Employee Income of Biopharmaceuticals, Medical Devices, & Health Services Industry Cluster
Graph interpretation:
In Los Angeles County, the average worker in the Biopharmaceuticals, Medical Devices, & Health Services industry cluster (“Bio”) has historically made about the same amount as the average worker in any occupation. Most recently, in 2016 and 2017, the average worker in the Bio industry earned slightly less income. However, the 2017 wage of $59,186 is still more than double the living wage of $28,163 needed for a single individual to cover their basic needs in Los Angeles County.
What is the Biopharmaceuticals, Medical Devices, & Health Services industry cluster?
The Bio industry cluster is one of the key industry clusters in Los Angeles County, and it is composed of the three separate smaller industry clusters in its name, including two traded and one local.
Through random sampling, Propel L.A. selected:
- Pharmaceutical and Medicine Manufacturing (NAICS 3254) & Pharmacies and Drug Stores (NAICS 44611) for the traded Biopharmaceuticals industry cluster
- Medical Equipment and Supplies Manufacturing (NAICS 3391) & Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers (NAICS 42345) for the traded Medical Devices industry cluster
- Medical and Diagnostic Laboratories (NAICS 6215) for the local Health Services industry cluster
What is an industry cluster?
An industry cluster is “a regional concentration of related industries in a particular location. Clusters are a striking feature of economies, making regions uniquely competitive for jobs and private investment. They consist of companies, suppliers, and service providers, as well as government agencies and other institutions that provide specialized training and education, information, research, and technical support” (Institute for Strategy and Competitiveness, Harvard Business School, n.d.).
There are two types of industry clusters: traded and local. A traded cluster serves markets beyond the region in which they are located. Economists recognize traded clusters as “engines” of regional economies that allow a region to reach high levels of overall economic performance. A local cluster, on the other hand, only serves the local market in which the region is located.
Technical details:
Average annual income was calculated in nominal wage by taking the weighted average of all private wages in the selected NAICS industries. Due to large population size of NAICS industries in the Bio cluster, Propel L.A. selected five through random sampling to represent this particular cluster. Note that the summary of results may be slightly biased due to the NAICS industries being nonexhaustive. Lastly, annual living wage is determined by the MIT Living Wage Calculator under the assumption that an individual works full-time at 2,080 hours a year.