The coronavirus pandemic is accelerating some market trends that had already taken root before the outbreak. Ecommerce has been the most discussed, but technology trends will also accelerate as a result of the pandemic. The tech industry is already a major driver of economic growth both nationally and in tech hubs like San Diego, and this health crisis will only fuel more tech adoption and innovation.
“Tech is ubiquitous and has become a part of our daily life at work and at home. The tech sector has become a primary driver of economic growth in North America as well as in San Diego,” Jolanta Campion, research director for San Diego at Cushman & Wakefield, tells GlobeSt.com. “If anything, COVID-19 is accelerating the need for technology as we continue our lives while social distancing—of course, tech also remains instrumental in getting us through the pandemic.”
The term technology encompasses a broad swath of industries and products, including drones, communications, computer and electronics, aerospace and maritime tech, environmental technologies to life sciences and pharmaceuticals, according to Campion. All of these industries have a presence in San Diego. “San Diego’s technology sector is part of the region’s innovation economy and is comprised of knowledge-based sectors on the leading-edge of research, innovation, and development of the technologies,” she says. “Including indirect and induced jobs impact, the multiplier effect on jobs is 2.6. This means for every technology job another 2.6 jobs are dependent or created.”
In addition to providing jobs, these industries also make up a healthy chunk of the local economy. “Together, these industries, also known as innovation economy, contribute $58 billion to the regional economy or 25% of the total economic impact of $249 billion,” adds Campion. Those numbers are likely to continue to grow.
San Diego has become a tech hub in its own right, but the region’s built-in defense industry is also playing a role in the market growth. That is only good news for San Diego’s future position as a tech market. “The defense and military, a sector that accounted for an estimated $51 billion or 21% of $249 billion of regional economy in 2019, is the biggest customer of the tech industry in the region, particularly for technology advanced naval, aviation and communication sectors of the military establishments and; therefore, plays a significant role in supporting San Diego’s tech sector as well as shielding local economy during downturns such as COVID-19,” says Campion. “A combination of these leading industries is expected to mitigate our region from the COVID-19 pandemic.”