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The Big Picture San Diego Blog


Economic Drivers

September 30, 2016

As part of the 2016 MetroConnect Program, WTC San Diego hosted two workshops to help the current cohort of 15 companies learn the ins and outs of going global.

The first workshop was hosted by East County-based Taylor Guitars. Leadership from the company spent time discussing topics related to exporting: how to choose export markets, compliance, export basics, how to get paid and more. Here are a few things we heard and learned along the way:

It’s not all about widgets! Technically, there are actually two types of exports:

  • Physical Export – goods physically go out of country
  • Deemed Export – release of controlled technology to foreign persons in the U.S. are "deemed" to be an export to the person’s country or countries of nationality

Your responsibilities as an exporter can seem daunting. Two core things to keep in mind:

  • Know your foreign buyers – end users/uses; screening lists (parties of concern); Foreign Corrupt Practices Act
  • Know your products – restrictions for transport; country restrictions by tariff or sanction; permit or licensing requirements; controlled or prohibited items

The second workshop was hosted by Qualcomm Ventures (QCV). Representatives from QCV discussed ways participants can seek funding to expand their international presence and capabilities. In addition, individuals from the Export-Import Bank and Silicon Valley Bank were in attendance to discuss other creative ways to finance export opportunities.

Key insights from the Qualcomm Ventures workshop:

  • Whether you’re asking for a loan or pitching for venture capital, be confident, skip the nebulous marketing-speak and “don’t be weird." Metrics matter when banks and funds make choices on who to finance, but personality can (and often is) a factor.
  • Small businesses that are having difficulty finding sales insurance through a traditional channel should consider the EXIM Bank. EXIM’s specialized credit and loan programs help ensure that SME’s looking to go global have access to the resources they need in order to confidently kickstart their export activities.

Another major takeaway from these efforts was just how incredibly supportive the local business community is. Taylor Guitars and Qualcomm Ventures have given a significant amount of time and energy to these MetroConnect activities, and we are thankful for their stellar efforts.

September 30, 2016

Understanding any economy starts with strong data. At EDC, we pour significant resources into research, so we can better understand San Diego's economic strengths, and even more importantly, our weaknesses.

Finding the right data to quantify our economy and understand where San Diego’s stack up with other regions is where it becomes more difficult. Many regions – including San Diego – call themselves innovative, but measuring it becomes more complicated.

In 2012, EDC joined the Global Cities Initiative (GCI), a joint project between Brookings and JPMorgan Chase, which helps metropolitan leaders grow their regional economies by strengthening international connections and competitiveness. Conducting independent research has been a cornerstone of the GCI since its launch.

This week, EDC/World Trade Center San Diego staff traveled to Washington, D.C. to take part in the Brookings Global Cities Summit – a culmination of five years of research and exchanges to help metros grow their economy.

Based on five years of research, Redefining Global Cities," the latest Brookings report, found that there were seven types of global cities. 

There are the Global Giants – regions like London, New York and Paris; these cities are financial hubs and serve as the control center for the world’s largest economies. Then there are the American Middleweights (Cincinnati, Indianapolis, Phoenix, Saint Louis, etc.) and the International Middleweights (Frankfurt, Munich, Rome, Barcelona, Toronto, etc.): connected and important mid-sized cities where post-recession growth has lagged. And then there are the Knowledge Capitals – 19 mid-sized cities throughout the U.S. and Europe that are home to talented workforces and elite research universities.

San Diego is in good company as a Knowledge Capital with Boston, Chicago, San Francisco, Stockholm, Zurich and others.

Turns out, when it comes to patent intensity, San Diego is second out of 123 global cities. When we say that San Diego is innovative, it’s not just boosterism – we have the data to back it up.

As a Knowledge Capital, San Diego may attract a highly-educated workforce and high-levels of entrepreneurship, but one area where it lags is foreign direct investment. Nearly 98 percent of our economic growth is going to come from growing small and medium-sized enterprises and startups already present in the region. San Diego’s participation in the Global Cities Initiative is not just an opportunity to connect with likeminded cities; it’s an opportunity to connect with and better understand our customers. After all, our SMEs will not reach peak growth rates without expanding their businesses and finding customers outside the region. As a response to this insight, we founded the MetroConnect Initiative, a comprehensive export assistance program now in its second year.  

As a region, we’re proud to be known as a Knowledge Capital, but our work is still cut out for us. By connecting with other GCI cities, we can expedite our economic growth through careful understanding and analysis of best practices. And through insightful data and programs like MetroConnect, we’re hopeful that we’re well on our way.

September 29, 2016

As part of the blog series leading up to San Diego MFG Day, we’re featuring 5 food and beverage items #MadeinSD enjoyed by millions of people across the world.

  1. Kashi – Started by a husband and wife duo in 1981, Kashi began with humble beginnings in La Jolla as the couple wanted to create food that promotes a healthy lifestyle. From their flagship cereal to granola bars and many other snacks, Kashi remains one of the largest and most recognizable natural foods companies in the world. 
  2. Suja Juice – A Forbes story from 2014 sums up the start of Suja perfectly: “A surfer dude and self-taught chef teams up with a law-school dropout turned yoga instructor to create one of the fastest-growing organic juice makers ever.” The San Diego company has become the fastest growing organic, cold-pressured and Non-GMO beverage company in the U.S. 
  3. Chuao Chocolatier – Bacon, potato chip, firecracker – these are just a few of the gourmet chocolate bars made by Carlsbad-based Chuao Chocolatier. Recently moving from a boutique retailer to a wide spread distribution model, Chuao continues to expand into new markets, both domestic and international. Already widely available in high-end hotels, Whole Foods, Target and Starbucks, the company recently inked a deal that puts the premium chocolate in 7,800 of 8,000 CVS stores in the U.S. 
  4. Mission Brewery – Established in 1913 and shut down during prohibition, Mission Brewery was reestablished by home brewer Dan Selis in 2007 in downtown San Diego’s East Village. With 40 national and international awards under its belt, Mission Brewery is a staple in the San Diego craft brewing industry. Check out their facility with a tour during Manufacturing Week, here
  5. Olli Salumeria – Salami manufacturer Olli Salumeria creates artisenal slow-cured salumi includes salami, salamini, cooking fats and whole-cured meats. Founded in 2010 by two friends, Oliviero (Olli) Colmignoli and Charles Vosmik, the company’s products are a favorite of celebs like Oprah Winfrey.

Celebrate all that's #MadeinSD on October 7. Visit sdmfgday.com to get involved. 

September 29, 2016

San Diego welcomed the latest global company to our community last month. Co-founded by a leading figure in the integrative health movement, Deepak Chopra and tech entrepreneur Poonacha Machaiah, Jiyo is a new health and wellness software platform that has chosen San Diego as the location for its new headquarters. Using data from sensors in your phone, other inputs and multiple devices, Jiyo gives you real-time tips and advice to improve your health and wellbeing. The company has partnered with leading health and wellness experts from around the world to compile personalized content and a customized approach to managing your health through your mobile device.

Jiyo sees San Diego’s leading health and wellness capacity as the principal factor in their location decision. Combined with the technology and healthcare strengths of the community, the region made for a natural fit. The company will be hiring a world-class mobile team of developers in San Diego, and manage satellite offices in India and the Bay Area to build out their global network. Deepak certainly maintains a global reach, and has become the prominent health and wellness expert and advisor to public figures, national icons and population centers around the planet. Poonacha is also no stranger to the world’s leading technology hubs, having run multiple ventures in San Francisco, Washington, Toronto and Bangalore.

“We are excited to be collaborating with EDC and the San Diego community. Our goal is to address the burden of chronic diseases on the U.S. healthcare system, by ushering in the era of “lifestyle medicine” - users and the community can leverage the curated content, experts, services and products on the Jiyo platform and engage in long-term lifestyle modification, which will lead to personal and societal wellbeing," said Poonacha Machaiah, Co-Founder & CEO, Jiyo

EDC continues to work closely with Poonacha and the Jiyo team to find the right people, the right partners and the right channels to grow a wildly successful business here and abroad. With and through our partners at Qualcomm, Scripps Health, City of San Diego, UC San Diego and a group of regional peers, EDC enthusiastically welcome Jiyo to town. 

September 28, 2016
In the midst of one of the most interesting presidential elections in many of our lifetimes, the importance of maintaining close ties with the decision makers in Washington DC becomes increasingly important – most especially for our military community. That is in part why, for the last several years, EDC and the San Diego Military Advisory Council have attended the San Diego Regional Chamber of Commerce's annual trip to DC in order to lead the military and defense track. 
 
This year, with the support of Chamber staff and SDMAC Executive Director Randy Bogle, EDC discussed national security implications of TPP with thought leaders from the Trumann Foundation, ways our healthcare institutions and life sciences companies can better partner with the incoming commander of Navy Medicine West, key legislative priorities for 2017 with our congressional delegation and the future possibility of BRAC with experts from Dentons. 
 
This trip gave us the opportunity to not only expand and build relationships with key decision makers, but to give a broader audience from the Chamber a chance to hear about the leading issues impacting the region’s military.  
 
When the dust settles come November 9, whether Trump or Hillary is our next Commander in Chief, EDC – alongside regional peers – will continue to ensure that San Diego’s interests are well understood and represented in at our nation's capital.  
 
September 26, 2016
This week, Thermo Fisher Scientific, the global life sciences and biotechnology company, cut the ribbon on its Software Center of Excellence (COE) in Tijuana. Thermo Fisher Scientific is a world leader in serving science with $17 billion in revenues and approximately 50,000 employees in 50 countries. The company develops, manufactures and sells a wide variety of innovative biotechnology products including analytical instruments, equipment, reagents and software, and provides services for research, manufacturing, analysis and diagnostics.
 
Thermo Fisher’s expansion into Tijuana is exemplary of the cross-border collaboration between Mexico and San Diego – one of the leading life sciences hubs in the country. To stay current in a climate of rapidly evolving technology, the company made the critical decision to expand its software engineering division. Thermo Fisher was eager to explore the viability of opening software operations in a location with quality talent and in the same time zone as its corporate headquarters in Carlsbad. 

 
With the support of San Diego Regional EDC, UC San Diego and partners from Mexico including the city of Tijuana, state of Baja, Universidad Autónoma de Baja California and Tijuana EDC, Thermo Fisher completed several trips to Tijuana to explore viability. With this strong network of partners, Thermo Fisher made the decision to construct a world-class office facility just minutes from the San Ysidro border crossing and less than an hour drive to its Carlsbad office.
 
Software engineering talent in Latin America, in particular Mexico, has been emerging as a source for many companies such as Thermo Fisher, providing an alternative to hiring employees overseas where distance and time zones prove to be ongoing challenges. While Tijuana is traditionally recognized as a hub for advanced manufacturing, Thermo Fisher’s software COE highlights the availability of local talent in the software sector. The company successfully attracted an extremely skilled group of software personnel from around Mexico, all of whom were excited about the opportunity to be a part of Thermo Fisher’s software center. As of the ribbon cutting, the Thermo Fisher employs around 45 employees, with space to grow its team to 150 within the year. 
 
As a result of expanding operations to Tijuana, Thermo Fisher is realizing accelerated rates of innovation with less financial risk as well as unequivocal improvements in collaboration between its teams in Carlsbad and Tijuana.
 
“...being just one hour apart makes an amazing difference in how the teams are productive together," said Mark Field, CTO of Software Services, Thermo Fisher Scientific
 
September 15, 2016
The City of San Diego has been awarded $1.6 million grant by the Department of Defense to craft programs designed to enhance the resiliency of the region’s defense industrial base. As part of this grant, EDC’s research team will be responsible for conducting a county-wide supply chain mapping and economic impact study in order to arm the region with the foundational data necessary to inform the creation of effective programming. 
 
Why this matters?
The region has long benefited from strong defense companies who employ tens of thousands of San Diegans in a wide variety of industries including satellite communications, ship building, autonomous vehicles, cybersecurity and many more. 
 
We know San Diego is a hub of innovation for globally impactful defense technology, but it can at times be forgotten how these defense companies have evolved their defense expertise to transform commercial markets. Companies like ViaSat and Cubic Corporation – who started by innovating secure satellite communications and creating world-class training technologies – have grown to become major players in satellite internet technology and transportation management. 
 
The OEA grant will enable us to assess and create the tools necessary to help defense companies diversify their innovative technologies and services into commercial markets. 
 
Home to the highest concentration of military in the world, the OEA grant will ensure the City and regional peers continue to think creatively about how we leverage defense innovation to create more jobs and a more resilient economy.  
 
September 15, 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.

With a background in manufacturing engineering and nine patents to his name, Laszlo Garamszegi of Aurora Spine treats the development of medical devices as both art and as science.

I’ve been fascinated with designing and building devices in this space for a long time”, states Garamszegi, originally from Hungary. “Through a blend of engineering, raw materials and a sense of aesthetic, it’s possible to make something that will truly improve a life. In fact, many lives.

It’s with this sense of focus and aspiration that Garamszegi co-founded Aurora Spine in 2012, after working at a number of other medical device companies throughout the San Diego region. With spinal fusion technologies necessitating highly invasive procedures and long, painful recovery times, the company saw an opportunity for improvement. Aurora’s technologies aimed to simplify the process and allow for effective spinal fusion that streamlined surgical procedures and contoured to a patient’s unique anatomy.

The company has experienced impressive growth with a full product suite of interspinous fusion devices, biologics and surgical tools. With product currently in fifteen countries around the world, the Aurora team is working hard to expand its presence in other global regions, including South Korea and Australia, among others. Devices are manufactured right here in the U.S. with supply chain operations in California and Ohio. With the company’s core ZIP® product line receiving U.S. patent approval in April of this year, Aurora is well positioned to continue to bring its sleek, futuristic looking product line to the international market.

 

Speaking of aesthetics, what of the brand’s signature royal purple color? Any special significance there?

Laszlo laughs at the question. “Trent (CEO and one of Aurora’s co-founders), attended Carlsbad High School and that was the school’s team color. We have international reach, but that strong tie-in to San Diego won’t be going away any time soon.”

 

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 Aurora Spine 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.

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. 

August 19, 2016

With just under two months to San Diego Manufacturing Day, we’re kicking off a five-part blog series on San Diego-made products you didn’t know were made right in our backyard. Here are five of some of your favorite products #MadeinSD:

  1. WD-40 – If you’ve fixed a squeaky door, greased a bike chain or worked on cars, chances are you’ve used WD-40. Founded as a chemical company in 1953, WD-40 Company remains a staple in San Diego manufacturing. Gary Ridge, president and CEO of WD-40 explains, “San Diego is a good city to be in if you’re in international business, as I can be on a call with London in the morning and with Shanghai in the afternoonWe like to say ‘the sun never sets on WD-40.”
  2. TaylorMade golf clubs – PGA Tour pros like Dustin Johnson, Jason Day and Sergio Garcia can be seen swinging TaylorMade clubs in tournaments watched by millions almost weekly. Best known for innovating metal drivers starting in 1979, TaylorMade remains the largest golf equipment and apparel company in the world. Fore!
  3. Taylor Guitars – Used by world-famous musicians including Jason Mraz  and Taylor Swift, Taylor Guitars – located in San Diego’s East County – is the world’s leading guitar manufacturer. With operations on both sides of the border, Taylor maintains a high-level of quality control over its products.
  4. Stone Brewing craft beer– The recognizable gargoyle and award-winning beer from Stone has made waves for taking on “corporate beer”. Started in North County in 1996, Stone now boasts seven locations including a newly opened brewery in Berlin. Cheers! 
  5. Illumina's instruments for genetic sequencing – Recently named the “Google of Genetic Testing”, Illumina has taken over San Diego’s UTC business center which houses the company’s worldwide headquarters and more than 2,000 employees. More than 90 percent of the world’s genetic sequencing is done on Illumina instruments.

Stay tuned for our next list: five #MadeinSD products used by the world’s top athletes

Celebrate with us October 7. Visit sdmfgday.com to get involved.