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Big Picture San Diego Blog

August 8, 2013
 Some have asked us to issue a formal statement on behalf of EDC celebrating the life of our dear friend Duane Roth. We believe that CONNECT, BIOCOM and others have already done so quite beautifully. So in a less formal fashion, I would like to share the following thoughts and reflections...
 
To try to write down what Duane Roth meant to San Diego Regional EDC, and our entire binational economic development community, is next to impossible. 
 
As most of you know, Duane was a longtime board member. He was our past chair. He was our partner on countless projects and our constant supporter behind the scenes. He was an incredible thinker. He was a visionary in the truest sense of the word. He was our motivator, our agitator and our confidant. But above all, he was our friend.
 
For me personally, having the opportunity to work so closely with Duane for the past 19 months has turned out to be a greater blessing than I could have ever imagined. Looking back, it seems as if Duane and I were doing something together just about every day.
 
We spoke on countless panels together--telling the story of our traded economies. We worked to create a collaborative economic development agenda for our organizations and our region. We planned meetings together. We supported each other's grant writing and fundraising efforts. We traveled together and lobbied together. And along the way, we spent a lot of time talking about our work, our economy and our community.
 
Duane changed the way we think and talk about San Diego. His personality and professional will made us bigger, stronger and better. He believed we were great and he made sure the world knew that. He used his influence to open doors, his intellect to create opportunities and his determination to earn broad-reaching respect and admiration. 
 
Duane always went about everything he did with a sense of importance and urgency. At times, none of us could move fast enough for him. In hindsight, it's almost as if he knew that he had very little time to waste. 
 
Like many, I will spend the days ahead thinking about what role I can play in carrying on his legacy. I will take the messages that I have heard him share with so many and ensure that I continue to share them with everyone I can. I will do my very best to see through the projects we started together and I will constantly try to do for others what Duane did for me. 
 
On Saturday, when I first learned that Duane had passed away, I immediately thought of a quote from John Steinbeck that I have always loved. It reads:
 
"It is so much darker when a light goes out than it would have been if it had never shone." 
 
As dark as it may seem today, I can't help but think of how lucky we all are for having shared this remarkable light.
 
I will never forget Duane.  I will never forget what he shared with me and what he taught me. And in saying goodbye, I can only think of the words of the Irish Blessing I learned as a child: "...until we meet again, may God always hold you in the palm of His hand."
 
With deep sorrow and enduring hope, 
 
Mark
 
July 29, 2013

Aerospace is part of a large and thriving Aerospace, Navigation & Maritime Technologies (ANMT) cluster in San Diego. Among the 25 most populous U.S. metropolitan areas, San Diego ranks second in the concentration of ANMT employment behind longtime aerospace leader Seattle.

 The cluster accounts for more than 20 percent of San Diego’s innovation economy, more than any other cluster except Information and Communication Technologies. San Diego’s growing unmanned aerial systems (UAS) sector presents a unique opportunity for companies in the Aerospace industry, with cutting-edge applications being developed in San Diego and throughout California. Currently, 60 percent of U.S. technology development in unmanned systems is performed in San Diego County, according to National University System Institute for Policy Research. With the rise in commercial and consumer uses, this industry sector is well positioned to carry the aerospace industry forward and continue to attract top engineering talent to the region.

  Since the aerospace industry shares many components with other industries in the ANMT cluster, it is difficult to break down aerospace companies and employment from the rest of the cluster. Some of the key aerospace-specific components of the cluster include: Search, Detection, Navigation and Guidance; Aeronautical and Nautical System and Instrument Manufacturing; Aircraft Manufacturing including Aircraft Engine and Engine Parts Manufacturing; and Guided Missile and Space Vehicle Manufacturing. San Diego Regional EDC analyzes key economic metrics that are important to understanding the regional economy and San Diego's standing relative to other major metropolitan areas in the U.S. For more information about San Diego’s aerospace industry and the full run down on how San Diego is faring compared to other major metropolitan regions, see the July 2013 Economic Snapshot.

 

 

 

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July 15, 2013

 

Gwynne Shotwell just might work for the coolest company on the planet - or as she puts it "In 10 years or so, it might be the coolest company on another planet." Shotwell is talking about SpaceX, the company where she serves as president and COO. Even the most sophisticated in the audience at San Diego Venture Group’s July 12 Venture Summit gasped at the video of SpaceX rockets being tested that blast off and then return to the launch pad. “Grasshopper” is a 10-story Vertical Takeoff Vertical Landing (VTVL) vehicle that SpaceX designed to enable a rocket to return to earth. The ultimate destination? Mars – which Shotwell described as a “fixer-upper planet.” Her humorous and very informative talk left everyone thinking about the power of dreaming big.

Dave Titus, San Diego Venture Group’s president gave a “Venture Status Update” that included both good news and sobering news. Venture fundraising has dropped over the last five years even though the number of firms has stayed about the same. Active funds are down 20 percent in the last five years and the first half of 2013 looks to be following this trend. The industry is consolidating – the top 20 firms raise 55 percent of all the dollars with an average fund size of $400 million. The remaining firms have an average fund size of $41 million.

One surprising statistic shows that since 2008, venture investing has surpassed venture raised, resulting in deficit spending. Titus cited some reasons that could account for the discrepancy – imprecise data, investment coming from non-traditional funds (family offices, foreign investors, hedge funds) and the rise of corporate venture capital. Corporate venture has increased 50 percent in the last three years but seems to be leveling off. On the local front, Qualcomm Ventures is the second largest technology corporate venture fund in the world, exceeded only by Intel.

According to Titus, financings will be harder – he told the entrepreneurs in the audience to plan for that reality and practice, practice, practice your pitch! As for the good news: exits are up with 21 venture-backed IPOs in the second quarter of 2013 and 11 biotech IPOs.

Citing sectors like enterprise software and hardware, Titus told the 600-plus attendees “Hard things are popular again and San Diego is good at hard things.”

 

 


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July 2, 2013

San Diego Venture Group Cool CompaniesIn 2012, the San Diego region raked in upwards of $1.1 billion in venture funding, beating Texas, Colorado, the DC Metroplex and other locales. At the San Diego Venture Group’s Annual Venture Summit on July 12, participants will be able to interact with more than 120 VCs and 30 “cool” companies.

The Venture Summit is one of the most popular events produced by SDVG and connects numerous top entrepreneurs from the region with many investors from Southern California, the Bay Area and other areas to showcase how the innovation climate thrives in San Diego. The Summit will feature a keynote by Gwynne Shotwell, president and COO of SpaceX, as well as other San Diego innovators including Chris Anderson (3D Robotics), Dr. James Mault (Qualcomm Life) and Larry Stambaugh (San Diego Zoo Bioinspiration Centre.)

For the second year in a row, the Venture Summit will include 30 San Diego “Cool Companies.” From social media to software and algae biofuels, companies making this year’s roster include Roambi, Sapphire Energy, and Embarke. They are indicative of the dynamic industries that fuel San Diego’s innovation economy.

Venture Summit is not the only venture-related activity that’s happening in San Diego on July 12. On that day, companies from around the globe will hand in WBT logotheir submissions to present at WBT Innovation Marketplace. Now in its 11th year, WBT Innovation Marketplace brings together the largest collection of vetted and mentored companies and technologies emanating from top universities, labs, research institutions, and the private sector. More than 10 years of research shows that one in three WBT presenters goes on to license, secure venture funding, or sell their IP outright. Last year, the show moved from Arlington, Texas to San Diego, so it could benefit from the region’s world-class talent pool and strong venture capital community.

Companies are invited to apply to present at the Oct. 22 showcase.

With all of the venture activity going on throughout the region, it’s no wonder San Diego has been identified as a high-tech challenger to Silicon Valley.


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June 27, 2013

He ought to say "Move over Jon Stewart." Beaulieu had an EDC audience laughing about economic forecasting. Not exactly an easy thing to do. Humor aside, Beaulieu - who serves as principal at ITR Economics - has an impressive record of accurate forecasts - 96.2 percent accuracy looking 12 months into the future. In a fast-paced and animated presentation, Beaulieu gave the crowd what they came for: actionable information about the coming year. He says while GDP has been growing at a tepid pace in 2013 there will be a slowdown in 2014 as industrial production slows. He cautioned not to project 2013 growth rates into 2014. "Focus on efficiencies, training and outsourcing," he said. And as the country grows toward energy independence, Beaulieu sees an increase in manufacturing in the U.S. Longer-term he looks for good years in 2015 – 2018. However, according to Beaulieu’s research, this will be followed by a noticeable recession in 2019.

"The U.S. is fundamentally healthy," he said. "There's more upside than things to worry about." He pointed out that California maps to the U.S. in terms of trends.

Beaulieu mentioned a list of problems including Europe’s financial stability, China’s slowing growth rate and sequestration. But he parried these with quick explanations. Germany and France are committed to the European Union and will exert a strong influence on policy. China will not melt down; the new leadership is taking a longer view and is letting growth slow down as the government sets up for economic stability. Using a chart to contrast projected spending before and after sequestration, Beaulieu made it clear that the delta between the two is small compared to overall spending.

The presentation included some very positive observations about Mexico’s economy. “Their manufacturing index is up, they are producing better goods, and their management is national now – not ex-pat,” Beaulieu said, at one point calling it “Canada to the South.”

You can check out Alan's presentation here.

 

 

June 19, 2013
EDC dashbaordEDC has set out to chart the health of the regional economy through our new dashboard. Statistics on the economy can often be confusing, and are rarely packaged together in one place. We’ve sorted through data from the Bureau of Labor Statistics, Bureau of Economic Analysis, PriceWaterhouseCoopers, International Trade Administration and others to find the most compelling and indicative statistics on the San Diego economy. Using simple design principles, the dashboard is our one-stop shop for quick, at-a-glance data about our regional economy.
 
The dashboard provides baseline indicators on 20 different metrics to track the region’s standing among the 25 most populous U.S. metropolitan areas. They range from conventional economic indicators, such as unemployment rate and Gross Domestic Product, to less familiar quality of life indicators, like sunshine hours. Along with our Economic Snapshot, launched earlier this quarter, this new comparison format helps us understand how San Diego stacks up with other major metropolitan areas across the nation. 
 
Although the indicators will more or less stay the same, the numbers will be updated as new data becomes available. 
 
Please contact mpc@sandiegobusiness.org if you have any ideas on how to improve the dashboard. 
 
June 14, 2013
By Jennifer Storm
 
Breweries and biotech companies abound. Strong public/private collaboration. A modernized downtown. A breathtaking waterfront. Until I came back from Yokohoma, Japan last week, I thought San Diego was the only place where this existed.
 
I was representing EDC as part of the World Trade Center San Diego’s trade mission to Japan, along with BIOCOM and San Diego Regional Airport Authority, to learn about further strengthening ties between the two regions. Last week, I boarded a plane at Lindbergh Field. Nearly 12 hours later, on one of the most immaculate airplanes I have ever seen, I stepped foot in Narita Airport in Tokyo thanks to Japan Airlines' direct service. A few days and a bus ride later I found myself on the way to Yokohoma, Japan – San Diego’s sister city. 
 
From an economic standpoint, it’s an optimal time to launch flight service between San Diego and Japan. Much like the U.S., Japan is climbing out of recession. As such, they’ve adopted liberal spending policies – known as Abe-nomics –to spur investment and growth, so there is a strong potential for increased foreign direct investment .  
 
YokohamaWhile in Yokohoma, Japanese business leaders exhibited their strong interest in partnering with San Diego companies. We were met with a delegation of 40 business leaders who had ties to San Diego or were interested in creating them. The strong link between Yokohama and San Diego was very apparent- I even met the sole distributor of Stone Beer in Japan! 
 
Traveling to Japan also helped me put things in perspective back home. It’s amazing how two distinct countries could have so much in common, yet also have the opportunity to learn so much from one another. The infrastructure in Japan is outstanding. You can move from one place to another with absolute ease.  This is something we’re working on in San Diego, but admittedly, we’re just not there yet.
 
On the other hand, while touring a biotech company, I had the opportunity to chat with one employee who had previously spent time at the Salk Institute. He noted that although he prefers Japan on a personal level, he misses the creative freedom of working in the U.S.  If he discovered something while in his lab at Salk, he had the freedom to explore that opportunity, in the hopes that it would lead to further research. Although it varies from company to company, he echoed that Japan has more of a regimented work environment. 
 
Although each city has excelled in similar industries, we have a lot of lessons to learn from each other. After all, isn’t that what siblings are for?
 
To learn more about San Diego’s most recent business delegation to Japan, you can read Joe Panetta’s guest column in the U-T.  
 
May 30, 2013

San Diego Regional EDC 48th Annual Dinner

America leads the world in innovation says Jim Clifton, author of The Coming Jobs War and Chairman and CEO of Gallup, but innovation alone is not enough to fuel job growth. Clifton was in town to give the keynote speech at San Diego Regional EDC’s annual dinner. More than 800 people listened in almost total silence (no mean feat for a group that size) as Clifton talked about the difference between innovation and entrepreneurship. According to Clifton, we know how to test for intellectual talent and scout intellectual talent but we have no mechanism to determine who can best take those ideas to the marketplace. And without a customer, the best ideas do nothing for job creation.

Clifton picked up on the dinner’s recurring theme of collaboration as reflected in the comments of EDC Chairman Stath Karras and EDC President and CEO Mark Cafferty. He referred to his concept of “tribal leaders” in a community, those who constantly question and suggest new approaches to issues. “When leaders get their strength together, there is no limit to what you can do,” Clifton said, recognizing that most of the region’s leaders were in the room.

Clifton acknowledged one of San Diego’s best examples of a tribal leader – Malin Burnham – who was instrumental in bringing Clifton’s ideas to the business community and in bringing Clifton himself to San Diego.

Clifton made it clear that no one should be looking to Washington for solutions to America’s problems. “We have to win the world back one great city at a time,” he said.

EDC’s annual dinner also honored former EDC Chairman Bill Geppert with the Herb Klein Civic Leadership Award. Geppert was humble and gracious in his remarks, mentioning many beloved San Diegans who came before him as great civic leaders.

Many people took to twitter to discuss the event:

 

 

May 23, 2013

What everyone in the world wants is a good job.

It sounds simple enough. If a region can create these so calledgood’ jobs, then it will prosper. But how do we do this? Cue Gallup Chairman Jim Clifton.

Clifton, author of The Coming Jobs War, says we should focus on creating good jobs because as jobs go, so does the fate of nations. Economic stability hinges on leadership’s ability to create these good jobs. San Diego, with its geographic destiny and strong business climate, must continue to leverage its assets and traded economies – military, tourism and innovation – to pull ahead in the great jobs race.

Fast forward to less than a week from now, we’ll be sitting at the Hilton San Diego Bayfront hearing Jim Clifton discuss how San Diego can get ahead in the race for good jobs at EDC’s 48th Annual Dinner.

For the past 47 years, EDC’s Annual Dinner has been full of excitement, celebrating the Mega-Region’s rich and diverse businesses. With more than 850 elected officials, and community and business leaders in attendance, this year promises to be no different.

Of course, none of this would be possible without the generous support of our numerous sponsors and investors, and our dinner underwriter, Point Loma Nazarene University.

Register here for the dinner and make sure to join the conversation on twitter #EDCAnnualDinner

If you want to see a round-up of some of last year’s highlights, you can check them out on facebook: https://www.facebook.com/media/set/?set=a.10150851843796717.403117.60837071716&type=1&l=12c6879af9

May 21, 2013

 

 
Boxing analogies abound around San Diego. Media coverage about the release of the San Diego Metropolitan Export Initiative last week included a quote that San Diego is punching below its weight in exports. 
 
A few days later, EDC’s President and CEO Mark Cafferty is quoted saying about San Diego “We’re punching below our weight.”
 
The U-T profile, penned by John Wilkens, took a deep dive into life in San Diego and at EDC with Mark, exploring his goals for EDC and San Diego, and most importantly, how he views the region:
“When you are speaking economically, San Diego has a lot of great things that happen here that are either in the shadow of other places when I don’t think they need to be, or the laid-back persona starts to cross over into places where I think we need to project a little stronger and bigger and smarter.”
 
With Mark’s guidance, EDC has strengthened its focus on economic development with the goal of creating jobs and maximizing the region’s economic prosperity and global competitiveness. 
 
 
Read the complete profile: http://www.utsandiego.com/news/2013/May/18/cafferty-EDC-San-Diego-image/?#article-copy
 
 
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