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Inside EDC

November 11, 2013

Illustration of GroundMetrics oil producing technology

 

GroundMetrics CEO George Eiskamp recently demonstrated a talent important to any entrepreneur building a company – extemporaneous speaking. Asked to give a quick update on his company at the closing lunch of the World’s Best Technology conference (WBT), Eiskamp whisked the audience through his firm’s financing wins and in the process showed that it takes a proverbial village to get a company up and running.

Founded in 2010, GroundMetrics is developing a new class of sensor system for advanced ground-based electromagnetic survey and monitoring services for resource exploration, production and environmental integrity.

Eiskamp’s early funding set records with San Diego’s Tech Coast Angels. His first round of financing in 2012 was the largest investment ever raised from a single chapter ($1.2 million). A Small Business Innovation Research grant (SBIR) from the U.S. Department of Energy soon followed and in October of 2012 GroundMetrics was selected to present at WBT.

Eiskamp’s story was welcome news for the WBT class of 2013. Since participating in the program last year, where the company won a Gold award as one of the most promising technologies showcased at the event, GroundMetrics took second place in the San Diego Venture Group’s PitchFest, closed a second round of financing – again led by San Diego Tech Coast Angels – and secured an additional SBIR grant from the Department of Energy as well as a $1.8M grant not earmarked for small companies.  The company also added the world’s 6th largest and 20th largest oil companies to its customer base in addition to repeat business from the world’s largest oil company.

San Diego Regional EDC’s Matt Sanford (who met Eiskamp at WBT 2012) introduced him to Tom Van Betten and Kaley Severn at Cassidy Turley San Diego, who helped him locate office space in Kearny Mesa and referred him to James Morrell at Veteran Solutions to renovate the space. In a follow up email, Eiskamp was very positive about his experience. “I’d highly recommend them to other early stage companies, which are the real economic drivers in any community and especially tech clusters like San Diego.”

GroundMetrics is currently in due diligence for a Series B round of funding with two organizations he met via WBT in 2012. It was a meeting with one of those groups at the site of WBT 2013 that led to the last minute request for what turned out to be an inspiring story for companies currently in the hunt for funding.


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November 7, 2013

California group photo with Sec. of Commerce Pritzker

EDC recently joined a delegation of nine California organizations, organized by the California Governor’s Office of Business and Economic Development (GO-Biz), at the inaugural SelectUSA  Investment Summit in Washington D.C. The goal was to promote the golden state as the prime spot for international trade and investment. Hosted by the Department of Commerce, the summit connected top-level corporate executives and investors from the U.S., and around the globe, with the nation’s economic development organizations at the state, regional, and local levels.

Despite the federal government shutdown a few weeks prior, it was business as usual in the nation’s capital.  “The United States is open for business,” President Obama told a sold-out room at the conference. 

The two-day conference welcomed more than 1,000 attendees from nearly 60 international markets and 47 U.S. states, three U.S. territories, and the District of Columbia. Featured speakers, in addition to the President, included Secretary of Commerce Penny Pritzker, Secretary of State John Kerry, Bill Simon (President and CEO of Walmart U.S.), Parker Harris (Co-Founder of Salesforce.com), and Ludwig Willisch (CEO of BMW North America).  The summit also featured more than 70 high-level speakers covering topics such as workforce development, public-private partnerships through infrastructure investments and exports.

Why is foreign direct investment (FDI) important?  Direct investment in the United States – from foreign or domestic firms – is a critical factor in economic growth and job creation.  In 2012 alone, the U.S. attracted more than $160 billion in foreign direct investment (FDI), making us the world’s top destination for FDI.  In 2011, foreign-owned companies in the U.S.  were responsible for employing 5.6 million U.S. workers. 

Where does California stack up in comparison to other U.S. states?  In April of this year, California Governor Jerry Brown announced more than $1.8 billion in deals making the state number one for attracting FDI.  Foreign-owned companies account for more than 700,000 jobs in the state.

At the conference, President Obama  announced the first-ever comprehensive effort led by the federal government to attract job-creating foreign investment to the U.S. through the expansion and enhancement of the SelectUSA initiative. The initiative seeks to grow FDI as the nation emerges from the recession and becomes an increasingly competitive location for attracting investment due to rising productivity, abundant low-cost energy and rising costs elsewhere.  With the announcement,  regions like San Diego can expect a smart FDI strategy that integrates export promotions, workforce development, innovation cluster creation and land use planning.   Such a strategy will reap the many benefits of international trade and investment—including new better paying jobs, new tax revenues, knowledge spillover and global connectivity. 

What does this mean for San Diego?  San Diego’s active role in    the State of California’s collaborative and coordinated investment promotion efforts is needed to engage and attract future investors;  our partnership with the Brookings Institution on the Metropolitan Export Initiative will create a regional export strategy that will boost the local economy and create jobs; and our ongoing involvement with the Global Cities Initiative to spur and strengthen regional global engagement puts San Diego on track for creating a blueprint for  global competitiveness.


posted by Daichi Pantaleon

November 1, 2013

101 San Diego Companies made Inc 5000 list of fastest growing companies

Earlier this week, Inc. magazine released its annual Inc. 5000 list of fastest growing companies. More than 100 companies in San Diego metro made the list, including four EDC Investors: SKLZ,Sentek GlobalD&K Engineering and VAVi Sport and Social Club. Other prominent San Diego region businesses made the list, such as Stone Brewing and Quality Controlled Manufacturing, who recently participated in San Diego Manufacturing Day with EDC and other regional partners. 

The Inc. 5000 list ranks companies by revenue growth from 2009 through 2012 for companies that are U.S.-based, privately-held, for profit, and independent with 2012 revenues greater than $2 million. The 101 San Diego companies on the list totaled more than $1.75 billion in annual revenue in 2012. Among all US metros, San Diego had the 13th most companies on the list. 

This list shows San Diego's businesses are gaining steam. While we're home to one percent of the nation's privately-held businesses, San Diego companies make up 2 percent of this year's Inc 5000  list.

Click here to see the full Inc. 5000 list. Click here to see the full list of San Diego metro businesses.

October 4, 2013

DSC_0011

More than 80 business and industry leaders gathered at the Challenged Athletes Foundation to mark the launch of San Diego County's Sports and Active Lifestyle Cluster Report, which quantified the impact of the cluster for the first time. In order to celebrate the industry and learn about challenges, a panel of sports innovators and experts who included John Sarkisian of SKLZ, Peter Callstrom of San Diego Workforce Partnership, and Stephan Aarstol of Tower Paddle Boards, spoke about a variety of topics related to the cluster. Opening remarks from Interim Mayor Todd Gloria and Council President Pro Tem Sherri Lightner emphasized the importance of the industry to both the region's economy and cultural identity. 

Funded by San Diego Workforce Partnership with assistance from San Diego Regional Economic Development Corporation and San Diego Sport Innovators, the study found that the economic impact of the region’s SAL cluster is equivalent to hosting four Super Bowls annually.
 
With more than 1,200 businesses representing approximately 23,000 employees, the industry’s presence on the regional economy adds $2.24 billion in economic activity annually. From 2012-2013, the employment in the sports and active lifestyle cluster outpaced that of the entire county, growing 3-5 percent in the SAL cluster, compared to 1-2 percent growth in San Diego County. Overall, the industry accounted for 1.3 percent of the region’s economy in 2011.
 
“With the release of the study, we have concrete data to talk about a growing industry that is an important part of San Diego’s story,” said Mark Cafferty, president & CEO of San Diego Regional Economic Development Corporation. “As home to the second highest concentration of sports and active lifestyle workers in the U.S., this economic driver has an important place in the region’s innovation economy.”
 
Home to miles of beaches and favorable weather, the study also concluded that San Diego’s natural assets are one of the reasons the region has excelled in forming this cluster.
 
“San Diego is every sports and active lifestyle company’s ideal location,” said Lisa Freedman, executive director of SD Sport Innovators. “While there are other important and larger verticals in San Diego, the sports and active lifestyle cluster is a very strong community where authenticity goes hand in hand with innovation. As a result, people around the globe not only purchase and use, but they also rely on products developed and manufactured right here in Southern California.”
 
As part of the workforce assessment, the study surveyed numerous local companies to determine their employment needs. With 32,407 jobs dependent upon sports, active lifestyle and recreation related activities, cultivating a strong workforce is essential to growing the industry.
 
“As a unified region, our goal is to forge partnerships with businesses, universities and government to ensure that companies continue to find the talent they need so the region can retain its share of the sports innovation industry, ” said Peter Callstrom, president and CEO of San Diego Workforce Partnership.
 
In order to continue grooming the industry for growth, the report concluded with recommendations for helping sports innovation companies thrive including supporting entrepreneurial skills and strengthening cross-border ties for manufacturing partnerships.
 
Check out the executive summary and complete study for more information. More pictures from the event can be found here
 

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August 19, 2013
This summer, EDC participated in Connect2Careers,a program that places young adults in summer internship programs across San Diego. Funded by the City of San Diego, the program works to address San Diego’s ongoing skills gap by providing meaningful summer work experiences that prepare young adults for in-demand jobs.
 
Before he heads back to school this fall, we gave our Intern Regan Pecjak one last assignment: reflect on his internship experience. Here’s what he had to say:
 
Supervisor Daichi Pantaleon with Regan PecjakWhen I began my internship at San Diego Regional EDC at the beginning of the summer I was in a position that I feel was representative of many San Diegans; I had only a vague idea of what economic development was and had absolutely no idea how it would pan out. The past weeks at EDC have given me an intimate understanding of both and provided me with an experience that I would have never had without the Connect2Careers program. 
 
Working at EDC has given me the opportunity to learn firsthand how the region is marketed to businesses and of the various efforts to expand the region’s economy. One of the major projects at EDC during my time here as the Brookings Institute’s Metropolitan Export Initiative. The plan is meant to address the under performance of San Diego’s international exports; despite having the 17th largest metro area population, San Diego’s export production ranks 55th. Sitting in these meetings gave me an in-depth understanding of the nature of some components of the region’s economy. 
 
Sitting in meetings and honing my office skills were not the only things I did; I really enjoyed the research assignments I was given. One of my favorite assignments involved researching incentives that US cities offer businesses to expand and relocate. It helped me understand what goes into creating a successful business climate and even got me thinking about some ideas that could potentially improve our own region!
 
After seven weeks at EDC, I’m happy to report that it’s been an invaluable experience. Working downtown provided me with access to key policy makers, as well as an informal network of economic development professionals. Within EDC’s walls, my co-workers were extremely cordial and were happy to talk with me. Thanks to the San Diego Regional EDC and the Connect2Careers program, I’ve had an excellent summer.  
 
Dec. 2013 update: EDC likes to keep in touch with interns following their experience to further help them on their professional paths. We're excited to share that Regan has been accepted early to Harvard. Although he is undecided on his major, he hopes to focus on economics and mathematics, while further exploring his interest in public service. Congratulations Regan!
 
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August 8, 2013
 Some have asked us to issue a formal statement on behalf of EDC celebrating the life of our dear friend Duane Roth. We believe that CONNECT, BIOCOM and others have already done so quite beautifully. So in a less formal fashion, I would like to share the following thoughts and reflections...
 
To try to write down what Duane Roth meant to San Diego Regional EDC, and our entire binational economic development community, is next to impossible. 
 
As most of you know, Duane was a longtime board member. He was our past chair. He was our partner on countless projects and our constant supporter behind the scenes. He was an incredible thinker. He was a visionary in the truest sense of the word. He was our motivator, our agitator and our confidant. But above all, he was our friend.
 
For me personally, having the opportunity to work so closely with Duane for the past 19 months has turned out to be a greater blessing than I could have ever imagined. Looking back, it seems as if Duane and I were doing something together just about every day.
 
We spoke on countless panels together--telling the story of our traded economies. We worked to create a collaborative economic development agenda for our organizations and our region. We planned meetings together. We supported each other's grant writing and fundraising efforts. We traveled together and lobbied together. And along the way, we spent a lot of time talking about our work, our economy and our community.
 
Duane changed the way we think and talk about San Diego. His personality and professional will made us bigger, stronger and better. He believed we were great and he made sure the world knew that. He used his influence to open doors, his intellect to create opportunities and his determination to earn broad-reaching respect and admiration. 
 
Duane always went about everything he did with a sense of importance and urgency. At times, none of us could move fast enough for him. In hindsight, it's almost as if he knew that he had very little time to waste. 
 
Like many, I will spend the days ahead thinking about what role I can play in carrying on his legacy. I will take the messages that I have heard him share with so many and ensure that I continue to share them with everyone I can. I will do my very best to see through the projects we started together and I will constantly try to do for others what Duane did for me. 
 
On Saturday, when I first learned that Duane had passed away, I immediately thought of a quote from John Steinbeck that I have always loved. It reads:
 
"It is so much darker when a light goes out than it would have been if it had never shone." 
 
As dark as it may seem today, I can't help but think of how lucky we all are for having shared this remarkable light.
 
I will never forget Duane.  I will never forget what he shared with me and what he taught me. And in saying goodbye, I can only think of the words of the Irish Blessing I learned as a child: "...until we meet again, may God always hold you in the palm of His hand."
 
With deep sorrow and enduring hope, 
 
Mark
 
July 29, 2013

Aerospace is part of a large and thriving Aerospace, Navigation & Maritime Technologies (ANMT) cluster in San Diego. Among the 25 most populous U.S. metropolitan areas, San Diego ranks second in the concentration of ANMT employment behind longtime aerospace leader Seattle.

 The cluster accounts for more than 20 percent of San Diego’s innovation economy, more than any other cluster except Information and Communication Technologies. San Diego’s growing unmanned aerial systems (UAS) sector presents a unique opportunity for companies in the Aerospace industry, with cutting-edge applications being developed in San Diego and throughout California. Currently, 60 percent of U.S. technology development in unmanned systems is performed in San Diego County, according to National University System Institute for Policy Research. With the rise in commercial and consumer uses, this industry sector is well positioned to carry the aerospace industry forward and continue to attract top engineering talent to the region.

  Since the aerospace industry shares many components with other industries in the ANMT cluster, it is difficult to break down aerospace companies and employment from the rest of the cluster. Some of the key aerospace-specific components of the cluster include: Search, Detection, Navigation and Guidance; Aeronautical and Nautical System and Instrument Manufacturing; Aircraft Manufacturing including Aircraft Engine and Engine Parts Manufacturing; and Guided Missile and Space Vehicle Manufacturing. San Diego Regional EDC analyzes key economic metrics that are important to understanding the regional economy and San Diego's standing relative to other major metropolitan areas in the U.S. For more information about San Diego’s aerospace industry and the full run down on how San Diego is faring compared to other major metropolitan regions, see the July 2013 Economic Snapshot.

 

 

 

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June 19, 2013
EDC dashbaordEDC has set out to chart the health of the regional economy through our new dashboard. Statistics on the economy can often be confusing, and are rarely packaged together in one place. We’ve sorted through data from the Bureau of Labor Statistics, Bureau of Economic Analysis, PriceWaterhouseCoopers, International Trade Administration and others to find the most compelling and indicative statistics on the San Diego economy. Using simple design principles, the dashboard is our one-stop shop for quick, at-a-glance data about our regional economy.
 
The dashboard provides baseline indicators on 20 different metrics to track the region’s standing among the 25 most populous U.S. metropolitan areas. They range from conventional economic indicators, such as unemployment rate and Gross Domestic Product, to less familiar quality of life indicators, like sunshine hours. Along with our Economic Snapshot, launched earlier this quarter, this new comparison format helps us understand how San Diego stacks up with other major metropolitan areas across the nation. 
 
Although the indicators will more or less stay the same, the numbers will be updated as new data becomes available. 
 
Please contact mpc@sandiegobusiness.org if you have any ideas on how to improve the dashboard. 
 
June 14, 2013
By Jennifer Storm
 
Breweries and biotech companies abound. Strong public/private collaboration. A modernized downtown. A breathtaking waterfront. Until I came back from Yokohoma, Japan last week, I thought San Diego was the only place where this existed.
 
I was representing EDC as part of the World Trade Center San Diego’s trade mission to Japan, along with BIOCOM and San Diego Regional Airport Authority, to learn about further strengthening ties between the two regions. Last week, I boarded a plane at Lindbergh Field. Nearly 12 hours later, on one of the most immaculate airplanes I have ever seen, I stepped foot in Narita Airport in Tokyo thanks to Japan Airlines' direct service. A few days and a bus ride later I found myself on the way to Yokohoma, Japan – San Diego’s sister city. 
 
From an economic standpoint, it’s an optimal time to launch flight service between San Diego and Japan. Much like the U.S., Japan is climbing out of recession. As such, they’ve adopted liberal spending policies – known as Abe-nomics –to spur investment and growth, so there is a strong potential for increased foreign direct investment .  
 
YokohamaWhile in Yokohoma, Japanese business leaders exhibited their strong interest in partnering with San Diego companies. We were met with a delegation of 40 business leaders who had ties to San Diego or were interested in creating them. The strong link between Yokohama and San Diego was very apparent- I even met the sole distributor of Stone Beer in Japan! 
 
Traveling to Japan also helped me put things in perspective back home. It’s amazing how two distinct countries could have so much in common, yet also have the opportunity to learn so much from one another. The infrastructure in Japan is outstanding. You can move from one place to another with absolute ease.  This is something we’re working on in San Diego, but admittedly, we’re just not there yet.
 
On the other hand, while touring a biotech company, I had the opportunity to chat with one employee who had previously spent time at the Salk Institute. He noted that although he prefers Japan on a personal level, he misses the creative freedom of working in the U.S.  If he discovered something while in his lab at Salk, he had the freedom to explore that opportunity, in the hopes that it would lead to further research. Although it varies from company to company, he echoed that Japan has more of a regimented work environment. 
 
Although each city has excelled in similar industries, we have a lot of lessons to learn from each other. After all, isn’t that what siblings are for?
 
To learn more about San Diego’s most recent business delegation to Japan, you can read Joe Panetta’s guest column in the U-T.  
 
May 30, 2013

San Diego Regional EDC 48th Annual Dinner

America leads the world in innovation says Jim Clifton, author of The Coming Jobs War and Chairman and CEO of Gallup, but innovation alone is not enough to fuel job growth. Clifton was in town to give the keynote speech at San Diego Regional EDC’s annual dinner. More than 800 people listened in almost total silence (no mean feat for a group that size) as Clifton talked about the difference between innovation and entrepreneurship. According to Clifton, we know how to test for intellectual talent and scout intellectual talent but we have no mechanism to determine who can best take those ideas to the marketplace. And without a customer, the best ideas do nothing for job creation.

Clifton picked up on the dinner’s recurring theme of collaboration as reflected in the comments of EDC Chairman Stath Karras and EDC President and CEO Mark Cafferty. He referred to his concept of “tribal leaders” in a community, those who constantly question and suggest new approaches to issues. “When leaders get their strength together, there is no limit to what you can do,” Clifton said, recognizing that most of the region’s leaders were in the room.

Clifton acknowledged one of San Diego’s best examples of a tribal leader – Malin Burnham – who was instrumental in bringing Clifton’s ideas to the business community and in bringing Clifton himself to San Diego.

Clifton made it clear that no one should be looking to Washington for solutions to America’s problems. “We have to win the world back one great city at a time,” he said.

EDC’s annual dinner also honored former EDC Chairman Bill Geppert with the Herb Klein Civic Leadership Award. Geppert was humble and gracious in his remarks, mentioning many beloved San Diegans who came before him as great civic leaders.

Many people took to twitter to discuss the event: