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In 2012, then FBI Director Robert Mueller stood up at a cybersecurity conference and said, “There are two types of companies- those who have been hacked and those that will be.”
Whether you’re a Fortune 500 company, military contractor, genomics company or a neighborhood restaurant, cybersecurity has become ubiquitous for all businesses. Accord to Cybersecurity Ventures, an estimated $1 trillion will be spent on cybersecurity from 2017 to 2021. These global businesses may have San Diego – or rather one of its 100 plus cyber firms – to thank for that.
A new study released this week by San Diego Cyber Center of Excellence, with research by San Diego Regional EDC, provided additional insights on the impact of San Diego’s cyber economy. In total, 104 core cyber firms employ 4,230 people in the region. SPAWAR, which leads R&D efforts on behalf of the Navy to deploy cyber security products, employs an additional 3,390 in the cyber industry. The blend of defense and commercial cyber focused companies and research is a unique and powerful strength for the San Diego region.
According to the study, San Diego’s cybersecurity industry generates more than $1.9 billion in GDP and impacts 16,580 jobs annually – equivalent to hosting four Super Bowls or 14 Comic-Cons each year – and has grown by more than 26 percent in just two years, since EDC’s last cyber study.
“San Diego is uniquely positioned to capitalize on the ever-growing global demand for cybersecurity products and security,” said San Diego Mayor Kevin Faulconer. “This study shows how the convergence of the innovation economy, education and research, and department of defense presence creates a fertile ecosystem for companies and talent.”
San Diego, with its strong concentration of military personnel, growing base of software jobs and university specializations, also benefits from a rich pool of cybersecurity talent. It’s one of the reasons companies such as ESET and iboss have set up shop here. More than 51,000 technology specialists call San Diego home and work in a variety of cybersecurity-related occupations. Employers surveyed expect their cybersecurity workforce to grow by 13 percent in the next year compared to projected 2 percent overall regional job growth.
In collaboration with San Diego County College and Career Readiness Consortium and Mayor Faulconer’s One San Diego 100 initiative, EDC is working to create and provide work-based learning opportunities across the region to help develop and retain San Diego’s talent. With opportunities including job shadows, company tours, industry panels and access to internships, students gain exposure to our region’s diverse career opportunities.
This quarter, EDC coordinated day-long job shadows at various organizations throughout San Diego including The Control Group, San Diego Union Tribune, Cox Communications, SAIC, Ethertronics Inc. and the FBI.
Check out the students’ experience at video production company Scratch Media and broadcast news station CW6:
Together, in collaboration with East County EDC, Junior Achievement and Cleantech San Diego, more than 1,600 young people have been provided industry exposure experience through job shadowing.
First, Germany. Now, Switzerland. Q2 was chock-full of global wins for San Diego. The San Diego International Airport recently announced a new nonstop service to Zurich, Switzerland. Edelweiss, a Swiss leisure carrier owned by the German airline Lufthansa, will operate flights between the two cities on Mondays and Fridays starting in 2017.
As part of EDC’s efforts to increase San Diego’s global competitiveness, EDC and World Trade Center San Diego (WTC San Diego) worked in partnership with the San Diego Tourism Authority to support the San Diego County Regional Airport Authority in bringing Edelweiss’ nonstop seasonal service to Switzerland. Making the case for San Diego, WTC San Diego provided data and research on economic ties to the European innovation hub.
Why Switzerland matters to San Diego:
Airport Authority CEO Thella Bowens said that with the addition of the flight, San Diego will have direct service to six countries and add to the list of foreign airlines operating out of Lindbergh Field.
This week, World Trade Center San Diego (WTC San Diego) traveled to Washington DC for the SelectUSA Investment Summit.
For the first time ever, San Diego had an organized and coordinated effort for the nation’s foreign investment summit. In partnership with the city of San Diego and the city of Chula Vista, San Diego hosted a booth that attracted nearly 40 international companies and investors that communicated interest the San Diego region. These interests ranged from learning about the city’s concentration of innovation-based industries, San Diego’s climate action plan and the region’s growing talent pool. While quantifiable value is still be determined, the overall experience by the San Diego delegation was incredibly positive and we’re all in agreement that SelectUSA did a top-notch job.
The summit hosted more than 2,400 visitors from 70 international markets, including some of San Diego’s priority markets – Japan, China, Germany, Canada and more. Foreign direct investment (FDI) is a key tenant of the work WTC San Diego undertakes, especially as it tends to increase the research and development funding of a region (great when your region’s R&D efforts contribute more than $14 billion), pay employees better wages/salaries (great when your region’s pay is already competitive for its employed citizens) and can fill key capital gaps of a region (which enhances the fact that San Diego receives the fourth highest amount per capita of venture capital in the software industry).
Staying on the topic of foreign investment, WTC San Diego’s executive director Nikia Clarke attended the inaugural meeting of the Investment Advisory Council (IAC). The IAC is a group of key foreign and domestic business leaders that will advise Secretary of Commerce Penny Pritzker and the U.S. Department of Commerce on policies that will enable the government to ensure foreign investment flows into the U.S. economy. In an ever increasing global economy, where FDI is shifting from advanced economies to emerging, and from large business to small- and medium-sized enterprises, it has become apparent that the U.S. – both from a national and local level – needs to proactively market and attract foreign investment. With Nikia Clarke in attendance, the IAC will meet over the next two years in order to advise the current administration and help streamline the transition into the new one.
Finally, we couldn’t have had the presence we did at SelectUSA without the help and success of our leading local companies. To that effect, we want to thank Stone Brewing Co. for its incredible work in promoting the San Diego craft beer industry. Using their beer at the private reception WTC San Diego and the city of San Diego hosted on Monday night, we attracted more than 50 investors and gave them a taste of some San Diego region’s best assets – craft beer.
This week, the Worth Group announced that San Diego has been named as a 2016 “Worth Destination.” Featured in the June/July issue of Worth magazine, San Diego is among 15 cities lauded for civic leadership, quality of life, business climate, sustainability, entrepreneurial community, cultural offerings and urban innovation.
After months of deliberation and research by Worth's editorial team, San Diego was chosen for its burgeoning technology and life sciences ecosystems, powerful cross-border manufacturing economy, unparalleled infrastructure and world-class cultural institutions.
“San Diego has long been famous for its incredible natural beauty and beautiful weather,” says Richard Bradley, Worth’s editor in chief and chief content officer. “But thanks to its close and mutually beneficial relationship with Mexico, its status as a global hub with a particular emphasis on Asia, and its world-class scientific community, San Diego is also an economic powerhouse.” “Recognition like this from a magazine as prestigious as Worth shows that San Diego’s reputation is shifting,” says Joe Terzi, President and CEO of the San Diego Tourism Authority. “The city is becoming known for more than beautiful scenery. Showcasing San Diego’s innovation, creativity and strong business sector is vital not only for attracting new companies and talent to the marketplace, but it is also key for attracting top conferences and business travelers, which are a critical part of the local tourism economy.”
“From advancing the human genome to developing cutting-edge military technologies, San Diego is a leader in global innovation,” said Mark Cafferty, president and CEO at San Diego Regional EDC. “Worth provides San diego with a powerful platform to tell our story to important audiences around the world.” Focused on entrepreneurship, wealth management, philanthropy, travel and lifestyle, the Worth media brand includes print, digital, broadcast and radio channels as well as the bimonthly magazine Worth. The full list of Worth Destination cities will be announced on June 21. The June/July issue of the magazine featuring San Diego will be available on newsstands beginning June 28, 2016.
While overall employment growth has slowed heading into summer, May proved to be another solid month for San Diego's economy. Here are EDC's top three takeaways from May's Manpower Monthly Employment report:
“Consistent to what we have seen in previous years during the summer months, San Diego’s job growth in May was driven by our hospitality and tourism industry. Although regional employment growth has slowed, San Diego is still one of the healthiest economies in the state.”
Phil Blair, Executive Officer
Manpower San Diego
In partnership with iDEA Hub, EDC hosted the 6th Annual Multi-Use Technology Symposium in conjunction with San Diego Startup Week. With industry leaders including NASA, SPAWAR, UC San Diego, Northrop Grumman and others in participation, the day-long event focused on robotics, autonomous vehicles and opportunities for entrepreneurs.
San Diego’s tech ecosystem is intimately connected to the region’s defense economy, with federal labs like SPAWAR continue to play a vital role in spurring innovation that has led to broad commercial success. To foster more engagement between federal labs across Southern California and San Diego’s rich entrepreneurial ecosystem, the symposium brought together nearly 150 attendees to discuss new technologies under development in autonomous vehicles and robotics.
SDSW provided an excellent venue for entrepreneurs from across San Diego to learn how they might partner with industry leaders and federal labs in San Diego’s rapidly evolving tech hub. The event showcased technologies from Northrop Grumman, 5D Robotics, UC San Diego, NASA Armstrong, China Lake, SPAWAR, Qualcomm, among others. Attendees were able to discuss cutting edge research and strategies on how to leverage these entities as business partners – driving San Diego and its innovative companies forward.
Here's more on the role federal labs have played in driving tech innovation:
This week, the San Diego County Regional Airport Authority announced a new seasonal service between San Diego and Frankfurt, Germany. The new flight – operated by Condor Airlines – will provide the only nonstop connection between San Diego and Continental Europe.
EDC and World Trade Center San Diego (WTCSD) worked in partnership with the San Diego Tourism Authority to support the San Diego County Regional Airport Authority in bringing Condor Airlines’ nonstop seasonal service to Frankfurt.
New international route service is a core priority of EDC and the newly relaunched WTCSD global competitiveness interests. Making the business case, the EDC and WTCSD team prepared a package of materials, including research related to economic ties between both Germany and San Diego, a series of case studies of German-owned firms operating in the San Diego region, as well as a compilation of San Diego-based companies operating in Germany.
Key economic figures include:
Upon meeting with the Condor team, EDC prepared and delivered a presentation outlining the growing interests between Germany and San Diego. In the weeks following the presentation, EDC answered a series of follow up questions and requests from the Condor Airlines route planning division to help secure its commitment to San Diego.
“As one of San Diego’s top partners for exports and foreign investment, Germany is fast becoming one of our economy’s most important international markets,” said Mark Cafferty, president and CEO of San Diego Regional EDC. “Condor’s new nonstop flight will now link San Diego to one of Europe’s most important economic and cultural hubs.”
Condor will begin service in May 2017 with up to three weekly flights on Mondays, Thursdays, and Saturdays. The route will operate on a Boeing 767-300ER aircraft and offer three classes of service: Business Class, Premium Class and Economy Class. Flights can now be booked online at http://www.condor.com/.
With over 3.2 million people and nearly 1.5 million jobs in the San Diego region today, San Diego’s extensive network of highways, roads, rail lines and public transit serves as the backbone of our economy. Essential for the movement of people and goods in and around the region, transportation infrastructure strengthens the regional economy and promotes future economic growth. Expansions and enhancements to roads, highways and public transit reduce congestion, decrease travel times and increase business productivity and overall economic competitiveness.
First approved by voters in 1988, TransNet – the region’s half-cent sales tax – has funded a variety of local transportation projects including roads, highway, public transit and active transportation. Since its inception, nearly $3.3 billion in funds collected by TransNet have been leveraged with nearly $10 billion more from federal, state and local funding sources to deliver more than 650 projects throughout the region. EDC released an economic impact analysis of TransNet, which reveals how investments in transportation over the last 25 years have impacted San Diego’s economy.