Many state and local economic developers have targeted
engineering and life sciences research and development as an
important component of their "economy of the future."
This makes it all the more amazing that one region could
dominate that economic space.
San Diego County not only has twice as many employees in
this narrowly defined industrial sector (NAICS 54171: Research
and Development in the Physical, Engineering and Life
Sciences) but has added employees at four times the rate of
its nearest competitor (Benton County, Washington) over the
period 2001-2005.
Both the level and the growth of employment in this sector
can be partially explained by San Diego County's sheer size:
it ranked as the nation's sixth largest county in 2003, with
2.9 million residents, and the eight fastest growing.
However, an interesting story is told by the county's
location quotient for scientific R&D. (A location quotient
measures the proportion of employees in the industry.)
With a locations quotient of 7.29 in 2001, San Diego County
ranked as number 19 nationally in terms of concentration in
this industrial sector.
Moreover, it is estimated that, by 2005, San Diego County
had increased its location quotient for this industrial
category to 7.4, and climbed to number 18; meaning that it had
even further concentrated its work force in this high-paying
sector. This is a significant accomplishment for such a large
and varied regional economy.
Average employee wages in the general "Scientific Research
and Development Services" category (NAICS 5417) are about
twice the average for all industries ($82,000 vs. $42,000).
And wages in this industry are estimated to be increasing at
double the rate for all industries ( 12.3% vs. 5% over the
period 2001-2005), further increasing the premium paid to
"knowledgebase" activities.
If rapid growth in both employment and average wages is an
economic development "home run," San Diego County seems to
have hit one with the bases loaded.
We wish you and your family a Happy 4th of July!
