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The Big Picture San Diego Blog


Economic Development 101

August 22, 2016

Every so often San Diego Regional EDC takes an influential group of civic leaders to a peer city to better understand its economic development best practices and bring ideas back home to replicate. This time, we're headed to Nashville, Tennessee to find out what America’s Finest City learn from the Music City. In preparation for the October trip, EDC recently sent a team down south to scout meetings and spokespeople who can speak to philosophies and best practices that have served Nashville well. Here are just a few topics on the upcoming trip agenda:
 
  • First, it’s clear that Nashville mayoral leadership has consistently focused on education, public safety and economic development over a number of administrations.
  • Second, Nashville has made investments to make the City a premier destination. Nashville has built arenas now home to pro football and pro hockey franchises, constructed a new home for the Country Music Hall of Fame, and opened a new downtown convention center, as well as the Frist Center for Visual Arts - all of which has occurred in the past 20 years. The City is now making a bid for a major league soccer team.   
  • The City is also focused on regionalism – the collaboration between area government bodies for the overall good of the region. The Nashville mayor not only oversees the City but also Davidson County, an area about twice the size with half the population of San Diego County. Streamlining government processes and policies has improved development services and transportation infrastructure planning. 
  • In a timely response to President Obama’s call for honest conversations about race relations in communities across America, Mayor Megan Barry is partnering with Lipscomb University's College of Leadership & Public Service and others to host forums with the community to address race, equity and leadership in the Nashville community.
 
Mayor Barry and an outstanding group of civic leaders have committed to speak to our San Diego delegation next month. Learn more about the trip details and agenda topics here. If interested in participating, contact Raquel Elbachri for more information.
 
August 19, 2016

As increasing costs and traffic have made headlines around the country, the Bay Area has been top of mind to many of those in economic development. We’ve seen stories indicating a third of Bay Area residents want to leave the region, making it ripe for other states to recruit companies and talent. Yet, economic developers from San Francisco to Oakland and San Jose are confident they can overcome challenges and continue to be world’s leading innovation engine. So what can San Diego learn?

This week, EDC and nine San Diego economic and workforce development practitioners spent two days in San Francisco with our Bay Area peers to find out. Meetings covered a range of topics including:

  • General understanding of the history of the Bay Area innovation boom
  • Regional collaboration models
  • Tech transfer and acceleration as economic drivers
  • Implementing technology within cities to boost efficiency and capability
  • Building a tech ecosystem
  • Collaborating to prepare a regional workforce
  • Working across departments to ease strain on business

Coming out of discussions with more than 25 Bay Area peers, it’s clear there is much San Diego can learn from our northern California counterparts. The region is certainly not without its challenges and many of the news we’ve read about Bay Area economic struggles were validated while there. But as Micah Weinberg, President of the Bay Area Council Economic Institute put it, “We have a culture of lawlessness here that drives people to find solutions.” He was talking about the entrepreneurial mindset that has driven innovation throughout the 101 city, 9 county region. That mindset has seen Google and Facebook to overcome traffic challenges by operating private bus fleets and ferry services for their employees that rival most transportation agencies. It has seen workforce investment boards establish partnerships that cut across multiple regions to better serve the population being displaced to cheaper locations further East. It has seen the development and implementation of new technologies meant to ease the launch of new startups. Lastly, it has shown that through innovative and out-of-the-box thinking, any challenge can be overcome.

As we breakdown all we learned from the best practices trip, it’s clear that the San Diego region is well-positioned to continue its evolution as a tech ecosystem – not one that mirrors or rivals Silicon Valley, but one that stands alone with its own set of strengths. 

July 20, 2016

This is part of a weekly series featuring a profile on one of the 2016 MetroConnect Program companies. MetroConnect is dedicated to helping local San Diego businesses go global and is presented by JPMorgan Chase.

According to a policy brief released by National University System Institute for Policy Research, 114 San Diego-based breweries and brewpubs generated $851 million in sales last year and employed more than 4,500 workers. Ranking second Best Beer Cities in America and taking home big wins at Del Mar’s 10th Annual International Beer Festival, San Diego is clearly making strides in the craft brewing scene. Aptly, our next MetroConnect company profile highlights a successful local brewery that hopes to take their San Diego story (and beer) abroad.

After making the switch from insurance to craft brewing, UC San Diego alum Jeff Silver opened Rough Draft Brewing Company in 2011. The company’s mission is to create innovative, high-quality craft beers worth sharing with those who love beer as much as they do. Rough Draft now has more than a dozen options on constant rotation available in their tasting room, from the Freudian Sip Strong Ale to the Barrel-aged Emboozlement Tripel.

Having recently expanded capacity into the facility next door, Rough Draft is well-prepared to grow its global reach beyond its current exports to Canada and Australia, with a new focus on Mexico, Spain, Japan and Korea. The company plans to leverage the MetroConnect Program to make distributor connections and comply with label regulations, as well as support travel necessary to promote its product internationally.

Silver states, “In manufacturing, there are typically two problems you always face: not making enough and not selling enough. With our capacity expansion, we have ‘making enough’ covered. Now, with the support of the World Trade Center San Diego and MetroConnect, we look forward to   seizing opportunities that come with expanding to new global markets.

Silver and his team remain committed to the growth of the business while still retaining the quality and creativity Rough Draft has become known for. Beer tip: Keep on the lookout for a special raspberry infused ale aged in chardonnay barrels coming out this summer (certain members of the EDC team will definitely be heading over for a tasting).

The success of small- and medium-sized businesses is critical to the region’s future, and increasing their global reach is crucial to that success. Through the MetroConnect Program, companies such as Rough Draft Brewing Company are to be awarded a $10,000 grant provided by JPMorgan Chase to assist with their international efforts, as well as additional support services including: a dedicated trade and investment manager at WTC San Diego to support company participants in deploying overseas strategies during the grant period; access to workshops that address export compliance, financing and fundraising and global marketing; reduced airfare on Japan Airlines direct flights from San Diego to Tokyo; free access to SYSTRAN software for website translation and customer service needs; and consideration to compete for an additional $35,000 during the MetroConnect Grand Prize Pitchfest in November 2016.

July 18, 2016

This is part of a weekly series featuring a profile on one of the 2016 MetroConnect Program companies. MetroConnect is dedicated to helping local San Diego businesses go global and is presented by JPMorgan Chase.

A pioneer in renewable energy, San Diego is home to some of the world’s most innovative companies in cleantech research and development. The region’s cleantech industry includes the innovation and deployment of technologies in clean transportation, energy storage, energy efficiency, biorenewables and solar and wind power. Solatube Worldwide Sales, a company owned by North County-based Solatube International, Inc. is an excellent example of how a San Diego company combines innovation in both harvesting solar energy and energy efficiency. 

Solatube tubular daylighting devices (TDDs) are affordable, high-performance lighting solutions that bring daylight into interior spaces where traditional skylights and windows simply can’t reach. Sometimes called “light tubes,” TDDs have become the ideal solution for lighting interiors in a cost-effective, energy-efficient and eco-friendly way because they significantly reduce the need for electricity while keeping people connected to the outdoor environment. Solatube products are used in commercial and residential settings in over 120 countries around the world.

Solatube Worldwide Sales acts as the international division that handles all areas outside the U.S. and Canada. Impressively, the team of three employees currently markets and sells Solatube Daylighting Systems and Solar Star Attic Fans into Southeast Asia, Korea and Africa, on top of managing in-country sales reps and distributor networks.

With a new focus on India’s market, Solatube Worldwide Sales plans to use MetroConnect Program support for import tariff reduction projects, exhibitor presence at key trade shows, travel to meetings with Bureau of Energy Efficiency and other tariff reducing entities, as well as market research and workforce growth strategy.  

Todd Maerowitz, Director of International Sales states, “We’re looking forward to working closely with the San Diego World Trade Center on our expansion of Solatube’s products into emerging markets. As we move into places like India and Sub-Saharan Africa, the relationships and financial support we’ll be privy to as part of the program, are sure to prove beneficial to our growth plans."

 

The success of small- and medium-sized businesses is critical to the region’s future, and increasing their global reach is crucial to that success. Through the MetroConnect Program, companies such as Solatube Worldwide Sales are be awarded a $10,000 grant provided by JPMorgan Chase to assist with their international efforts, as well as additional support services including: a dedicated trade and investment manager at WTC San Diego to support company participants in deploying overseas strategies during the grant period; access to workshops that address export compliance, financing and fundraising and global marketing; reduced airfare on Japan Airlines direct flights from San Diego to Tokyo; free access to SYSTRAN software for website translation and customer service needs; and consideration to compete for an additional $35,000 during the MetroConnect Grand Prize Pitchfest in November 2016.

June 30, 2016
By Sean Barr, Senior Vice President of Economic Development and only in-office Canadian
 
EDC traveled to Toronto last week with our peers from Atlanta and Minneapolis to meet with metro leaders from across Canada. Facilitated by the Brookings Global Cities Initiative, the conversations proved to be a great opportunity for EDC and WTC San Diego to continue to build bridges with key cities such as Vancouver, Toronto, Calgary and of course, my native Winnipeg. 
 
There are a number of international markets that many San Diegans might not consider to be at the top of our list. Canada is just one of those markets that surprises many. Canadian cities, in particular, continue to drive a large share of San Diego's trade and investment interests. 
 
Canada purchased more than $2.8 billion worth of goods and services from San Diego in 2013. Inward investment from Canada supports more than 4,300 jobs in San Diego’s local economy. Bottom line, Canada is San Diego's fourth largest trading partner. But still, there is room to grow and expand the depth of the relationship with our Neighbor to the North. For instance, Vancouver shares our pacific, bi-national orientation and smart cities, life sciences and research-driven strengths – a metro market EDC and WTC San Diego intend on growing as we move into 2017. 
 
With Canada’s birthday on July 1, we wish all our Canadian friends, investors and partners a very Happy Canada Day!
 
June 21, 2016

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 efforts of the San Diego County Regional Airport Authority to bring Condor Airlines’ direct daily service to Frankfurt.

New international route service is a core priority of the newly relaunched WTCSD and EDC’s 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, and a series of case studies of German-owned firms operating in the San Diego region and a compilation of San Diego-based companies operating in Germany.

Key economic figures include:

  • In 2015, Germany ranked as the 4th largest source of foreign employment in San Diego, with more than 4,368 jobs in San Diego tied to German-owned businesses.
  • German companies such as Taylormade (Adidas), Kontron and Siemens all have locations in San Diego.
  • Germany is a top destination for San Diego exports, especially in the machinery, electronics and precision instruments industries.
  • Over the last decade, German companies have invested more than 300 million in new projects in our region, making Germany one of our top three largest greenfield investors.  
  • San Diego companies across diverse industries are targeting Germany, as seen with Stone Brewing Co.’s brewery in Berlin opening in late 2016.

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 direct 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/

June 21, 2016

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:

  • Switzerland ranks third among all nations for the most foreign employment in San Diego.
  • Swiss companies such as Novartis and Genentech call San Diego their home.
  • In 2011, more than 50 percent of all Swiss employment entered San Diego through M&A activity.

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.

June 14, 2016
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.
May 25, 2016

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:

Thank You CW6! from Westview DMP on Vimeo.

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. 

May 24, 2016

Adding to the region’s influx of startups relocating and expanding from the Bay Area, EDC and San Diego Mayor Kevin Faulconer welcomed mobile app publishing platform Bizness Apps to San Diego. The newest addition to the region’s growing entrepreneurial ecosystem, Bizness Apps opened its downtown La Jolla headquarters, and will be adding more than 100 jobs in San Diego over the next year.

Growing pressures in the Bay Area, as referenced by the Bay Area Council, have led businesses to consider expansion elsewhere. Companies like Bizness Apps found that San Diego to be a reasonable alternative to the Bay Area, with the necessary talent to fuel growth, lowest average commute time among peer metros, lowest employee turnover rate in tech and scientific R&D and an 18.1 percent employer-projected growth in software jobs.

Consistently ranked as an Inc. 500 fastest-growing company, Bizness Apps has quickly grown out of a college-dorm room, and is now becoming one of the leading mobile app publishing platform in the world. Serving more than 40 countries, its “do-it-yourself” app maker platform reaches 26 million users each month.