San Diego County CA— A new economic impact analysis and comparison of U.S. metros in software development by the San Diego Regional EDC, powered by CBRE Research, reveals the strong economic impact of software development across a wide variety of industries critical to San Diego’s growth.
Software development is infused throughout the region’s diverse tech and innovation ecosystem, providing the building blocks behind the technology revolutionizing our world today. San Diego was Ranked 7th overall on Software Power Index*, ahead of Austin, Portland, Los Angeles and New York.
“San Diego is one of the premier markets for software development in the United States,” said Michael Combs, research manager at CBRE in San Diego. “Our research shows that San Diego has many competitive advantages for software development, with no glaring weaknesses when compared to other major metro areas. San Diego is primed to take advantage of growing tech firms looking to expand out of saturated markets like San Jose, San Francisco and Seattle.”
Regionally, the total economic impact of San Diego’s software ecosystem is $12.2 billion annually, which has influenced over 100,000 jobs. Employers are anticipating 18.1 percent growth rate over the next year, which would make software one of San Diego’s most rapidly growing employment sector.
There are 21,600 software developers in San Diego who work across the software ecosystem and 10.2 percent of them work in the defense/ robotics sector. It is twice as likely for a software developer to work in scientific R&D as the rest of California.
Other Key Findings:
- 1 in 6 innovation economy jobs are in software development
- Ranked 8th for talent on Software Power Index*; Only 10%of employers reported dissatisfaction with their ability to recruit high-level talent
- Ranked 4th in capital on Software Power Index* (vc dollars per capita); San Diego’s software-specific vc was up by 38 percent in 2015
- Mergers and Acquisitions (M&A) comprise 68 percent of San Diego’s capital flow – on average, U.S. metros receive 42 percent of capital through M&A
*The Software Power Index combines data on concentration of software developers, talent, prosperity and capital to understand how San Diego stacks up with the top 50 most populous metros across the country. Refer to the full study for more details on methodology.
The study was sponsored by Hired, TVC Capital and Benefits Tech Trust. Click here, for the full study.