In an increasingly integrated economy, more strategic global economic engagement will prove crucial to San Diego’s sustained economic competitiveness. San Diego must leverage international exports and foreign direct investment (FDI) to create jobs, increase competitiveness and boost the region’s global identity.
There’s a clear value proposition for a company to go global, by way of either receiving foreign direct investment or exporting. According to the Brookings institute, global companies:
Pay higher wages. Average annual wage paid to U.S. employees of foreign-owned firms grew by almost 6 percent from 2008-2009; average wages for private sector during that time period grew by only 2.7 percent.
Increase productivity of the domestic market. Foreign companies bring new techniques and practices. When employees leave, they take with them new practices that can be shared with other companies in the region. Additionally, if these foreign-owned firms source products locally, they can demand higher quality or share production technology with suppliers.
Are less likely to go out of business. U.S. companies that export not only grow faster, but are nearly 8.5 percent less likely to go out of business than non-exporting companies. (Institute for International Economics)
Spur more efficient development of technology and R&D. Companies can get their innovations to market faster.
Reaching foreign markets also helps promote San Diego, and the innovative companies and people that call this place home. Point blank: you’re helping show the world what San Diego is all about.