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The Big Picture San Diego Blog


Regional Support Q2 17

July 14, 2017

In early 2017, the Brookings Institution’s Metropolitan Policy Program selected San Diego, along with Indianapolis and Nashville, to participate in a six-month intensive learning lab focused on inclusive economic development. During the lab, EDC worked alongside the City of San Diego, the Jacobs Center for Neighborhood Innovation, and UC San Diego extension, to develop a deeper understanding of specific barriers to economic inclusion impacting a variety of populations across the region. The outcome of the learning lab is a data-driven narrative that will inform EDC’s strategy as we work towards an economic development agenda that benefits more people, companies and communities.

San Diego is flourishing economically, with an innovation economy and a culture of collaboration that is driving growth and transformation. According to a Brookings analysis of 50 US metros, San Diego ranks 6th in upward mobility, meaning there is a greater likelihood that an individual born into San Diego’s lowest income quartile will end up in the highest income quartile. This fact, backed by the accomplishments of a range of programmatic models and initiatives by partner organizations – Accion, Connect, CDC, Junior Achievement, to name only a few – proves the success this region has demonstrated in terms of connecting communities to the drivers of our economy.

With an unemployment rate of 3.9 percent, the region is approaching full employment, meaning companies have incentives to offer pay raises and compete for talent. However, a 2016 study by San Diego-based Center for Policy Initiatives found there are one million individuals in San Diego that are living below self-sufficiency standards. This means that one third of our population cannot afford a no-frills cost of living without public or private assistance.

A nationwide battle for talent, a soaring cost of living at home, and a growing number of San Diegans unable to make ends meet are combining to form an unequivocal threat to our regional competitiveness. We cannot afford to ignore the large parts of our region that are disconnected from the engine of growth.

EDC, with a mandate to mobilize the business community around a broad economic development strategy, has committed to mainstreaming access and opportunity for all San Diegans into that overarching strategy. Over the duration of the 6 month learning lab, EDC interviewed over 25 companies, agencies, and organizations who are engaged in innovative and impactful best practices that guide families, individuals and companies on a path towards greater economic prosperity. We hosted Brookings research teams, and worked with public, private and nonprofit partners to convene dozens of roundtables and tours across the region. And we built a data-driven narrative that outlines the costs to our competitiveness of the growing number of San Diegans without access to opportunity, networks, and skills. .

For us the work is just beginning. As the learning lab comes to a close, we begin to look at the next phase: strategy. We will continue to lean on our growing network of partners and stakeholders over the coming months as we work with and through them to craft a plan that works to make our economy more inclusive, more competitive, and more resilient. Stay tuned.

June 29, 2017

The California Competes Tax Credit is an income tax credit program available to businesses expanding or relocating to California. Created in 2014 by the California legislature and overseen by Governor Jerry Brown’s Office of Business and Economic Development, the California Competes Tax Credit is divided into three separate rounds for each fiscal year. In FY 15-17, more than 270 companies were awarded more than $204 million in tax credits.
 
In all three rounds this year combined, 30 San Diego companies earned more than $20 million in income tax credits – claiming 10 percent of the total tax credits awarded in FY 16-17. In return, these San Diego companies have committed to $242 million of investments and 1,408 new jobs totaling more than $340 million in wages by 2021.
 
In the third and final round that took place this June, San Diego companies were awarded about $3 million in tax credits, making up five percent of the total $59 million awarded across the state. For each round of the program, businesses are categorized as either small or large, with credit amounts distributed to both groups. During the June round, San Diego small businesses made up 1.79 percent of the total tax credits – totaling $1.05 million – while large companies made up 3.73 percent of the total, or $1.9 million.
 
The Cal Competes program will open its first round of the FY 17-18 on July 24, in which $75 million of this year’s $250 million is up for grabs. If your business is considering relocating to, or expanding in, California, we encourage you to leverage the program as tool to reduce your tax liability. The EDC team stands by to assist with applications, as we have with many other San Diego companies.
 
Attend an upcoming workshop in Vista or Oceanside to learn how your business can apply for a tax credit, or contact Jesse Gipe for more information.
 
June 5, 2017

San Diego knows how to build companies that the rest of the world values. Case in point: Last month, El-Cajon based Calbiotech, a diagnostics company, was acquired by ERBA Mannheim, a medical device manufacturer based in Mannheim, Germany.

In 2016, Calbiotech was part of MetroConnect, World Trade Center San Diego’s flagship export assistance program. As part of the 2016 cohort, Calbiotech received financial and programmatic resources to support their plans to expand internationally.

Calbiotech has a global footprint of more than 200 products, which are distributed to 60 countries worldwide. With the expansion announcement, Calbiotech will maintain its footprint in San Diego because of the access to key reference labs and other biotech customers throughout the region. It will also serve as ERBA’s hub and gateway to the Latin American market.

The company was referred to the MetroConnect program by Jo Marie Diamond, head of the San Diego East County Economic Development Council. “I’ve been working with Calbiotech for years,” said Diamond, “They are representative of everything positive about the San Diego economy – a focus on innovative products, a strong sense of commitment to the community, and an incredibly grounded and highly diverse team.

We’re excited to hear of Calbiotech’s next step and were very impressed with the company during their time in MetroConnect”, said Lauren Lindner, director of World Trade Center San Diego who oversees the MetroConnect Program. “Their team was incredibly savvy in their rollout to international markets, and we’re not surprised to see that a leader like ERBA took notice.”

San Diego, and specifically East County, have been an integral part of the Calbiotech success story,” said David Barka, Vice President. “San Diego is home to companies that are leading the world in innovation in science and medicine. Being in San Diego gave us access to an amazing talent pool that really helped our company grow.”

The acquisition will help Calbiotech increase access to markets across Europe and Asia add to EBRA’s extensive and far-ranging product portfolio.

M&A is an important growth strategy and capital source for San Diego companies. According to a 2016 EDC study, nearly 70 percent of San Diego’s capital in 2015 came through M&A.

Calbiotech’s acquisition mirrors the region’s strengthening ties with Germany, including the announcement of Condor’s new direct flight to Frankfurt, Germany, which began operation on Monday, May 1.

Financial details of the acquisition were not disclosed.

Applications for the MetroConnect 2017 round are now open. To apply, click here.

May 21, 2017

This spring, EDC continued its Link2 San Diego series – partnering with local colleges and universities to bridge the gap between young talent and the region’s growing industries. The spring series brought together 368 students, 18 companies, 13 high schools and three colleges. The forums provide an opportunity for students to network with and learn from local executives – with discussion around market trends, innovative technologies, entrepreneurship, sustainability of businesses, workforce requirements and more. Students across the spectrum, from high school to post-grad with diverse backgrounds and degree focuses, attended these free events to explore career options and make valuable connections with industry leaders. The details:

In April, EDC partnered with Cleantech San Diego on two events focused on topics including sustainability, climate action, electric and autonomous vehicles and more. Link2 Clean Transportation and Link2 Cleantech were both held on local community college campuses, hosting 250 students. The panel discussions and networking sessions featured representatives from SANDAG, SDG&E, ChargePoint, Green Charge, Lumeo and Mossy Toyota.

In May, EDC partnered with the UC San Diego Design Lab to host Link2 Game Design – an event focused on the growing alternate and virtual reality industry. The panel discussion featured game design experts from Daybreak Games, Tsunami VR, ThoughtSTEM, Jam City and VAVi Sport & Social Club. After the panel, more than 100 students participated in hands-on virtual reality demos and networked with industry representatives during the three-hour event at UC San Diego.