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Full Report [PDF] SPECIAL ANALYSIS OurWhere Shifting the Jobs Are: EconomicOur Region’s and PopulationOccupational ProfilesStructure JOINT VENTURE’S 2004 index of silicon valley MEASURING PROGRESS TOWARD THE GOALS OF SILICON VALLEY 2010 Joint Venture: Silicon Valley Network Joint Venture: Silicon Valley Network is a regional, nonpartisan voice and a civic catalyst for solutions to problems that impact all sectors of the community. Joint Venture brings together established and emerging leaders from business, labor, government, education, nonprofits and the broader community to build a sustainable region that competes globally. We work to promote economic prosperity and improve the quality of life in the region, making Silicon Valley a better place to live and work. Joint Venture welcomes your participation in its various activities, which are described in detail at www.jointventure.org. PREPARED BY: INDEX ADVISERS COLLABORATIVE KRIS CASTO STEPHEN LEVY NANCY RAGEY ECONOMICS Santa Clara County Cities Association Center for Continuing Study of the Community Foundation Silicon Valley DOUG HENTON MIKE CURRAN California Economy ANNALEE SAXENIAN JOHN MELVILLE NOVA Workforce Board WILL LIGHTBOURNE University of California, Berkeley Santa Clara County Social Services LIZ BROWN JANE DECKER ANN SKEET Santa Clara County Agency American Leadership Forum: ERICA BJORNSSON MIKE EVANHOE JOHN MALTBIE Silicon Valley HEIDI YOUNG Santa Clara Valley Transportation San Mateo County STERLING SPEIRN Authority CONNIE MARTINEZ Peninsula Community Foundation MARGUERITE GONG HANCOCK Children’s Discovery Museum JUDITH STEINER SPRIE, Stanford University ESTHER MEDINA Hidden Villa DEIRDRE HANFORD Mexican American Community NEIL STRUTHERS Synopsys, Inc. Service Agency Santa Clara and San Benito Building MARTHA KANTER MANUEL PASTOR, JR. & Construction Trades Council Foothill-De Anza Community University of California, Santa Cruz KIM WALESH College District DAN PEREZ City of San Jose Office of Economic JAMES KOCH Former EVP, Solectron Development Santa Clara University ROSA PEREZ FRANCES WHITE JOHN KRIEDLER Cañada College Skyline College Cultural Initiatives Silicon Valley MICHELE PERRAULT COLLEEN WILCOX Sierra Club Santa Clara County Office of Education Joint Venture Board of Directors CO-CHAIR CO-CHAIR PRESIDENT AND CEO REBECCA GUERRA MARTHA KANTER RUSSELL HANCOCK Extreme Networks Foothill-De Anza Community College District DIRECTORS FRANK BENEST HON. ROSE JACOBS GIBSON JOSEPH PARISI City of Palo Alto San Mateo County Board of Supervisors Therma CRAWFORD BEVERIDGE PETER GILES DAN PEREZ Sun Microsystems, Inc. The Tech Museum of Innovation Former EVP, Solectron PETER CAMPAGNA DEIRDRE HANFORD NEIL STRUTHERS Intuit, Inc. Synopsys, Inc. Santa Clara and San Benito Building JIM CUNNEEN KEVIN HEALY & Construction Trades Council San Jose Silicon Valley Chamber of PricewaterhouseCoopers LLP HON. JOHN VASCONCELLOS Commerce GARY HOOPER California State Senate, District 13 ANN DeBUSK Genencor International, Inc. COLLEEN WILCOX Founder, American Leadership Forum W. KEITH KENNEDY Santa Clara County Office of Education MAGDA ESCOBAR Retired CEO, Watkins-Johnson LINDA WILLIAMS Plugged In Company Planned Parenthood Mar Monte HON. LIZ FIGUEROA PAUL LOCATELLI California State Senate, District 10 Santa Clara University DIRECTORS EMERITI HON. SUSAN HAMMER JAY HARRIS J. MICHAEL PATTERSON LEW PLATT About Joint Venture’s 2004 Index of Silicon Valley Dear Friends: We may now be seeing the early signs of yet another Silicon Valley reinvention. In this year’s Index we find that despite ongoing but slowing job loss, employment gains are taking place in some high-wage occupational clusters. Employment is growing in the Health Services industry and the Biomedical industry cluster is becoming more concentrated in Silicon Valley as its employment grows relative to the nation. Our region’s productivity continues to grow. There are some benefits to our economic slowdown: our freeways are less congested and apartment rental rates are dropping. Our development patterns are producing less rather than more sprawl. The 2004 Index of Silicon Valley documents these and other significant changes, as well as the continuing challenges facing our region. While working our way out of our recent downturn through economic restructuring, we must also keep working towards the Silicon Valley 2010 Vision. Developed five years ago by more than 2,000 community members, this document laid out four areas—Innovative Economy, Livable Environment, Inclusive Society, and Regional Stewardship—that remain important goals for Silicon Valley. Using a variety of regional indicators, the Index helps us understand where we are moving forward and where we are losing ground relative to this Vision. It also stimulates important dialogue about the meaning of key changes and trends. And, as always, the Index will continue to be a resource to people who want to work together to make Silicon Valley a better place. We are pleased this year to present a special analysis that examines the unique and changing occupational structure of our Valley. The analysis describes how we compare to the nation and what makes Silicon Valley’s occupational structure unique. It provides a picture of where jobs are today and raises important implications about how we prepare our workforce for the jobs of the future. Just as last year’s Index of Silicon Valley was the catalyst that brought together the region’s leaders around the Next Silicon Valley Initiative, we hope you find this document a powerful tool in your efforts to move our region forward. We welcome your comments and participation in building the next Silicon Valley. Russell Hancock President and CEO Joint Venture: Silicon Valley Network 1 INTRODUCTION Introduction WHAT IS SILICON VALLEY? Joint Venture defines Silicon Valley as Santa Clara County plus adjacent parts of San Mateo, Alameda and Santa Cruz counties (see map on page 4). This definition reflects the core location of the Valley’s driving industries and most of its workforce. Silicon Valley’s concentration of industry cluster employment is unique in the Bay Area. With a population of almost 2.4 million, this region has more residents than 17 U.S. states. The indicators reflect this definition of Silicon Valley, except where noted. As the region continues to grow, Joint Venture’s initiatives will have an even wider geographic range, encompassing parts of San Benito County and the greater Bay Area. WHAT IS AN INDICATOR? Indicators are measurements that tell us how we are doing: whether we are going up or down, going forward or backward, getting better or worse, or staying the same. Good indicators: • are bellwethers that reflect fundamentals of long-term regional health; • reflect the interests and concerns of the community; • are statistically measurable on a frequent basis; and • measure outcomes, rather than inputs. The indicators that follow were chosen in consultation with the Index Advisers and the Joint Venture Board. Appendix A provides detail on data sources for each indicator. WHAT IS AN INDUSTRY CLUSTER? Several of the economic indicators relate to “industry clusters.” An industry cluster is a geographic concentration of interdependent firms in related industries, and includes a significant number of companies that sell their products and services outside the region. Healthy, outward-oriented industry clusters are a critical prerequisite for a strong economy. The driving clusters in Silicon Valley are: • Computer and Communications Hardware Manufacturing • Semiconductor and Semiconductor Equipment Manufacturing • Electronic Component Manufacturing • Biomedical, including biopharmaceuticals (15% of employment in this cluster), medical devices (50%), and research and development in the life sciences (35%) • Software, including software publishers and software services • Innovation Services, including technical services and business services (e.g., human resources, legal) • Creative Services that integrate art, design and technology (e.g., graphic design, advertising, marketing) • Corporate Offices, including headquarters, subsidiary and regional offices In addition to tracking our driving industry clusters, the Index provides employment and wage data for the other major industries in Silicon Valley, such as local services and construction. WHAT IS AN OCCUPATIONAL CLUSTER? In this year’s Special Analysis, the Index presents occupational cluster groupings. These occupational clusters are geographic concentrations of related occupations that share the same or similar training and skills but may cut across several industries. The occupational clusters in Silicon Valley are: • Innovation R&D: e.g., electrical engineers and technicians • Professional Services: e.g., operations managers, computer support specialists • Headquarters: e.g., chief executives and executive assistants • Administration: e.g., secretaries, loan officers • Technical Production: e.g., production managers, electrical and electronic equipment assemblers • Installation, Repair and Production: e.g., carpenters, automotive technicians • Sales, Marketing and Distribution: e.g., sales engineers, sales agents • Health and Human Services: e.g., registered nurses, pharmacists • Personal Services: e.g., hairdressers, waiters and waitresses • Education and Training: e.g., teachers and teaching assistants Appendix B identifies specific subsectors constituting each industry and occupational cluster. 2 TABLE OF CONTENTS Table of Contents 2 0 0 4 INDEX HIGHLIGHTS . 4 SPECIAL ANALYSIS WHERE THE JOBS ARE: OUR REGION’S
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