San Diego Region San Diego Region Economic OverviewEconomic Overview

San Diego Regional EDC

Private, non-profit; some fee-for-service public contracts

250 corporate investors 43-year history

Business Development + Policy = Economic Development

Focused on: Business attraction, retention, expansion Leadership on regional policy issues

Gross Regional Product (billions)

$120.2$126.8

$177.2$171.2

$157.5$164.7

$138.6

$112.4

$148.4

$0

$40

$80

$120

$160

$200

2001 2002 2003 2004 2005 2006 2007 2008e 2009f

Source: National University System/San Diego Institute for Policy Research. e = estimate; f = forecast

Totals adjusted for inflation

Gross Regional Product (annual % change)

3.5%

4.3%

-0.3%-0.4%

3.3%

2.0%

6.5%

1.4%

4.2%

-2%

0%

2%

4%

6%

8%

Source: National University System/San Diego Institute for Policy Research. e = estimate; f = forecast

Using constant 2001 dollars; not adjusted for inflation

2001 2002 2003 2004 2005 2006 2007 2008e 2009f

If San Diego Were a Country…

39. Czech Republic$168.1 Billion

40. Romania$166.0 Billion

41. Nigeria$165.7 Billion

San Diego$164.7 Billion

42. Chile$163.9 Billion

43. Israel$161.8 Billion

2007 GDP

Rank

Source: National University System/San Diego Institute for Policy Research; World Bank

Annual Population Growth (thousands)

51.4

57.8

46.5

25.9 27.324.3

38.8

46.6

3.0

-3.4

-14.7-12.7-13.5

6.2

17.113.9

-20

-10

0

10

20

30

40

50

60

70

'01 '02 '03 '04 '05 '06 '07 '08

Population Growth Net Domestic Migration

Source: California Department of Finance

City and County Facts

8th Largest U.S. City17th Largest Metro Area26th Largest TV Market

84% of Population Lives in the 18 Incorporated Cities

67% of County Off Limitsto Development

Traditional Sector Employment

Natural Resources 50066.7%

Agriculture 11,000-3.5%

Construction 77,90011.8%

Manufacturing 100,700-17.9%

Services 1,122,50012.1%

November 08 Jobs

’00-08 Change

Source: California Employment Development Department

Traditional Sector Employment

November 08 Jobs

’00-08 ChangeServices 1,122,500

12.1%

Retail Trade 146,9009.8%

Financial Activities 74,4004.5%

Professional/Business 216,40010.9%

Educational/Health 134,30016.5%

Leisure/Hospitality 161,90025.5%

Government 227,1009.9%

Source: California Employment Development Department

Source: San Diego Association of Governments; Rich’s BioScience Directory; California Employment Development Department. Wages in 2007 dollars.

Biotechnology 39,985$84,679

Telecommunications 26,606$119,392

Defense Manufacturing 20,189$75,328

Software 14,653$86,784

Computers/Electronics 13,396$83,414

Total High-Tech Clusters 114,829n/a

Total Non-Farm Jobs 1,308,200$46,350

’07 JobsCluster Ave. Wage

High-Tech Employment Clusters

Major Players in San Diego

BiotechnologyBiogen IdecGen-ProbeGenentechLife TechnologiesJohnson & JohnsonPfizer

ElectronicsBAE SystemsCohuHewlett-PackardSonySun Microsystems

Telecom/ITL-3 CommunicationsMotorolaNokiaQualcomm Inc.ViaSat

SoftwareClaritasESETIntuitPredicate LogicWebsense

Source: San Diego Business Journal Book of Lists; Rich’s High-Tech Directory

CleantechApteraKyocera SolarSapphire EnergySynthetic Genomics

DefenseCubicGeneral AtomicsGoodrich AerostructuresLockheed MartinGeneral Dynamics NASSCOSAICSolar Turbines

High-Tech Employment Clusters

High-Tech Employment Clusters

High-Tech Employment Clusters

High-Tech Employment Clusters

High-Tech Employment Clusters

High-Tech Employment Clusters

High-Tech Employment Clusters

High-Tech Employment Clusters

Economic Impact of Clusters (billions)

$5.3 $6.1$1.5

$3.8$3.6 $3.8

$4.5

$7.8

$2.2

$5.9

$0

$2

$4

$6

$8

$10

$12

$14

Software Biotech DefenseManufacturing

ElectronicsManufacturing

Telecom

Direct Impact Indirect Impact

Source: San Diego Association of Governments

Annual impact in 2007 dollars

$3.7

$9.1$9.7 $9.7

$12.3

Venture Capital Funding (millions)

$1,217

$1,992

$1,203

$1,092$1,217

$814$937

$1,535

$2,193

$1,225

$573$495$432

$585

$1,152

$755

$620$715

$409

$581

$747$794

$370$305$276$210

$197$95$46

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

Total VC Biotech VC Cleantech VC

Source: PricewaterhouseCoopers MoneyTree Survey; UCSD

VC Funding by Industry (2008)

Source: PricewaterhouseCoopers MoneyTree Survey; UCSD

Electronics, 8.7%

Telecom, 11.4%

Cleantech, 16.2%

Software, 7.6%

All Other, 8.1%

Biotechnology, 48.1%

Evolution of a High-Tech Economy

1903 – Scripps Institution of Oceanography

1917 – Birthplace of naval aviation: North Island

1934 – Consolidated Aircraft (Convair)

1940 – Navy Radio Lab (now SPAWAR)

1955 – General Atomics

1959 – UCSD

1962 – Salk Institute for Biological Studies

Source: Scripps Institution of Oceanography; U.S. Navy; “The Future Takes Wing”; SPAWAR; General Atomics; UCSD

Evolution of a High-Tech Economy

Source: Scripps Institution of Oceanography; U.S. Navy; “The Future Takes Wing”; SPAWAR; General Atomics; UCSD; CleanTECH San Diego

1969 – Linkabit, SAIC

1978 – Hybritech

1985 – Qualcomm Inc.

2000 – Cal-(IT)2

2006 – Sanford Consortium for Regenerative Medicine

2007 – San Diego-EDC cleantech cluster analysis

2007 – CleanTECH San Diego

2008 – San Diego-Imperial-Baja Mega-Region Initiative

Why San Diego? 1,000+ biotech, telecom, IT and defense companies

210+ cleantech companies

UCSD, Scripps Institution of Oceanography

Burnham, Salk, Scripps and other world-class institutes

Science, talent, funding, support services

Legendary spirit of cooperation

Culture of serial entrepreneurism