UNDERWRITTEN BY. TECH. A LOOK AT THE. SAN DIEGO REGION'S. 78 CORRIDOR ... Page 2 ... INFORMATION & COMMUNICATIONS TECH. DEFENSE .... The majority of entry-level tech occupations require less than a four-year degree.
TECH A LOOK AT THE SAN DIEGO REGION’S 78 CORRIDOR CARLSBAD ESCONDIDO OCEANSIDE SAN MARCOS VISTA
UNDERWRITTEN BY
INNOVATE
TECHNOLOGY ALONG THE 78 CORRIDOR
850 TOTAL TECH FIRMS
North County’s 78 Corridor has emerged as a leader of technological innovation. With a concentration in tech employment 42% above the national average, the Corridor’s diverse and well-established tech cluster has seen steady growth in recent years and continues to be a major driver of employment and economic production within the San Diego region.
$6.1B
TOTAL ECONOMIC IMPACT
40K+ TOTAL JOBS IMPACTED
TECH CLUSTER BREAKDOWN
The Corridor’s tech cluster can be broken down into three distinct segments that, together, represent more than 70 industries and 24,000 jobs.
24,685 JOBS
BIOTECH & BIOMED DEVICES This segment focuses on development and production of medical devices and pharmaceuticals, and includes the research, testing and analyses of medical products and services.
B & BD
12,493
INFORMATION & COMMUNICATIONS TECH ICT
As the traditional anchor of a tech cluster, this segment comprises software and video game development, design and production of computers and related hardware, and telecommunications products and services.
9,515
DATM
2,677
DEFENSE, AEROSPACE & TRANSPORTATION MFG This rapidly emerging segment supports the local defense industry with navigation equipment and technology, ship and boat building, and other defense-related products and services.
HIGH-TECH MANUFACTURING Firms along the 78 Corridor specialize in precision manufacturing of medical devices, broadcasting and telecommunications equipment, and aeronautical instruments.
TOP 10 MOST CONCENTRATED* TECH INDUSTRIES
27X
18X
IRRADIATION APPARATUS MFG
MEDICINAL & BOTANICAL MFG
14X OPHTHALMIC GOODS MFG
16X
23X
17X
IN-VITRO DIAGNOSTIC SUBSTANCE MFG
RADIO & TELECOM EQUIPMENT MFG
AUDIO & VIDEO EQUIPMENT MFG
10X
7X
11X
8X
OPTICAL INSTRUMENT & LENS MFG
SURGICAL APPLIANCE & SUPPLIES MFG
OTHER COMM EQUIPMENT MFG
ELECTRONIC CONNECTOR MFG
B & BD Numbers represent an industry's location quotient – a valuable way to quantify how *concentrated a particular industry is in the 78 Corridor compared to the nation.
ICT
78 CORRIDOR TECH AT A GLANCE
1 5 IN
TECH FIRMS IN SAN DIEGO COUNTY IS LOCATED ALONG THE 78 CORRIDOR
1.4x
MORE CONCENTRATED THAN THE NATION
ECONOMIC CONTRIBUTION TO THE 78 CORRIDOR
8%
TECH SHARE OF TOTAL EMPLOYMENT
17%
TOTAL GDP COMES FROM TECH
$12B ANNUAL TECH SALES
81%
OF TECH SALES ARE EXPORTED OUT OF THE 78 CORRIDOR
ALONG THE 78 CORRIDOR, $108.5K TECH WAGE TECH JOBS PAY DOUBLE VS. THE AVERAGE WAGE $53.5K AVERAGE AVERAGE
CUSTOMER BASE The Corridor’s tech cluster serves a variety of different customers across many industries. The synergistic nature of the cluster is evident, with 50% of customers being firms located in the San Diego region. BIOTECH, MEDICAL OR HEALTHCARE 18%
INFO TECH 5%
EDUCATION & GOVERNMENT 11%
MANUFACTURING 3%
CONSTRUCTION 8%
COMM, MEDIA & ENTERTAINMENT 3%
FINANCE 5%
SALES & MARKETING 3%
PROFESSIONAL & TECHNICAL SERVICES 5%
TELECOMMUNICATIONS 2%
*37% of respondents answered “other,” “do not know” or declined to answer.
GROWING TECH JOBS WHERE THE JOBS ARE
3% 8% 8% 12% 69%
HEALTHCARE
While manufacturing accounts for nearly 70% of employment across the cluster, there are other key industries that contribute to the production of tech goods and services. It is this collaboration that fosters technological breakthroughs and spurs economic growth and development.
INFORMATION WHOLESALE TRADE PST SERVICES MANUFACTURING = 1,000 JOBS
TOP 10 2.2%
ELECTRONICS ENGINEERS (EXCEPT COMPUTER)
3.0% ELECTRICAL & ELECTRONIC EQUIPMENT ASSEMBLERS
INDUSTRIAL ENGINEERS
SALES REPS,
& 2% TECHNICAL SCIENTIFIC PRODUCTS
2%
2.7% INSPECTORS, TESTERS, SORTERS, SAMPLERS & WEIGHERS
3.5% TEAM ASSEMBLERS
TOP OCCUPATIONS IN TECH
1.9%
There are more than 200 occupations within the Corridor’s tech cluster, with the top ten accounting for nearly 26% of total tech employment.
CUSTOMER SERVICE REPS
2.3%
GENERAL & OPERATIONS MANAGERS
3.1%
APPLICATIONS, SOFTWARE DEVELOPERS
GROWTH TRENDS IN TECH Biotech & biomed devices (B & BD) has been the fastest growing segment, with a 19% increase in employment since 2010. Moving forward, manufacturing industries within B & BD will remain the primary source of growth for the tech cluster.
3.1% SYSTEMS SOFTWARE, SOFTWARE DEVELOPERS
14%
EMPLOYER-PROJECTED TECH JOB GROWTH OVER NEXT 12 MONTHS
FASTEST GROWING INDUSTRIES WITHIN TECH LOOKING BACK 2011-2016 IRRADIATION APPARATUS MFG MEDICINAL AND BOTANICAL MFG ELECTROMEDICAL AND ELECTROTHERAPEUTIC APPARATUS MFG MEDICAL LABS PHARMACEUTICAL PREPARATION MFG
LOOKING FORWARD 2016-2021
388%
49%
251%
48%
187%
35%
101%
33%
89%
26%
WIRED TELECOM CARRIERS
64%
A FAVORABLE BUSINESS CLIMATE
of tech companies think that the 78 Corridor is either a good or excellent place to do business
More than 82% of tech firms along the 78 Corridor have been in the region for more than 10 years. Firms’ satisfaction with the local business climate is undoubtedly linked to North County’s regional strengths. Among local tech firms, perceptions indicate North County is business-friendly and offers an unparalleled quality of life; an attractive climate for entrepreneurs, business-owners and skilled talent alike.
80%
OF TECH FIRMS HAVE LESS THAN TEN EMPLOYEES
29%
31%
47%
17%
22%
A GROWING TALENT POOL Talent, particularly highly skilled and tech savvy, is the foundation of the 78 Corridor’s tech cluster. While the majority of firms (76%) indicated they were satisfied with their ability to retain valued employees over time, more than half (53%) expressed dissatisfaction with their ability to recruit experienced, high-level talent. Generally satisfied with the talent pipeline provided by educational institutions throughout the region, employers expressed interest in seeing an expansion of local tech-related training and programs.
54%
ABILITY TO RECRUIT EXPERIENCED, HIGH-LEVEL TALENT
ABILITY TO FIND QUALIFIED ENTRY TO MID-LEVEL TALENT
13%
12% 12%
28%
59%
EDUCATION & TRAINING INSTITUTIONS THAT HELP DEVELOP ENGINEERS, DEVELOPERS & TECH TALENT
SATISFIED OR VERY SATISFIED
76%
ABILITY TO RETAIN VALUED EMPLOYEES OVER TIME
NEUTRAL
BEGINNING YOUR CAREER The majority of entry-level tech occupations require less than a four-year degree. When filling these positions, employers along the Corridor value related work experience and technical training.
62%
OF ENTRY LEVEL TECH OCCUPATIONS REQUIRE LESS THAN A BACHELOR’S DEGREE
OF TECH EMPLOYERS THINK THAT TECHNICAL TRAINING AND EXPERTISE ARE IMPORTANT
89%
87%
OF TECH EMPLOYERS THINK 1+ YEARS OF WORK EXPERIENCE IS IMPORTANT
DISSATISFIED OR VERY DISSATISFIED
LOS A NGE LE S
90 mil e s
OCEANSIDE VISTA
ESCONDIDO
78
CARLSBAD
SAN MARCOS
INNOVATE78.COM CULTIVATE. BUILD. LIVE. CONNECT. The 78 Corridor offers the right mix of talent, quality of life and community for Thermo Fisher to thrive. North County is an asset in recruiting and retaining high-quality talent. The surrounding ecosystem of tech companies, proximity to educational institutions like CSU San Marcos and UC San Diego, and exceptional climate continue to support Thermo Fisher’s growth and development of new products and services in life sciences. - Mark Field, Chief Technology Officer Thermo Fisher Scientific
PRODUCED BY
ABOUT INNOVATE78
Innovate78 is a marketing and economic development initiative led by five North County San Diego cities – Carlsbad, Escondido, Oceanside, San Marcos and Vista. Along the 78 Corridor, elected leaders, city staff, businesses and educational institutions are working to leverage the area’s collective strengths and assets – speaking with one voice to retain, expand and attract talent, companies and investment.
For more on this study, please visit › sandiegobusiness.org/research RELEASED APRIL 2017
SA N DIEGO
32 mil e s
