Innovation Report Details Ups and Downs of San Diego Startups
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$193 million into 26 startups in the San Diego region during the fourth quarter of 2010, according to the most recent MoneyTree report from PricewaterhouseCoopers, the National Venture Capital Association, and Thomson/Reuters. That was a 43 percent drop in dollars invested and a 25 percent decline in the number of deals compared with the fourth quarter of 2009.
— When using a moving average of three quarters’ data (which smooths quarter-to-quarter fluctuations for a clearer trend analysis), San Diego’s fourth quarter VC investment moving average was down more than 50 percent from the fourth quarter of 2007—a substantially larger decrease than seen in other key innovation economies, such as Silicon Valley and Boston.
—Overall tech employment has decreased about 2 percent in San Diego over the past three years, with a slight uptick noted in the fourth quarter of 2010. Recent employment data shows San Diego added about 2,000 jobs of all types in February, but overall unemployment remains high at 10.1 percent.
—San Diego’s new tech companies created almost 200 jobs in the fourth quarter of 2010, and more than 930 for the full year 2010. Overall startup employment was down 13 percent from 2009, however. For the entire year, the life sciences sector created the most jobs (303), followed by software (243), computer and electronics (150), communications (120), environmental technologies (64), and other (50).
— Communications equipment manufacturing was again the largest employment sector in San Diego with almost 28,000 jobs. The life sciences sector and software each represented 27,400 jobs. These tech sectors represent only 6 percent of employers and just over 11 percent of all jobs in San Diego County. But the report notes that tech employment accounts for more than 25 percent of all wages and pays almost 95 percent more than the average industry wage in San Diego.
—San Diego continues to lead Southern California in terms of the patents published and granted per 100,000 residents over the past three years. San Diego also shows higher year-to-year growth in the number of patents published and granted between 2008 and 2010 compared to other California regions and the Boston innovation hub. Over the past three years, the number of patents published increased by more than 12 percent, and the number of patent grants jumped by more than 45 percent in San Diego.