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2010 Silicon Valley Index

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2010 Silicon Valley Index index SILICON VALLEY OF PEOPLE ECONOMY SOCIETY PLACE GOVERNANCE 2010 JOINT VENTURE BOARD OF DIRECTORS OFFICERS Chris DiGiorgio – Co-Chair, Hon. Chuck Reed – Co-Chair, Russell Hancock – President & CEO Accenture, Inc. City of San José Joint Venture: Silicon Valley Network DIRECTORS John Adams Ben Foster Hon. Liz Kniss John Sobrato Sr. Wells Fargo Bank Optony Santa Clara County Board of Supervisors Sobrato Development Companies Larry Alder Tom Klein James MacGregor Neil Struthers Google Greenberg Traurig LLP Silicon Valley/San José Business Journal Santa Clara County Building & Hon. Elaine Alquist Glenn Gabel Tom McCalmont Construction Trades Council California State Senate Webcor Builders McCalmont Engineering Mark Walker Gregory Belanger Kevin Gillis Jim McCaughey Applied Materials Comerica Bank Bank of America Lucile Packard Childrenís Hospital Chuck Weis George Blumenthal Judith Maxwell Greig Jean McCown Santa Clara County Office of Education University of California at Santa Cruz Notre Dame De Namur University Stanford University Linda Williams Steven Bochner Paul Gustafson Curtis Mo Planned Parenthood Mar Monte Wilson Sonsini Goodrich & Rosati TDA Group Wilmer Cutler Pickering Hale and Dorr LLP Jon Whitmore Dave Boesch Timothy Haight Mairtini Ni Dhomhnaill San José State University San Mateo County Menlo College Accretive Solutions Daniel Yost Ed Cannizzaro Chet Haskell Joseph Parisi Orrick Herrington & Sutcliffe LLP KPMG, LLP Cogswell Polytechnical College Therma Inc. Emmett D. Carson Joe Head Lisa Portnoy SENIOR ADVISORY COUNCIL Silicon Valley Community Foundation SummerHill Land Ernst & Young LLP Frank Benest Barry Cinnamon Mark Jensen Bobby Ram City of Palo Alto (Ret.) Akeena Solar Deloitte & Touche LLP SunPower Eric Benhamou Pat Dando W. Keith Kennedy Jr. Paul Roche Benhamou Global Ventures San José/Silicon Valley Chamber Con-way McKinsey & Company Harry Kellogg Jr. of Commerce Alex Kennett Harry Sim SVB Financial Group Mary Dent Intero Real Estate Cypress Envirosystems William F. Miller SVB Financial Group Dave Knapp Susan Smarr Stanford University Dan Fenton City of Cupertino Kaiser Permanente San José Convention & Visitors Bureau SILICON VALLEY COMMUNITY FOUNDATION BOARD OF DIRECTORS CHAIR VICE CHAIR Nancy Handel John M. Sobrato Emmett D. Carson, Ph.D. Retired Senior Vice President, Chief Financial Chief Executive Officer, CEO and President, Officer, Applied Materials Inc The Sobrato Organization Silicon Valley Community Foundation DIRECTORS Jayne Battey Thomas J. Friel William S. Johnson Sanjay Vaswani Director of Land and Environmental Retired Chairman, Heidrick & Struggles President & CEO, Embarcadero Media Center for Corporate Innovation Management for Pacific Gas and Electric International, Inc. Company Anne F. Macdonald Richard Wilkolaski Gregory Gallo Frank, Rimerman & Co, LLP Seiler LLP Gloria Brown Partner, DLA Piper, USL, LLP Community Leader Ivonne Montes de Oca Erika Williams Narendra Gupta The Pinnacle Company Managing Director, Caretha Coleman Managing Director, Nexus Venture Partners The Erika Williams Group Principal, Coleman Consulting C.S. Park Susan M. Hyatt Former chairman and CEO, Maxtor Corp. Gordon Yamate Community Leader Former Vice President and General Counsel, Knight Ridder Chester Haskell Jeff Ruster INDEX ADVISORS Cogswell Polytechnical College work2future Bob Brownstein Richard Hobbs AnnaLee Saxenian Working Partnerships USA Santa Clara County University of California Berkeley Leslie Crowell Jean Holbrook Susan Smarr Santa Clara County San Mateo County Office of Education Kaiser Permanente Chris DiGiorgio James Koch Lynne Trulio Prepared By: Accenture Santa Clara University San Jose State University COLLABORATIVE Marty Fenstersheib Stephen Levy Anthony Waitz ECONOMICS Santa Clara County Center for Continuing Study of the Quantum Insight Doug Henton James David Fine California Economy Kim Walesh University of San Francisco Will Lightbourne City of San Jose John Melville Jeff Fredericks Santa Clara County E. Chris Wilder Tracey Grose Colliers International Connie Martinez Valley Medical Center Foundation Gabrielle Halter Tom Friel 1st Act Silicon Valley Linda Williams Tiffany Furrell Silicon Valley Community Foundation Reesa McCoy Staten Planned Parenthood Mar Monte Dean Chuang Matt Gardner Robert Half International Erika Williams Matthew Mesher Bay Area Bioscience Center Sanjay Narayan Silicon Valley Community Foundation Heidi Young Sierra Club Corinne Goodrich Erica Wood Bridget Gibbons SAMTRANS Silicon Valley Community Foundation Jonathan Bergquist ABOUT THE 2010 SILICON VALLEY INDEX Dear Friends: 2009 was a rough year. We learned the hard way that Silicon Valley is not immune to the larger forces at work in the global economic recession. Like other regions, we have lost tens of thousands of jobs, absorbed thousands of home foreclosures, and seen our incomes decline. Despite our many strengths—from talented people to world-class technology—we could not insulate ourselves from the larger economic downturn. Now we are at a critical moment. We must face facts and address the vulnerabilities that put our economy and community at risk. This year’s Index provides a sobering picture of our current situation and contains critical information we will need to move forward. In addition to the Index itself, we present a Special Analysis which is a call to action based on these facts. It suggests Silicon Valley has entered a new era of uncertainty, with a set of vulnerabilities that could compromise our long-term prosperity. Our continued ability to import and develop talent, fund innovation, and rely on state government for overall support are seriously in question. We are a region at risk. This is not a time for complacency. At a time when we need to engage more actively in the global economy, the very foundations for that engagement are weakening. We’re disinvesting in education and we’re not cultivating talent. Our state is no longer able to make crucial investments in infrastructure. Gridlock in Sacramento has become a major barrier to our ability to compete abroad and solve problems here at home. Of course we still have many strengths as an innovation economy, and as a vibrant community. Silicon Valley competes at a very high level with other advanced regions in the global economy. But we must continue to build on these strengths if we are to maintain our position in a world that is rapidly rising to challenge us. From the rise of Asian economies to California’s budget meltdown, our future will in many ways depend on how we respond to forces emanating beyond our region. To maintain our customary place in the world economy we must face the facts, challenge our assumptions, and address these new realities with the ingenuity and drive that has always been a hallmark of our Valley. Joint Venture and Silicon Valley Community Foundation are working together to help our region meet these challenges. We hope this year’s Index and Special Analysis will be a catalyst for action. Sincerely, Russell Hancock, Ph.D. Emmett D. Carson, Ph.D. President & Chief Executive Officer CEO & President Joint Venture: Silicon Valley Network Silicon Valley Community Foundation THE SILICON VALLEY REGION Area: 1,854 square miles Adult educational attainment: Age distribution: Ethnic composition: Foreign Born: 36% Population: 2.9 million 11% Less than High School 13% 0-9 years old 40% White, non-Hispanic Origin: Jobs: 1,322,634 18% High School Graduate 13% 10-19 29% Asian, non-Hispanic 58% Asia Average Annual Salary: $75,390 28% Some College 36% 20-44 25% Hispanic 31% Americas Foreign Immigration: +14,264 26% Bachelor’s Degree 26% 45-64 2.6% Black, non-Hispanic 9% Europe Domestic Migration: -3,728 17% Graduate 12% 65 and older <4% Multiple and Other 1% Oceana or Professional Degree 1% Africa South San Francisco Brisbane Daly City Colma Broadmoor Pacifica San Bruno Millbrae Burlingame Hillsborough San Mateo Foster City Belmont Union City San Carlos Fremont Redwood City Newark Atherton Milpitas Half Moon Bay San Jose Menlo Park Campbell East Palo Alto Santa Clara Palo Alto Morgan Hill Woodside Scotts Valley Portola Valley Gilroy Los Altos Hills Los Altos Mountain View Sunnyvale Cupertino Saratoga Monte Sereno Los Gatos The geographical boundaries of Silicon Valley vary. The region’s core has Santa Clara County (all) San Mateo County (all) Campbell, Cupertino, Gilroy, Los Altos, Atherton, Belmont, Brisbane, Broadmoor, been defined as Santa Clara County plus adjacent parts of San Mateo, Los Altos Hills, Los Gatos, Milpitas, Burlingame, Colma, Daly City, East Palo Alto, Alameda and Santa Cruz Counties. In order to reflect the geographic Monte Sereno, Morgan Hill, Foster City, Half Moon Bay, Hillsborough, Mountain View, Palo Alto, San Jose, Menlo Park, Millbrae, Pacifica, Portola Valley, expansion of the region’s driving industries and employment, the Santa Clara, Saratoga, Sunnyvale Redwood City, San Bruno, San Carlos, 2010 Index includes all of San Mateo County. Silicon Valley is defined as San Mateo, South San Francisco, Woodside Alameda County the following cities: Fremont, Newark, Union City Santa Cruz County Scotts Valley TABLE OF CONTENTS 2010 INDEX HIGHLIGHTS 4 INDEX AT A GLANCE 6 SPECIAL ANALYSIS – Silicon Valley’s Economic Engine: At Risk? 8 PEOPLE Population growth continues to be driven by foreign migration but slowed in 2009. Talent Flows and Diversity 12 ECONOMY While the region was slower to report job losses in 2008, losses now mirror national trends; however, new areas of growth are emerging. Employment
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