San Diego’s Innovation Economy Strong, With Some Emerging Concerns
San Diego’s innovation economy showed relatively strong economic growth during the first three months of 2012, according to an in-depth study released by Connect, a San Diego nonprofit group that supports technology entrepreneurship.
But the Connect study also highlights some potential concerns, including a sharp drop in the number of software companies that were started in San Diego in the first quarter, and a significant decrease in federal research grant awards for basic biomedical research.
The backdrop for Connect’s latest quarterly report is an encouraging forecast that San Diego’s overall economy will grow by 2.2 percent in 2012, according to the National University System Institute for Policy Research. If that prediction holds true, San Diego’s gross domestic product would rise to $184.5 billion in 2012 (from $177.5 billion in 2011)—the strongest growth the region has seen in six years.
Nevertheless, San Diego’s general economic recovery remains sluggish. After adding 36,000 jobs in 2010 and 2011—and if another 21,000 jobs materialize in 2012 as predicted—the total number of jobs added would still be just over half of those lost in the recession of 2007-09.