San Diego developed much of its economy around its deepwater port, initially supporting U.S. Navy installations. The economy gradually diversified post-Cold War, with the port becoming a center for international trade and tourism: Port trade eclipsed $7 billion by 2019 and cruise ships created a portion of the estimated 160,000 jobs--13 percent of all jobs in San Diego County--in tourism. Regional business-friendly policies created an environment in which companies that originated their business under defense contracts could commercialize their technologies and services (e.g., Qualcomm). These favorable conditions help San Diego attract small businesses and startups. The area’s biotechnology startup growth, for example, is facilitated by strong life sciences education programs, robust hospital systems, and proximity to major ports for imported components.

The region is emerging as a site of development for at least two types of technology that are critical to California’s future: agricultural technology (AgTech) and aerospace. Both industries benefit from the region’s proximity to the Bay Area, yet the proximity has so far discouraged technology companies from locating in the Central Coast towns in which they deploy their products.

The diversity of San Diego’s industries has contributed, at least in part, to the area’s polarization of jobs and wages.

As of 2018, 27.3 percent of San Diego residents were defined as being in economic hardship; between 2007 and 2018, the proportion of total income declined by 9.73 percent for the bottom fifth of earners and increased 3.64 percent for the top fifth.

Low incomes among the top industries in San Diego are concentrated in retail trade and hospitality/food service, while the region’s science and technology and public administration earn the highest median incomes.