Research Funding Propels Development

A strong presence of major research universities and independent research institutes serves as a magnet for federal research and development dollars, according to a recent analysis released by the California Trade & Commerce Agency (TTCA). The analysis pinpoints $50.24 billion that California institutions received in federal research support during the 1993-1999 period.
        "The analysis will provide state and regional policy makers a critical new tool for identifying where R&D dollars are going to develop new technology," said TTCA Secretary Lon S. Hatamiya. "This will enhance our economic development efforts in the future and will keep California the leader in high technology."
        Eight counties received 94 percent of the funding. In order, they are: Los Angeles, San Diego, Santa Clara, Orange, Alameda, San Francisco, San Mateo and Santa Barbara. California ranks number one in both university and industrial R&D and accounts for 20 percent of the national total. The state is home to nearly 700 research centers in the physical sciences and more than 87,000 doctoral scientists and engineers.
        San Diego, home to Qualcomm, Gateway and Sempra Energy, continues to draw accolades. In May, Forbes ranked the city No. 1 in its Best Places list, citing 21 percent job growth and 86 percent high-tech GDP growth.
        "The key for the San Diego area and what continues to light the fire here is that we are number one in wireless technologies," says Charlie Abdi, senior vice president with Koll Development. "The big rock here is Qualcomm. They cause a lot of other firms to look at San Diego."
        Abdi says San Diego continues to attract the attention of biotechnology firms seeking sites for both research and manufacturing facilities. Ranked No. 3 in the U.S. in biotechnology firms, the city is also home to more than 650 software firms, and electronics manufacturers in the area produce more than 12 million television sets annually.
        Abdi says firms moving to the region have changed course in their site selection thinking over the last couple of years. Today the trend is all about retaining good employees.
        "There has been a transformation," Abdi says. "Companies are no longer looking to locate where their corporate elite live, but instead are looking to where the bulk of their employees live. That's especially important because of the low unemployment rate in the area."
        Abdi says many companies in the region now do a zip code trace on where employees live as a precursor to their site selection process.