San Diego Report on Innovation Economy Still Shows Mixed Picture of Economic Recovery
The Connect Innovation Report is not exactly timely—the report on San Diego’s innovation economy for the second quarter that ended June 30th was released just yesterday. But the almost 40-page report offers a more comprehensive overview than the more immediate picture we get from venture capital investments in San Diego startups during the quarter.
The report also includes data on such economic indicators as the number of technology companies started (down more than a third from Q2 of 2009); M&A deals (roughly twice the deals of Q2 2009); and granted patents (up 22 percent). What’s more, it incorporates analysis from San Diego economist Kelly Cunningham of the National University System Institute for Policy Research.
The entire Connect Innovation Report can be found online here. My roundup of the highlights follows, but many of the local economic indicators remain at odds. Mergers & acquisitions activity during the quarter was encouraging, but we saw more deals with a bigger overall valuation during the first quarter of 2010. While federal funding for research has been soaring—especially in the health sciences—anemic venture capital investing continues to sap the life from San Diego’s innovation community. With so many contrary indicators, just about any mechanic would conclude that this economic engine still needs a tune-up.
—The Innovation Report shows 64 technology startups were founded in San Diego during the second quarter of 2010. This was an 83 percent increase from the first quarter, but a nearly 37 percent decline from the 101 startups formed during the second quarter of 2009.
—The report shows there were 40 mergers & acquisitions deals for a total reported value of $317 million in San Diego during the second quarter—approximately twice the 24 deals with a total reported value of $139 million during the same quarter in 2009. The total value was down by about 62 percent, though, from the first quarter of this year, when San Diego saw 46 M&A deals valued at $845 million. In addition, 10 San Diego companies closed … Next Page »