1. The Cluster Approach to Economic Development
The San Francisco Experience
Dennis J. Conaghan

2. Identifying Sector Opportunities
Engaged SRI International to identify highest growth prospects (2003)
Financial Services
Media
Information Technology
Business Services
Tourism
Telecommunications
Modified approach based on alignment with City, and areas best served by our efforts

3. Identifying Sector Opportunities
Leverage San Francisco’s Strengths
Highly educated workforce
Potential for expansion
Transportation hub
International focus
Quality of life
Focus on Knowledge & Experience-Based Economies

4. Economic Drivers: Knowledge and Experience
Knowledge Sector
Experience Sector
EXPORT
Biotech
Financial Services
Information Technology
Environmental Products & Technologies
Professional Services
Digital Media
Publishing, Film, TV
Fashion
Arts & Culture
Design
Dining & Entertainment
Neighborhoods & Places
Attractions
Hospitality
Specialty Retail

5. SFCED Focus
Through research, alignment, and market intelligence, we redefined our sectors
Biotechnology/Life Sciences
Environmental Technology
Digital Media and Entertainment
Information Technology
Professional Services
Strong emphasis on international outreach in all five sectors

6. Case Study: Biotechnology
In four years, San Francisco has gone from “Zero” to 34 Biotech companies
Alignment of Factors
Bay Area strengths and history
Mission Bay: Crown Jewel, 300+ acres
UCSF: world-class institution
CIRM
City Tax Credits
Collaboration: Bay Bio, City, SFCED

7. Lessons Learned
Continually examine and redefine sectors as market and political conditions warrant
Take advantage of core strengths
Maintain close collaboration with City and other like-minded organizations
Persevere: a game of inches, not miles
Be opportunistic and optimistic
Virgin America