Bay Area Biotech Job Outlook Is Partly Sunny

While "offshoring" and outsourcing are bitter words for many U.S. job hunters, a new report, "The Future of Bay Area Jobs," puts this business practice in perspective and offers some positive biotech job news for the region.

The report was completed by the management consulting firm A. T. Kearney in collaboration with the Bay Area Economic Forum, Joint Venture: Silicon Valley Network, and Stanford Project on Regions of Innovation & Entrepreneurship. It draws on 120 interviews, an analysis of 9,000 job listings, and other data.

According to the report, Bay Area biotechnology can expect an average annual job growth rate of 5 to 9% over the next 10 years. As information technology (IT), biotech, and nanotech evolve, 150,000 to 500,000 bio- and nanotech jobs could be created over the next 10 to 15 years. "In the biotech industry, the main job growth in the Bay Area will come from the research and product development function. Almost 60% of jobs will be in these areas," Matthew M. Gardner, president of BayBio, says in the study. BayBio is Northern California's bioscience association.

The report also observes that investors are increasingly pressuring early-stage IT as well as biotech companies to explore offshoring. Bay Area biotech companies are beginning to manufacture in China, Singapore, Ireland, Wales, and other "low-cost locations." Some firms seek to move their clinical trials overseas.

Size is a decisive factor: Expanding companies with 100 to 200 employees are more likely to create jobs outside the Bay Area. Biotech venture capitalists interviewed for the report say that, relative to the East Coast, the Bay Area has a shortage of pharmaceutical talent for later stage product development.