Innovation in San Diego Creates Investment Opportunities

2014 has come and gone, but the benefits of a growth year are likely to carry on for some time in San Diego. According to Connect, a non-profit group that supports innovation, they counted 446 technology and life science start-ups in 2014 up from 426 companies in 2013 (1). Of these firms, Bio-tech got 62% of the $805 million investment capital dollars while software and medical devices got a third and fourth place in total investment influx.

What does this say about San Diego? It says that San Diego has a budding bio-tech and software industry that should be supported by city policies, higher education, corporate training, and international promotion. Encouraging investment funds to find receptive companies seeking those investments for expansions puts money where it has the quickest and most efficient economic contribution.

The Economic contribution comes from using the investment money to expand operations, hire new people, and create additional contractual deals that grow not only the parent business but also smaller suppliers. Money invested into one company makes its way to other firms and the overall tax base of the city.

It is important for decision makers to look at their growing industries and find a connection between what their local competencies and resources offer to determine places to generate higher levels of investment growth. Making sure that the public is aware of these investments through various mediums that reach motivated investment entities helps in speeding up this growth process.

Economic expansion comes with the development of better city policies that further the growth of the area and better capitalizes on its local resources. Biotechnology and technology have significant international interest and is a field that is expected to grow in the future. Local military stakeholders may strengthen this industry, but the global market will determine the innovative value of its outputs. Getting companies and government to focus in the same area can mean higher levels of synergy.

San Diego Becomes gets Exposure as “Smart” City in National Geographic Documentary

San Diego is being filmed as one of the “World’s Smart Cities” creating international buzz for innovation, craft beers, coastline, parks, and management. The program will be aired internationally on the National Geographic Channel and raises public awareness of the benefits to live, work and invest in San Diego. 

Modern cities are known for their local industries and lifestyles. For example Seattle and coffee, Detroit and cars, and Cancun and vacation are tied together in consumer minds. Once these associations become embedded they will influence consumer impressions in a way that leads to choices and in turn greater economic activity. 

Documentaries not only help solidify those images but also raise awareness of other local industries. San Diego may have great beaches but it also has a budding bio-technology industry that would benefit from greater international exposure. That exposure can lead to greater awareness of local investment opportunities.

San Diego draws mental associations of beaches, military bases, and palm trees but it has much more to offer.  A documentary on the advanced scientific industries in the area, craft beers, and parks adds to that image and creates new information for people to recall when they think about the city.

Consider a person in Europe watching the program that knows little about San Diego but is planning on adding a new investment to their portfolio. After watching documentary on the city and learning about the rapidly growing scientific community they decide to explore promising investment opportunities. 

The same can be said for viewers in Brazil who may be planning their next family vacation. After seeing the images of parks, beaches, craft beers, and restaurants they may just opt make San Diego their next vacation destination. A single thought or feeling stemming from the images leads to purchasing behavior.

Documentaries such as this are only the tip of the iceberg. Once viewing the program people will search out information related to their interests. Typing “San Diego” into Google recalls pages on travel, city government, parks, and hotels. A similar search on “San Diego Investment Opportunities” draws a Hodge Podge of real estate unrelated websites leaving potential investors confused.

Capitalizing on new exposure opportunities requires the ability of people to find the information they need to make decisions that are beneficial to the city. Encouraging greater search engine ranking of San Diego opportunities will rely on public conversation in the form of video, text, websites, music, etc… that draw more visitors and rank higher in search engine rankings. 

As public awareness about the city grows it takes on a form of marketing that can lead not only to additional tourism but also to more investment capital. This all spells growth for the city as that money makes its way into the local hotels, restaurants, start-up businesses, and existing industry clusters. Promoting San Diego promotes our economic opportunities. Getting in the conversation can make all the difference.

Documentary: The Worlds Smart Cities. 8PM, April 25^th, May 2^nd, National Geographic Channel

Positive Economic Indicators Point to a Brighter 2014

The economy looks bright for much of the next year according to the Conference Board, Bloomberg’s poll of leading economists, and the International Monetary Fund. After a prolonged decade of slow down any positive market news is welcomed. However, with increases in multiple measurements one can get a better feeling for growing trends and how those trends will impact national investment opportunities. At present, the market appears to be increasing in growth and opportunity for both the U.S. as well as other nations which could encourage further growth.

The Conference Board used broad based measures that included the labor market, interest rates, factory orders, stocks price, and construction. The Conference Board’s Leading Economic Index for the U.S. rose .8% in March to 100.9 indicating a substantial increase in the U.S. economy (1). The economy has put away its winder mitts and gloves and significant improvements in the market are possible.

The Conference Board was not the only one to make optimistic predictions. Bloomberg polled 42 leading economists and came to the conclusion that an advance of .7 (estimates ranged from .3 to 1) in the leading index could be realized (2).  Six of the ten leading index estimates are higher and it is projected that there will be an economic increase of 2.7 % this year when compared with 1.9 percent in 2013.

Acceleration in the global economy is also expected. According to the IMF, global growth is expected to realize an increase of 3.7% in 2014 and 3.9% in 2015 (3). It is believed that there are still some risks due to poor economic management and shaky internal structures. Emerging economies will receive a push from demands in the advanced economies that will help with stabilization.

The outlook is bright over the next two years. Assessment of the economy requires reviewing indicators from different vantage points and perspectives. Generally, the more measurements that can be incorporated into an assessment the better the overall assessment assuming these measurements are not just “noise”. A single increase in one sector of the economy doesn’t have broad implications or validity in the same way that multiple measures across different sectors of the economy have.

The multiple indicators may also raise optimism on a number of different fronts. Optimism is important for business investment and consumer spending that support growth. When people feel that the economy will grow, and their personal financial well-being is positive, they are more likely to invest and spend the nest eggs they have been putting away. This means they believe that there will be more opportunities in the future as well as more opportunities and respond by rewarding the market with investments and purchases.