2011 Index of Silicon Valley - Silicon Valley Community Foundation

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Innovation With patent registrations and investment on the rise, innovation is picking up its pace again in the region. ECONO Value Added Value Added per Employee Santa Clara & San Mateo Counties, California and U.S. WHY IS THIS IMPORTANT Innovation drives the economic success of Silicon Valley. More than just in technology products, innovation includes advances in business processes and business models. The ability to generate new ideas, products and processes is an important source of regional competitive advantage. To measure innovation, we examine the investment in innovation, the generation of new ideas, and the value-added across the economy. Additionally, tracking the areas of venture capital investment over time provides valuable insight into the region’s longer-term direction of development. Value-Added per Employee (Inflation Adjusted) $140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 HOW ARE WE DOING An indicator for the overall health of the region’s economy is productivity. Value added per employee increased nearly four percent each year following 2008 and in 2010, reached the highest value ever reported. This growth over the last two years is based in large part on productivity gains due to companies cutting jobs and work hours. The sustainability of these gains in Silicon Valley will depend on many different factors. Since 2001, value added per employee has increased 17 percent in Silicon Valley, 24 percent in California, and 18 percent in the United States. The number of patents registered in Silicon Valley jumped by nine percent in 2009 over the prior year, while the total number of U.S. patents increased by six percent. Silicon Valley's percentage of patent registrations in the U.S. and in California continued to increase between 2008 and 2009. By technology area, Computers, Data Processing & Information Storage represented 38 percent of the region’s total patents. From 2008 to 2009 patent activity in Communications increased 23 percent. Marking the first increase since 2007, venture capital (VC) investment in Silicon Valley rose five percent over the previous year, reaching nearly $5.9 billion. The region accounted for 27 percent of the nation’s total VC investment and 53 percent of the state’s in 2010. By industry, Software attracts the largest share of total investment but funding flows are increasing in other areas. Following robust growth over the last few years, investment in Industial/Energy remains strong. Funding continues steadily in Biotechnology and Medical Devices. Investment increased 55 percent in IT Services and 196 percent in Telecommunications from 2009 to 2010. Up eleven percent from the prior year, cleantech venture capital investment in Silicon Valley exceeded $1.5 billion in 2010. Although falling from the peak of $2.2 billion in 2008, cleantech investment is strong and becoming more concentrated in Silicon Valley and the state as a whole. In 2010 the region accounted for 23 percent of total U.S. cleantech investment, up from 20 percent in 2009. Statewide, the region represented 39 percent of total investment, down from 57 percent in 2009. Reflecting Silicon Valley’s strength in solar technology, Energy Generation accounted for 49 percent of the region’s total cleantech VC investment in 2010, up from 35 percent in 2009. Also surging in 2010, investment in Transportation expanded as a percentage of total from 20 percent in 2009 to 27 percent. Percentage of California and U.S. Patent Registrations 1990 Data Source: Moody’s Economy.com Analysis: Collaborative Economics 60% 50% 40% 30% 20% 10% 1990 1991 1992 1993 1994 Silicon Valley 2000 2001 California Silicon Valley’s Percentage of U.S. and California Patents 1995 Percentage of California Data Source: U.S. Patent and Trademark Office Analysis: Collaborative Economics 1995 1996 1997 1997 Percent Change in Value Added per Employee 0% 1991 1992 1993 2009-2010 Silicon Valley +3.6% California +4.8% United States +3.3% 1994 1996 1998 1998 1999 Patent Registrations 1999 2000 2001 2002 2002 2003 2003 2004 Percentage of U.S. 2004 2005 2006 2005 2007 2008 2009 United States 2006 2007 2008 2009 2010 20
MY 12,000 10,000 Patent Registrations By Technology Area Silicon Valley Manufacturing, Assembling & Treating Other Chemical & Organic Compounds/ Materials About the 2011 Index | 01 Map of Silicon Valley 02 | Table of Contents | 03 Index 2011 Highlights 04 | 05 Index at a Glance 06 | 07 Special Analysis 08 | 11 PEOPLE 12 | 15 8,000 Health 6,000 4,000 2,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Data Source: U.S. Patent and Trademark Office Analysis: Collaborative Economics Chemical Processing Technologies Measuring, Testing & Precision Instruments Electricity & Heating/ Cooling Communications Computers, Data Processing & Information Storage Employment 16–19 Innovation 20-23 Entrepreneurship 24-27 Income 28-31 ECONOMY SOCIETY 32 | 43 PLACE 44 | 57 Special Analysis cont. 58 | 67 Appendices 68 | 72 Acknowledgme nts | 73 21
Page 1 and 2: i n d e x OF SILICON VALLEY 2011 PE
Page 3 and 4: ABOUT THE 2011 SILICON VALLEY INDEX
Page 5 and 6: TABLE OF CONTENTS 2011 INDEX HIGHLI
Page 7 and 8: Attracting talent from abroad is im
Page 9 and 10: SOCIETY Educational and health outc
Page 11 and 12: Special Analysis The Crisis in Loca
Page 13 and 14: Silicon Valley’s experience has m
Page 15 and 16: 40,000 Net Migration Flows Foreign
Page 17 and 18: Science & Engineering Degrees Confe
Page 19 and 20: MY Employment Total Employed Reside
Page 21: MY Total Number of Jobs in Employme
Page 25 and 26: MY Billions of Dollars Invested (In
Page 27 and 28: MY 0.5% 0.4% Percent of Population
Page 29 and 30: MY 100% 90% 80% Percentage of Nonem
Page 31 and 32: MY Per Capita Income (Inflation Adj
Page 33 and 34: MY Perfect Income Inequality = Gini
Page 35 and 36: Percentage of Eighth Graders Tested
Page 37 and 38: 50% 45% 40% Percent of Students Rec
Page 39 and 40: Vibrant Nightlife San Jose-Sunnyval
Page 41 and 42: Percentage of Population with Healt
Page 43 and 44: Teen Births Teen Births per 1,000 F
Page 45 and 46: Number of Drug and Alcohol Rehabili
Page 47 and 48: Per Capita Water Consumption % Chan
Page 49 and 50: Fuel Consumption per Capita San Mat
Page 51 and 52: About the 2011 Index | 01 Map of Si
Page 53 and 54: 80% 70% 60% 50% Housing Near Transi
Page 55 and 56: Average Rent (Inflation Adjusted) A
Page 57 and 58: 10,000 9,000 8,000 7,000 6,000 5,00
Page 59 and 60: $9 8 Commercial Rents Annual Averag
Page 61 and 62: Figure 2-2 $4.0 City Revenue Aggreg
Page 63 and 64: These trends indicate that all majo
Page 65 and 66: Trends in County Revenue and Expend
Page 67 and 68: County Expenditures In terms of cou
Page 69 and 70: Based on San Mateo County June 2010
Page 71 and 72: Establishment Churn The National Es
Page 73 and 74:
Time Required for Permitting of Ren
Page 75 and 76:
ACKNOWLEDGMENTS Special thanks to t
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2011 Index of Silicon Valley - Silicon Valley Community Foundation

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