAN DIEGO’S GENOMICS INDUSTRY | iv pART 1: INTRODUCTION SCIENCE & INDUSTRy THE MAKING OF AN INDUSTRy In 1953, two young scientists at Cambridge University, James Watson and Francis Crick, finally found “the secret of life,” identifying this double-helix structure of DNA. More than 5,000 miles away and 40 years later, this fundamental discovery would spawn an industry that has redefined a region and, more importantly, significantly impacted both humanity and the global economy. At the time of Watson and Crick’s discovery, the San Diego region was home to a little more than 500,000 individuals and known primarily as a fishing and military town. UC San Diego and the Salk Institute would not open their doors for another decade, sparking a local scientific revolution and an ethos of public-private collaboration that would set San Diego up for success in the genomics industry. Fast forward to today, and the San Diego region is home to 3.4 million people and has consistently been identified as a top life sciences market in the country.1 In recent years, a major driver of scientific innovation has been the genomics industry. With anchors such as Illumina and Thermo Fisher Scientific, research institutes and startups that help interpret and store genomic data, San Diego companies have collaborated to propel this once-nascent industry into a global powerhouse. THE HUMAN GENOME pROjECT The Human Genome Project, an international and collaborative scientific endeavor led at the National Institutes of Health (NIH) by the National Human Genome Research Institute (NHGRI), is credited with identifying and sequencing all genes in the entire human genome. Successfully completed in 2003, the Human Genome Project produced a very high-quality version of the human genome sequence that is freely available in public databases and essentially serves as the foundation for all subsequent research and advancements in the field of genomics. The sequence was not of one person, but rather a composite derived from several volunteers to ensure anonymity. This produced a “representative” or generic sequence. The Human Genome Project was designed to generate a resource that could be used for a broad range of biomedical studies, such as to look for the genetic variations that increase risk of specific diseases, or to look for the type of genetic mutations frequently seen in cancerous cells.2 For an interactive timeline of San Diego’s genomics industry, please visit GenomicsSD.org A HISTORy OF 1953 1977 GENOMICS  James Watson and Francis Crick discover Frederick Sanger develops rapid the double helix structure of DNA Orange indicates a San Diego DNA sequencing technique milestone 1865 1961 1983 Gregor Mendel, the father of modern Genomics Institute of the Novartis Huntington’s disease becomes the first genetics, presents his research on Research Foundation is launched genetic disease mapped using DNA experiments in plant hybridization polymorphisms CRACKING THE CODE: THE ECONOMIC IMPACT OF SAN DIEGO’S GENOMICS INDUSTRY | 1