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Ground View

California competes with other states for the location of R&D facilities and manufacturing plants. With high state taxes, high housing prices, a strict regulatory environment, and a state government that has operated for years on the brink of fiscal crisis, California faces the challenge of demonstrating the value of doing business in the state. This challenge is magnified because, increasingly, competition for research talent and manufacturing is becoming global, with companies as likely to operate in Singapore or Ireland as in Vacaville, California. The following snapshots provide a perspective from three companies, AllerganBoehringer Ingelheim and Edwards Lifesciences, which span the spectrum of life sciences activities in California from discovery and innovation to manufacturing.

CEO Survey: If your company is expanding, which of the following are the top five factors influencing your decision to locate or expand your operation inside of California?

Reasons to Expand

The No. 1 reason to locate in California according to our CEO survey is access to a skilled workforce. Other reasons include the company being founded in California, the culture of entrepreneurship or innovation, quality of life and access to funding capital, leading research universities and other industry companies.

CEO Survey: If the company’s operations have reduced INSIDE OF CALIFORNIA, select the reasons why.

20. If the company’s operations have reduced inside of California, select reasons why.

The No. 1 reason why companies have reduced operations is due to cost cutting initiatives followed by the overall business climate and cost of doing business in California.

CEO Survey: Has your headcount expanded, held steady or reduced for the company’s operations INSIDE OF CALIFORNIA in the past year?

Headcount Inside CA

CEO Survey: Have the following headcount expanded, held steady or reduced for the company’s operations OUTSIDE OF CALIFORNIA in the past year?

Headcount Outside California

Similar to past years, research and development and workforce headcount expanded over the past year both inside and outside of California.

CEO Survey: Do you expect the following headcount listed below to expand, hold steady or reduce INSIDE OF CALIFORNIA in the next two years?

Expected Headcount Inside California

Similar to past years, companies expected to expand research and development and workforce headcount over the next two years.

SNAPSHOT:
DEVELOPMENT
Allergan

Allergan
Allergan
“California is our home. Allergan was founded in California more than 60 years ago. We want to stay here but we also want to build for the future growth of our company. California needs to recognize that other states make it easier than California to do business – at a more reasonable cost.”

David E.I. Pyott, Chairman of the Board, President, and CEO, Allergan

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SNAPSHOT:
DEVELOPMENT
Boehringer Ingelheim

Boehringer Ingelheim
Boehringer Ingelheim
“Innovation is increasingly important to California as market globalization takes a stronger hold. As we know, many jobs formerly rooted in California have since moved on to other states, or worse yet, other countries. The one clear competitive advantage California has held firmly is Innovation. This is the fuel that powers our future economy. As a State, we should be doing everything in our power to preserve and promote technology and innovation centers, in fact, let’s start by being innovative about promoting innovation. It’s time to get outside the box.”

Ralf Otto, Ph.D., Vice President Biopharma Operations USA, Site Head, Boehringer Ingelheim Fremont, Inc.

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SNAPSHOT:
MANUFACTURING
Edwards Lifesciences

Edwards Lifesciences
Edwards Lifesciences
“Although the cost of doing business in California is higher than many other areas, the state also offers access to first-rate infrastructure, outstanding public schools and a positive quality of life. These factors provide great opportunities for a skilled workforce, whether they are looking to establish a new job in the industry or are building long-term careers.”

Michael Mussallem, Chairman and CEO, Edwards Lifesciences

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