The growth of San Diego’s innovation economy has made the region better educated and more prosperous than most other metros. However, this economic transformation presents new challenges for future growth. Changing skill requirements, a nationwide battle for talent, and a soaring cost of living are combining to form an unequivocal threat to our regional competitiveness. If unaddressed, San Diego will no longer be an attractive place to live and do business.
San Diego depends on a highly-educated workforce. However, talent shortages are likely to grow as demand for new skills accelerates and demographic gaps in educational attainment persist. The lack of quality jobs and a high cost of living further impact talent attraction and retention. For the region to remain competitive, an inclusive economic development strategy is needed. As part of San Diego’s Inclusive Growth Initiative, this research was produced by San Diego Regional EDC.
From December 2018 and January 2019, the San Diego Small Business Lending Collaborative surveyed 129 existing and 101 prospective business owners in three San Diego Promise Zone zip codes (92102, 92113 and 92114). The purpose of the survey was to identify barriers for small business establishment and growth within the San Diego Promise Zone, a geographic area comprising of Barrio Logan, Southeastern San Diego, and Encanto. Historically disadvantaged, the culturally rich communities within the San Diego Promise Zone possess unique barriers that inhibit economic growth.
The study, written by the San Diego Regional EDC, found that the biggest challenge business owners face is related to credit/financing. Only 12 percent of business owners have ever applied for business financing, and out of those who have, they found only expensive options or were declined due to bad credit or income requirements. The final report outlines recommendations and strategies for small business owners in the San Diego Promise Zone to overcome these obstacles and grow their companies. For example, expanding access to entrepreneurship training and accelerator programs for low to moderate income populations.
In an effort to address San Diego’s soaring cost of living, San Diego Regional EDC and its Inclusive Growth Steering Committee of 40 employers officially endorsed a regional goal to create 75,000 newly thriving households by 2030. Driven by the findings in EDC’s latest study release, this regional goal and accompanying set of recommendations aim to address key factors (housing, transportation and childcare) impacting San Diego’s affordability crisis – the last of three main goals of a regional Inclusive Growth agenda.
Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers August 2019. Check out EDC’s research bureau for more data and stats about San Diego’s economy.
The region’s unemployment rate was 3.4 percent in August, down from a revised 3.6 percent in July 2019, and below the year-ago estimate of 3.5 percent..
The region’s unemployment rate remains lower than both the state and national unemployment rates of 4.2 percent and 3.8 percent, respectively
Construction (up 2,900) added the largest number of jobs over the month, with gains centered in speciality trade contractors(up 1,800)
Between August 2018 and August 2019, total nonfarm employment increased from 1,485,300 to 1,512,700, adding 27,400 jobs.
Government (up 8,400) followed by professional & business services(up 6,600) led job growth during the past year
San Diego Regional Economic Development Corporation released a study— Qualcomm’s Contribution to San Diego’s Economy, showcasing how the company’s investment in the community has impacted the industry, economy and region as a whole. Since its humble beginning in 1985, Qualcomm has been at the forefront of innovation, entrepreneurship and research and development (R&D.) It settled with a home base in San Diego, providing a significant economic impact and tremendous contributions to our region since its founding.
Qualcomm is not only a technology industry leader in our region; it also engages the marketing, accounting, legal services, consulting, environmental and engineering industries in San Diego, in-turn creating jobs and opportunities along every step of the company’s tech journey. Just in 2018, Qualcomm had an economic impact of approximately $4 billion in the San Diego economy. To put that into perspective, it’s the equivalent of 41 Breeder’s Cup World Championships, 27 San Diego Comic-Cons and 3.6 San Diego Convention Centers.
Further, in 2018, Qualcomm created approximately 1,600 job postings, recruiting top-tier entrepreneurial talent while continuing to dedicate resources to strengthening our communities and educating the next generation. To its core, Qualcomm understands the importance of investing in the workforce of tomorrow. They have done just that through an interactive tutorial program called Thinkabit Labs, which engages students from different backgrounds and inspires them to be the next generation of inventors – combining science, technology, engineering and mathematics (STEM) for an educational and hands-on learning experience. Through Thinkabit, students mature by learning real-world problem-solving skills, collaborate in teams and motivate creativity on a myriad of levels. Qualcomm has hosted students from 107 schools across San Diego, inspired close to 22,000 local students and helped them create more than 5,000 inventions. Over the course of this program, Qualcomm has expanded and collaborated with 20 school districts and organizations.
Just as Qualcomm has invested into our youth, it has equally invested into our local communities. Since 2000, Qualcomm has donated more than $355 million to the San Diego community from both Qualcomm and the Qualcomm Foundation. Just in the last five years, Qualcomm employees have donated to more than 1,000 local organizations, requested matches for more than 17,900 organization and contributed more than $26 million to local communities. Qualcomm truly is a trailblazer for local philanthropy.
Many people think of Silicon Valley as the premier technology hub in America, however Qualcomm is working tirelessly to bring that title to San Diego. It’s no secret that Qualcomm is one of the leaders in 5G and also a premiere leader in creating technology the world loves. More than 130,000 patents and patent applications have come from Qualcomm in the past year. While it couldn’t have been done without our San Diegans, this type of technology and innovation is something that should be celebrated. Roughly 12 percent of the region’s total tech talent is employed by Qualcomm. To break down the impact on local jobs, Qualcomm has created: 10,170 induced jobs, which come from the result of local spending of labor income; 7,680 indirect jobs, the effect of local, inter-industry or B2B spending through existing economic structure; and 10,030 Qualcomm employees, which all adds up to an outstanding 27,880 total jobs. Because of this, for every job at Qualcomm, an additional 1.8 jobs are supported elsewhere in the San Diego economy. It truly is the job multiplier – integrating other companies and industries to provide support and collaboration that leads to industry-leading technology.
Our economic study “Qualcomm’s Contribution to San Diego’s Economy” shows some of the great contributions that Qualcomm has given to the San Diego region, but it wouldn’t be possible without the people. Thank you to the communities, employees and organizations that are helping build San Diego.
San Diego Regional Economic Development Corporation released a study—Qualcomm’s Contribution to San Diego’s Economy, showcasing how the company’s investment in the community has impacted the industry, economy and region as a whole. Since its humble beginning in 1985, Qualcomm has been at the forefront of innovation, entrepreneurship and research and development (R&D.) It settled with a home base in San Diego, providing a significant economic impact and tremendous contributions to our region since its founding.
Qualcomm is not only a technology industry leader in our region; it also engages the marketing, accounting, legal services, consulting, environmental and engineering industries in San Diego, in-turn creating jobs and opportunities along every step of the company’s tech journey. Just in 2018, Qualcomm had an economic impact of approximately $4 billion in the San Diego economy. To put that into perspective, it’s the equivalent of 41 Breeder’s Cup World Championships, 27 San Diego Comic-Cons and 3.6 San Diego Convention Centers. This research was sponsored by Qualcomm, who provided employee data for EDC’s impact analysis.
San Diego has emerged as a leader for the development of cybersecurity technology and the delivery of cyber-related services. The region’s healthy ecosystem, including its strong military presence, world-class academic institutions, incubators and strong partnerships between industry associations and governments, has positioned San Diego as a hub for cyber operations. Today, there are more than 150 firms in the San Diego region focused exclusively on cyber. With incidences of cyber attacks on the rise worldwide, the industry’s innovative companies are equipped to meet the global market’s increasing demands for new products and technologies. This study was produced in collaboration with the Cyber Center of Excellence.
Small businesses, which represent approximately 98 percent of all local companies, are the backbone of the regional economy. This initiative, which includes a survey of 164 businesses along the 78 Corridor, seeks to uncover insight and gain a deeper understanding of small business perceptions of the regional business climate. The end goal is to develop new and enhance existing programming and support for small businesses in the 78 Corridor. For the purpose of this survey, small businesses are defined as having fewer than 100 employees.
Small businesses – those with fewer than 100 employees – are the backbone of the regional economy. This initiative, which includes a survey of 522 small businesses across San Diego and Imperial counties, seeks to uncover insight and gain a deeper understanding of small business perceptions of the regional business climate. The end goal is to develop new and enhance existing programming and support for small businesses in the region. This report was commissioned by the Small Business Development Center (SBDC).
San Diego is home to more than 350 precision health companies that hold 3,610 patents, according to a study released by yours truly: San Diego Regional EDC. “San Diego’s Precision Health Ecosystem” explores the impact of the region’s precision health cluster and quantifies the number of firms, venture capital and patents, as well the broader cluster across California.
The web-based study – precisionhealthSD.org – includes a historic timeline, cluster map, local and state overviews, and a series of video testimonials from local business leaders.
Large local companies like Illumina and Thermo Fisher Scientific, startups and small businesses like CureMatch, LunaDNA, and EpicentRX, as well as hospitals and research institutes are helping lead the charge in precision health and enabling people to live longer, healthier lives.
Using a person’s unique genes, medical history, and environment, the field of precision health seeks to customize effective therapies and disease treatment. More than genomics and pharmaceuticals, precision health also encompasses a wide range of related fields that allow for the collection, storage, analysis, and use of health data for more precise diagnosis of individual conditions and risk factors.
“From personalized cancer vaccines to record-breaking DNA sequencing of newborns, San Diego companies and research institutes are revolutionizing healthcare as we know it,” said Kirby Brady, research director, San Diego Regional EDC. “Consistently ranked among the top five cities for startups and life sciences, as well as the #1 region for genomics patents in the U.S., San Diego brings more to the table than its beaches – we are changing lives and curing disease from the offices and labs throughout the region.”
KEY FINDINGS
San Diego precision health companies secured $1.3 billion in venture capital in 2018, to date.
San Diego precision health companies hold 825 registered trademarks, and 3,610 patents.
San Diego is home to more than 350 precision health companies, 80 research institutions, 30 hospitals, and five universities.
Economic impact of precision health in California (2017):
The report was produced by San Diego Regional EDC, and sponsored by Alexandria Real Estate Equities, Inc., CBRE, Kaiser Permanente, PricewaterhouseCoopers and Scripps Research.
