Prepared by

Collaborative Economics

EXECUTIVE SUMMARY

San Diego is participating in a new global innovation economy

San Diego’s global reach has grown substantially over the last decade. – Share of global talent pool has increased– Share of global investment capital has

increased San Diego’s economic drivers are

changing with the convergence of key industries and technologies.

EXECUTIVE SUMMARY

San Diego’s growing participation in the new global innovation economy is expanding economic opportunity for a wide range of San Diegans. – While the region’s leading industries have created

many high wage jobs, an average of about 40% of jobs in these sectors are at the mid-wage level

San Diego’s challenge is to ensure that its economic drivers have the regional and global resources necessary to compete. – Public and private leaders in other regions are

working together to make strategic investments, grow their talent pools and extend their global reach

EXECUTIVE SUMMARY

Benefiting from globalization requires hands-on regional leadership. – Global competitiveness requires a

proactive regional agenda– The Partnership for the Global Economy

will bring together business leaders to identify priorities and organize for strategic action

SAN DIEGO’S GLOBAL COLLABORATION

GLOBAL TALENT FLOWS

Foreign-Born Science & Engineering Talent

San Diego, Silicon Valley and U.S.

2000 & 2005

24%

49%

17%

26%

38%

12%

32%

55%

20%

30%

43%

16%

0%

10%

20%

30%

40%

50%

60%

San Diego Silicon Valley US San Diego Silicon Valley US

S&E Occupations All Occupations

Sha

re o

f all

fore

ign

S&

E T

alen

t

2000 2005

Source: U.S. Census Bureau, Decennial Census, American Community Survey

GLOBAL TALENT FLOWS

Foreign-Born Science & Engineering Talent

San Diego

2000 & 2005

0%

2%

4%

6%

8%

10%

12%

14%

India

Philip

pine

s

Mex

ico U.K.

China

Vietna

mJapa

n

German

y

Taiw

an Iran

Hon

g Kon

g

Canad

a

Fran

ce

Kore

a

Laos

Spain

Indo

nesia

Sha

re o

f all

fore

ign

S&

E T

alen

t

2000 2005Source: U.S. Census Bureau, Decennial Census, American Community Survey

GLOBAL TALENT FLOWS

Foreign Students

Percentage of Degrees in Engineering and Sciences Conferred to

Temporary Nonpermanent Residents

San Diego, Silicon Valley, California, U.S.

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1995 1996 1997 1998 2000 2001 2002 2003 2004 2005

SV CA US SDSource: National Center for Education Studies, IPEDS

GLOBAL TALENT FLOWS

Trends in Foreign Science & Engineering Graduates since 1995

Share of Engineering and Science Degrees Conferred to

Temporary Nonpermanent Residents

San Diego, Silicon Valley, California, U.S.

70

80

90

100

110

120

130

140

150

160

170

1995 1996 1997 1998 2000 2001 2002 2003 2004 2005

100

= 1

995

US CA SV SDSource: National Center for Education Studies, IPEDS

GLOBAL IDEA FLOWS

San Diego's Global Patenting Collaboration

Number of Inventors listed with San Diego Inventors on USPTO Patents and Share of all San Diego Patent Registrations

1990-2005

0

50

100

150

200

250

300

350

400

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

num

ber

of i

nven

tors

0%

1%

2%

3%

4%

5%

6%

shar

e of

all

inve

ntor

s

Foreign inventors

Foreign share

Source: U.S. Patent & Trade Office

GLOBAL IDEA FLOWS

Top Countries in Patent Collaboration with San DiegoNumber of Inventors listed with San Diego Inventors on USPTO Patents

1996-2005

0

10

20

30

40

50

60

70

80

90

Japan Spain U.K. Germany Canada Israel France SwitzerlandBelgium Denmark Finland Sweden China

num

ber

of i

nve

nto

rs

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Source: U.S. Patent & Trade Office

GLOBAL CAPITAL FLOWS

THE BAJA CALIFORNIA CONNECTION

Foreign Direct Investment in Baja CaliforniaTop Ten Investors by Country

1996-2000 and 2001-2006

0

500

1000

1500

2000

2500

3000

3500

4000

USA Other Japan Korea France Switzerland Taiwan Germany Spain United

Kingdom

Mill

ions

of D

olla

rs (In

flation A

dju

sted

US$)

1996-2000

2001-2006

Note: In cases of multiple countries contributing on joint investments, values have been distributed equally across each contributing country.

“Other” category does not only include investment from other countries, but also transactions between companies (most of them in goods and manufacturing), where the country of origin is

unspecified.

Source: Baja California Secretary of Economic Development, "Foreign Direct and National Investment" 1996-2006

:CONVERGENCE IN CLUSTERS OF

OPPORTUNITY

CRITERIA FOR CLUSTERS OF OPPORTUNITY EMPLOYMENT GROWTH (expanding

opportunities in both export and population driven sectors)

GROWING SPECIALIZATION (increase in concentration compared to the U.S. as a whole)

REAL WAGE GROWTH CAREER POTENTIAL (job opportunities in high,

mid and low-level wage occupations)

SAN DIEGO’S SIX CLUSTERS OF OPPORTUNITY

Life Sciences (Pharmaceuticals, Medical Devices, Biotechnology)

Health Services Information Services (IT, Telecommunications and

Publishing) Advanced Manufacturing (Aerospace/Defense,

Recreational Goods) Commercial and Infrastructure Construction Visitors and Regional Experience

Orchestrator of Regional Convergence & Global Collaboration

Innovation and Professional Services

CLUSTERS OF OPPORTUNITYClusters of Opportunity & Potential Convergence

San Diego County

1995-2005

Information Services

67,286

Advanced Manufacturing

(Aerospace, Defense,

Recreational Goods)

30,119

Innovation &

Professional Services

57,581

Health Services

88,582

Life Sciences

(Pharmaceuticals, Medical

Devices, Biotechnology)

28,412

Visitors &

Regional Experience

114,912

Commercial &

Infrastructure

Construction

49,748

0.6

0.9

1.2

1.5

1.8

2.1

2.4

2.7

3

0% 1% 2% 3% 4% 5% 6%

San Diego Average Annual Growth Rate, 1995- 2005

Conc

entr

atio

n 20

05 (1.

00 is

sam

e as

US)

Size of bubble represents employment size in 2005.

CLUSTERS OF OPPORTUNITY

Occupational Share by Wage Level

2006

4%9% 7% 5%

18%

2%

71%

34%33% 41% 44%

46%

64%

25%

62%58%

52% 51%

36% 34%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Information Services

(IT,

Telecommunications

and Publishing)

Innovation &

Professional Services

Life Sciences

(Pharmaceuticals,

Medical Devices,

Biotechnology)

Advanced

Manufacturing

(Aerospace/Defense,

Recreational Goods)

Health Services Commercial &

Infrastructure

Construction

Visitors & Regional

Experience

Higher Level Wages

Mid-Level Wages

Lower Level WagesSource: California Employment Development Department, Labor Market Information Division, "San Diego 2006, 1st Quarter Wages"

HIGHLIGHTS OF SHARED CHARACTERISTICS

All Clusters have been growing: From 1995-2005, all but one cluster had an average annual growth rate (AAGR) of 3% to 6%.

In all but one cluster, growth is exceeding US growth.

In 2005, all clusters enjoyed higher real wages than in 1995.

Five of the six clusters are more concentrated in San Diego than in the United States

Each cluster offers career potential in occupations of all wage levels with roughly 40% of jobs at the mid-wage level.

INNOVATION & PROFESSIONAL SERVICES

How are the region’s providers of Innovation & Professional Services building linkages between San Diego’s businesses and partners abroad?

How are the region’s providers of Innovation & Professional Services facilitating interaction across industries within the region?

How could wireless technologies enhance the activities and products of the region’s Innovation & Professional Services?

LIFE SCIENCES

How could each of the fields of San Diego’s life sciences including marine biotechnology benefit from increased cross-fertilization of discovery and technology?

To what extent are professionals from these fields already coming together formally and informally?

How is current interaction across these fields supporting innovation?

HEALTH SERVICES

How can San Diego’s health care industry benefit from the region’s renown in health care technologies to become an export industry by drawing patients from outside the region?

How could the region’s Life Sciences and IT industries benefit from collaboration from the region’s health care systems and providers?

Is there opportunity for collaborative efforts in the area of clinical trials?

Is there opportunity for collaborative efforts in the development of digital health record systems?

In what ways could the visitor industry and the health care industries in particular work together to develop San Diego’s draw as a destination for high quality and innovative health care services?

COMMERCIAL &INFRASTRUCTURE CONSTRUCTION

To what extent are San Diego’s construction and structural design firms already collaborating with the region’s IT and telecom firms and research facilities?

To what extent are the region’s construction and structural design firms already integrating wireless technologies into their products and services?

In what ways are the region’s construction and design firms evolving their services and products to meet the growing interest in energy efficient building and environmentally sustainable materials?

INFORMATION SERVICES

How can the region’s IT and telecom talent bring new value to its analytical, testing, R&D, design and other professional services?

In particular, with growing attention to issues of environmental impact, what areas of potential collaboration exist between the IT, telecom and environmental analytics services?

How could wireless technologies enhance the activities and products of the region’s innovation and professional services?

ADVANCED MANUFACTURING

What potential wireless applications are currently being pursued by the region’s life sciences firms and research labs?

How does the technology transfer between defense and recreational equipment, such as in the use of advanced materials in golf clubs, currently take place and how could it be improved?

In what ways could the life sciences and aerospace/defense industries benefit from increased collaboration?

In what ways could the industries of precision manufacturing, IT, telecom and life sciences benefit from greater interaction with nano technologists?

VISITORS & REGIONAL EXPERIENCE

In what ways could the visitor industry and the health care industries in particular work together to develop San Diego’s draw as a destination for high quality and innovative health care services?

In what ways could the region’s visitor industry develop efforts with the region’s producers of sporting goods such as golf clubs and surf boards.

NEXT STEPS

Industry leaders within these clusters will meet to identify opportunities, requirements for success and potential for convergence

Cluster groups will recommend specific actions that will become elements of a strategic plan for the region

Leadership Trust will review the results of the cluster group and action team work and approve the strategic plan