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Mega-Region

July 22, 2016

The California Competes Tax Credit is a program created by the California legislature and managed by the Governor’s Office of Business and Economic Development (GO-Biz). The tax credits are awarded by the state to companies who are looking to move to, or stay and grow in, California. In the 2015-16 round, the state awarded more than $150 million in tax credits to 259 companies who pledged to create almost 20,986 jobs over the next five years.

Within each year of the Cal Competes program credits are awarded over three separate rounds. In the last round of the 2015-16 fiscal year of the program, which closed in June, San Diego companies captured $7 million in tax credits – the largest amount of tax credits in the state and 16 percent of the total allotted credits. San Diego received more than $1 million more in tax credits than the second-place region, El Centro – San Diego’s neighbor to the east.

Throughout the entire 2015-16 program (encompassing three rounds), the California Competes program granted 38 San Diego companies more than $19.7 million in tax credits – 13 percent of the total tax credits awarded and the second highest of all regions in the state. With this, local companies committed to the creation of 2,070 jobs over the next five years, which will result in more than $369 million in wages. Those same companies will be investing $214 million in a variety capital projects over that same period.

The program divides companies into either the small or large business category where companies compete separately for a tax credit. In San Diego, large businesses received 7.6 percent – or $11.6 million – of all tax credits for the 2015-16 year. The region’s small businesses were awarded $8 million in tax credits, or 5.32 percent of the year’s pool.              

The Cal Competes program will open its first round of the 2016-17 fiscal year on Monday, July 25 where $75 million of this year’s $250 million is up for grabs. If your business is considering relocating to, or expanding in, California, we encourage you to look at the program as tool to reduce your tax liability. Our team stands by to assist with applications, as we have with many other San Diego companies including Hunter Industries, Taylor Guitars and more.

Attend a workshop to learn how your business can apply for a tax credit, or contact Jesse Gipe for more information.

July 22, 2016

By Mark Cafferty, president & CEO, San Diego Regional EDC

Each time I have the opportunity to travel and represent our binational economy in foreign markets, I leave with new ideas, opportunities and connections that I see pay off for our region. My trip to London this past week will no doubt yield similar results. But I also can't help but feel like I was part of something bigger this time.

I began the trip as a proud member of the ProMexico Pavilion at the Farnborough International Airshow and Trade Show. Reminding the world's aerospace community of how actively San Diego supports Baja's robust aerospace/manufacturing economy is a role I am always excited to play. And while the legendary English rains put quite a damper on the first day of the show (flooding the trade show floors and completely knocking out electrical power), we still managed to pack in a lot of important meetings.

Returning bright and early for day two, we started off meeting with global manufacturer, Esterline to get an update on the status of their expansion efforts within Baja. Our mega region was out in full force as Baja Governor Francisco A. Vega de Lamadrid brought the newly elected mayors from Tijuana, Mexicali and Tecate together, along with Cristina Hermosillo (President of the Tijuana EDC) and I to talk about how we can continue to support the company from both sides of the border. The respect and support the delegation was able to convey to Esterline, and the company's clear appreciation and enthusiasm were worth the cost of the trip.

After this meeting, Cristina and I were able to get additional time with mayor-elect, Juan Manuel Gastelum of Tijuana, to develop a strategy to position the city as a software support hub and a key asset for San Diego's innovation economy. This meeting proved to be timely and important as well.

Between meetings and ceremonies at the Mexico Pavilion, I ventured out through the acres of trade show space to link up with representatives from the U.S. Department of Commerce, economic development colleagues from the State of Washington and local industry giants, Cubic and General Atomics. And as is often the case at Farnborough, a chance encounter on the ride back to London led to a new business relationship between an Italian-based supplier who Cristina and I stood next to on the train and a Baja-based manufacturer who was part of our delegation. Tri-national economic development at its best!

Days three and four were a whirlwind of walks, black cabs and tube rides through London. We were meeting with and feeling out various businesses and political leaders for the potential of a San Diego trade and investment mission in early 2017, led by Mayor Kevin Faulconer. The reception and feedback was overwhelmingly positive.

Despite the rather historic backdrop of both the Brexit and the appointment of a new female Prime Minister, the political and economic leadership in London is clearly not breaking stride. We met with representatives from Mayor Sadiq Khan's office and learned that climate change, economic inclusion and cross-border relationships—all hallmarks of our Mayor's administration in San Diego—are at the top of their London agenda. These items combined with a broader dialogue around data, open government and other "smart cities" topics will clearly make for a strong and timely series of meetings between the mayors.

The leaders at super-agency, London and Partners, pledged to work closely with our team at EDC to ensure that a potential visit in 2017 is mutually beneficial and showcases both long-term opportunities and measurable results. Additional meetings with Tech London Advocates (a large Connect-like network that supports London's start-up community), OneNucleus (a small BIOCOM-like entity that brings together London's life sciences companies) and MedCity London (a large network of well-funded life sciences incubators that have been spinning out new biotechnology and medical technology companies for almost a decade) confirmed that the interest in San Diego's biotech, high-tech and startup communities has never been higher.

We had a final meeting with a fascinating NGO called Nesta, where we explored the opportunity for San Diego to be included in some of their research and benchmarking efforts with other major global cities. It turns out they have been looking to engage more with cities in North America...sometimes timing is everything.

Looking back at my week overseas, my key takeaway is just how much our geographic proximity to Mexico and our strong regional collaboration with our partners in Tijuana/Baja have become key to our global identity. And at a time when the world is hearing international news reports of divisive and hateful rhetoric coming from one of our nation's Presidential candidates, the realities of Tijuana and San Diego working together and supporting each other have never meant more to our region and our nation's reputation abroad. We were told as much at the end of just about every meeting we had.

So I truly hope we will be returning to London in 2017 to see our two mayors open up a new connectedness between our highly innovative cities. I hope that business and university leaders from throughout our region will be there with us to generate new investment, trade and strategic partnerships. And I also hope that our partners and friends from Mexico will be right there by our sides—as always—continuing to show the world what binational leadership and collaboration looks like. I believe this can be one of the most important overseas missions our region will ever embark on. And I am certain that the results will pay off in more ways than we can possibly measure.

So as our #GlobalSD campaign marches on, we want to once again thank all of our partners and investors who are continuing to make it all possible. And if you see Mayor Faulconer, don't forget to remind him how much you appreciate, support and encourage his leadership in these efforts.

June 30, 2016
San Diego Mayor Kevin L. Faulconer, World Trade Center San Diego, JPMorgan Chase & Co. and business and civic leaders unveiled the 15 companies selected to participate in the MetroConnect Program, a comprehensive support program to help local companies accelerate their global growth.
 
“The MetroConnect Program helps us to foster our startup community to provide phenomenal opportunities for San Diego entrepreneurs abroad,” said Mayor Kevin L. Faulconer, who announced the program participants. “I am proud of the 15 companies selected by MetroConnect, which represent virtually every sector of our region’s innovation economy, from life sciences to maritime tech and wireless analytics. It is my hope that they will use our MetroConnect Program to write new chapters in San Diego’s success story.”

 
From Deering Banjo, the largest banjo manufacturing company in the U.S., to Ocean Aero, an autonomous underwater unmanned systems company, the 2016 MetroConnect companies represent a diverse cross section of San Diego’s innovation economy.
 
Each MetroConnect participant will be awarded a $10,000 grant provided by JPMorgan Chase to assist with their international efforts.
 
Building on the success of the pilot round, the MetroConnect Program is creating additional support services in 2016 to directly help San Diego companies. These services include:
 
  • 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 the Japan Airlines direct flight from San Diego to Tokyo
  • Free access to SYSTRAN software for website translation and customer service needs
  • Consideration to compete for an additional $35,000 during the MetroConnect Grand Prize Pitchfest in November 2016

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

MetroConnect funds can be used for a variety for global services including travel (to and from target markets), participation in trade shows, establishment of a foreign subsidiary, foreign language translation of marketing materials and more. In 2015, MetroConnect Grand Prize Winner Cypher Genomics was acquired by San Diego-based Human Longevity Inc. after using the money to fund a partnership with Genomics England. Pharmaceutical company IriSys – another 2015 participant – opened a business development office in Shanghai.
 
“Global connectivity is crucial to San Diego’s economic future, and SMEs are increasingly its driver,“ said Nikia Clarke, executive director of World Trade Center San Diego. “Thanks to JPMorgan Chase, we are continuing to build out a comprehensive export support program to ensure that San Diego’s goods, services and technologies are competing overseas.”

 
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.
 
In total, 73 San Diego companies applied to the MetroConnect Program. Companies were selected based on criteria including potential for export growth, development of an international strategy and potential benefit the company would receive from international expansion. Judges included representatives from Applied Membranes, Biocom, Qualcomm Ventures, U.S. Department of Commerce, San Diego Regional EDC, San Diego State University’s CIBER, Tech San Diego, Taylor Guitars and UC San Diego.
 
The MetroConnect Program is administered by WTC San Diego, an affiliate of San Diego Regional EDC. The program is made possible through JPMorgan Chase, with additional support from Japan Airlines, Qualcomm Ventures, SYSTRAN and Taylor Guitars.
 
For more information about MetroConnect, please go to MetroConnectsd.org
 
The 15 program participants:
  1. Aurora Spine
  2. AVACEN Medical
  3. Calbiotech
  4. Deering Banjo Company
  5. ElliptiGO, Inc.
  6. GroundMetrics
  7. Hyperikon
  8. INOVA Drone
  9. MANTA Instruments Inc.
  10. Ocean Aero
  11. Ocean Reef
  12. Rough Draft Brewing Company
  13. Solatube Worldwide Sales
  14. VaultRMS
  15. Whova
June 28, 2016

In an effort to attract talent from outside of the region to North County San Diego, Innovate78 led an ad campaign targeting the L.A. area and focusing on the region’s diverse career and lifestyle opportunities. Utilizing various social media channels, as well as university communications at UCLA and UCI, the ad campaign garnered more than 740,000 impressions and drove more than 3,500 clicks to the Innovate78 website, where recent graduates can find jobs, housing and additional resources available in North County.

This is a new effort focused on exposing talent from outside of San Diego to the unique opportunities in North County – which includes more than surfing and craft beer (although we love those, too). 

May 17, 2016

By Jesse Gipe, manager, economic development

In partnership with more than a dozen organizations across San Diego County including the San Diego Military Advisory Council (SDMAC), EDC has established Operation San Diego, a strategy to support our military and defense assets in the region. As part of these efforts, I had the opportunity to attend the largest gathering of senior military officials ever hosted by the Governor’s Military Council (GMC) earlier this week. The two-day Defense Summit provided military leaders, support organizations, state agencies and elected officials an opportunity to discuss how to address some of the critical needs of bases and the personnel they house.

While in San Diego it can be hard to forget the impact of our military in our day to lives – with a $45 billion impact to our GRP – other areas in California do not share our military concentration. Recognizing the need for a strong voice from California in support of the military, and through efforts led by both SDMAC and EDC, Governor Brown established the GMC. The all-volunteer board members of the GMC form an impressive roster of retired flag officers from every branch of the DoD and Coast Guard. This group of well-respected former military leaders have answered the Governor’s call to serve on the council and lend their collective expertise to ensure that California is proactively supporting the military in DC and at the state level.

Kicking off two days of activities, the GMC hosted their quarterly board meeting attended by Governor Brown on Tuesday. The council, led by Chair Ellen Tauscher, former Under Secretary of State for Arms Control and International Security Affairs, discussed the GMC’s strategy to support bases and personnel in California. 

After the GMC’s board meeting, nearly 40 active duty commanders and military personnel including some of the state's most senior commanders such as Brigadier General Edward Banta, Commander of Marine Corp Installations West and a strong contingent from Navy Region Southwest flew in to participate in a full day of workshops on Wednesday. In addition to the military leadership approximately 50 individuals from base support organizations such as SDMAC’s Executive Director Randy Bogle and other key agencies like SANDAG were also in attendance.

The workshops were designed to help bases and the communities supporting them identify solutions to address several common issues. These issues primarily revolve around the military’s needs for reliable and secure energy, the impact of the drought on water reliability, the demand for new creative funding partnerships to address budget shortfalls caused in part by sequestration, and of course how to help service members transition back into civilian life.

This message has certainly resonated with Governor Brown, who reiterated the significant role of the military in his remarks to the GMC: “There is a very important connection, because without the defense contracts, the aerospace contracts in California wouldn't be where it is today.”  Military bases across California not only continue to provide vital national security missions for the United States; they have been pivotal in the establishment of some of our state's most vibrant industries.  Most notably, of course, would be aerospace, but bases like SPAWAR in San Diego have created groundbreaking technologies such as radar, that have helped spur commercial innovation in a wide variety of industries.

Events like this provide unique value for San Diego as we strive to maintain and enhance what has always been one of our region’s critical economic and cultural pillars: the military.  EDC will continue to work closely with the GMC, regional partners including SDMAC, the State of California and in Washington DC to make sure that as our region continues to support the military.  

May 17, 2016

According to the National Center for Education Statistics, San Diego universities conferred more than 40,000 bachelor’s degrees in 2014. While recent data suggests there has been an increase in young graduates staying in San Diego, there is still a perception that entry-level job opportunities and startup culture are less common here than in other tech hubs, despite predictions of software and related tech jobs growing by more than 18 percent in the coming year – with many companies looking to hire recent grads.

Working to develop and retain talent in San Diego, EDC partnered with community organizations including Downtown San Diego Partnership (DSDP) and Cyber Center of Excellence (CCOE), as well as local universities including UC San Diego, San Diego State University and CSU San Marcos to host four Link2 events this quarter – connecting hundreds of students and veterans to industries and businesses growing in the region.

Kicking things off in Q2 with Link2Cyber, EDC introduced nearly 100 students to the region's growing cybersecurity sector. Hosted at CSU San Marcos, students from across the 78 Corridor heard from a panel of industry leaders, including ViaSat, CCOE, San Diego Airport Authority and others to learn about career opportunities in San Diego’s growing cybersecurity industry.

In addition to bringing industry onto campus, EDC and DSDP hosted Link2Downtown which brought more than 100 university students to tour downtown startups and incubators, showcasing the robust tech and startup scene in San Diego’s core. Computer Science students from San Diego State University and UC San Diego toured EvoNexus, The Control Group, Mindtouch and Red Door Interactive.

With emphasis on transitioning service members and veterans, EDC and CCOE hosted Link2Cyber at Navy Region Southwest during Hiring Our Heroes on April 20. The event featured two panel discussions, each with emphasis on technology innovation and integration, entrepreneurship and employment needs, to help acclimate transitioning services members into private sector employment – utilizing their unique skillsets in cybersecurity and more.

Taking it back to campus in May, Link2Design introduced students to design thinking in San Diego – demonstrating the power and value of design as a driver for San Diego’s innovation economy, civic infrastructure and quality of life. Hosted at The Basement on campus at UC San Diego, the event gave more than 35 students access to industry leaders – from ThermoFisher Scientific, Makers Quarter, Grizzly and Feetz – who discussed career opportunities, market trends and more about design in San Diego.

Launched in 2014, the Link2 series is part of EDC’s efforts to retain and grow our region’s talent. By exposing students and veterans to opportunities that exist in growing industries across the region, we are ensuring the growth of San Diego’s diverse talent pool.

April 22, 2016
Once again 800 of the region’s executives, elected officials and community leaders joined EDC at SeaWorld San Diego for our Annual Dinner.
 
EDC’s new Chairman Jim Zortman of Northrop Grumman Aerospace Systems shared his vision for the organization; Conrad Prebys was recognized as the Herb Klein Civic Leadership honoree for his many contributions to the region and Illumina’s former CEO Jay Flatley accepted the Duane Roth Renaissance Award on behalf of the company for its life changing genomics technology. 
 
Throughout the evening, guests had the opportunity to interact with SeaWorld animals and enjoy a unique array tastes and treats spread over a large section of the park. 
 
EDC’s Annual Dinner is underwritten by Point Loma Nazarene University, with additional support from sponsors.
 
April 15, 2016

The California Competes Tax Credit is an income tax credit available to businesses that want to locate in or expand in California. Since its launch in 2014 as part of Governor Jerry Brown’s economic development initiative, the California Competes Tax Credit will award close to $380 million in credits to California companies.

On April 14, 103 companies were awarded more than $68 million in tax credits, creating close to 9,370 jobs over the next five years. In total, these companies will invest more than $1.3 billion over the next five years, aiding the state’s long term growth.  

San Diego boded especially well in this round. Eighteen San Diego companies are receiving more than $11.2 million in tax credits, ranking second among all metropolitan regions in the state. San Diego also ranked second in the amount of jobs created among all metros, with more than 1,330 jobs. Some of the companies that will be will awarded the credits include: Hunter Industries and Sentek Global, and many more. These funds will help the 18 San Diego companies invest more than $139.7 million into the community and pay more than $252.8 million in wages over the next five years.

 

April 15, 2016

Over the past year, EDC has partnered with the Brookings Institute’s Bilateral Cities Exchange to refine the economic development approach between Tijuana and San Diego. In parallel, EDC’s recent engagement with the site selection industry through Explore San Diego – a tour hosted for 12 site selector consultants earlier this year – enabled our facilitation of a cross-border business attraction project that will provide jobs and investment on both sides of the border. Per terms of confidentiality, this project is being referred to as Project Scout.

During EDC’s inaugural Explore San Diego tour, we focused not only on success stories in San Diego, but highlighted companies who had set up operations on both sides of the border, including Thermo Fisher and BD. Although we frequently hear about cross-border collaboration in San Diego, we soon realized that it was a story that many outside the region – including these site selectors – hadn’t thought about; companies can easily do business on both sides of the border.

In early March, EDC received a request from an Explore San Diego attendee whose client was looking to scale manufacturing operations outside of its current high-cost pilot facility. Given the consultants’ recent exposure to the bi-national mega region, San Diego-Tijuana made the long list of 20 potential sites. In response, EDC provided data, real estate market figures and other strengths regarding our cross-border economy. Just two weeks later, a call came in that San Diego-Tijuana had made the top three, alongside North Carolina and Texas.

In a tour on behalf of Project Scout, EDC rallied the necessary business and political partners in order to put the region’s best foot forward – making the case for a cross-border operation. With partners including CaliBaja, city of San Diego, city of Tijuana, San Diego Mayor Faulconer, Tijuana EDC and UC San Diego, EDC showcased Tijuana’s dynamic manufacturing facilities. Here, the group shattered stereotypes by exposing not only the quality and efficiency of Tijuana manufacturing, but also the cross-border collaboration that makes our region so unique.

Project Scout ultimately chose to scale 80,000 square feet of manufacturing operations in San Diego-Tijuana – beating out North Carolina, Texas and other competitors. The local operation will provide jobs on both sides of the border beginning in August.

Stay tuned for more as Project Scout develops. 

February 18, 2016
By Matt Sanford, director of economic development
 

Could the 78 Corridor be the next hub for Information and Communications Technology (ICT) companies? At a roundtable discussion with industry companies, academic institutions and city economic developers this week, EDC posed this question.

With a concentration of more than 650 ICT employers in the five cities along the 78 Corridor - Carlsbad, Escondido, San Marcos, Oceanside, Vista - there is a reason companies are choosing to locate here. Some of those reasons are the quality of talent and engineers, quality of life, and strategic positioning between San Diego and Orange County. If we are able to better capitalize on those reasons and understand the issues and opportunities of doing business along the Corridor (and the broader San Diego region), we can proactively set the framework to accelerate industry growth and clear hurdles.

The discussion identified several key challenges to overcome as well. Key among them: talent accessibility, infrastructure improvements, university/academic relationships and the ability to work together to make the region more attractive for those who might consider working here. 

EDC plans to dive deeper into these challenges with our partners, cities and institutions to find creative solutions to turn those challenges into opportunities. 

Learn more about San Diego's Upside at Innovate78.com