Category: News

If you had arrived at Plantible Foods in San Marcos before August 22, it would have looked much like a typical farm; greenhouses and an abundance of open space.

But a few days later the space was completely transformed for the quarterly Startup78 meetup. On August 22, more than 200 individuals gathered to learn more about the food innovation scene in San Diego’s North County. From a company that turns bread scraps into vodka to two sisters on a quest to start the first museum dedicated to the avocado, North County is full of companies on the forefront of food innovation entrepreneurs.

Every food entrepreneurs experience is different. The crowd heard from Maurtis van de Ven (Plantible Foods), Ann Buehner and Mary Carr (The Cado), Sam Chereskin (Misadventure & Company), Chuck Samuelson (Kitchens for Good), as well as representatives from Suja and Stone.

But food entrepreneurship isn’t just about cashing in. Many of these founders are looking to solve some of the world’s biggest problems, like hunger, health living, and food waste. Kitchens for Good is a social enterprise that seeks to minimize food waste, increase sustainability and provide culinary training for populations that are experiences high unemployment rates.

“Five-and-a-half years ago I had a very nice job with a local company, Stone Brewing, having tons of fun” said Chuck Samuelson, founder and board member of Kitchens for Good, in the San Diego Union-Tribune. Nonetheless, he said “I kept waking up thinking I’ve got to do more.”

Guests were also treated to a beer garden, full of some North County’s most prominent breweries and distilleries, as well as the opportunity to sample some of North County’s tastiest food innovations.

Startup78 is an initiative of Innovate78 and San Diego Regional EDC to unite and amplify the resources available to entrepreneurs along the 78 Corridor with the goal of helping startups scale to become long-term, viable businesses that support San Diego’s economy.

Join Innovate78 for the next Startup78 event, focused on life changing science, on October 17 at the Oceanside Museum of Art. Register here.

San Diego Mayor Kevin L. Faulconer and World Trade Center San Diego (WTC), JPMorgan Chase & Co. and business and civic leaders unveiled the 20 companies selected to participate in the MetroConnect program, a comprehensive export assistance program to help local companies accelerate their global growth.

“Expanding San Diego’s global reach is vital to creating more local jobs for San Diegans and boosting our regional economy,” said San Diego Mayor Kevin L. Faulconer. “The MetroConnect program and their growing companies are introducing innovative products and services to new international markets and sharing San Diego’s story with the rest of the world.”

From visual-aid tech startup Aira, to soap manufacturer Dr. Bronner’s, to top 10 Inc. 5000 company Scientist.com, the 2018 MetroConnect companies represent a diverse cross section of San Diego’s innovation economy.

Now in its fourth program-year, the MetroConnect program equips small- and medium-sized companies (SMEs) with a suite of financial and programmatic resources in their efforts to bring their products and services global. Program resources include:

• $10,000 in matching grants to cover up to 50 percent of the costs associated with international expansion, made possible by JPMorgan Chase and the Department of Defense’s Office of Economic Adjustment and EDC’s 501(c)(3) Foundation
• Dedicated WTC San Diego staff manager to support company participants in deploying overseas strategies during the grant period
• Free export consulting with JAS Forwarding (USA), Inc. on ITAR/EAR regulations and other export activities; in-kind support by San Diego International Airpor
• Access to workshops that address export compliance, financing and fundraising and more
• Reduced airfare on the Japan Airlines direct flight from San Diego to Tokyo, and on Air Canada direct flights from San Diego to Canada. Assigned Lufthansa agent for direct flights from San Diego to Frankfurt, Germany
• Access to country representatives at the Japan External Trade Organization and the United Kingdom Government Office in San Diego
• 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 June 2019

“JPMorgan Chase is proud to continue supporting the global expansion of San Diego businesses,” said Tim West, Executive Director and head of JPMorgan Chase’s Middle Market Banking practice in San Diego. “MetroConnect will empower these 20 local companies to grow in targeted international markets, and help them navigate many of the complex nuances of global business. MetroConnect’s track record speaks for itself, and we’re looking forward to seeing the program’s continued impact on the San Diego economy.”

Since the program’s debut in 2015, 45 MetroConnect alumni have collectively generated $15 million in new export sales, signed more than 116 new contracts, added 161 new jobs to the region, set up nine new overseas facilities and seen four successful company exits. Past participants include Calbiotech (now ERBA Diagnostics), Rough Draft Brewing, Deering Banjo Company, Cypher Genomics (acquired by Human Longevity Inc.), Planck Aerosystems and many more.

“Amid increasing uncertainty over national trade policy, ensuring that local companies get the tools they need to be successful overseas is more important than ever. We know that companies that export pay higher wages, are less likely to go out of business, and become more competitive and resilient,” said Nikia Clarke, executive director of World Trade Center San Diego. “Thanks to JPMorgan Chase, the MetroConnect program helps San Diego companies export their innovation around the world, which creates jobs and opportunities back here at home.”

Against the backdrop of rapid changes in global production, a newfound ‘trade war’ with China, and renegotiations of trade agreements, it is more important than ever to support SMEs in going global. In 2015 alone, San Diego exported more than $17 billion in goods overseas, as well as billions more in services like software, cybersecurity, engineering and research. SMEs produce 92 percent of those goods – driving home the point of programs like MetroConnect. According to the Brookings Institution, companies that are global pay higher wages, are less likely to go out of business and increase productivity of the domestic market.

For more information about MetroConnect, please visit MetroConnectSD.org.

The 2018 MetroConnect companies are:

1. Aira
2. Allett
3. Arctic Zero, Inc.
4. AtYourGate
5. Bitchin’ Sauce
6. Cloudbeds
7. Conectric Networks
8. Dr. Bronner’s
9. Eddy Pump Corporation
10. Epitope Diagnostics Inc.
11. Hookit
12. IPS Group Inc.
13. KULR Technology Corp.
14. LRAD Corporation
15. MRP Training Solutions
16. PKL Services
17. Quality Controlled Manufacturing, Inc.
18. Raveon Technologies Corporation
19. Scientist.com
20. Telaeris, Inc.

The MetroConnect program is highly competitive, with just 20 companies selected based on a variety of criteria, including interest in new markets, interest in targeted metro markets, assessed impact of funds, current international traction and more. This is up from just 15 companies in the first three years of the program. Applicants were assessed by a panel of judges, including representatives from Qualcomm Ventures, Biocom, U.S. Commercial Service, Tech San Diego, Rough Draft Brewing, San Diego State University, Tech San Diego, UC San Diego, San Diego Regional EDC and WTC San Diego.

As part of EDC’s Inclusive Growth initiative, it is important to highlight action-oriented programs throughout the region that promote inclusion and serve as key examples for other employers to adopt and scale for their own organizations. After releasing its interactive web study Building San Diego’s Talent Pipeline, EDC spoke with Naila Chowdhury, director of social impact and innovation at UC San Diego, who has been leading the charge there in addressing critical issues affecting underrepresented communities in San Diego, as well as the rest of the world. Read about UCSD’s compelling programs in Chowdhury’s commentary below and see how you can get involved or implement.

My role as Director of the Office of Social Impact & Innovation (SII) at UC San Diego, along with its essential partners, serves the campus by actively promoting partnership, collaboration and enhanced relations between all campus stakeholders, especially students, the community, corporations, local, national and global organizations in the area of Social Justice. Since joining the University of California San Diego three years ago, I have been working on creating awareness and educating the university community about serious issues that need addressing in our beautiful City of San Diego.

I believe that gender inequalities and discrimination attitudes and practices, that hold women and girls back, also include our underserved communities and must be confronted and eliminated. It cannot remain just words anymore; we have to practice these words in every sphere of our lives. We at large have to establish public and private partnerships with civil society, academia, nonprofits, private sector, foundations, and large corporations. Everyone has to feel and be a part of this inexorable march to usher in a new era of enhanced, equal opportunities for women and minorities. Women and girls represent the largest untapped resources for social and economic development in our world today. Local issues like women’s leadership and economic empowerment, is critical to future development, sustainability, equity and peace in our world. Leaders of today must make a commitment to dismantling institutional barriers and ensure a level playing field so that every woman has the same opportunity as any man while seeking livelihood opportunities in day-to-day work, society or access to finance and business.

The Office of Social Impact and Innovation at UC San Diego is committed to bringing solutions to solve the world’s most pressing challenges like human trafficking, social inequality, and human rights violations trough programs like the upcoming Time to Rise Global Empowerment Summit. We want to focus on actions and solutions. These challenges are complex and require innovation, creativity and dedication to solve. We need everyone’s collaboration to build bridges and share information to address these difficult issues, and it is imperative that the San Diego business community is a part of the dialogue and solutions.

We at the University of California believe that leadership and mentoring training, role models, and skill development must begin at an early age to help build an equal and inclusive world. With this in mind the university, along with sponsor partners, is recognizing the unsung heroes during the summit and engaging the participation of 50 youth from Smart City Saturday, Teen only Hackathon -Stop Youth Trafficking. In preparation of their hackathon, they will be mingling and interviewing the survivors and refugees in attendance, and learning from one another.

I am very satisfied with the many ways the University of California San Diego is addressing, supporting under represented, and minority students by offering services and programs to ensure students have adequate resources during their education at UCSD. I will mention just a few:

• Programs that include undocumented students through their own Undocumented Student Services Office, which strongly advocates and generates a sense of community for all students that are undocumented or come from mixed immigration-status families: http://students.ucsd.edu/sponsor/undoc/.

• Centers like the Raza Resource Centro (RRC) is one of the Campus Community Centers supporting the UCSD Chicanx- Latinx. By using words with the letter X (latinX) it creates an inclusive environment for all of the students and individuals that visit their space, regardless of gender identity or expression: http://raza.ucsd.edu/.

• Early Academic Outreach Program (EAOP) assists first-generation, socio-economically disadvantaged, and English-language learners by helping them prepare for postsecondary education, pursue graduate and professional school opportunities, and achieve success in the workplace: https://eaop.ucsd.edu/.

• The TRIO Outreach programs offering services to San Diego High Schools on college advising, financial aid assistance, career awareness, educational field trips and summer programs and tours. All aimed at recruiting potential first generation college student and/or low-income students: http://trio.ucsd.edu/.

• UCSD supports the first generation student by providing Student Success Coaches aimed at improving first-generation college student access and success, eliminate obstacles, and improve pathways for students to achieve their academic and professional goals: https://srs.ucsd.edu/about/index.html.

• Through scholarship funding, services and programs, the Chancellor’s Associates Scholarship Program (CASP) recognizes and supports talented local students with financial need and great potential and motivation to succeed at UC San Diego: http://students.ucsd.edu/sponsor/casp/.

• The PATHS ways to STEM through Enhanced Access and Mentorship. This program model is aimed at mitigating historically evident barriers and establish an infrastructure of resources, communications, and professional development within UC San Diego and in the surrounding community to increase under represented student to enter the STEM field: http://paths.ucsd.edu/.

According to Dr. Gentry Patrick, Director of Mentorship and Diversity for Biological Sciences at UC San Diego, what works for long term success with underserved minorities, is to immerse the students with professional context, leadership skills, support network of peers, faculty and alumni. It’s important to show how STEM affects their life and how they can be an example in their community and that STEM is not for somebody else. To make these programs successful what is needed is a broad base of support, partner with organization, individuals for funding, engagement, placement opportunities and mentorship possibilities.

We are happy to announce that during the Time to Rise Summit 2018, a PATH Scholar will be a recipient of SII -Social Impact Scholarship in partnership with Qualcomm Institute and Alliance4Empowerment (www.socialimpact.ucsd.edu, www.alliance4empowerment.net).

In summary, social impact is more than social justice. Our efforts at SII focus on areas of inclusion, inequalities, transformational leadership, and economic empowerment. It is time to rise together to address these social challenges. We hope you join us at our Time To Rise Summit on October 6: https://time-to-rise-summit.eventbrite.com.

Livestream will be available the day of the Summit at https://youtu.be/e9wv2hUhE4A

UC San Diego-Social Impact is conscientious about its responsibility to leave behind a better and more collaborative world by training and informing Change Makers Who are the Source of Change. When we work with community partners and other collaborators, we build responsible caring ambassadors and we build bridges globally to develop international working relationships. At UC San Diego, we are changemakers. That is why Ashoka, the world’s largest network of social entrepreneurs, recently designated the university as a “Changemaker Campus”. Be the source of change with u s!

San Diego’s Economic Pulse uses data to tell a story about our regional economy. This issue covers data from August 2018. Check out EDC’s research bureau for more data & stats about San Diego’s economy.

Originally published in The Wall Street Journal.

Among the 50 largest metros in the U.S., San Diego ranked the highest in the nation for median household income growth. This is largely due to its abundant supply of booming tech and biotech companies, like Amazon and Sony, willing to pay big bucks for top talent. Read more in The Wall Street Journal article below.

If the U.S. economy is on fire, California is its white hot center.

Of the 50 largest metros, five of the 10 with the biggest income gains are located in California, where a diverse economy has been adding jobs across industries including construction, tourism and technology. No other state had more than one region in the top ten.

According to census data, the San Diego area, fueled by high-paying job growth in telecoms and biotech, gained most among the 50. Median annual household income rose 5.4% in 2017 to $76,207. The Silicon Valley area, including San Jose, Sunnyvale and Santa Clara, followed closely with a 4.6% rise in median income to $117,474.

With most of California’s major cities at or near full employment, there are more jobs than job seekers in some sectors and that has driven up wages, economists said. Very high incomes in some of the state’s dominant sectors, including technology, have also pulled up the median.

“We don’t have slack in many of our labor markets in California and so you get wage increases,” said Jerry Nickelsburg, a senior economist at the University of California-Los Angeles.

California’s economy, which grew 3% in 2017, has in recent years outpaced growth in the overall nation. It now ranks as the fifth-largest economy in the world, surpassing the United Kingdom last year.

Still, a high cost of living driven by surging housing costs has raised concerns about the sustainability of the state’s growth and whether most residents are benefiting from it. California has the highest home prices of any state and nearly 30% of renters here pay more than half of their income toward rent, according to recent data from the state’s housing department. By some measures that account for cost of living, the state has the highest poverty rate in the country.

“As economic development professionals, we celebrate reports like this, but we also know if you dig further into the numbers…there is more work to be done,” said Erik Caldwell, Economic Development Director for the city of San Diego. He said his city’s historic industry clusters were having a new growth spurt, driving up incomes.

The tech boom is even helping to boost California regions beyond the coastal meccas where such businesses are based. Median income in the so-called Inland Empire, which includes Riverside, San Bernardino and Ontario, rose 4.3%, the third-biggest gain in California and No. 6 among the 50 largest metro areas, to $61,994.

One of the top distribution hubs in North America, the Inland Empire has benefited tremendously from the growth in e-commerce. Amazon.com Inc. has some fulfillment centers there.

Christopher Thornberg, founder of Los Angeles-based research group Beacon Economics, said the Inland Empire economy was “on fire,” though he noted that residents who commute to nearby Los Angeles or elsewhere were likely pulling up the median household income.

Median income growth in the Los Angeles area ranked just below the Inland Empire, rising 4% last year to $69,992.

In an effort to build a more inclusive economy, San Diego Regional EDC and its Inclusive Growth Steering Committee of 40 employers officially endorsed a regional goal to double the number of skilled workers produced in San Diego County to 20,000 per year by 2030, as well as a set of recommendations, to develop a stronger local talent pipeline – the first of three main goals of EDC’s Inclusive Growth initiative.

“We have untapped talent all throughout San Diego County, especially in our Latino communities,” said Dr. Patricia Prado-Olmos, vice president of community engagement, California State University San Marcos, and Inclusive Growth Steering Committee member. “When higher education and companies come together to provide our traditionally underserved populations with the education, training, and development they need to qualify for highly-skilled and high-paying jobs, we are able to create a better San Diego where everyone can thrive.”

BUILDING THE TALENT PIPELINE
Amid a nationwide battle for skilled talent, San Diego must also look inward and focus on building a stronger talent pipeline locally to sustain its growth. Earlier this year, EDC released research that shows the region’s largest and fastest growing population (Hispanics) is statistically the least prepared for high-skilled high-wage jobs, with 85 percent without a bachelor’s degree.

In its latest study release, EDC found that there are more than 100 key occupations in the region with shortages in skilled labor, many of which fuel San Diego’s innovation economy. Projections show an estimated 20,000 job openings per year in these same occupations, which means that San Diego’s current talent supply falls short in meeting anticipated skilled labor demands of tomorrow’s economy. The study also found that San Diego’s current innovation economy does not reflect the region’s population, as the Hispanic population is glaringly underrepresented at only 17 percent. Guided by the findings of this study and input from expert advisors, EDC’s Inclusive Growth Steering Committee—comprised of 40 regional employers—has endorsed a regional goal to double the number of skilled workers produced in San Diego County to 20,000 per year by 2030.

Companies that have officially endorsed this regional target include Northrop Grumman, Qualcomm, Brown Law Group, Thermo Fisher Scientific, Cox Communications, ResMed, Cubic Transportation Systems, and more. For a complete list of employers committed to this effort, visit the interactive web study online.

To further support this goal, the Inclusive Growth Steering Committee has also developed the following recommendations for employers to adopt and implement at their organizations:

1. Transparency – provide EDC with anonymized data on workforce demographics to benchmark and track over time. Understanding the composition of the region’s largest employers will provide insight into where the region stands at present and how much progress is being made over time.
2. Engagement – participate in direct student-workplace exposure programs that directly engage the students aimed to prepare for high-skilled work in 2030. Providing K-12 students with opportunities to visualize themselves in the roles that the regional economy needs them to fill.
3. Investment – invest in post-secondary educational programs resulting in qualified talent at respective workplace.

“Latinos are the most underrepresented group across innovation companies in San Diego,” said Cynthia Curiel, vice president of communications, Northrop Grumman, and Inclusive Growth Steering Committee member. “We are in a war for talent, and recruiting from outside the region isn’t enough. By investing in building our local workforce, we can fill jobs and lift communities that are currently underrepresented in San Diego’s innovation economy.“

EDC and the Inclusive Growth Steering Committee strongly encourage other regional employers to adopt these recommendations and actively promote inclusion at their respective workplaces.

BUILDING A STRONGER SAN DIEGO: EDC’S INCLUSIVE GROWTH INITIATIVE

Like many of its metro counterparts, San Diego has its fair share of economic challenges. While its innovation economy continues to grow and bring in much wealth and opportunity to the region, it also leaves many San Diegans unable to afford the rising cost of living.

To help sustain San Diego’s future growth, EDC launched a data-driven initiative focused on promoting inclusive growth as an economic imperative, emphasizing that San Diego employers must take active measures to promote inclusion, or the region will no longer be able to compete.

Together with its Inclusive Growth Steering Committee, EDC aims to set regional targets and release actionable recommendations for three main goals: build a strong local talent pool; equip small businesses to compete; and address the affordability crisis.

“The regional economy is changing rapidly, and we must be inclusive to succeed and compete,” said Mark Cafferty, president and CEO, San Diego Regional EDC. “For EDC, this means changing the economic development discussion to be talent-centric and inclusive in nature. These recommendations represent the first step in our regional employers’ commitment to developing local talent and preparing a workforce that is diverse, ambitious, and capable of meeting the demands of our growing economy.”

Over the next several months, EDC will continue to establish regional targets and recommendations for its other two goals. EDC will also support employers by facilitating the collection of data for quick, consistent reporting and serving as a liaison between employers and various community partners to expand reach and increase exposure of scalable programs.

For more information about the Inclusive Growth initiative, visit inclusiveSD.org.

Follow along on social media with #inclusiveSD

View the full interactive web study release – “Building San Diego’s Talent Pipeline” – here.

Authored by Kirby Brady and Janice Brown, “Water Investments Fuel Our Growing Economy” was originally published on San Diego Business Journal.

While it may seem both obvious and subtle, San Diego County’s thriving $220 billion economy and quality of life is made possible by a safe and reliable water supply. Every day, water is delivered to 1.1 million households and 98,000 businesses throughout the region.

Water also drives the iconic industries that make San Diego County truly San Diego — craft brewing, tourism, manufacturing, life sciences and agriculture, among others.

But how is San Diego County fueled by water in a region that only receives 10 inches of rain each year?

It’s possible because of the significant regional water reliability and infrastructure investments made by the San Diego County Water Authority and its 24 member agencies. Over the past two decades, the Water Authority has invested more than $2.4 billion into projects that drive our region’s economy and protect our access to clean water for generations to come. These direct investments have resulted in a total economic impact of $4.8 billion and support nearly 1,500 jobs annually.

Desalination Plant

These investments resulted in the construction of new water infrastructure projects, which ripple benefits throughout our economy. These include the Claude “Bud” Lewis Desalination Plant in Carlsbad, the nation’s largest desalination plant, and the San Vicente Dam Raise, the tallest dam raise of its type in the world.

The benefits of these investments are underscored in San Diego Regional Economic Development Corp.’s new study, “The Importance of Water Reliability to San Diego’s Economy,” which highlights striking positive economic impacts for our region.

Infrastructure Investments

Water supplies support $482 million in regional sales of goods and services every day. That’s the economic equivalent of nearly three Comic-Cons each day. Without access to a reliable water supply, local businesses would not be able to provide services or goods that help advance our regional economy.

Every $1 invested in water infrastructure results in a $1.80 increase in the region’s gross regional product. Investing in infrastructure is investing in the regional economy. That’s why some of our favorite products are able to call San Diego County home. This region is home to more than 130 brew houses and 3,150 manufacturing companies thanks to the safe and reliable water supply.

Water infrastructure investments impact local jobs. Capital improvement projects that result from investments support jobs in many industries including construction, architecture, and engineering — even restaurant and retail.

Growing the Innovation Economy

Water drives our renowned innovation economy. Groundbreaking discoveries are taking place right here in San Diego County, and we’re proud of the accomplishments San Diegans make every day. Aerospace, technology and life sciences are just some of the industries that depend on the infrastructure necessary to store, move, treat and deliver water. Not only are these industries changing the way the world works, but they produce products and support sales crucial to San Diego County’s economy.

Our region’s economic future depends on continued access to safe and reliable water. With more than 500,000 residents expected to move to the San Diego region by 2035, maintaining access to clean water is as important for the future as it is today. Though our region has limited water resources due to low rainfall, we can rest assured that the water infrastructure investments made by the San Diego County Water Authority and its member agencies will continue to support San Diego County’s thriving economy.

Read the full study here.

Janice Brown of the Brown Law Group is chair of San Diego Regional EDC. Kirby Brady is research director of San Diego Regional EDC.

Have you ever driven down the I-5 South near downtown and noticed the three large industrial buildings to your right? Do you know what happens there? That’s the U.S. Navy’s Space & Naval Warfare Systems Command (SPAWAR).

Last week, a small group of EDC board members got a behind-the-scenes tour of SPAWAR and its research lab in Point Loma SSC-Pac to answer that very question. On the tour, attendees saw firsthand some of the technology being developed and acquired by SPAWAR – technology that ranges from AI-guided cyber tools, nanosatellites, cryogenic communications, AR and VR technologies for sailors, and autonomous air, land, and water vehicles. SPAWAR directly employs nearly half of all the cybersecurity jobs (3,400) in San Diego, and its presence in San Diego is a huge contributing factor for many cyber companies to remain located in the region. It is daily responsible for the creation of advanced technologies for our country.

Additionally, attendees were provided an opportunity to learn about the U.S. Navy’s plans to explore a massive redevelopment of the SPAWAR facility that could provide the command with modern infrastructure, while acting as a catalyst for broader redevelopment in the midway area. It is rare to have a command like SPAWAR outside of the Washington D.C. beltway area and even more uncommon still for a community to have an opportunity to help such an important institution design and build a new facility.

For more information, you may access the Request for Interest via Navy Electronic Commerce Online (NECO) or Federal Business Opportunities (FBO) websites.