To adapt and succeed in a world with such an integrated global economy, San Diego should masterfully handle its international exports and foreign direct investment to create new jobs, increase competitiveness and catalyze the leadership quality and identity of its region. To accomplish this, government, industry and academic partners must work together, using collaborative strategies and sharing pro-active views.
However, given the size and geographical qualities of the region, San Diego often does not meet its export expectation. The benefits of exporting abroad are quite evident, however, only a small fraction of the companies – composed, to a greater extent, of SMEs – exports. Although San Diego is considered in the United States as the metropolitan area number 17 in terms of size, thanks to its GDP and population, ranks 61 in export intensity (percentage of GDP that is exported outside). The Increasing urbanization and proliferation of the middle class suggests that export trade will continue to grow. Furthermore, global GDP has increased 5 times from 1991-2011, but San Diego is in 49th place among the 100 largest metropolitan areas, within employee participation in foreign-owned companies. The fact that San Diego pays more attention to global trends by taking a more deliberate approach to global commitment is compelling.
After the Great Recession, and since July 2014, San Diego has recovered all its 84,300 jobs, and added another 15,100. To maintain long-term economic growth, San Diego should attract more investment and should promote export in key industries of the region.
According to the Brookings Institute, from 2030, 66% of the global middle class will be in Asia, with large concentrations in China and India. As the economic role of the Pacific becomes more evident, San Diego should bet on its geographical position to participate in and benefit from increased productivity in Asia, as well as their investible funds and their purchasing power.
If San Diego aims to succeed and continue on track towards an exponential economic development, it should use its quality as a binational region. As one of few economically active and significantly symbiotic border regions, San Diego should include initiatives that are taking place in Mexico and Baja California, in particular, the Baja´s favorable pro-manufacturing location. The closeness between the two entities gives the region a considerable advantage in economic development.
Foreign-owned companies (FOE) tend to better remunerate employees, to invest more in the area of research and development, and to export more than local companies, making it profitable for the entity to have such institutions. Also, the San Diego global leadership in key industries is affecting and attracting foreign direct investment; this has been mostly due to mergers and acquisitions in key industries, such as the life sciences, wireless communication and defense technology. That is why capital arising from foreign direct investment can fill the need for the creation of new businesses and job spaces as well as to provide a larger budget to the city´s world-class research institutes.
Despite all these advantages and opportunities, for the United States, San Diego is located at… Continue reading article here
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