Over the past decade or so, Southern California (SoCal) has evolved into a vibrant hub of medtech innovation and growth. More than 100 industry leaders, start-ups, and scale-ups are headquartered in the region, representing more than $100 billion in market cap and more than $20 billion in annual revenues. SoCal medtech companies have also rewarded shareholders; from 2013 to 2023, they saw average shareholder returns of about 19.3 percent, substantially higher than the overall industry average (11.8 percent) and the S&P 500 (12.9 percent).
A primary factor underpinning the growth of SoCal’s medtech industry is companies’ relentless focus on innovation. The region is home to many companies pioneering diverse and novel technologies to improve care and outcomes for patients worldwide. SoCal’s medtech industry is also notable for its heterogeneity, with many different segments targeting a broad array of patient types and unmet needs. This distinctive mix of companies, with few local direct competitors, encourages an environment for knowledge sharing, attraction and development of talent, and investment flows.
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