1. Building a Business Led, Dynamic Economy: The San Diego Experience Mary Lindenstein Walshok Associate Vice Chancellor, Public Programs Dean, University Extension University of California, San Diego Belfast June 2010

2. The Goals of Today’s Presentation Contribute to your conversation about regional economic transformation Share the story of a community, San Diego, California, which has diversified its economic base over the last three decades Explore parallels and differences with Northern Ireland Probe what needs to occur in Northern Ireland to accelerate economic diversification, especially through technology and entrepreneurship

3. San Diego in the 1950s and 1960s In the 1960s San Diego was identified by Time magazine as America’s “bust” (failed) city Local economy dominated by declining defense manufacturing, tourism and real estate speculation A number of brand new research institutions and a start-up university No major corporations or family wealth but small, primarily local businesses A long tradition of failed entrepreneurial and economic development efforts

4. San Diego in 2010 SAN DIEGO IS A HUB OF DIVERSE TECHNOLOGY COMPANIES 300 defense and security companies > 1,000 wireless communications and software companies, anchored by Qualcomm > 600 life science companies, anchored by Biogen Idec, Gen-Probe and Life Technologies 250 energy and environmental companies 600 action sports companies

5. IT/Wireless/Software Linkabit Linkabit was founded by UC San Diego professor Irwin M. Jacobs in 1968 as the first high-tech communications company in San Diego. Peter Preuss developed his first software package in 1969 and founded ISSCO in 1970. ISSCO

6. Qualcomm Nokia Leap Kyocera LG Electronics Broadcom IT/Wireless/Software Linkabit Linkabit was founded by UC San Diego professor Irwin M. Jacobs in 1968 as the first high-tech communications company in San Diego. Peter Preuss developed his first software package in 1969 and founded ISSCO in 1970. Today there are more than 1000 IT, wireless and software companies operating in San Diego. ISSCO

8. Life Sciences Hybritech was founded in 1978 by UC San Diego professors Ivor Royston and Howard Birndorf as the first “biotech” company in San Diego. Hybritech

9. Pfizer Lilly Novartis Celgene Life Sciences Johnson & Johnson Life Technologies Hybritech was founded in 1978 by UC San Diego professors Ivor Royston and Howard Birndorf as the first “biotech” company in San Diego. Today there are more than 600 life science companies operating in San Diego. Hybritech

11. Energy & Environment General Atomics General Atomics was founded in 1955 as San Diego’s first R&D energy company by General Dynamics.

12. Sapphire Energy Synthetic Genomics Energy & Environment SDG&E General Atomics was founded in 1955 as San Diego’s first R&D Energy Company by General Dynamics. Today there are more than 250 energy and environmental companies operating in San Diego. General Atomics

13. Action & Sports Gordon & Smith San Diego’s action sports industry traces back to the founding of Gordon and Smith Surfboards in 1959.

14. Action & Sports Hollingsworth Billabong Ekstrom Dean Cleary Surfboards Hurley Mike Hynson Surfboards Underwater Kinetics Callaway Golf Gordon & Smith San Diego’s action sports industry traces back to the founding of Gordon and Smith Surfboards in 1959. Today there are more than 600 action and sports related companies operating in San Diego.

15. Venture Capital Investments in San Diego Source: Thomson Financial for PWC/NVCA MoneyTree Report Venture Capital Investments in San Diego, 1978 - 2009 $s Millions of Venture Capital Investments in San Diego by Industry Category, 2009

16. San Diego Patents 2007-2009 Source: US Patent & Trademark Office

17. San Diego’s History of Business Leadership 100 year history of small farms, small companies and entrepreneurs (similar to the Silicon Valley) Defense contracting and manufacturing – the region’s largest industry in the 1930s through 1960s Focus on R&D after World War II, which resulted in research institutions and a university opening in the region Small business leadership prominent in the 1960s, 1970s and 1980s because of no large companies, foundations or direct government investments in the region

18. San Diego’s History of Business Leadership Business leaders created the environment that would incubate and grow… –World class R&D institutions –Lots of small high growth tech companies –Clusters of companies, suppliers and professional services Collaboration among people and enterprises to create a new (albeit uncertain) economic future –Providing leadership –Contributing time and money –Sharing contacts and networks

19. San Diego’s ‘Incubator Without Walls’ Facilitating the convergence of scientific invention, entrepreneurship, and smart capital Access to technology developments in all fields Access to diverse forms of financing -- seed, angel, venture, corporate, SBIR, grant/foundation Business planning and market intelligence Domain, business, and market expertise “know-how” connecting to “know-who” Lifelong education and training for professionals Building a community with shared tech aspirations and high levels of trust 1985 - 2010

20. 230 Members 30 Programs ~150 Entrepreneurs-in-Residence 1,800 Volunteers 330 Events in 2009 15,000 Attendees $3 million annual budget 16 staff Mission: to accelerate promising, innovative science into successful businesses

21. CONNECT Measures of Success Springboard Program Over 1,000 companies assisted since 1993 118 graduate companies during 2005-2008 –75% survival rate –52 graduate companies in 2008 –$111.5 million in follow-on capital raised 200 companies in the pipeline Financial Forums Companies have raised over $7 billion Total jobs created >25,000

22. What San Diego’s Experience Suggests About Successful Innovation Regions Sometimes a blank slate can be a good thing = fewer vested interests, naysayers Must have world class R&D Business led commercialization initiatives can accelerate new company growth with global reach from day one Willingness to invest time, resources, relationships and reputations in uncertain outcomes is important Ability to absorb and learn from failure as well as celebrate success is important Commitment to growing clusters, not just companies, over the long term is essential

23. Questions the San Diego Experience Raises for Northern Ireland Are there entrenched interests/naysayers who can slow down change? Is there a critical mass of R&D output? Is there the business leadership to facilitate commercialization and growth of global companies? Is there a sufficient number of business and professional community leaders ready to invest time, resources and reputations? Are there enabling programs which help create success, learn from failures and build confidence in the region’s long term global competitiveness?