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The Big Picture San Diego Blog


July 2015

July 31, 2015

San Diego Regional EDC, (EDC), Equinox Center, the Center on Policy Initiatives (CPI),and Posiba - with funding from The San Diego Foundation - launched INSIGHT San Diego yesterday. As the collaborative  planned the future of our region, they recognized the need to take record of how and where progress is measured.

This collective is an informative web platform designed to educate policy makers and the community on issues relevant to our regional quality of life- social equity, economic resilience, and environmental sustainability. 

“As we envisioned the future of our region, many recognized our need to also take inventory of where we are and measure our progress,” said Mark Cafferty, president and CEO of San Diego EDC. “We hope this collaboration with real time, unbiased feedback will inspire all to see that our varied perspectives can enrich the understanding of our region. These are truly exciting times for San Diego.”

Notably, an aspect of this vision is to make data more available for use by local municipalities, planning councils and service organizations as they consider the future of their respective communities, along with the needs and desires of their populations.

"INSIGHT San Diego emerged from local partnerships with the mutual interest of building a sustainable region. Equinox Center relies on these partnerships with leading organizations to increase its impact and continue building a healthy environment, strong economy and vibrant communities,” stated Stephen Heverly, managing director, Equinox Center.

This is the first installment in this collaborative effort to use data research and analytics. INSIGHT San Diego is designed to measure progress on advancing the priorities identified by 30,000 San Diego residents in Our Greater San Diego Vision, supported by The San Diego Foundation, for improving quality of life throughout the region. More recently, a University of Southern California study, Linking Innovation With Inclusion, identified our region’s growing diversity as an untapped source of strength for our innovation economy. 

According to Clare Crawford, executive director at CPI, “Equity is integral to having a healthy environment and a strong and sustainable economy in San Diego. This project is a great first step in having our researchers come together and look at the issues affecting our region. Through cross sector collaborations like these we hope to move San Diego forward."

Additionally, the project will analyze the region’s innovation, competition, and local talent attraction in order to continue the momentum of national attention San Diego has recently received from entities including Forbes and Inc., who boast San Diego’s rapidly advancing startup culture. San Diego was also just featured by National Geographic as part of its "World's Smart Cities" series, as one of 18 cities featured from around the world, showcasing San Diego’s quality of life, technology sector, and local modernizers.

You can view pictures from the launch here: goo.gl/UcK4qQ

EDC's participation in the project was made possible by the Morgan Family Foundation

Please check out INSIGHT San Diego at insightsandiego.info and let us know what you think. Join the conversation at #INSIGHTsd

July 29, 2015

This is part of an ongoing series on the recipients of the MetroConnect Prize, a grant awarded to 15 companies looking to expand into new foreign markets. Subscribe here to receive new posts every Wednesday on this topic.


There are 3.2 billion base pairs in your genome. Although all of this information is contained within a single cell, decoding it – and thus understanding many diseases and pathologies – is a challenge.  

San Diego-based Cypher Genomics, winner of the MetroConnect Prize, may be changing that.

We’re working to translate your genome into actionable information to impact human health,” said Adam Simpson, COO of Cypher Genomics at the MetroConnect launch on July 1.

Cypher is working to solve a large problem facing the genomics industry – genome interpretation. As one of the 15 winners of the MetroConnect Prize, Cypher will be taking its genome decoding technology to the rest of the globe. 

SMEs represent the vast majority of businesses in the region and are responsible for much of the innovation and job creation activity that propels our economy. The success of these firms is critical to the region’s future, and increasing their global reach is crucial to that success. Through the MetroConnect Prize, companies such as Cypher Genomics received $10,000 grants to assist with their next step in going global.

Cypher plans to use the prize money to advance business development efforts around the globe including in the United Kingdom, Japan and China. Not only are these countries that can benefit from genomics technology, but they are also among San Diego’s top five trade partners. Simpson is currently en route to the U.K. to use some of the funds.

As Cypher has learned, they’re not promoting their own business, but also the San Diego region. San Diego is known across the globe as a major contender in the life sciences industry.  Just last week, JLL found that San Diego had the fourth largest life sciences cluster in the nation.  Although we may have just missed the top three, when it comes to genomics, San Diego is the gold standard.

Like many successful San Diego life sciences firms, Cypher traces its roots back to our research institutes on the Mesa. What started as an idea inside of the Scripps Research Institute has morphed into a 10 plus person company. Chaired by industry vet Hank Nordoff (Hank also chaired EDC’s board from 2004 -2006), Cypher is in good company with many other leading genomics companies including Illumina, Sequenom and others.  

We have incredible academic institutions. We have access to incredible talent, wonderful people, and great companies. San Diego really is THE city for genomics, said Simpson.

The MetroConnect Prize is made possible by JPMorgan Chase & Co.

You can read Cypher Genomics' blog post about the MetroConnect prize here.

July 17, 2015

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“The region’s labor force continues to grow substantially as jobs are being added at a very solid pace. Despite a slight climb in the unemployment rate, all signs point to a positive economic picture for the region going forward.”
Phil Blair, President and CEO
Manpower San Diego


Highlights

This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

The California Employment Development Department (EDD) released statewide county employment data today for the June 2015 period. This month’s data shows that while unemployment climbed slightly in June, the labor force grew and the economy continued growth at a steady rate.

The unemployment rate climbed back to five percent for the first time since March. At 5.0 percent, the rate is 1.4 points lower than the previous year and 0.1 points higher than the previous month. The California average rate remained steady at 6.2 percent, while the U.S. average rate climbed to 5.5 percent, meaning San Diego remained much lower than the state and national averages.

Unemployment Rate

The unemployment rate climbed in part due to a rising labor force. This trend is typical in the region, as both public and private seasonal education workers tend to lose work in the summer months. Education accounted for 3,000 lost jobs from May to June, but the sector has grown nearly three percent since June of last year. While a seasonal up-tick in unemployment is common during this period, the 0.1 point change was a much lower change than in previous years. The unemployment rate climbed 0.3 points in 2014 and 0.5 points in 2013 during this same period.

From a year-to-year or non-seasonal perspective, the region’s economy continued to grow around 3.0 percent, adding 38,500 jobs from June 2014 to June 2015. The year-to-year growth rate has been consistently above the 2014 annual average of 2.2 percent. So far in 2015, that annual average is at 3.0 percent through June, compared to the U.S. average of only 2.2 percent.

Total Nonfarm Employment

The private sector economy again accounted for more than 90 percent of the year-to-year job growth and grew by 3.2 percent. This rate also outpaced the U.S. growth rate, which was 2.6 percent over that same period. This job growth continued to be fueled by key sectors. Construction grew by 5.7 percent and added 3,600 jobs. One of the region’s key manufacturing sectors, ship and boat building, grew by 18.0 percent and added 1,100 jobs.

We’ve continued to discuss the stagnant growth in overall manufacturing employment in these reports, but June showed promise for the region’s manufacturing industry. From June 2014 to June 2015, the industry added 2,700 jobs or 2.8 percent growth. This is the highest annual growth rate for the industry that we have on record, going back to 2001.

Manufacturing

Innovation service sectors have continued to show high job growth through 2015. The professional, scientific and technical services (PST) sector grew by 6.0 percent year-to-year, and accounted for 22.1 percent of all annual private job growth—the most of any sector in the region. This sector represents many of our innovation employers. Scientific research and development services, a subsector of PST that represents many cleantech and life science companies, showed slower growth this month compared to previous months this year.

Other key drivers for growth included the region’s health care sector, which added 6,900 jobs and accounted for approximately one-fifth of the region’s private job growth. Employment services or staffing in the region grew by 1,300 jobs and has been steadily increasing all year. Finally, while the tourism industry had a slower month than usual, it still accounted for 14.7 percent of the region’s private growth.

Year-to-Year Growth

While the headlines this month will show a climb in the unemployment rate, the story behind that figure is a positive one. A climb in unemployment from May to June is typical, but the fact that the climb was so slight was atypical and a good sign. The labor force continued to grow above one percent annually after years of steady decline. Finally, manufacturing industry employment is showing solid growth after years of slow growth or decline.

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

 

July 15, 2015

This is part of an ongoing series which will feature one company every week that received the MetroConnect Prize, presented by JPMorgan Chase

MetroConnect

In 2014, EDC released its Cybersecurity in San Diego: An Economic Impact and Industry Assessment report. According to data from 2014, more than 100 cyber firms employed at least 3,500 private sector employees and supported more than 13,000 jobs in the region. The cybersecurity industry had an economic impact of more than $1.5 billion.

Additionally, in 2014, the industry was projected to grow by more than 14 percent in San Diego, and globally, by more than 10 percent.

With impressive numbers like that, it is easy to see why San Diego has become a hotbed for cyber companies looking to take advantage of this market - especially for a company like EdgeWave, a company that began as a San Diego startup and now employs more than 65 people. 

“EdgeWave’s unique combination of expert U.S. military cybersecurity veterans with advanced technology mirrors the San Diego community, and illustrates why San Diego is the right city to lead the way in securing the global economy,” said Dave Maquera, EdgeWave president and CEO. 

On July 1st, San Diego Mayor Kevin Faulconer, San Diego Regional EDC, JPMorgan Chase & Co. and business and civic leaders, unveiled 15 companies, including EdgeWave, who were selected to receive the MetroConnect Prize. Managed by EDC, and presented by JPMorgan Chase, the MetroConnect Prize grants these San Diego companies $10,000 each in order to assist with developing international business opportunities.

EdgeWave secures over 6,000 companies worldwide by providing internet security, email security, next generation firewall, and network security solutions.

EdgeWave was awarded the prize based on its current relationships and its planned usage of the funds. With about 10 percent of its revenue coming from foreign sources, EdgeWave intends to target the Philippines and China as part of its international growth strategy.

“Cyber attacks threaten the growth of the global economy and we are all affected by the damage done by hackers,” said Maquera, “EdgeWave is confronting this cyber threat with a global focus.  We are successfully expanding into Asia with new large enterprise customer wins and have partnered with Huawei Technologies, a worldwide information & communications technology leader, to expand into other markets around the globe.”

Global engagement is essential if San Diego wants to catalyze its economy and workforce. The benefits of companies going global and engaging foreign markets are well-documented. According to the Brookings Institution, companies that are global pay their employees higher wages, are less likely to go out of business, and spur more efficient development of technology and R&D.


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July 1, 2015

2015 MetroConnect Prize Press Conference 062

San Diego Mayor Kevin L. Faulconer, San Diego Regional EDC, JPMorgan Chase & Co. and business and civic leaders, today unveiled the 15 companies selected to receive the MetroConnect Prize. . Managed by San Diego Regional EDC, and presented by JPMorgan Chase, the MetroConnect Prize grants 15 San Diego companies $10,000 each in order to assist with developing international business opportunities. The complete list of prize recipients can be found here.

Opportunity starts in San Diego and with MetroConnect, we are helping out successful, home-grown San Diego startups so they can share that opportunity across our local economy and spread San Diego’s innovative products and services across the world,” said city of San Diego Mayor Kevin Faulconer. “ I look forward to seeing these San Diego companies thrive and grow, as we continue to tell San Diego’s success story to the rest of the world.”

The MetroConnect Prize is made possible by JPMorgan Chase, a company committed to helping San Diego reach its full economic potential.

JPMorgan Chase is pleased to support these San Diego businesses that are going global,” said Brennon Crist, head of JPMorgan Chase’s Middle Market Commercial Banking group in San Diego. ‘’We hope the MetroConnect Prize program will enable these local firms to spend time in their target international markets, so they can visit suppliers and potential customers. In time, their export efforts could lead to job creation and growth of the San Diego economy.”

MetroConnectWHY GO GLOBAL?        
With more than 85 percent of global growth through 2019 projected to occur outside of the U.S., global engagement is a big opportunity for many American cities, such as San Diego. According to the Brookings Institution, San Diego has the 17th largest economy in the U.S. in terms of GDP, but ranks 61st in terms of export intensity. In March 2015, Mayor Faulconer, San Diego Regional EDC and others launched the Go Global San Diego initiative, designed to help San Diego businesses attract foreign customers and investment and target key metro markets, including: London, Tokyo, Stockholm and other major global cities. The MetroConnect Prize was announced as a transactional way of helping companies reach more customers, thus translating into economic gain and job creation for the region.

Global engagement is essential if San Diego wants to catalyze its economy and workforce. The benefits of companies going global and engaging foreign markets are well-documented. According to the Brookings Institution, companies that are global pay their employees higher wages, are less likely to go out of business and spur more efficient development of technology and R&D.

On the heels of national political gridlock around trade legislation, working with companies at a metropolitan level is essential if we want to grow jobs and our economy.

“The best way to create jobs locally is to concentrate on growing the small and medium–sized businesses we currently have in San Diego,” said Mark Cafferty, president and CEO of the San Diego Regional EDC, the organization administering the grants. “With JPMorgan Chase’s help, we’ve essentially developed a business accelerator for helping companies go global.”

MetroConnect Prize recipients will not only have access to funds, but also EDC and its affiliates’ international networks. In 2015 alone, EDC and many partners have traveled to London, Paris and Tokyo and will be heading to Brisbane and Sydney this week to further develop these networks critical to the success of local businesses.

FROM 64 to 15: SELECTING THE WINNERS
In total, 64 companies applied to receive the MetroConnect Prize. Companies were selected based on a variety of criteria, including interest in new markets, interest in targeted metro markets, assessed impact of funds, current international plan and more.  A panel of judges, including representatives from Biocom, Connect, Qualcomm Ventures, Quantum Designs, San Diego Regional EDC, Software San Diego and Wireless Life Sciences Alliance, selected the winners.  

From Cypher Genomics (a spin-off from The Scripps Research Institute), which employs 10 people locally, to Applied Membranes, a Vista-based maritime technology company that employs 175 individuals, these  prize recipients represent a diverse cross section of San Diego’s innovation economy. These small to medium–sized businesses are representative of industries in life sciences, digital health, action sports, telecommunications, maritime technology and cybersecurity. (Please see “Company Stories” for more information about employment numbers, average revenue and more.)

One company receiving the prize is EdgeWave, a San Diego-based company that employs 65 people.  Currently, the cybersecurity company derives 10 percent of its revenue from foreign sources, and is looking to use the funds to further develop markets in Manila, Philippines and Shanghai, China.

Cyber attacks threaten the growth of the global economy and we are all affected by the damage done by hackers,” said Dave Maquera, EdgeWave president and CEO. “EdgeWave is confronting this cyber threat with a global focus.  We are successfully expanding into Asia with new large enterprise customer wins and have partnered with Huawei Technologies, a worldwide information & communications technology leader, to expand into other markets around the globe.  EdgeWave’s unique combination of expert U.S. military cybersecurity veterans with advanced technology mirrors the San Diego community, and illustrates why San Diego is the right city to lead the way in securing the global economy.

Companies can use the funds for a variety of global services including travel (to and from target market), participation in a trade show, establishment of a foreign subsidiary to operate in the market of interest, foreign language translation of marketing materials, export plan development and more. The funds are not expected to cover all of the expenses a company incurs in going global. Rather, the MetroConnect Prize was created by San Diego Regional EDC and JPMorgan Chase as a way to incentivize companies to kick start global efforts or explore a new foreign market.

Thanks to Japan Airlines, companies looking to increase ties with the Japanese market have the added benefit of discounted flights to Narita International Airport in Tokyo. Currently, Tokyo is one of the two direct intercontinental flights from San Diego International Airport.

A GLOBAL GRAND PRIZE
Announced at the press conference today at the San Diego International Airport, MetroConnect Prize winners will also be eligible for the MetroConnect grand prize, an additional $50,000 to help one or two companies advance their global agendas. In late 2015, MetroConnect Prize recipients will be invited to share their stories for the judges, who will select the grand prize recipient(s).

Congratulations to the award winners:

Follow the conversation at #GlobalSD or #MetroConnect

 

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