San Diego Technologys Perfect Climate

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San DiegoTechnologys Perfect Climate
Albertas Wireless Opportunity
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Presentation Overview

• 1) San Diego Economic Base
• 2) Market Opportunities
• Defense Security Applications Market
• Wireless Telecom Applications Market
• Investment Market
• Computers Electronics Applications Market
• 3) Market Pursuit
• Challenges to Alberta Companies
• Key Events Activities
• 4) Alberta Wireless Mission
• 5) Next Steps

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San Diego Economic Base
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San Diego

• 7th Largest City in US, 2nd in California
• Population base of gt 3 Million in Greater San
  Diego
• Highest Number of PhDs per capita in US
• Few Large Companies Three Fortune 500 firms
  (Sempra Energy, SAIC, Qualcomm)
• Growth Driven by High Tech SMEs in
  Biotechnology, Wireless, Defense, Software and
  Electronics.

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If San Diego County Were a Country
2002 GRP
Rank
Country

• 29. Finland 130.8 billion
• 30. Thailand 126.4 billion
• 31. San Diego 124.9 billion
• 32. Portugal 121.3 billion
• 33. Ireland 119.9 billion

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San Diegos Diverse High Tech Sectors(172,000
Jobs 2005)
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Market OpportunitiesDefense Security
Applications MarketWireless Telecom
Applications MarketInvestment MarketComputer
Electronics Applications Market
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Wireless Telecom Applications Market
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Market Size

• Wireless Capital of the World
• Highest concentration of wireless employment in
  the US.
• 37,000 employees
• 200 companies
• Industry Survey Results
• Tremendous breadth and depth of cluster
• Company size and range of technologies services
  provided.

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Key Players

• Global HQ Centre
• Qualcomm
• Global RD Centre
• Qualcomm, Nokia, LG, Ericsson Siemens
• Device Manufacturers
• Kyocera LG (North American HQs)
• Carrier/Operators
• Leap Wireless Facilities (contracts with
  numerous major carriers)

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Market Opportunities

• Local firms (Who are they selling to?)
• 39 of companies sell to enterprise customers
• 26 to manufacturers
• 23 to the government
• 9 to consumers.
• CDMA applications, VOIP, free-space optics,
  ultrawideband, and WLAN technologies
• Design Manufacturing services for advanced
  electronic components companies
• In San Diego, collaboration is assumed and not
  the exception

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Qualcomm

• Wireless Data Services
• Mobile entertainment, computing and information
  access
• Qualcomm CDMA Technologies (QCT)
• QCT is the chipset and software division of
  Qualcomm. Worlds largest fabless semiconductor
  company (4 of 5 yrs.)
• MediaFLO USA Inc.
• Streaming or clipped, audio and video content to
  the handset

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Institutional RD Centre

• CalIT2 Worlds leading institute dedicated to
  conducting research on the future of
  telecommunications (IT).
• Industry Partners start-ups to multinationals
• Agilent, HP, Fujitsu, Intel, IBM, Oracle,
  Microsoft, TI
• Arch Ventures, Enterprise Venture Partners,
  Avalon
• Even Alberta firms! - BigBangwidth
• Government National Science Foundation, SPAWAR,
  CalTrans
• Academia UC System, US Universities
  International Institutions

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Defense Security Applications Market
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Market Size

• California Primes led US firms in 2004, winning
  CDN 36.3 billion more than 13 of all DOD
  contracts.
• Majority of production of states aerospace
  defense sector is based in Southern California.
• Following counties lead in contracts awarded
• Los Angeles - 12.6 billion
• San Diego - 7.4 billion
• Orange - 3.4 billion
• CDN amount of DOD contracts won by companies
  based in respective counties.
• (2004 figures Aerospace and Defense Market in
  California Market Research Centre Report)

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Key Players San Diego HQ

• SAIC
• Titan L3 Communications
• Cubic Defense Applications Inc.
• General Atomics
• Lockheed Martin Orincon Technologies
• Northrop Grumman
• BAE Systems
• Computer Sciences Corporation

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Industry Strengths

• Principal Homeport - US Pacific Fleet
• SPAWAR SSC HQ
• Global Leadership - Biomedicine, Biotechnology,
  and Communications
• Test Bed Environments
• Leading Research Institutes
• HQ Key Systems Integrators
• Networked Community

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Best Market Opportunities

• Port Security, Ocean and Naval Technologies
• SPAWAR SSC
• Command, Control, Communications, Computers and
  Intelligence, Surveillance and Reconnaissance
  (C4ISR) Systems
• Unmanned Vehicles
• Robotics

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Defense Security Industry Resources

• National Defense Industrial Association (NDIA)
  San Diego Chapter
• Armed Forces Communications Electronics
  Association (AFCEA) San Diego Chapter
• The Security Network
• The San Diego Regional Economic Development
  Corporation
• CCAT
• Global CONNECT

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Investment Market
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Venture Capital

• San Diego represents the 7th Largest
  Concentration of Venture Capital deals in the US
  (USD1.04 Billion into 125 deals in 2005).
• In comparison, CVCA reports that in Canada,
  CDN1.83 Billion was invested into 591 companies
  in 2005.
• Combining LA/Orange County data with San Diego
  numbers reveals that USD2.52 Billion invested in
  2005.
• Represents approximately 11.4 of national.
  Silicon Valley represents approx. 35.4 of
  national.
• SOURCE PWC Money Tree Report 2005, CVCA Thomson
  Financial Annual Report

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Corporate Investments

• Qualcomm Ventures Example
• Fund Objectives - private financing rounds, with
  a preference for early-to mid-stage private
  ventures.
• Sweet Spot Up to 2M, 5M, 10M
• Investment Targets - following market segments
• Communication Devices
• Wireless Communication Components and
  Infrastructure
• Wireless Software Infrastructure, Platforms,
  Applications and Services
• Enabling and Complementary Technologies
• New Technologies

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Computer Electronics Applications Market
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Market Size

• Software Industry
• 1,400 companies
• 18,000 employees
• Hardware
• 370 companies
• 32,000 employees

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Key Players

• Software
• Locally based Peregrine, Intuit, Claritis,
  Websense.
• Others Oracle, Fair Isaac
• Hardware
• Locally based Cohu, AMCC, Elgar, Pulse, Cymer
• Others Sony, HP, Sanyo

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Market Pursuit
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Challenges to Alberta Companies

• Non Tariff Trade Barriers
• Foreign Content Restrictions ITARS, TAAs
• Networked Community
• Distance
• Market Size
• Government Procurement Sales Cycles

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Key Marketing Tips

• Dont try to sell Direct
• Search for Key Systems Integrators. OEMs are
  outsourcing up to 80 of production
• Use Local Manufacturers Representatives
• Let Rep set up Distributors and VARS
• Consider joining Local Associations and Industry
  Bodies
• Think long term relationships
• Focus!

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Key Events

• ASIS International 2006
• September 25 28, 2006 (www.asisonline.org/asis200
  6)
• 14th Annual Internet Telephony Conference
• October 10 13, 2006 (www.itexpo.com)
• SPAWAR Industry Conference
• November 14 16, 2006
• AFCEA West 2007
• January 31 February 2, 2007 - Canadian Pavilion
  (www.west2007.org)

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The Alberta Wireless MissionNovember 29 30,
2006www.witec.ca (San Diego Mission)
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Value Proposition

• Support the growth of Alberta-based wireless
  companies by providing them with opportunities to
  develop their market in the San Diego region.
• Identification and introduction to customers
  and/or business partnerships.
• Identification and introduction to RD
  partnerships.
• Identification of potential investors.

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Activities

• One-On-One Outcall Program
• CommNexus GadgetFest
• Largest annual wireless event in San Diego.
• 300 attendees.
• Alberta Corner
• Alberta Wireless Night
• Networking event on-site at CalIT2
• On-stage company interests presented to local
  audience.
• Morning Breakfast Briefing San Diego
  Perspective

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Partners

• Alberta based WiTEC Alberta, Western Economic
  Diversification Industry Canada (along with
  CTI, TRLabs, NEWT, IS, AED, ITCan, TTA
  members)
• Locally CommNexus, CalIT2, Global CONNECT,
  NDIA, The Security Network.

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Local Participants

• Wireless Telecom
• Qualcomm, Qualcomm Ventures, LG, MobileComm,
  PacketVideo, etc.
• Defense Security
• Epsilon Systems, SAIC, Cubic, Lockheed Martin,
  etc..

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Program

• 2 Day Program
• Day 1
• Fly to San Diego (morning)
• Exhibit Set-Up (afternoon)
• GadgetFest (evening)
• Day 2
• Briefing Breakfast
• One-on-one programs
• Alberta Wireless Night

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Company Expenses

• Travel expenses, including flights, local
  transportation, accommodations and incidentals.
• Consulate and In-Canada partners will cover costs
  related to GadgetFest participation, breakfast
  briefing, and Alberta Wireless Night.

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Next Steps
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Contact Information

• Sean Barr
• Consul Trade Commissioner
• Consulate of Canada
• 402 W Broadway, 4th Floor
• San Diego, CA 92101
• Tel [phone] Fax [phone]
• Email sean.barr_at_international.gc.ca