Author: Eric Eide, Managing Director, Alliance for SoCal Innovation
Southern California’s innovation ecosystem continues to evolve and thrive, and it’s inspiring to see this transformation up close every day at the Alliance for SoCal Innovation. Through our programs and events, we’re privileged to connect key players across the ecosystem and help advance the region’s vast innovation potential.
Thanks to our strategic partner, Boston Consulting Group (BCG), and their latest analysis, we’ve had the opportunity to step back, evaluate our progress, celebrate achievements, and identify areas that need more attention. This renewed partnership is part of our 5-year strategic roadmap and builds on BCG’s groundbreaking 2018 report, Stars Aligning: How Southern California Could Be the Next Great Tech Ecosystem. That report outlined six essential ingredients for a thriving innovation ecosystem, and the updated metrics show just how far we’ve come.
The fresh insights reveal exciting trends in SoCal's startup and VC landscape, the growth of our world-class academic institutions, and how we compare to other major tech hubs.
Here’s a sneak peek at some highlights from the updated data:
Ecosystem Health: From 2017 to 2023, SoCal’s ecosystem health has improved slightly overall, with financial capital seeing the strongest growth, while infrastructure has faced the biggest challenges.
Venture Funding: Despite a COVID-era investment bubble, venture funding has nearly doubled since 2017, settling back to sustainable levels after a period of historic highs.
Startups: The number of startups in the region has grown slightly, with a peak during the pandemic.
Talent: Graduates from top research universities have increased by an impressive 20% since 2017, outpacing other leading U.S. tech hubs.
Challenges: Headwinds remain in the corporate environment, as SoCal has fewer top corporations compared to other tech hubs. Liveability metrics, infrastructure, and cost of living have also declined.
The data underscores the remarkable progress SoCal has made and highlights areas for collective action as we continue to build a globally competitive innovation ecosystem.
Want to dive deeper into what makes Southern California a unique hub for innovation—or explore how you can get involved? Check out the data slides that follow, or feel free to reach out to me directly at Eric@AllianceSoCal.org. Let’s shape the future of innovation together!
Eric Eide, Managing Director, Alliance for Southern California Innovation