![Sustaining California's Innovation Economy Through Investment in R&D](/sites/default/files/styles/medium/public/2021-11/Cover-Sustaining%20California%27s%20Innovation%20Economy%20through%20Investment%20in%20R%26D%20cover_0.jpeg?itok=6-cV2i00)
Sustaining California's Innovation Economy Through Investment in R&D
This report builds on prior research by documenting more recent trends in private-sector R&D investment and their positive impact on employment and wages across the state. California has historically enjoyed a comparative advantage in innovation-fueled growth relative to other US states, but this advantage is closely tied to the presence of dedicated policies supporting local investment in R&D. Recent changes to those policies could make it more difficult to attract R&D that supports high-tech, high-wage industries and jobs. A reduction in R&D investment could hamper the state’s short-term recovery from the COVID-19 pandemic as well as its long-term growth prospects.