2011 Index of Silicon Valley - Silicon Valley Community Foundation

2011 INDEX
HIGHLIGHTS
The 2011 Index of Silicon Valley reveals initial signs of recovery in our innovation economy; however, the evidence is
clear that our community is still suffering the severe blows of the economic downturn as incomes stagnate, health and
educational outcomes decline, and the need for public services grows. Further, as examined in the Special Analysis,
Silicon Valley’s communities are facing formidable challenges as local public revenues drop and expenditures rapidly rise.
Without a doubt, Silicon Valley suffered a major blow in the recent economic
downturn; however, there are positive signs that some of the key drivers of our
innovation economy are back. Private employment is picking up while public
employment is declining (see Special Analysis).
• Employment gains were posted in December 2010 for the region’s residents. From December 2009 to 2010, the total number
of employed residents increased by 12,300, bringing employment to levels similar to 2004.
• Venture capital investment increased five percent in 2010. Remaining strong in Industry/Energy, Biotechnology and Medical Devices,
funding increased 55 percent in IT Services and 196 percent in Telecom over 2009 figures. Cleantech VC investment exceeded
$1.5 billion in 2010, increasing eleven percent from 2009.
• Patent registrations increased nine percent in the region in 2009 over the prior year, and nationally, activity picked up six percent.
• In a possible sign of approaching recovery, following annual increases of three percent in the preceding two years, commercial
vacancy rates across all commercial space sectors increased by only 0.5 percent from 2009 to 2010.
Regional income losses of the last two years slowed as incomes stabilized in 2010.
• Although creeping into positive territory overall for the first time in three years, losses in real per capita income have been felt
across all educational levels and all ethnic groups since 2005. Of all groups, Hispanics reported the lowest per capita income and
the largest percentage drop of 7.5 percent from 2007 to 2009.
• Since 2007, the percentage of the population participating in the Food Stamp Program increased from 2.6 percent to four percent.
Entrepreneurship is underway as new firm openings jump in number and the
market for initial public offerings returns to life; however, businesses are still
struggling for financing.
• New firm openings increased by 48 percent from 2008 to 2009 resulting in 20,200 net new business establishments.
• Globally, initial public offerings (IPOs) have increased dramatically. In the U.S. market, the number of IPOs increased from 64 to
154 in 2010, and of that group, Silicon Valley’s share edged up from one pricing in 2009 to eleven in 2010. The region accounted
for two percent of the IPO pricings in 2009 and seven percent in 2010.
• From 2007 to 2009, the total value of small business loans in Silicon Valley dropped from $3.8 billion in 2007 to $2 billion in 2009.
Over the long term (1996 to 2009) the number of small business loans more than tripled in Silicon Valley and nearly doubled in
the nation.
Important for sustaining the region’s innovation system and building global
connections, Silicon Valley continues to attract global science and engineering
talent to the broader region’s universities.
• While undergraduate degrees conferred to foreign students in S&E disciplines have declined since 2003, graduate degrees edged
up by two percent in 2008 and held steady in 2009. As of 2009, foreign students represented 35 percent of all graduate degrees
conferred in S&E disciplines in the broader region.
• Although slowing over the past two years, Silicon Valley’s population growth is driven by foreign immigration.
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