California is the birthplace of the U.S. biotechnology industry and home to a large share of the industry. The state accounts for 47 percent of national R&D spending on biotechnology and generates 53 percent of the nation’s biotech revenues. In this volume, the authors provide a detailed examination of the biotech industry in California. They look in particular at the relationship between venture capital and the formation of new firms, the entrepreneurs who start these firms, and the extent to which biotech firms are leaving California. Although more biotech establishments have moved out of California than have moved into the state, the authors point out that California’s strength in research, as well as its large share of the U.S. biotech industry, will continue to make it one of the most attractive places to form biotech companies. The state’s strong research capacity, long tradition of venture capital investment, and high quality labor pool already provide the necessary ingredients for a highly successful biotech economy.