< Previous48 C A L I F O R N I A I N V E S T M E NT G U I DE U N I V E R SI T Y P R OF I L E S by SAVA N NA H K I N GC A L I F O R N I A I N V E S T M E NT G U I DE 49 he University of California system celebrated its 150th anniversary in 2018. Over the last century and a half, the system has grown from just 40 students to being one of the world’s great public research universities. With 10 campuses across the state, nine of which offer undergraduate and graduate degree programs and one (UCSF) which is solely focused on graduate and professional-level curriculum, the system educates more than 238,000 students annually. Additionally, the system operates five medical centers and three affiliated national laboratories. While 1.7 million alumni live and work around the world, many UC graduates stay close to home. In fact, 83 % of UC graduates choose to stay in California after graduation. Half of the system’s Ph.D. and master’s degree grads who stay in California ultimately work in higher education. Systemwide, UC spends $4.5 billion a year on research, and much of these funds come from outside the state. UC researchers are responsible for the discovery and invention of many well-known products and technologies. UC research activity is a boon to the regional economies surrounding its campuses and has created a number of economic and innovative hubs. On average, UC graduate students create nearly 600 new inventions a year. The impact of the innovative atmosphere is reinforced by the fact that a startup is formed every two weeks based on an invention created by a UC graduate student. At UC Berkeley, researchers and students have taken a page from Star Trek and created a new kind of 3D printer. Nicknamed the “replicator” after the fictional device the Star Trek crew used to materialize objects on demand, the technology promises T The University of California system is churning out highly qualified graduates and innovative technologies statewide. University of California’s campus at Berkeley. Photo: Getty Images50 C A L I F O R N I A I N V E S T M E NT G U I DE Source: Forbes to transform the way products are designed and manufactured. Most 3D printers build up objects layer by layer, which can create what’s known as a stair-step effect along the edges of printed items. This new technology uses a viscous liquid that forms a solid when it’s exposed to certain light thresholds and essentially crafts the item at one time. The research is supported by UC Berkeley faculty startup funds and money from the Lawrence Livermore National Laboratory. Nearly 15,000 students are annually enrolled in UC’s health science and residency programs across the state. These graduates will be key in creating jobs to support the burgeoning health care and life science industries. Researchers from UC Irvine are working on an innovative treatment option for cancer. A $10-million, five-year grant from the National Institutes of Health was awarded to UC Irvine scientists for several groundbreaking research projects focused on treating cancer. UC Irvine is also recognized by the National Cancer Institute as a comprehensive cancer center. “UC Irvine Health is positioned to do all of this novel research because we are embedded within a great research university,” said Dr. Richard Van Etten, the director of the UC Irvine Chao Family Comprehensive Cancer Center. “Other hospitals that lack a university can do research. But we have the complete infrastructure to do this type of systems biology work.” At the UC Davis campus, biology and engineering students are getting hands-on experience in develop- ing and prototyping their ideas. The Molecular Prototyping and BioInno- vation Laboratory, (MPBIL) or more simply the biomarker lab, has already generated three student-led startups. “We wanted to create a new type of multi-use space on campus for students interested in hands-on exploration and creative expression in biotechnology, bioengineering and biodesign,” said Marc Facciotti, an associate professor in the Department of Biomedical Engineering and the UC Davis Genome Center. “We aspire to be a hub for creative expression in biotechnology, a place to host new hands-on courses, and a home for student clubs and design teams. We also want to be a nurturing environment for budding entrepreneurs.” UC Davis is ranked No. 1 in the world for veterinary medicine as well as No. 2 nationally for agriculture. It also ranks fifth nationally among all public universities. The New York Times has referred to UC as “California’s upward mobil- ity machine.” And indeed, within five years of graduation, 77 percent of the universities’ low-income students earn more money than their parents. On average, bachelor’s degree recipi- ents experience a doubling of their salary between two and 10 years after graduation, according to the system’s data. Across the state, UC is changing the lives of its students and countless others through new technologies and job creation. “UC Irvine Health is positioned to do all of this novel research because we are embedded within a great research university. Other hospitals that lack a university can do research. But we have the complete infrastructure to do this type of systems biology work. ” — Dr. Richard Van Etten, Director, UC Irvine Chao Family Comprehensive Cancer Center Forbes 2019 Best Value Colleges Ca mp u sR a nk UC Irvine ..................... No. 3 UCLA .......................... No. 4 UC Berkeley .................. No. 5 UC Davis ..................... No. 11 UC Santa Barbara ......... No. 12 UC San Diego ............... No. 13 UC Riverside ............... No. 27 UC Santa Cruz ............ No. 49 Photo: Getty ImagesC A L I F O R N I A I N V E S T M E NT G U I DE 51 California Community Colleges are paving the way for student success across the state. C O M M U N I T Y C O LLE G E S s the largest postsecondary education system in the country, the 115 community colleges that make up the California Community College System (CCCS) educate 2.1 million students annually. In fact, one out of every five community college students in the nation attends a California community college. Which is good news, because California will need an estimated 3.7 million more people to hold an associate or bachelor’s degrees by 2025 to remain competitive on the global stage. Additionally, nearly two-thirds of all jobs in the nation will require more than a high school diploma by next year. Fortunately, CCCS has several A Filling the Talent Pool by SAVA N NA H K I N G52 C A L I F O R N I A I N V E S T M E NT G U I DE innovative programs and initiatives in place to ensure the state’s labor pool never runs dry. In 2018, CCCS announced it would move away from standardized placement exams and remedial education in order to better serve students and help them graduate faster. Under the previous system, students were being placed in courses that didn’t count toward their certificates or degrees — a practice that left more than two- thirds of new students being classified as unprepared for college- level courses. Instead, colleges are now using the student’s high school grades and their grade point average to assess their abilities. “We are ending remedial education as it has existed for decades,” Board of Governors President Tom Epstein said. “Research shows that students are far more prepared than assessment tests have acknowledged. A student’s high school performance is a much stronger predictor of success in transfer-level courses than standardized placement tests.” College Promise programs are growing across the U.S., especially in California which has the most of any state. California College Promise is a somewhat different model than others around the country, in the fact that it’s led by community colleges and combines state and private funding to make college more affordable, and it encourages more students to complete programs. California also has the largest apprenticeship system in the country. Many of the apprenticeship programs in the state are directly connected to California Community Colleges. The apprenticeship model allows businesses to find and train workers for the middle-skill jobs many industries are finding difficult to fill. This program allows students to continue their education and earn a paycheck with a local employer while learning on the job. Employers often note the added benefit of employee loyalty and lower turnover with apprenticeship programs. Today, there are more than 88,000 apprentices in the Golden State. The state is on track to increase its number of apprentices to 128,000 by 2026. One of the ways the state intends to reach Today, there are more than 88,000 apprentices in California. The state is on track to increase its number of apprentices to 128,000 by 2026.this target is through the California Apprenticeship Initiative. The CAI is a grant offered by the California Community College Chancellor’s Office to support the creation of new apprenticeships and training programs. In 2016, the system unveiled its Online Education Initiative (OEI), which allows students to participate in online courses across multiple colleges. This gives students the flexibility to enroll in courses that might be full on their home campus or offered at a time that conflicts with their schedules. Students are also able to access these courses online. As of May 2018, the OEI had expanded from 23 colleges to 56. Through the program, students can earn Certificates of Achievement which prepare them for a career or offer job skills for employed students. Students can also earn an Associate Degree for Transfer which makes it easy to transfer to a California State University. With these and many other innovative programs, CCCS is helping students reach their goals and find gainful employment. C A L I F O R N I A I N V E S T M E NT G U I DE 55 T F D I / I N T E R N A T I O N A L T R A D E & D E V E L O P M E N T Long Beach Port, CA Photo: Getty Images Robust ransportation equipment is the hottest export category these days in California. Exports soared 22.1% in the first quarter of 2019 compared with the same period the previous year. Most other sectors in the Golden State didn’t fare nearly as well, but their export declines were minimal — and not unexpected, given the global trade and tariff skirmishes of recent months. The May installment of the California Trade Report from Los Angeles-based advisory Beacon Economics LLC fills in the blanks. It’s based on data from the U.S. Census Bureau’s Foreign Trade Division. Highlights: Foreign shipments by California businesses totaled $15.55 billion for the month of May, it points out, a nominal 2.6% decline from the $15.96 billion recorded in March 2018. Exports of manufactured goods, totaling $10.05 billion, fell 2.1% from the $10.27 billion recorded in the same month last year. Shipments abroad of non-manufactured goods (chiefly agricultural products and raw materials) fell by 6.2% to $1.98 billion from $2.11 billion as higher tariffs abroad continued to have a deleterious impact on California’s food exports. The value of re- exported goods slipped by 2.0% to $3.51 billion from $3.58 billion. “It’s worth recalling that California’s export growth had been particularly robust through the first quarter of last year, before the rounds of higher U.S. tariffs were implemented and then followed by retaliatory tariffs by major trading partners,” said Jock O’Connell, Beacon Economics’ International Trade Advisor. According to O’Connell, however, more than tariffs are to blame. “To explain the recent decline in California exports, you’d have to by MA RK A RE N D Export Growth Is Reined i n, But Stillround up a fairly comprehensive bunch of suspects: a stronger dollar, lower prices of some export commodities, a general slowdown in global economic growth, and even nastier than normal traffic congestion at U.S.-Mexico border crossings.” What’s Up and What’s Not Transportation equipment (automobiles, trucks, trains, boats, airplanes, and their respective parts) exports rose to $5.71 billion from $4.67 billion, notes the California Trade Report, owing to a surge in electric vehicle shipments to China and Europe. Exports of miscellaneous manufactured commodities (a catchall category of merchandise ranging from medical equipment to sporting goods) grew by 7.3% to $4.08 billion from $3.80 billion. Growth in exports also could be found in chemicals, (including pesticides and fertilizers; pharmaceutical products; paints and adhesives; soap and cleaning products; and raw plastics, resins, and rubber) which inched up 0.4% to $3.35 billion from $3.33 billion. Exports of fabricated metal products soared by 19.9% to $1.26 billion from $1.05 billion. Declines in exports can be found in computer and electronic products (computers and peripherals; communication, audio, and video equipment; navigational controls; and electro-medical instruments), which dropped by 6.9% to $10.13 billion from $10.87 billion, due in part to sharply reduced Chinese purchases of U.S. integrated circuits. Other sectors seeing slight declines include non-electrical machinery, agricultural commodities, food and kindred goods and electrical equipment and appliances. Shuffling the Deck Taiwan and the Netherlands saw increased exports from California, notes Beacon Economics’ analysis, but that’s about it on the plus side. Mexico stayed atop the list of California’s top export destinations, even though shipments south of the border slipped by 1.5% to $7.24 billion from $7.36 billion. Tariffs notwithstanding, notes the report, China edged into second place, ahead of Canada, even as its imports from California dropped 7.1% to $3.79 billion from $4.08 billion. Exports to third-place Canada fell by 9.5% to $3.75 billion from $4.15 billion. Japan came fourth with imports of $3.04 billion in California goods, a decline of 8.8% from the $3.33 billion it imported during the same period one year earlier. Exports to fifth- place South Korea slumped by 16.7% to $2.28 billion from $2.73 billion, edging out Hong Kong’s $2.15 billion in imports from California, a drop of 15.8% from $2.55 billion during the same period one year ago. Foreign Investment in California Is on a Tear The Organization for International Investment (ofii.org) monitors foreign investment and job creation from companies based outside the U.S. on a national and a state-by-state basis. Following are OFII’s data points specific to FDI in California: • 769,000 workers in California are employed as a result of international investment — that’s more than the total populations of five states. • 26% of all California FDI jobs, or 199,900 workers, are in manufacturing. • Employers from Japan, the UK and France support the largest number of jobs in California. • California’s FDI employment has grown 29% in the past five years — the state’s overall private-sector employment grew 19%. • FDI jobs as a percentage of total employment is 5.3% in California, higher than any of the states it borders. Exports rose to $ 5.71 billion, from $ 4.67 billion, notes the California Trade Report, owing to a surge in electric vehicle shipments to China and Europe. 56 C A L I F O R N I A I N V E S T M E NT G U I DENext >