Especially in telecommunications and biotech, prospective transplants no longer have to worry about a lack of other job possibilities. The billion-dollar babies are doing more than just bringing the analysts south of Orange County. Their stock value translates into more money in salaries and stock options for employees. The region is experiencing a strong inflow of cash and this wealth effect is translating into a better quality of life for all San Diegans, Golding says. They support education, they support the arts, they add to San Diego's culture.
Business can be a catalyst to support the community, and it's happening here.
The growth in large companies in San Diego is a sign the region is approaching maturity as a technology business center, says Paul Kreutz, a senior partner at Gray Care Ware and Friedenrich. In telecom, the big trend is the convergence of wireless and Internet voice and data, and that is just beginning to explode. As the companies hit the big time and more employees get rich, Kreutz says a virtuous circle results, as new entrepreneurs strike out for themselves and found more companies, adding to the local pool of seasoned management talent. Some may say these booming market cap figures are an aberration due to an out of whack stock market. If the market tumbles, these firms will shrink dramatically as the money flees to the old-line firms, sending San Diego back to a niche paradise.