Innovation Initatives

1) Expand San Diego’s Academic and Research Community

Over the past 50 years, San Diego’s research community has expanded beyond the universities to include almost 50 research institutes clustered on the Torrey Mesa. These academic and research institutions, along with government sponsored organizations such as SPAWAR Systems Center Pacific, attract billions of dollars annually in federal, state and industry funding. While their research adds to the collective knowledge base of the region, their operations provide employment for thousands of local research professionals, technicians, scientists and engineers, and their technology transfer processes create additional jobs when research discovery leads to innovative new products. San Diego’s research community represents the core of the region’s current economic strength. The research pipeline must continue to grow if San Diego is to stay competitive on the world stage. CONNECT-assist was created in 2008 to support the establishment of new San Diego research institutes and to assist in the recruitment of talented faculty and employment for spouses. CONNECT -assist works with new institutes on relocation, start-up operations and introductions to local business leaders and service providers. Institutes utilize CONNECT to set up special conferences and summits, host private Leadership Dinners and participate in Frontiers in Science and Technology. In 2010, CONNECT-assist will expand to include additional incentives including a potential housing loan program designed to attract the best faculty and research institutes to San Diego.

2) Provide Intellectual Property Protection and Seed Fund Loans

Lack of seed funding hampers many research organizations’ ability to file for intellectual property (IP) protection and to secure demonstration funds for “proof of relevancy.” Thus significant IP and potentially useful discoveries are at risk of being lost.

To address the potential loss of key discoveries, CONNECT launched the Technology Transfer Roundtable Committee to explore ways to assist research institutions in securing the funds necessary to protect their IP and to fund “proof of relevancy.”

The Committee recommended CONNECT establish a regional loan program similar to the one established by the California Institute for Regenerative Medicine (CIRM) and led by CONNECT’s CEO, Duane Roth. In this model, IP and demonstration funds would be administered by a regional trust board and would use CONNECT Entrepreneurs-in-Residence (EIRs) to conduct due diligence and provide recommendations for funding. Approximately $10M is needed to develop and sustain the program.

3) Increase Access to Capital for Early Stage Companies

Inadequate capitalization, particularly for pre-venture companies, is one of the greatest challenges facing San Diego’s innovation community. CONNECT plans to develop new funding sources for the pre-venture, early stage of commercialization. This focus will be regional in scope and will target government funding sources via Small Business Innovation Research (SBIR) / Small Business Technology Transfer (STTR) grants, Small Business Investment Companies (SBICs), stimulus funds and loan programs. In addition, CONNECT will work on establishing new venture capital and angel investment models including product incubators. CONNECT has re-established the Financial Forum to educate innovators on sources of capital and to advocate for incentives that foster early stage investment such as tax incentives, investment vehicles and grant awards. This initiative builds on current CONNECT programs, including:

  • the CONNECT La Jolla Research & Innovation Summit, a program aimed at bringing VCs based outside San Diego to visit the city and meet San Diego’s top researchers and our local VC community.
  • the CONNECT Venture Roundtable, a program for companies seeking their first venture investment. the CONNECT Deal Network, a program that introduces entrepreneurs to local high net-worth investors.
  • the San Diego Tech Coast Angels, an organization that is affilated with and managed by CONNECT.

4) Support Contract Service Cluster Development

Business models for financing innovation are evolving rapidly. Contract Service Organizations (CSOs) allow emerging technology companies to reduce risk, decrease costs and increase efficiency. Over the past few years, San Diego has become a hub of outsourcing services in life sciences, high tech, cleantech, software, and defense. CONNECT believes this cluster is a natural fit with the San Diego innovation economy and will be a key driver of local job creation.

In 2007, CONNECT organized a summit at the Salk Institute for Biological Studies to explore a new operations model deploying CSOs to advance innovation and the efficient use of capital. In 2008, CONNECT created and launched the CONNECT Resource Guide, an online directory of members who provide contract services.

This year, CONNECT will launch a Regional Product Development Guide, a comprehensive online source book of firms that provide product development services to technology innovators. Finally, CONNECT will work with real estate developers to identify appropriate locations for clustering these outsourcing companies.

5) Hire a Federal Policy Advocate

Now more than ever, decisions made in Washington, D.C. will have a material impact on the financing and commercialization of innovative technologies. The federal government is now directly involved in setting policy on issues that affect San Diego’s innovation community. These issues range from the funding of research to the protection of IP to workforce development to investment incentives to the introduction of products in the global marketplace.

While some San Diego companies benefit from the help of lobbyists in Washington, the vast number of small companies, as well as local research institutions, cannot afford to support representation. Hence, their views on the effects of legislation are not being heard. To remedy this situation CONNECT proposes hiring a full-time Washington-based advocate to represent the San Diego innovation community.

CONNECT plans to participate in those federal policy issues that will foster or, conversely, hinder innovation in San Diego, including: IP, workforce development (visas), regulation (Food and Drug Administration, Environmental Protection Agency, Federal Trade Commision), research funding, trade and antitrust, investment capital and incentives (SBIR/STTR, SBIC, tax policy).