San Diego: The Life Sciences Capital of the U.S.

• UC San Diego as a Driving Force: UCSD plays a pivotal role in San Diego's life sciences success, producing more STEM graduates than institutions like Stanford and Berkeley combined. These highly talented individuals often choose to stay in the region, fueling the local workforce and driving innovation within the life sciences industry. UCSD’s top-tier education system, combined with its emphasis on research, positions the university as a powerful engine for the city’s economic growth.

• Robust Life Sciences Industry: San Diego is home to nearly 2,000 life sciences companies, generating 76,000 direct jobs and contributing $56 billion to the local economy. The industry is poised for even greater growth, with plans to add 3.2 million square feet of lab and research space by 2025. This expansion, along with the region's top-tier infrastructure and talent pool, positions San Diego as a leading player in biotechnology and life sciences.

• Venture Capital Fuels Innovation: San Diego leads the U.S. in life sciences venture capital investment on a per capita basis, attracting over $3.6 billion in funding in 2025. This significant capital infusion enables biotech startups to scale their operations and bring groundbreaking innovations to market. The synergy between venture capital, UCSD’s research output, and the thriving business ecosystem fosters continued innovation, ensuring San Diego's place as a global life sciences hub.

San Diego has long been a leader in biotechnology, life sciences, and innovation. With its sprawling coastline, pleasant climate, and thriving cultural scene, it might not be the first place that comes to mind when you think of cutting-edge science and technology, but in reality, the city has quietly become one of the most influential life sciences hubs in the United States. One of the most compelling aspects of San Diego's rise to prominence is its ability to attract venture capital, and it now boasts the highest per capita venture capital investment in life sciences of any major U.S. city. Several factors contribute to this success, including a robust academic ecosystem, strategic location, and growing infrastructure.

A Powerful Engine of Innovation: UC San Diego

At the heart of San Diego's life sciences boom is UC San Diego (UCSD), a world-class institution that plays a critical role in shaping the region's economic landscape. Recently, while watching a segment on 10News, a local real estate expert noted something particularly profound: "UCSD is an economic engine that's hard to replace. We're graduating more STEM degrees out of that university than Berkeley and Stanford combined." This point succinctly encapsulates the centrality of UCSD to the city's thriving life sciences sector.

The numbers back up this claim. UCSD has long been a leader in the production of STEM (science, technology, engineering, and mathematics) graduates. These graduates often choose to stay in San Diego, contributing to the local workforce and fueling the life sciences industry. The high caliber of students UCSD produces is evident when looking at the average SAT scores of admitted students. With all three institutions—UCSD, Berkeley, and Stanford—boasting average SAT scores in the top 5%, UCSD's students rank among the brightest minds in the country. In fact, the top 25% of UCSD's admitted students score in the top 1% nationwide. The result is a consistent pipeline of smart, driven individuals who are not only prepared for academic success but also capable of making tangible contributions to the world of biotechnology and life sciences.

Many of these graduates remain in San Diego after completing their degrees, choosing to build careers in the region's booming life sciences ecosystem. This retention of top-tier talent is one of the key factors that fuels the area's ongoing growth in life sciences innovation.

The Expanding Life Sciences Industry in San Diego

San Diego is home to nearly 2,000 life sciences-related companies, a significant number that highlights the depth of the region's industry. These companies range from early-stage startups to global powerhouses, each playing a vital role in advancing medical research, pharmaceuticals, diagnostics, and biotechnology. As of recent estimates from Biocom California, these companies collectively provide 76,000 direct jobs to the region, with an average salary of $135,000—an impressive 15% premium over the city’s overall average wage. In addition to job creation, these companies contribute an astonishing $56 billion to the region's economic output, further underscoring the importance of the life sciences sector to San Diego's prosperity.

But it’s not just the sheer number of companies or the impressive economic output that stands out. San Diego's life sciences industry is poised for even greater growth in the coming years. By the end of 2025, over a dozen major life sciences buildings and campuses are scheduled to be completed, adding more than 3.2 million square feet of lab and research space to the region. This expansion will provide the infrastructure needed to support the continued growth of the industry, offering companies the space to innovate and develop new treatments and technologies.

Venture Capital: The Fuel for Growth

Perhaps the most compelling statistic that highlights San Diego’s status as a life sciences powerhouse is its remarkable success in attracting venture capital. In 2025, San Diego's life sciences sector has already attracted over $3.6 billion in venture capital funding. This figure places San Diego among the top cities for venture capital investment, with only the record-breaking years of 2020 and 2021 surpassing this amount. What sets San Diego apart is not just the total amount of funding but the fact that the region leads the nation in life sciences venture capital investment on a per capita basis. The influx of venture capital is essential for the growth and success of biotech startups, as it enables these companies to fund their research and development efforts, scale their operations, and bring new drugs, treatments, and technologies to market.

Venture capital has played a pivotal role in San Diego’s ability to maintain its competitive edge in life sciences innovation. The region’s venture capital firms are willing to bet on the promise of groundbreaking discoveries in biotechnology and pharmaceuticals, creating a feedback loop in which innovation attracts more capital, which in turn fosters even more innovation. This synergy between venture capital, academia, and business has proven to be a powerful catalyst for the region's rapid growth in the life sciences sector.

Why San Diego?

What makes San Diego such an attractive destination for life sciences companies and investors? The city offers a unique combination of factors that make it an ideal location for biotech innovation. First and foremost, the region’s proximity to UC San Diego and other renowned research institutions creates a highly collaborative environment where academia and industry can work together to tackle some of the world’s most pressing medical challenges.

San Diego’s geographic location also gives it an edge in terms of access to global markets. Situated along the U.S.-Mexico border, San Diego is ideally positioned to facilitate international business partnerships and expand its influence in the global life sciences industry. The city’s established infrastructure, which includes world-class research facilities, a strong workforce, and a robust healthcare system, makes it an attractive hub for life sciences companies looking to make an impact.

Additionally, the climate and quality of life in San Diego play a role in the region’s appeal. Unlike other biotech hubs, such as Boston or the Bay Area, San Diego offers a more affordable cost of living while still maintaining a high standard of living, including year-round pleasant weather and access to beautiful outdoor spaces. This makes it easier for companies to attract and retain talent, as employees are drawn to both the professional opportunities and the lifestyle the city offers.

Looking to the Future

With over $3.6 billion in venture capital funding and millions of square feet of new research space set to open in the coming years, San Diego is primed to continue its leadership in life sciences innovation. The region’s combination of academic excellence, strategic location, robust infrastructure, and talent retention makes it a standout player in the biotech and life sciences fields.

As the industry continues to evolve, it is clear that San Diego’s success will be driven by its ability to leverage the strengths of its ecosystem, from UCSD’s STEM graduates to its thriving venture capital environment. With a continued focus on research, innovation, and collaboration, San Diego will remain at the forefront of the global life sciences landscape, cementing its place as one of the most important biotech hubs in the world.

In conclusion, San Diego’s life sciences sector is a shining example of how a well-coordinated academic, entrepreneurial, and investment ecosystem can drive economic success. Through a combination of top-tier academic institutions, venture capital funding, and a favorable business environment, the city is not just part of the life sciences revolution—it is helping lead it.