A recent study: California's high concentration of tech companies will boost industry demand

The Scientific Research and Development industry in California has grown over the five years to 2017. Industry operators perform physical, engineering, life science, biomedical and other types of research and development (R&D) for a variety of government and private clients. The industry has grown over the past five years as R&D expenditures grew quickly over the period. The expansion of the technology sector has been the largest proponent of growth for the California industry over the past five years. California currently serves as a technology hub in the United States, with areas such as Silicon Valley being a center for scientific and technological innovation. An increasing number of technology firms have opened in Silicon Valley over the past five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$36bn
Annual Growth 12-17
2.8%
Forecast Growth 17-22
Profit
Employment
131,918
Businesses
3,573

Industry Threats & Opportunities

  • The expansion of the technology sector has been the largest proponent of California industry growth
  • California businesses have been able to increasingly invest in R&D expenditures, boosting industry revenue
  • Shifting trends are expected to prompt growth of new technology hubs in other areas of California
  • Industry Report - Industry Investment Chapter

    The Scientific Research and Development industry in California exhibits a low level of capital intensity due to wages being the most substantial cost among industry operators. The IBISWorld estimates that for every dollar spent on labor, about $0.04 is spent on capital. The industry is highly labor intensive, with wages accounting for about 55.2% of the average operator's revenue in 2017. The industry's high wage requirements reflect the skilled labor needed for scientific research and development (R&D). However, capital equipment costs in the industry are relatively high, as costly equipment is still required to conduct R&D for specialized fields...purchase to read more.

    Additional Insights for the Scientific Research & Development in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Scientific Research & Development in California Industry are

  • Having a good reputation
  • Provision of appropriate facilities
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Local and State Government Expenditure in California and Corporate profit in the Scientific Research & Development in California industry impact industry performance..

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    What's in this report

    What is the Scientific Research & Development in California Industry?

    This industry includes companies and organizations that are involved in physical, engineering or life sciences research and development (R&D). The industry only includes operators whose primary purpose is R&D and excludes players such as pharmaceutical or manufacturing companies that may undertake R&D to support their primary operations. Government entities are also excluded from this industry, though these entities may contract and fund the research this industry undertakes.

    Industry Products
  • Physical and engineering sciences
  • Life sciences
  • Biotechnology
  • Industry Activities
  • Agriculture research and development laboratories or services
  • Biotechnology research and development laboratories or services
  • Cancer research laboratories or services
  • Computer and related hardware research and development laboratories or services
  • Environmental research and development laboratories or services
  • Genetics research and development laboratories or services
  • Health research and development laboratories or services
  • Mathematics research and development laboratories or services
  • Medical research and development laboratories or services
  • Physics research and development laboratories or services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Local and State Government Expenditure in California
  • Corporate profit
  • Research and development expenditure
  • Yield on 10-year Treasury note

  • Current Performance
  • California technology
  • The economy
  • The government
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Technology businesses in California
  • The economy
  • Industry structure
  • Table: Scientific Research & Development in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Scientific Research & Development in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Baking Mix & Prepared Food Production
  • Generic Pharmaceutical Manufacturing
  • Semiconductor Machinery Manufacturing
  • Printing, Paper, Food, Textile & Other Machinery Manufacturing
  • Computer Manufacturing
  • Aircraft, Engine & Parts Manufacturing
  • Space Vehicle & Missile Manufacturing
  • Geophysical Services

  • Key Selling Industries
  • Chemical Wholesaling
  • Electrical Equipment Manufacturing
  • Glass Product Manufacturing
  • Glasses & Contact Lens Manufacturing
  • Inorganic Chemical Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Organic Chemical Manufacturing
  • Plastic Pipe & Parts Manufacturing

  • Products & Services
  • Physical and engineering sciences
  • Other
  • Life sciences
  • Biotechnology
  • Chart: Scientific Research & Development in California Industry Products and Services Segmentation

  • Major Markets
  • Businesses
  • Government
  • Other
  • Chart: Major Market Segmentation for the Scientific Research & Development in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Chart: Cost Structure Benchmarking – Sector vs Scientific Research & Development in California

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Scientific Research & Development in California Industry

  • Battelle Memorial Institute, Laboratory Corporation, MITRE Corporation, University of California,
  • Table: Battelle Memorial Institute - financial performance
  • Table: Laboratory Corporation - financial performance
  • Table: MITRE Corporation - financial performance
  • Table: University of California - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Scientific Research & Development in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Scientific Research & Development in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Local and State Government Expenditure in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Life Sciences
  • A category in R&D that comprises biotechnology, biological sciences and medical sciences.
  • Materials Technology
  • A category that deals with the development of materials that can survive hostile environments, have greater strength-to-weight ratios or offer energy-saving applications.
  • Medical Diagnostic Imaging
  • A category in R&D related to the development of speedy, cost-effective and noninvasive medical equipment.
  • Nanotechnology
  • The study of controlling matter on an atomic and molecular scale.
  • Physical And Engineering Sector
  • An R&D category that comprises earth and environmental sciences and chemistry and chemical engineering.
  • Synchrotron
  • Also known as the atom-smasher. It is used in quantum-mechanics research by sending atoms along an underground circuit in order to break the atoms apart and study the results.
  • What Our Customers Say

    Why buy this report?

    The Scientific Research & Development in California industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Scientific Research & Development in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Scientific Research & Development in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Scientific Research & Development in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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