[mhb_eng]

As an engineer who also grew up in San Diego and now works here full-time, I totally agree. I think there is tremendous potential for innovation in San Diego, the hardest part is finding investors. As you said, there are many great universities nearby, with plenty of young talent who might be disenfranchised with the high cost of living/lifestyle of SV(or maybe that's just me,the disenfranchised part, not the talent).

As a robotics/mechanical guy, it can be a little overwhelming to consider a startup, because prototyping hardware gadgets is pricey! But I have been looking at something like SBIR/STTR funding, because most of my widgets are navy/defense focused.

I would say some potential founders could use the same funding to build software, especially considering you don't have to give up any commercialization rights or ownership stake to get the funding.

[cushychicken]

SBIR is a neat program. I tried applying once but didn't get the grant. I've heard tell that they tend to favor PIs with advanced degrees. Sadly, I only have a bachelor's.

[jglodo]

find a university collaborator (it might help with credibility if you do not have a good footing in the field) and go for it.