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2020 Silicon Valley Index ABOUT the 2020 SILICON VALLEY INDEX

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2020 Silicon Valley Index ABOUT the 2020 SILICON VALLEY INDEX People Economy Society Place Governance JOINT VENTURE SILICON VALLEY INSTITUTE for REGIONAL STUDIES JOINT VENTURE SILICON VALLEY INSTITUTE FOR BOARD OF DIRECTORS REGIONAL STUDIES OFFICERS ADVISORY BOARD HON. SAM LICCARDO – Co-Chair, City of San Jose JUDITH MAXWELL GREIG Notre Dame de Namur University MATT MAHAN – Co-Chair, Brigade STEPHEN LEVY RUSSELL HANCOCK – President & CEO, Joint Venture Silicon Valley Center for Continuing Study of the California Economy DIRECTORS FR. KEVIN O'BRIEN, S.J. Santa Clara University SANJEEV ACHARYA IBI KRUKRUBO JOHN TORTORA SiliconSage Builders Ernst & Young Sharks Sports & Entertainment MARY PAPAZIAN San Jose State University JOHN AITKEN MITRA MAHDAVIAN JOHN VARELA Mineta San Jose Int’l Airport McKinsey & Company Santa Clara Valley Water District DAVID BINI JEAN McCOWN VICTORIA VIRASINGH PREPARED BY: Building Trades Council Stanford University Palantir Technologies RACHEL MASSARO DAN BOXWELL CURTIS MO DANIEL YOST Director of Research Accenture DLA Piper Orrick, Herrington & Sutcliffe, LLP RAHUL CHANDHOK MAIRTINI NI San Francisco 49ers DHOMHNAILL SENIOR INSTITUTE: Countsy ADVISORY MARK DANAJ RUSSELL HANCOCK City of Fremont JONATHAN NOBLE COUNCIL President Microsoft GARY DILLABOUGH MARK BAUHAUS JON HAVEMAN Urban Community FR. KEVIN O'BRIEN, S.J. Bauhaus Productions Consulting Santa Clara University PHILIP JORDAN MAX DUGANNE ERIC BENHAMOU Boys & Girls Clubs of Silicon Valley MARY PAPAZIAN Benhamou Global Ventures STEPHEN LEVY San Jose State University HON. SUSAN CHRISTOPHER MARGARET O'MARA ELLENBERG MARK G. PARNES DiGIORGIO Santa Clara County Board of Wilson Sonsini Goodrich & Rosati Accenture (Ret.) ISSI ROMEM Supervisors JOSH WILLIAMS HON. DAVE PINE BEN FOSTER DAVID ENTWISTLE San Mateo County Fosterra Clean Energy Consulting Stanford Health Care Board of Supervisors HEIDI YOUNG HARRY KELLOGG, JR. RYAN YOUNG JAVIER GONZALEZ DAVID SACARELOS SVB Financial Group Google Seiler, LLP KIM POLESE TODD HARRIS SHERRI R. SAGER ClearStreet, Inc. DESIGNED BY: TechCU Lucile Packard Children's Hospital JONATHAN STOCK JILL MINNICK JENNINGS ERIC HOUSER JUAN SALAZAR U.S. Geological Survey Wells Fargo Facebook MICHAEL ISIP JARED SHAWLEE KQED Public Media San Jose Earthquakes HON. RO KHANNA ED SHIKADA United States Congress City of Palo Alto KAROLYN SUSAN SMARR KIRCHGESLER Kaiser Permanente Team San Jose JOHN A. SOBRATO BEN KOCHALSKI The Sobrato Organization TMG Partners 2 2020 Silicon Valley Index ABOUT THE 2020 SILICON VALLEY INDEX Dear Friends: And still we grow. Silicon Valley has now logged nine continuous years of expansion since the epic recession of 2008. Over that period the Bay Area has added 821,000 jobs—the equivalent of dropping another city the size of San Francisco onto our landscape—and the growth is fueled by innovation and ingenuity. Our special combination of engineering savvy, strong universities, deep pools of capital, dense business networks and a risk-taking culture have created an economic engine unlike any other. So why does it feel so tenuous? It’s mostly because we haven’t added appreciably to our housing stock. Over that same nine-year period we permitted 173,000 new housing units, a jobs-housing mismatch of nearly five to one. The result is the nation’s highest housing prices, an unsettled workforce, and a transportation system sagging under the weight of 100,000 megacommuters. Add to this the nation’s most sharply pronounced income gaps and you have a formula for despair. It doesn’t help that our driving industries are facing a backlash the likes of which we’ve never seen. As technology plays a deeper and more pervasive role in nearly every aspect of our lives, that role has come under question and the region feels like it’s under siege. But thankfully and at long last there is some cause for hope. After a years-long period of stalling and false starts, our region’s leaders are coalescing around a set of plans. “Crisis” has entered into the common parlance and a sense of urgency has replaced our earlier complacency. Bonds for affordable housing are passing at the ballot box. Significant housing legislation is making its way through the state capitol, including even bills that would alter the power balance between the state and our localities. The large tech companies are voluntarily investing billions into local housing projects. Promptly after passing a regional measure for transportation there is seri- ous talk of another, this one a megameasure generating more than $100 billion for badly needed infrastructure. Meanwhile Silicon Valley companies are taking aim at futuristic modes of transportation and new forms of housing, and venture capitalists are standing behind them. These have the promise of once again changing the world as we know it, and because it has happened so many times before it doesn’t seem unreasonable to think it could happen again. With all this in mind, we’re pleased to provide the available data necessary for a region grappling with dynamism and growth, dis- placement and inequality. The data tell us where we’ve been and how we got here; in the hands of innovators and visionaries the data can also tell us where we need to be going. Russell Hancock President & Chief Executive Officer Joint Venture Silicon Valley Institute for Regional Studies 2020 Silicon Valley Index 3 WHAT IS THE INDEX? The Silicon Valley Index has been telling the Silicon Valley story since 1995. Released early every year, the Index is a comprehensive report based on indicators that measure the strength of our economy and the health of our community—highlighting challenges and providing an analytical foundation for leadership and decision-making. WHAT IS AN INDICATOR? An Indicator is a quantitative measure of relevance to Silicon Valley’s economy and community health, that can be examined either over a period of time, or at a given point in time. People Economy Society Place Governance Good Indicators are bellwethers that reflect the fundamentals of long-term regional health, and represent the interests of the community. They are measurable, attainable, and outcome-oriented. Appendix A provides detail on data sources and methodologies for each JOINT VENTURE SILICON VALLEY INSTITUTE for indicator. REGIONAL STUDIES THE SILICON VALLEY INDEX ONLINE Data and charts from the Silicon Valley Index are available on a dynamic and interactive website that allows users to further explore the Silicon Valley story. For all this and more, please visit the Silicon Valley Indicators website at www.siliconvalleyindicators.org. 4 2020 Silicon Valley Index TABLE OF CONTENTS PROFILE OF SILICON VALLEY .................................................................................................................................6 2020 INDEX HIGHLIGHTS ............................................................................................................................................8 PEOPLE Talent Flows and Diversity .....................................................................................................................................................10 ECONOMY Employment ..................................................................................................................................................................................20 Income ..............................................................................................................................................................................................28 Innovation & Entrepreneurship...........................................................................................................................................44 Commercial Space .....................................................................................................................................................................54 SOCIETY Preparing for Economic Success ........................................................................................................................................60 Early Education & Care ...........................................................................................................................................................64 Arts and Culture .........................................................................................................................................................................68 Quality of Health ........................................................................................................................................................................70 Safety ................................................................................................................................................................................................74 Philanthropy .................................................................................................................................................................................76 PLACE Housing ............................................................................................................................................................................................80 Transportation...............................................................................................................................................................................90 Land Use ..........................................................................................................................................................................................98
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