1. Prepared by Collaborative Economics

2. EXECUTIVE SUMMARY  San Diego is participating in a new global innovation economy  San Diego’s global reach has grown substantially over the last decade. –Share of global talent pool has increased –Share of global investment capital has increased  San Diego’s economic drivers are changing with the convergence of key industries and technologies.

3. EXECUTIVE SUMMARY  San Diego’s growing participation in the new global innovation economy is expanding economic opportunity for a wide range of San Diegans. –While the region’s leading industries have created many high wage jobs, an average of about 40% of jobs in these sectors are at the mid-wage level  San Diego’s challenge is to ensure that its economic drivers have the regional and global resources necessary to compete. –Public and private leaders in other regions are working together to make strategic investments, grow their talent pools and extend their global reach

4. EXECUTIVE SUMMARY  Benefiting from globalization requires hands- on regional leadership. –Global competitiveness requires a proactive regional agenda –The Partnership for the Global Economy will bring together business leaders to identify priorities and organize for strategic action

6. SAN DIEGO’S GLOBAL COLLABORATION

7. GLOBAL TALENT FLOWS

11. GLOBAL IDEA FLOWS

13. GLOBAL CAPITAL FLOWS

14. THE BAJA CALIFORNIA CONNECTION

15. : CONVERGENCE IN CLUSTERS OF OPPORTUNITY CRITERIA FOR CLUSTERS OF OPPORTUNITY  EMPLOYMENT GROWTH (expanding opportunities in both export and population driven sectors)  GROWING SPECIALIZATION (increase in concentration compared to the U.S. as a whole)  REAL WAGE GROWTH  CAREER POTENTIAL (job opportunities in high, mid and low-level wage occupations)

16. SAN DIEGO’S SIX CLUSTERS OF OPPORTUNITY  Life Sciences (Pharmaceuticals, Medical Devices, Biotechnology)  Health Services  Information Services (IT, Telecommunications and Publishing)  Advanced Manufacturing (Aerospace/Defense, Recreational Goods)  Commercial and Infrastructure Construction  Visitors and Regional Experience Orchestrator of Regional Convergence & Global Collaboration  Innovation and Professional Services

17. CLUSTERS OF OPPORTUNITY

19. HIGHLIGHTS OF SHARED CHARACTERISTICS  All Clusters have been growing: From 1995-2005, all but one cluster had an average annual growth rate (AAGR) of 3% to 6%.  In all but one cluster, growth is exceeding US growth.  In 2005, all clusters enjoyed higher real wages than in 1995.  Five of the six clusters are more concentrated in San Diego than in the United States  Each cluster offers career potential in occupations of all wage levels with roughly 40% of jobs at the mid- wage level.

21. INNOVATION & PROFESSIONAL SERVICES  How are the region’s providers of Innovation & Professional Services building linkages between San Diego’s businesses and partners abroad?  How are the region’s providers of Innovation & Professional Services facilitating interaction across industries within the region?  How could wireless technologies enhance the activities and products of the region’s Innovation & Professional Services?

23. LIFE SCIENCES  How could each of the fields of San Diego’s life sciences including marine biotechnology benefit from increased cross-fertilization of discovery and technology?  To what extent are professionals from these fields already coming together formally and informally?  How is current interaction across these fields supporting innovation?

25. HEALTH SERVICES  How can San Diego’s health care industry benefit from the region’s renown in health care technologies to become an export industry by drawing patients from outside the region?  How could the region’s Life Sciences and IT industries benefit from collaboration from the region’s health care systems and providers?  Is there opportunity for collaborative efforts in the area of clinical trials?  Is there opportunity for collaborative efforts in the development of digital health record systems?  In what ways could the visitor industry and the health care industries in particular work together to develop San Diego’s draw as a destination for high quality and innovative health care services?

27. COMMERCIAL & INFRASTRUCTURE CONSTRUCTION  To what extent are San Diego’s construction and structural design firms already collaborating with the region’s IT and telecom firms and research facilities?  To what extent are the region’s construction and structural design firms already integrating wireless technologies into their products and services?  In what ways are the region’s construction and design firms evolving their services and products to meet the growing interest in energy efficient building and environmentally sustainable materials?

29. INFORMATION SERVICES  How can the region’s IT and telecom talent bring new value to its analytical, testing, R&D, design and other professional services?  In particular, with growing attention to issues of environmental impact, what areas of potential collaboration exist between the IT, telecom and environmental analytics services?  How could wireless technologies enhance the activities and products of the region’s innovation and professional services?

31. ADVANCED MANUFACTURING  What potential wireless applications are currently being pursued by the region’s life sciences firms and research labs?  How does the technology transfer between defense and recreational equipment, such as in the use of advanced materials in golf clubs, currently take place and how could it be improved?  In what ways could the life sciences and aerospace/defense industries benefit from increased collaboration?  In what ways could the industries of precision manufacturing, IT, telecom and life sciences benefit from greater interaction with nano technologists?

33. VISITORS & REGIONAL EXPERIENCE  In what ways could the visitor industry and the health care industries in particular work together to develop San Diego’s draw as a destination for high quality and innovative health care services?  In what ways could the region’s visitor industry develop efforts with the region’s producers of sporting goods such as golf clubs and surf boards.

34. NEXT STEPS  Industry leaders within these clusters will meet to identify opportunities, requirements for success and potential for convergence  Cluster groups will recommend specific actions that will become elements of a strategic plan for the region  Leadership Trust will review the results of the cluster group and action team work and approve the strategic plan