Livermore Lab Positively Impacts Regional Economy

The Lawrence Livermore National Laboratory has a significant positive impact on the regional and state economy.

's (LLNL) mission to ensure the safety and security of the nation through applied science and technology has a benefit that is often overlooked — a significant impact on the California and regional economies.

From a fiscal year 2011 budget of $1.6 billion, LLNL had a payroll base of more than $700 million for its ~6,500 employees who live, shop, educate their children, and enjoy recreational opportunities in the Tri-Valley and regional communities.

In addition, LLNL awarded more than $573 million in procurements to a diverse group of large and small businesses, both in California and across the nation, for a broad range of products and services that support the laboratory's overall mission. In California alone, procurement awards exceeded $255 million.

Of that, Tri-Valley procurement awards, including supplemental labor hires, approached $119 million.

Funding for LLNL's research largely comes from the Department of Energy's (DOE) National Nuclear Security Administration (NNSA) Office of Defense programs. Support also comes from the NNSA Office of Defense Nuclear Nonproliferation, the Department of Homeland Security, various Department of Defense sponsors, and other federal agencies.

LLNL also infuses the economy through its Industrial Partnerships Office (IPO), which helps the laboratory connect industry partners with LLNL-developed technologies. This can be accomplished using license agreements, work for others agreements, cooperative research and development agreements (CRADA), and other partnering opportunities.

IPO currently has active commercial licenses with more than 100 companies in the United States and internationally, as well as dozens of active CRADAs. Licensing and royalty income in recent years has topped $8 million annually, which has represented as much as $400 million in annual sales of products based on laboratory technologies. LLNL-licensed technologies have enabled the launch of numerous new businesses that are helping drive economic growth locally, regionally and beyond.

"The laboratory strives to be a valued and contributing member of the community either through procurement opportunities with myriad vendors or partnerships that benefit the nation," Director Parney Albright said.

A recent LLNL initiative intended to further engage potential industry partners is the Livermore Valley Open Campus (LVOC), a joint collaboration between Livermore Laboratory and /California. LVOC is being developed as an open, unclassified research and development space on the east side of the two laboratory sites, and is modeled after research and development campuses found at major industrial research parks and other DOE laboratories. 

The motivation for the LVOC stems from current and future national security challenges that require increased partnerships with the private sector to better understand threats and deploy solutions in areas such as energy and environmental security, economic security, cyber security, high performance computing and non-proliferation. For more information go to www.llnl.gov/lvoc/lvoc.html.

Lawrence Livermore National Security (LLNS), LLC, the laboratory's manager, also contributes to the region through its annual $100,000 Community Gift Program supporting organizations primarily involved in science, math education and cultural arts. Recent recipients include the 's Science Odyssey, Pleasanton Unified School District's Village High School and Horizon Science and Math Program, Tri-Valley Housing Opportunity Financial Literacy Education for At-Risk Youth and Young Adults, and Dublin Unified School District's Middle School Gateway to Technology, Project Lead the Way Engineering Academy.

LLNL employees also support the community through the annual employee donation campaign, Helping Others More Effectively, or HOME. Last year, LLNL raised a record $3.4 million dollars through HOME (which included a $1 million LLNS match), which was distributed to non-profit and support agencies throughout the Bay Area.

"Our commitment to the laboratory goes beyond fulfilling our scientific missions," Albright said. "It includes being a good neighbor to our surrounding communities."


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