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SOUTHERN CALIFORNIA JOB MARKET : TECHNOLOGY’S CHANGING FACE : R&D; IS STILL A GOOD BET : HIRING IS PROCEEDING APACE AT BIOTECH, COMPUTER FIRMS

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TIMES STAFF WRITER

Amgen Inc., a biotechnology company based in Thousand Oaks, slowed its hiring of scientists in recent months, but not because of the recession.

“We couldn’t find places to put them,” said Mark J. Brand, a spokesman for the fast-growing company, which has made a splash in the medical community with a gene-spliced protein that treats chronic anemia in patients with kidney disease.

Once a new multimillion-dollar research facility opened at the company’s campus-like headquarters last fall, recruitment of protein chemists, biologists, microbiologists and other researchers began again in earnest.

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Brand said the company, with about 1,200 employees worldwide, anticipates hiring at least a dozen scientists in the near future.

“We are very conservative in our financial picture,” he said. “We believe we have almost an obligation to be aggressive in the lab.”

Tough economic times have forced many companies to cut spending--even on research and development, the critical foundation on which future products and profits are built at high-tech, biomedical and pharmaceutical concerns.

But in a handful of industries with strong presences in California, particularly biotechnology, computer software and environmental cleanup, R&D; hiring is proceeding apace.

These jobs aren’t for everyone, of course. Most require at least an undergraduate college education or a Ph.D. in a science such as biochemistry or pharmacology, if not several years of additional research experience. However, young people fresh from college can also find a place at some companies eager to build a pipeline of trained researchers.

Keep in mind that the flurry of layoffs in aerospace and defense, along with some consolidation in biotechnology, has put a number of highly experienced scientists out of work, so that competition for jobs is fierce. And, because of belt-tightening at research-minded companies made cautious by the recession, much recruitment has gotten quite specific.

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“Our R&D; hiring is selective,” said Paul M. Cook, chairman of Raychem Corp. in Menlo Park, Calif., a maker of plastics and insulation materials. “We concentrate on specific skills and look for a match.” Cook cited a Raychem fiber-optics project as one area with a focus on research.

Except in the defense industry, research and development jobs account for a small percentage of employment in California, according to Robert W. Bellano of Marlar International, an executive search firm in Westwood that specializes in finding employees for technology companies. Even so, he noted, Southern California is home to an estimated 500 computer software firms, most of which are continuing to seek mathematicians and other qualified scientists.

“Even companies that we know will have at least one more (tough) quarter ahead are continuing to hire in R&D;,” said Millard (Mel) Phelps, an analyst who follows semiconductor companies for the Hambrecht & Quist investment firm in San Francisco. “If good, high-quality people are available, they’ll grab ‘em up.”

In the emerging field of environmental cleanup, small companies throughout the state will be looking to beef up research staffs in coming years. Ultrox International in Santa Ana, a 35-employee manufacturer of equipment to clean up ground-water contaminations, expects to hire six to eight lab researchers in 1991.

“Our marketplace is very dynamic,” said Jerome Barich, senior vice president. “Our business is doubling this year over last.” Barich added that such hefty growth is expected to continue for four to five years.

At Locus Computer Corp., which develops customized software that allows different computer operating systems to interact, the staff has grown in the last two years from 140 to 315. Of those, 50% are in research and development.

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About 10% of the hires are recent college graduates with degrees in computer science or management information systems, who make in the mid-$30,000 range, according to R. Kirby Sechovec, manager of human resources for the Inglewood company. Salaries for all researchers average in the low-$50,000 range.

At some biomedical and pharmaceutical companies, steady growth has been unfazed by the recession.

The R&D; budget at Genentech, a high-profile South San Francisco biotech company, runs at an astonishing 40% of sales, compared to an industry average of 10% to 15%. About 700 of the company’s 1,900 employees are in research and development. Plans call for filling 200 to 300 jobs in R&D; this year, said Wendy Reitherman, employment manager.

Much of the funding for the hires has come from Genentech’s recent merger partner, Roche Holding Ltd., the Swiss parent of giant drug manufacturer Hoffmann-La Roche.

“We’re expanding R&D; by 15% to 20% over the next year,” Reitherman said. “We have a number of products in the pipeline, and we need to expand R&D; to get them to the marketing stage.”

The R&D; budget at Syntex Corp. in Palo Alto continues to run at 18% of sales, said spokeswoman Linda Thomas. In its first quarter ended Oct. 31, sales grew 16% to $454.6 million, she said, primarily on the strength of new products.

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The company expects this year to hire 75 R&D; people, including medical doctors to develop and monitor clinical trials, holders of bachelor’s, master’s and Ph.D.s in organic chemistry and other sciences, statistical programmers and scientification applications programmers. A candidate with a bachelor’s degree and no experience can expect to make $28,500, Thomas said, whereas a Ph.D. with no experience can earn $50,000.

Similarly, executives at Eli Lilly & Co., the Indianapolis pharmaceutical company that owns Hybritech, Pacific Biotech and medical instruments maker IVAC Corp. in San Diego, “anticipate a very active recruiting year, similar to last year,” said spokesman S. Edward Torres. Among those sought will be microbiologists, biochemists and biomedical, chemical, mechanical and electrical engineers. Lilly’s “plow-back ratio,” or percentage of sales invested in research, is 14%.

For those companies considering cutbacks in R&D; because of squeamishness over the recession, here’s a piece of advice from Rocco Catena, vice president of Purcell Group, a West Los Angeles head-hunting firm:

“The companies that have vision and are looking beyond the recession are certainly continuing to hire.”

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