Universities and Regional Economic Development The San Diego Experience

1
(No Transcript)
2
Universities and Regional Economic Development
The San Diego Experience

• Presented by
• Carolyn W.B. Lee, PhD
• Director of Research for Public Programs
• UCSD Division of Extended Studies
• for
• The Urban Land Institute, Sacramento, CA
• April 16, 2004

3
How Did San Diego Grow High Tech Industry
Clusters?

• Outside Perception
• Before 1985, San Diegos economy dominated by
  defense, tourism and real estate
• In 1985, UCSD CONNECT founded to assist high tech
  entrepreneurs
• Technology driven economic growth took off
  immediately after that
• Biotech Beach-- 3rd largest no. of biotech firms
  in US
• Wireless Valleyhighest no. of wireless firms in
  US
• There was a master plan for success!
• The Inside Reality
• Key foundations for knowledge economy laid 40
  years ago
• A series of economic crises coalesced community
  consensus and brought UCSD to the table
• Regional assets in RD capacity together with
  CONNECTs catalytic role assisted a base level of
  entrepreneurial activity to grow and mature into
  industry clusters
• There was no master plan for success AND it took
  a lot of hard work

4
Nature of Inquiries About CONNECT

• Who Calls?
• University administrators
• Regional Planners
• State or Local Government Officials
• Delegations from Civic Commissions and similar
  Study Groups seeking to build high tech economies
  in their region of the world
• What Do They Ask?
• How can another region replicate San Diegos
  success?
• What does a region need to have to be successful
  in growing high tech industry clusters
• Why?
• Replace declining low growth industries with
  fast, high growth industries
• Growth of high tech industries translate into a
  wealth of high wage opportunities for local
  workforce

5
UCSD CONNECTs Response to These FAQs

• Document the rise of San Diegos high tech
  economy through some key regional indicators
• RD funding
• Public and Private Venture Capital
• Linkages between emerging companies and area
  knowledge creation centers
• Workforce training through Extension Programs
• Assist other regions to document their regional
  innovation indicators
• USA-Indiana, Kansas, Pennsylvania, Texas
• Australia
• Work with committed regions to develop
  CONNECT-like programs
• North America-Spokane, El Paso, Los Alamos
• Europe-Sweden, Norway, Denmark, Finland, Scotland
• Asia-Pacific-Taiwan

6
A Timeline of San Diegos High Tech History
1985 UCSD CONNECT Founded Qualcomm
Founded
1990-93 63,000 Jobs Lost
1995 New Boom
1978 Hybritech Founded
1968 - Linkabit Founded
1963 - Salk Institute Founded
1960 - UCSD Founded
1956 - Scripps Clinic Research Center Founded
1955 - General Atomics Founded
7
San Diego Countys Current Research Infrastructure

• 947 Million in federal RD funding annually (FY
  2002)
• 46 of total RD funded by NIH
• 38 Million in SBIR funding (FY 2002), ranked 1st
  in California, by county, followed by Los Angeles
  and Santa Clara County (Silicon Valley)
• 1.052 Billion in venture capital in FY2003,
  according to Venture One
• Recent national industry rankings include
• No. 1 in US in wireless telecommunications
• No. 3 in biosciences
• No. 5 in dot.com (before the dot.com bust)

8
San Diego Countys FY 2002 Unrestricted Federal
RD Funding (Total 947.49 Million)
By Agency
By Technology Sector
Source RaDiUS
9
San Diego Companies Receiving SBIR Funding
(FY2002)
Note DOD SBIR funding is unavailable at this
time.
Source RaDiUS
10
San Diegos SBIR Recipients Cluster Near
UCSD/Scripps/Salk
11
San Diegos SBIR Companies Locate in Sorrento
Valley
UCSD Black square, Salk/Scripps Green circle
12
San Diegos Private Venture Capital Trends (in
Million)
Data Source VentureXpert, Thomson Financial
13
San Diegos Private Venture Capital Trends, by
Industry (in Million)
Data Source VentureXpert, Thomson Financial
14
San Diegos High Tech/Biotech Industry Employment
Rose in 1990s
Estimates only due to SIC/NAICS code change.
Source SANDAG
15
San Diegos High Tech/Biotech Industry Employment
Rose in 1990s
Estimates only due to SIC/NAICS code change.
Source SANDAG
16
San Diegos Average High Tech Wages Almost
Doubled in 1990s
Estimates only due to SIC/NAICS code change.
Source SANDAG
17
Defense as a Percentage of San Diegos GRP
Source San Diego Regional Chamber of Commerce
18
San Diegos Regional Workforce Training Through
UCSD Extension/Continuing Ed.
19
UCSD Extension Program Highlights in FY2003

• 5,465 enrolled in IT courses designed for
  computer professionals
• computer networking technologies
• digital media web technologies
• 2,117 enrolled in Engineering courses designed
  for telecommunications professionals
• CDMA engineering
• RF engineering
• embedded computer engineering
• semi-conductor design
• 1,897 enrolled in Clinical Trials management
  courses designed for Healthcare professionals
• clinical trials management
• drug design process
• human subjects protection
• healthcare executive leadership
• 1,640 enrolled in Biotech courses designed
  specifically for PhD level scientists
• bioinformatics
• regulatory affairs
• biotech patent law
• good manufacturing practices

20
Still Needed A New Institutional Mechanism to
Network Local Competencies for Global Competition

• Act as an honest broker to serve the common
  good, not special interests
• Network competencies/expertise across
  disciplinary and professional boundaries
• Link the regions capacities to global
  opportunities/resources/influences
• Have the legitimacy and resources sufficient to
  mobilize multiple leadership sectors

21
UCSD CONNECT is San Diegos Incubator Without
Walls

• Provides rapid and continuous access to
  technology developments in all fields
• Provides continuous access to diverse forms of
  financing--seed, angel, venture, corporate
• Provides access to business planning and market
  intelligence
• Provides access to entrepreneurial experience and
  management know-how
• Provides access to continuing education and
  training for knowledge professionals
• Brings attention to the local, regional and
  national issues/policies affecting technology
  sectors

22
UCSD CONNECT Activities Match Companies
Lifecycle Needs
23
UCSD CONNECT Activities in a Recent Year

• 200 members, underwriters and corporate sponsors
• 225M raised by CONNECT companies in FY2002
• 25-30 Springboard Presentations/year
• 2 major venture capital forums/year
• 25 other seminars/courses/roundtables/SIGs
• Monthly Research Briefings
• Most Innovative New Products of the Year (MIP)
  Awards
• Athena -- women technology entrepreneurs
• Global CONNECT

24
How is UCSD CONNECT Funded?

• UCSD CONNECT is entirely self-supporting through
  memberships, underwriting, sponsorships and
  activity fees
• UCSD CONNECT receives no federal, state or local
  government funds
• UCSD CONNECTs current annual budget is 0.75
  Million
• UCSD CONNECT staff number 5-7
• Business and community leaders volunteer time to
  assess business plans, listen to company
  presentations, mentor companies, choose
  participants for major forums, judge winners for
  MIP Awards

25
What makes UCSD CONNECT unique?

• UCSD CONNECT acts downstream from the Technology
  Transfer Office
• UCSD CONNECT acts as the honest broker with the
  backing and prestige of UCSD. It brings in
  experts to assist entrepreneurs with
• market assessment
• financial know-how
• management know-how
• UCSD CONNECT is not about putting on events for
  the sake of hosting events
• UCSD CONNECT is about community building, mutual
  learning and networking competencies together to
  grow companies and create jobs for the San Diego
  region

26
UCSD CONNECT as part of an Engaged University

• UCSD is ranked No. 5 in RD funding (gt550
  Million per year)
• UCSDs Technology Transfer Office is ranked No. 2
  in the UC System.
• UCSD Technology Transfer Activity in a typical
  year (FY 2002)
• 255 Invention Disclosures, 1,274 active cases in
  portfolio
• 392 active US patents 112 US Patents Filed, 42
  US Patents Issued
• 415 active foreign patents 49 first foreign
  filings
• 181 active licenses, 37 new licenses/options
  executed
• 12.69 Million in royalties received
• Cal(IT)2 and other new Research Centers of
  Excellence support local industry clusters
• UCSD JSOE/von Liebig Center trains student
  entrepreneurs
• UCSD Extensions continuing programs provide
  workforce training for San Diegos high tech
  workforce
• Over 40,000 enrollees per year
• 60 work in high tech industries
• gt50 of enrollees receive tuition reimbursement
  from employer
• UCSD CONNECT assists gt100 emerging firms per year

27
(No Transcript)
28
(No Transcript)
29
http//www.connect.org