2010 The Silicon Valley Index

OF
SILICON VALLEY
i n d e x
PEOPLE ECONO MY SOCI E T Y PL ACE GOVE R N A NCE
2 0 1 0
J O I N T V E N T U R E B O A R D O F D I R E C TO R S
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 SVB Financial Group
Alex Kennett Harry Sim
Mary Dent Intero Real Estate Cypress Envirosystems William F. Miller
SVB Financial Group Stanford University
Dave Knapp Susan Smarr
Dan Fenton City of Cupertino Kaiser Permanente
San José Convention & Visitors Bureau
S I L I C O N VA L L E Y C O M M U N I T Y F O U N DAT I O N B O A R D O F D I R E C TO R S
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
Marty Fenstersheib COLLABORATIVE
Stephen Levy Anthony Waitz
Santa Clara County ECONOMICS
Center for Continuing Study of the Quantum Insight
James David Fine California Economy Doug Henton
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
Corinne Goodrich Sierra Club Erica Wood Bridget Gibbons
SAMTRANS Silicon Valley Community Foundation Jonathan Bergquist
A B O U T T H E 2 0 1 0 S I L I C O N VA L L E Y I N D E X
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
T H E S I L I C O N V A L L E Y R E G I O N
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
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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
TA B L E O F C O N T E N T S
2 0 1 0 IND E X HIG HL IG HTS 4

IND E X AT A G L ANCE 6
SPE CIAL ANALYSIS – Silic o n Va lley ’s E c o n o mic E n g in e: At Ri sk? 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 16
Income 20
Innovation 22
SOCIETY
The region has succeeded in some social gains but pressures continue in the areas of educational and health outcomes.
Preparing for Economic Success 28
Early Education 32
Arts and Culture 34
Quality of Health 36
Safety 38
PLACE
Though more progress is needed, Silicon Valley is making headway in improvements in environmental quality and resource
efficiency. In terms of housing and commercial space, the financial crisis has hurt many but is also expanding opportunities
as prices sink.
Environment 40
Transportation 44
Land Use 46
Housing 48
Commercial Space 52
GOVERNANCE
Since 2006, Silicon Valley has accounted for an increasing share of total state tax revenue.
Civic Engagement 54
Revenue 56
SP E CI A L A NA LYSI S c o nti nue d 58

A P P E ND I CE S 68
ACKNOW L E D G ME NTS 73
2010 INDEX
HIGHLIGHTS
Silicon Valley has taken a significant hit in the current economic downturn,
with job losses spanning the economy.
• While the region was slower to report employment losses in 2008, job losses in San Mateo and Santa Clara Counties picked up
their pace over the last year. Between December 2008 and December 2009, the employed residents in the two counties posted
a drop of 5.8 percent (compared to 3.8 percent nationally). (see page 16)
• In absolute terms, the region lost roughly 90,000 jobs between the second quarter of 2008 and 2009, bringing total employment
down to 2005 levels. (see page 17)
• Despite these losses, jobs at Silicon Valley businesses that provide products and services to reduce our dependence on fossil fuels,
improve resource conservation, and reduce pollution have increased by more than 50 percent since 1995. Between January 2007
and 2008, these jobs in the core green economy expanded by eight percent. (see page 19)
• While “green” opportunities account for roughly 14,000 jobs in the region (more than the region’s Medical Devices industry), it
is composed of a wide range of industries projected to grow. (see page 19)
Silicon Valley’s households are feeling the pressure.

• While fifty percent higher than the state and nation, real per capita income in the region has been falling at a faster rate since
2007. (see page 20) Still, filings for non-business bankruptcy and participation in food stamps are both increasing at slower rates
than the state or nation. (see page 21)
Silicon Valley’s economic and innovation engine has cooled off.

• The number of patents in Silicon Valley declined (though less than one percent from last year), while the total number of U.S.
patents decreased by 2.6 percent. Despite the decline, Silicon Valley's percentage of patent registrations in California and the U.S.
increased between 2007 and 2008. (see page 23)
• Total venture capital investment was down in 2009 (though an uptick in activity was reported in the third quarter). Growing areas
of investment are in Industrial/Energy, Media & Entertainment, Biotechnology, and Medical Devices. (see page 25)
• Office vacancy rates are at an all-time high since 1998. The continued decrease in demand for commercial real estate combined
with the creation of 1.7 million square feet of new commercial space have driven commercial vacancies up 33 percent in 2009
over 2008. (see page 52)
• But the region continues to birth and attract new business establishments. Between January 2007 and 2008, the region witnessed
a net gain of approximately 9,500 establishments, twice the average annual net gain over the whole period. (see page 27)
4
Silicon Valley is highly diverse and the inflow of foreign talent has been
driving the region’s population growth.
• The percentage of the region’s population that speaks a language other than English at home dropped modestly by one percent
over the prior year to 48 percent – the first decline since 2004. (see page 13) Science and engineering degrees conferred to
foreign students continued its decline (except for Ph.D. recipients). (see page 15)
• The region’s small but growing arts and cultural organizations reflect the region’s rich ethnic diversity. (see page 34)
Progress is being made in early childhood health; however, challenges

in educational outcomes persist in the region.
• Silicon Valley shows rising child immunization rates and dropping mortality rates. (see pages 36-37)
• Graduation rates are making modest gains, but fewer graduates are meeting UC/CSU requirements. (see page 29) Disparities
persist by ethnicity in third grade English language arts proficiency. (see page 33)
• Adult and juvenile felony offenses continue to drop, but child welfare services are coming under new pressure. (see page 38)
Silicon Valley is improving in environmental quality and resource efficiency;

however, more progress must be made toward our region’s
sustainability goals.
• Silicon Valley drivers are driving less and shifting to cleaner vehicles. (see page 45) Since 2002, vehicle miles traveled has decreased
14 percent as gas prices have increased 91 percent. (see page 44)
• Transit-oriented development continues to expand, and with varying levels of success, cities are developing permitting to reflect
growing demand for installation of renewable energy systems. (see page 47) 2009 marks the fifth year in which newly approved
housing has averaged more than 20 units per acre. (see page 46)
As a result of the financial crisis, some households are under pressure from
ballooning mortgages, but other households are benefiting from the resulting
fall in home prices.
• Residential foreclosure activity dropped by 39 percent in Silicon Valley in 2009 since its peak in 2008. Similarly, foreclosure activity
in California has also been ebbing. In the first three quarters of 2009, residential foreclosure sales accounted for nearly one quarter
of home sales in the region. (see page 50)
• Housing affordability for first-time homebuyers is improving. (see page 49) In addition to foreclosure sales, the number of new
affordable housing units doubled since 2008 and accounted for eleven percent of new housing units in the region in 2009.
(see page 48)
• Average rents declined six percent from 2008 to 2009, the first drop in rents since 2005. (see page 49)
Silicon Valley’s contribution to state coffers continues to rise.

• While representing only seven percent of the state’s population, the region contributed 16 percent of total state revenues from
personal income tax in 2008. Silicon Valley's contribution to California State tax revenue through personal income tax has steadily
increased since 2006, with a one percent increase in each of the past two years. (see page 57)
5
THE P EOP LE
Population growth continues to be
ECONOMY
While the region was slower to report
2010
driven by foreign migration but slowed job losses in 2008, losses now mirror
in 2009. national trends; however, new areas of
growth are emerging.
Net Population Change Change in Jobs Relative
INDEX
50,000
to December 2008
40,000
101
100=Dec 2008 Values

30,000 100
20,000 99
98
10,000 97 U.S.
96 -3.8%
0 95
San Mateo &
2002 2009 94
93 Santa Clara Counties -5.8%
Net Population Change
Dec 2008 Dec 2009
Percent Change between

2008 and 2009 Green Business
Silicon Valley +1.3% Establishments & Jobs
California +0.9%
AT A GLANCE
1,200 15,000
12,000
Establishments
800
9,000
Jobs
Net Migration Flows 400
6,000
3,000
WHAT IS THE INDEX? 40,000 0 0
1995
The Silicon Valley Index has been telling the Silicon Valley 2008
story since 1995. Released early every year, the indicators 0 Green Growth 95-08 04-08
measure the strength of our economy and the health of our
Jobs +53% +24%
community—highlighting challenges and providing an analytical -40,000
2000 2009 Establishments +45% +18%
foundation for leadership and decision-making. Net Foreign Immigration
Net Domestic Migration
WHAT IS AN INDICATOR? Population Change between Venture Capital Investment

Indicators are measurements that tell us how we are doing: 2008 and 2009
whether we are going up or down, going forward or backward, Net Foreign Immigration -34% SV Share of
getting better or worse, or staying the same. 30% U.S.VC 2009
Net Domestic Migration +317%
Good indicators:
• are bellwethers that reflect fundamentals Language Spoken at Home
of long-term regional health;
• reflect the interests and concerns of the community; 2008-2009
• are statistically measurable on a frequent basis; Silicon Valley -35.2%
• measure outcomes, rather than inputs. U.S. -36.8%
Appendix A provides detail on data sources for each indicator 52% 48% Median Household Income
English Non- Inflation Adjusted
Only English $100,000
75,000
50,000
25,000
0
2004 2008
2004-2008
Silicon Valley +5%
California +5%
United States +2%
6
SOCIET Y P LA CE GOVERNANCE
The region has succeeded in some Though more progress is needed, Since 2006, Silicon Valley has accounted
Silicon Valley is making headway in About the 2010 Index | 01
social gains but pressures continue in for an increasing share of total state
improvements in environmental quality
the areas of educational and health and resource efficiency. In terms of tax revenue. Map of Silicon Valley 02 |
outcomes. housing and commercial space, the Table of Contents | 03
financial crisis has hurt many but is also Index 2010 Highlights 04 | 05
expanding opportunities as prices sink. Index at a Glance 06 | 07
Special Analysis 08 | 11
High School Graduation Electricity Consumption per Capita Contribution to CA State Revenue
Silicon Valley High Schools; 2007-2008 kWh per person from Personal Income Tax
PEOPLE 12 | 15
90% 10,000 16%
80%
70% 86% 8,000
12%
60% -7%
6,000 -1%
50%
8%
40% 4,000 ECONOMY 16 | 27
30% 47%
20% 2,000 4%
10%
0
0% 0%
Graduation Rates Graduation Who 1999 2008 1999 2008 1995 2008
Meet UC/CSU Silicon Valley Rest of California
Requirements
Silicon Valley - 2008
Infant Mortality Rate Fuel Consumption Percentage of
Number of Deaths per 1,000 Live Births Gallons per Capita State Population 7%
6 500 Contribution to State
5
400 -2% Revenue from
4 -13% Personal Income Tax 16% SOCIETY 28 | 39
300
3
200
2
100
1 Change in City Revenue
0
1994 2007
0
2000 2008 2000 2008
Fiscal Year 05-06 to 06-07
Silicon Valley Rest of California
Property Taxes +12%
Child Immunization Rate Sales Taxes +0.5%
Children at 24 Months of Age
Alternative Fuel Vehicles
90%
as a Percentage of
80%
Total Newly Registered Vehicles
70% 4%
60%
50%
3%
40%
30% 18x
2%
20% PLACE 40 | 53
10%
0% 1% 22x
1999 2008
0
Healthy People 2010 Objective 2000 2008 2000 2008
90% of children immunized
by 24 months of age Number of Residential
Foreclosure Sales
Percentage of Population with Percent
Health Insurance Coverage Q1-Q3 Change
by Age Group, 2008 2008 2009 08-09
SV 8,894 5,404 -39%
SV CA U.S.
CA 238,396 139,115 -42%
Under 18 years 95% 89% 90%
G O V E R N A N C E 54 | 57
18-64 years 85% 77% 80%
65+ years 98% 98% 99%
Special Analysis continued 58 | 67

Appendices 68 | 72
Acknowledgments | 73
7
SPECIAL Silicon Valley’s Economic Engine: At Risk?
ANALYSIS When the current recession ends—and of
course it will—how will Silicon Valley emerge?
Will we take up our place again as one of the
world’s most dynamic economies, and a
powerhouse for state and national GDP?
Will we remain the epicenter of innovation?
8
Special Analysis Silicon Valley’s Economic Engine: At Risk?
Put another way, after the trauma of the global financial meltdown finally
dissipates, will life in Silicon Valley be as it was before? The answer is not at
all clear, and the outcome is by no means assured.
Indeed, there are clear warning signs suggesting Silicon Valley has entered a new phase of uncertainty, and that our competitive standing
is at risk. What happens next depends on our response as a region, and that response may challenge the ingenuity of Silicon Valley’s
leaders and decision makers as never before:
• We are no longer able to draw on the same level of foreign talent—which has been our lifeblood—as we have for
the past several decades. The actions of our nation in the wake of 9/11, and the rise of other global regions, have
made Silicon Valley less accessible and less attractive than it once was.
• Our traditional way of funding innovation—through locally-raised venture capital and public offerings—can no
longer be taken as a given. Major structural shifts are underway in the funding community, while at the same
time the federal government has re-emerged as the major investor in innovation and basic research. But Silicon
Valley is not attracting significant shares of federal funding, and has not for some time.
• Silicon Valley is being slammed by forces outside the region and beyond our direct control, most notably, the malaise
in our state government. California’s budget crisis and the political dysfunction in Sacramento has direct and
debilitating effects on our ability to prepare our workforce, provide crucial infrastructure, maintain our quality
of life, and keep pace in the talent race with other regions.
Our vulnerabilities don’t mean Silicon Valley’s best days are behind it. But they do suggest we’re a region at risk.
The pages in this Special Analysis section are a companion to the 2010 Index, providing a deeper analytical treatment of the data presented
there. In this Analysis we examine a series of key attributes comprising Silicon Valley’s innovation “habitat.” We also examine some
important factors in the region’s history that contributed to our current status and standing.
Specifically, we examine how four key considerations shape our habitat:

1. Global connectivity
2. Our ability to attract talent
3. Ongoing advances in technology and innovation
4. The role of state and federal government
9
Among our key findings:

• Silicon Valley is increasingly connected to its global partners, and the region grows increasingly more dependent
on foreign talent—particularly for filling science and engineering positions.
• Inflows from China and India continue to rise. Investment and collaboration between the Valley and those two
nations is also on the rise, but India and China are experiencing rapid economic growth and as they do opportunities
in those home countries will slow the flow of talent here.
• U.S. and California investment in higher education is declining at a time when talent becomes still more important
to our region.
• Venture capital investment is shifting away from software and semiconductors and into biotechnology, energy,
medical devices, and media. The level of investment continues to decline, and on the whole venture capitalists
have not realized significant returns for the past decade.
• California state policy has become a hindrance to

our innovation potential, not only because of our
failure to invest, but also because our government
What is our Innovation Habitat?
is not addressing important problems. What gives the region its competitive edge, and
its source for broader regional prosperity,
• Patterns in federal procurement suggest Silicon goes beyond the strength of its companies
Valley is losing ground to other states. and lies instead in the quality of its
innovation habitat: the complex, dynamic
Clearly, this is no time for complacency. While our region has enjoyed
many advantages in the past, success in the future demands that
network of interpersonal relationships across
we think beyond our prevailing assumptions, organize differently, people, firms and institutions.
draw upon still more ingenuity from our people, and forge new
collaborations in order to compete globally.
An innovative economy is the engine that
produces economic opportunity and
This Special Analysis examines a series of key attributes of Silicon
community revenues that make possible
Valley’s innovation habitat as well as some important factors of
the region’s history that contributed to its position today. The
career mobility, investment in educational
region’s innovation habitat is shaped by impulses through its systems, development of community
global connections, shifts in talent attraction, advances in infrastructure and amenities, investments
technology, and changes in state and federal policy. This analysis in environmental preservation, and other
explores some of the important and shifting trends in each of
critical assets for regional vitality and
these four areas.
quality of life.
However, for an innovative economy to produce
regional vitality and quality of life, other
factors are required. For example, an
economy’s potential is undermined if
residents do not have the skills to participate
in the growth of higher-level job
opportunities, or if the community
environment is seriously degraded and not
viewed as an indispensable economic asset.
10
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Patents Demographics
Venture Capital
Industry Mix
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Development
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continued on page 58
11
Talent Flows and Diversity
Population growth continues to be driven
by foreign migration but slowed in 2009.
PEOPLE
Population Change
Components of Population Change
Santa Clara & San Mateo Counties
W H Y I S T H I S I MP O RTA N T ? 45,000
Silicon Valley’s most important asset is its people. They drive the 35,000
economy and shape the quality of life of the region. We examine
25,000
population growth as a function of migration (immigration and
emigration) and natural population change (number of births 15,000
People
minus number of deaths).
5,000
The region has benefited significantly from the entrepreneurial spirit
of people drawn to Silicon Valley from around the country and -5,000
around the world. In particular, immigrant entrepreneurs have -15,000

contributed considerably to innovation and job creation in the *
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
region.1 A region that can draw talent from other parts of the
country and other regions of the world vastly improves its
potential for closer integration with other innovative regions and Natural Net
Net Change
Change Migration
thereby bolsters its global competitiveness.
* Provisional population estimates for 2009
Beyond the talent that we import, we look at Silicon Valley’s future Data Source: California Department of Finance
Analysis: Collaborative Economics
talent pool. The number of science, & engineering degrees
awarded regionally helps us to gauge how well Silicon Valley is
preparing talent for our driving, export-oriented clusters. A local Population Growth
workforce equipped with strong skills is a valuable resource for 2008 2009 % Change
generating new ideas and innovative products and services.
Silicon Valley 2,589,315 2,622,485 +1.3%
HOW ARE WE DOING? California 38,134,496 38,487,889 +0.9%
The population of the two-county region continued to grow in 2009

but at a slower pace than the two previous years. With a net Net Migration Flows
increase of 33,170 people, Silicon Valley’s population grew 1.3%
in 2009. The region’s growth continues to be driven by foreign Foreign and Domestic Migration
immigration, despite decreasing 34 percent over the last year.
The percentage of the population that speaks a language other than
40,000
English at home slowed modestly (-1%) for the first time in the
region since 2004, while remaining steady statewide and increasing 30,000
one percent nationally. However, as of 2008, nearly half of Silicon
Valley residents (48%) spoke a language other than English at 20,000
home, which was five percent higher than California and over 10,000
twice as great as the United States. Among those who speak a
language other than English at home, the largest proportion speak 0
People
an Asian or Pacific Islander language (43%), just ahead of the share

-10,000
of Spanish speakers (39%).
-20,000
While the total number of Science and Engineering degrees has leveled
off, the percentage conferred to foreign students has been sliding. -30,000
In 2007, 16.6 percent of Science and Engineering degrees from
-40,000
Silicon Valley universities were conferred to foreign students. *
While this is higher than California (14.5%) and the U.S. (13.6%),
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
the downward trend since 2003 continues similar to statewide

and national trends. Nationally, rates have dropped two percent
Net Foreign Net Domestic
since 2004, and in California and Silicon Valley, rates slowed 1.6 Immigration Migration
Net Migration
percent and 1.5 percent respectively.
However, nationwide, the number of non-resident students earning * Provisional population estimates for 2009
Data Source: California Department of Finance
Science and Engineering doctoral degrees has been rising. In the Net Migration Analysis: Collaborative Economics
broader region, the number of these doctorate recipients increased Silicon Valley
by 40 percent between 2003 and 2007, while those earning 2009
Master’s and Bachelor’s Degrees declined during the same period
Domestic - 3,728
– 17 percent and 10 percent respectively.
Foreign +14,264
1 AnnaLee Saxenian. 2002. Local and Global Networks of Immigrant Professionals in Silicon Valley. San Francisco: Public
Policy Institute of California. See also, S. Anderson & M. Platzer. 2006. “American Made. The Impact of Immigrant
Entrepreneurs and Professional on U.S Competitiveness.” National Venture Capital Association.
12
About the 2010 Index | 01
Foreign Language
Map of Silicon Valley 02 |
Percentage of Population that Speaks Language other than English at Home Table of Contents | 03
Santa Clara & San Mateo Counties, California, U.S.
Index 2010 Highlights 04 | 05
Index at a Glance 06 | 07
50%
45%
Percentage of Population that Speaks Language
PEOPLE
40% Talent Flows and Diversity
12–15
other than English at Home
35%
30%
25%
ECONOMY 16 | 27
20%
15%
10%
5%
0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
Silicon Valley California United States
SOCIETY 28 | 39
Data Sources: U.S. Census Bureau, American Community Survey
Foreign Language
Language Spoken at Home for the Population 5 Years and Over
Santa Clara & San Mateo Counties, 2008
Spanish
39% PLACE 40 | 53
All Other*
3%
Tagalog
9% Other Indo-European***
15%
Vietnamese
Other
9% Asian and
Pacific
G O V E R N A N C E 54 | 57
Island** Chinese
10% 15%
Special Analysis cont. 58 | 67
*All Other includes Navajo, other native North American languages, Arabic, Hebrew, African languages, and other, unspecified Appendices 68 | 72
languages.
**Other Asian and Pacific Island includes Japanese, Korean, Mon Khmer, Cambodian, Miao, Hmong, Thai, Laotion, and other Acknowledgments | 73
Asian Languages.
***Other Indo-European includes French (including Patois, Cajun, Creole), Italian, Portuguese (including Creole), Scandinavian
languages, Greek, Russian, Polish, Serbo-Croatian, other Slavic languages, Armenian, Persian, Gujarathi, Hindi, Urdu, other
Indio languages, and other Indo-European languages.
Note: Does not include English-only households
Data Sources: U.S. Census Bureau, American Community Survey
13
PEOPLE
Total Science & Engineering Degrees Conferred
Universities in and near Silicon Valley, and the U.S.
15,000 350,000
Total S&E Degrees Conferred in the United States

Total S&E Degrees Conferred in Silicon Valley
12,000 280,000
9,000 210,000
6,000 140,000
3,000 70,000
0 0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Note: Data are based on first major and include bachelors, masters and doctorate degrees. Data for 1999 is not available.
Data Source: National Center for Educational Statistics, IPEDS
14
Foreign Students
Percentage of Science & Engineering Degrees Table of Contents | 03
Conferred to Temporary Nonpermanent Residents
Silicon Valley, California, U.S. Index 2010 Highlights 04 | 05
20% Special Analysis 08 | 11
18%
PEOPLE
Percentage of Total S&E Degrees Conferred
16% Talent Flows and Diversity

12-15
14%
12%
10% ECONOMY 16 | 27
8%
6%
4%
2%
0%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Silicon Valley California United States SOCIETY 28 | 39

Note: Data are based on first major and include bachelors, masters and doctorate degrees. Data for 1999 is not available.
Data Source: National Center for Educational Statistics, IPEDS
Percentage of S&E Degrees Conferred to

Temporary Nonpermanent Residents
2003 2007 % Change
Silicon Valley 18.4% 16.6% -1.8%
California 15.3% 14.5% -0.8%
United States 14.7% 13.6% -1.1%
PLACE 40 | 53
G O V E R N A N C E 54 | 57

Appendices 68 | 72
15
Employment
Since the fall of 2008, the region has
been hit hard by employment losses.
ECONO
Change in Residential Employment
Santa Clara & San Mateo Counties, and the United States
Monthly Employed Residents Relative to December 2007
Monthly Employed Residents Relative to December 2008

W H Y I S T H I S I MP O RTA N T ? 101 101
100 100
Tracking job gains and losses is a basic measure of economic health.
(100=December 2007 Values)
(100=December 2008 Values)

99 99
Shifts in employment across industries suggest structural changes
in Silicon Valley’s economic composition. Over the course of the 98 98
business cycle, employment growth and decline across industries 97 97
can be cyclical but the permanent changes reflect how the region’s San Mateo
U.S.
-3.8%
industrial mix is changing. Recent attention has been focused on 96 & Santa Clara 96
Counties
-5.4%
the growing activities in the “green economy.” While business 95 95
establishment-based employment provides the broader picture Santa Clara &
San Mateo Counties
94 94
of the region’s economy, observing the employment and U.S.
-5.7%
-5.8%
unemployment rates of the population residing in the Valley reveals 93 93
2009 *
2009 *
the status of the immediate Silicon Valley-base workforce.
December
December
December
December
2007
2008
HOW ARE WE DOING? *Data for December 2009 is preliminary
Note: Data is not seasonally adjusted.
Silicon Valley was slower than the nation to feel the blows of employment Data Source: U.S. Bureau of Labor Statistics, Current Population Survey (CPS) and Local Area Unemployment Statistics (LAUS)
losses in the recent economic downturn. Job losses of residents
in the region have mirrored national losses since the outset of
the recession, with declines of 5.4 percent in the two counties
and 5.7 percent nationwide between December 2007 and 2009.
However, most of the region’s losses were sustained in the last twelve Employment
months as regional residential employment slipped 5.8 percent and Total Employed Residents by Month
the nation, 3.8 percent between December 2008 and 2009. San Mateo & Santa Clara Counties
In view of total employment in the broader Silicon Valley region (based 1,400,000
on data including jobs held by people who live outside the region
and for which there is a longer reporting lag), the region lost 1,200,000
Total Number Employed Residents
roughly 90,000 jobs between the second quarter 2008 and 2009
1,000,000
bringing total employment down to 2005 levels.
800,000
The combined unemployment rate for San Mateo and Santa Clara
Counties increased 3.3 percent between December 2008 and 600,000
2009. The region has closely trailed the state, and the rates of
both are at least one percent above the national rate. 400,000
When employers stop hiring, people look for other means of 200,000
employment such as through temporary employment services 0

or through consulting. In the San Jose Metro Area for example,
2009 *
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
jobs in Employment Services have increased 23 percent since

April 2009. Between 2002 and 2007, the number of consultants,
reported as nonemployer firms, has grown by 25 percent. *Data for December 2009 is preliminary
While total employment in the broader Silicon Valley region increased Data Source: U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics (LAUS)
by 0.8 percent (10,500 jobs) between 2007 and 2008, all the
major areas of economic activity experienced employment losses
in the first half of 2009. Other Manufacturing suffered the largest Residential
percent losses with a ten percent drop. In absolute numbers, Employment
Community Infrastructure shed the most losing 33,500 jobs.
2007-09 2008-09
Since 1995, jobs in the two counties in businesses that provide products Silicon Valley -5.4% -5.8%
and services that reduce our dependence on fossil fuels, improve
resource conservation, and reduce pollution have increased by United States -5.7% -3.8%
more than 50 percent while these business establishments have
grown by nearly 45 percent. Just between January 2007 and 2008,
these green jobs expanded by eight percent.
While these green jobs number roughly 14,000 (comparable to total
employment in Medical Devices), they are distributed across a
wide range of industries. Jobs in green transportation have more
than tripled from 2004 to 2008. Similarly, jobs in energy efficiency
have increased by nearly 60 percent.
16
MY About the 2010 Index | 01
Quarterly Job Growth
Number of Silicon Valley Jobs in Second Quarter Table of Contents | 03
with Percent Change over Prior Year
1,800,000
6.2% -0.2% Special Analysis 08 | 11
1,600,000 4.2% 1.6%
4.7% -9.7% 2.6% 1.4%
-6.0% -0.6% 0.1% 2.7%
1,400,000 PEOPLE 12 | 15
Total Number of Jobs
1,200,000 Percent change -6.4%

over previous year
1,000,000
800,000
ECONOMY
Employment
600,000 16-19
400,000 Income
20-21
200,000
Innovation
0
22-27
Q2 1997
Q2 1998
Q2 1999
Q2 2000
Q2 2001
Q2 2002
Q2 2003
Q2 2004
Q2 2005
Q2 2006
Q2 2007
Q2 2008
Q2 2009
SOCIETY 28 | 39
Data Source: California Employment Development Department, Labor Market Information Division,
Quarterly Census of Employment and Wages
Percent Change in Jobs Q1 2008 – Q1 2009
Silicon Valley: -4.3% Rest of CA: -4.3% United States: -3.7%
Unemployment Rate
San Mateo & Santa Clara Counties, California and the United States
PLACE 40 | 53
14%
12%
10%
Unemployment Rate
8%
6%
4% G O V E R N A N C E 54 | 57
2%
0%
2009 *
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

Appendices 68 | 72
*Data for December 2009 is preliminary United States
California
Data Source: U.S. Bureau of Labor Statistics, Current Population Survey (CPS),
Local Area Unemployment Statistics (LAUS)
San Mateo &
Santa Clara Counties
17
Employment
ECONO
Employment Services
Total Number of Jobs by Month
San Jose-Sunnyvale-Santa Clara Metropolitan Statistical Area
30,000
25,000
20,000
15,000
10,000
5,000
0
2009 *
2002
2003
2004
2005
2006
2007
2008
*Data for December 2009 is preliminary

Note: Data includes employment for the Employment Services Industry, and is not seasonally adjusted
Nonemployer Firms
Data Source: California Employment Development Department, Labor Market Information Division, San Jose-Sunnyvale-Santa Clara Metropolitan Statistical Area
Current Employment Statistics Survey (CES)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2002
2003
2004
2005
2006
2007
Data Source: U.S. Census Bureau, Nonemployer Statistics
Major Areas of Economic Activity

Average Annual Employment
Silicon Valley
800,000 Silicon Valley Employment Growth

700,000 by Major Areas of Economic Activity
600,000
Percent Change Q2 2008–Q2 2009
500,000 Information Products & Services -7.7%
Employment
400,000
Life Sciences -5.8%
300,000
Community Infrastructure -5.5%
200,000
Innovation & Specialized Services -7.7%
100,000
0 Other Manufacturing -10.3%

Community Information Innovation & Other Business Life
Infrastructure Products Specialized Manufacturing Infrastructure Sciences
& Services Services
Business Infrastructure -5.3%
Data Source: California Employment Development Department,
Labor Market Information Division,
2007 2008 2009 Q1&Q2
TOTAL EMPLOYMENT -6.4%
Quarterly Census of Employment and Wages
18
Green Business Establishments & Jobs
Total Business Establishments and Jobs in the Core Green Economy Table of Contents | 03
San Mateo & Santa Clara Counties
1,000 14,000
Total Number of Jobs in the Core Green Economy

900 Index at a Glance 06 | 07
12,000
Total Number of Establishments

800
in the Core Green Economy

700 10,000
600 PEOPLE 12 | 15
8,000
500
6,000
400
300 4,000
ECONOMY
200 Employment
2,000
100 16-19
0 0 Income
20-21
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Innovation
22-27
Establishments Jobs
Data Source: Green Establishment Database

SOCIETY 28 | 39
Green Growth 1995–2008 2004–2008
Jobs +53% +24%
Establishments +45% +18%
Total Jobs in the Core Green Economy

by Green Segment
San Mateo & Santa Clara Counties PLACE 40 | 53
14,000
13,000
Business Services
12,000
Agriculture
11,000
Research & Advocacy
Total Number of Jobs in the Core Green Economy
10,000 Manufacturing & Industrial

9,000 Transportation
8,000 Energy Storage
7,000
Water & Wastewater
Green Building
6,000
Advanced Materials G O V E R N A N C E 54 | 57
5,000
Energy Infrastructure
4,000
Recycling & Waste
3,000 Finance & Investment
2,000 Air & Environment
Energy Efficiency Special Analysis cont. 58 | 67
1,000
Appendices 68 | 72
0
Energy Generation
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Note: The decline in Energy Generation jobs from 2002-2003 can be attributed to layoffs by a semiconductor establishment identified
as a manufacturer of solid state photovoltaic devices.
Data Source: Green Establishment Database
19
Income
Incomes are down and households are
feeling the pressure.
ECONO
Real Per Capita Income
2008 Dollars — Santa Clara & San Mateo Counties and U.S.
$70,000
W HY I S T HIS I MP O RTA N T ?
Per Capita Income (Inflation Adjusted)

60,000
Earnings growth is as important a measure of Silicon Valley’s economic 50,000

vitality as job growth. A variety of income measures presented
40,000
together provides an indication of regional prosperity and the
distribution of prosperity. 30,000
Real per capita income rises when a region generates wealth faster 20,000
than its population increases. The median household income is
10,000
the income value at the middle of all income values. Household
income distribution tells us more about concentrations of income, 0
and if economic gains are reaching all members of the region.
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Tracking trends in bankruptcy filings and food stamp participation
provides an additional indication for economic stress in the region.
Silicon Valley California U.S.
Note: Personal income is defined as the sum of wage and salary disbursements (including stock options), supplements to wages
and salaries, proprietors’ income, dividends, interest, and rent, and personal current transfer receipts, less contributions
H O W A RE W E D O IN G ? for government social insurance
Data Source: Moody’s Economy.com
Nationwide, real per capita income has been on the decline since 2007.
Personal income, which includes interest and dividend income,
is roughly 50 percent higher in Silicon Valley, and from 2007 to
2009, real per capita income decreased five percent in the region
Percent Change of per Capita Income
and four percent in both the U.S. and California. 2003–2009 2007–2009
Through 2008, the region’s median household income held steady Silicon Valley +10.5% –5.0%
while declining by two percent in California and 1.3 percent
California +7.5% –3.6%
nationally. This is in part a reflection of the fact that the region
was slower to post job losses in 2008 than the rest of the country. United States +4.2% -3.9%
Silicon Valley’s median household income of $87,000 is 69 percent
higher than that of the U.S. and 44 percent higher than that of
the state (off course, our cost of living is also higher than state
Median Household Income
and national averages). At least through 2008, the percentage of
Santa Clara & San Mateo Counties, California and U.S.
households earning $100,000 or more a year has been on the
rise nationwide. In the region, these households make up 44
$100,000
percent, more than double the national rate, but the growth of
Median Household Income (Inflation Adjusted)
this segment since 2002 has been similar, expanding eight percent 90,000
in Silicon Valley and the U.S. and nine percent in California.
Households earning less than $35,000 a year represent 18 percent 80,000
of the region’s households, and this segment has decreased at a
slower rate than in the state or nation. Since 2002, the percentage 70,000
of middle-income households has shrunk six percent in Silicon
Valley while remaining stable at roughly 43 percent in California 60,000
and 45 percent in the United States.

50,000
Evidence of increasing pressure on the region’s households can be
observed in rising personal bankruptcy rates and residents receiving 40,000
food stamps. Since 2007, the non-business bankruptcy rate has

2000
2001
2002
2003
2004
2005
2006
2007
2008
increased from one for every 1,000 residents to 2.6 in the first
half of 2009. The filings rates per 1,000 residents were 4.5 in Silicon Valley California U.S.
California and 3.7 in the U.S. Nearly four percent of Silicon Valley Note: Household income includes wage or salary income; net self-employment income; interest, dividends, or net rental or royalty
residents received food stamps in 2009 representing an increase income from estates and trusts; Social Security or railroad retirement income; Supplemental Security income; public assistance
or welfare payments; retirement, survivor, or disability pensions; and all other income; excluding stock options.
of less than one percent from 2007. Statewide, nearly eight percent Data Source: U.S. Census Bureau, American Community Survey
of residents received food stamps, up two percent from 2007.
Percent Change in Silicon Valley 0.6%

Median Household
California -2.0%
Income
2007-2008 United States -1.3%
20
Income Distribution
Distribution of Households by Income Ranges Table of Contents | 03
100% Index 2010 Highlights 04 | 05
90% 19% 13% 21% Index at a Glance 06 | 07
36% 28%
80%
70%
46% PEOPLE 12 | 15
60%
46% 45%
50% 43%
40% 44%
38%
30%
ECONOMY
Employment
20%
35% 41%
29% 34% 16-19
10% 20% 18% Income
0% 20-21
2002 2008 2002 2008 2002 2008
Santa Clara and California United States
San Mateo Counties
Innovation
22-27
Under $35,000 $35,000 – $99,999 $100,000 or more *Income ranges reflect nominal values
Note: Income ranges reflect nominal values. Household income includes wage or salary income; net self-employment income; interest, dividends, or net rental or royalty income from estates and
trusts; Social Security or railroad retirement income; Supplemental Security income; public assistance or welfare payments; retirement, survivor, or disability pensions; and all other income;
excluding stock options.
Data Source: U.S. Census Bureau, American Community Survey
SOCIETY 28 | 39
Bankruptcy Filings
Rate of Total Non-Business Bankruptcy Fillings Per 1,000 Persons
Silicon Valley, California and U.S.
Quarter 2: 1999 to 2009
10
9
8
Rate per 1,000 Persons
7
6
5
4
3
2 PLACE 40 | 53
1
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Note: All data based on Quarter 2 figures

Data Source: Administrative Office of the U.S. Bankruptcy Courts; RAND Corporation; California Department of Finance;
U.S. Census Bureau
Food Stamp Usage

Percentage of Population Receiving Food Stamps
Santa Clara and San Mateo Counties, California and U.S.
G O V E R N A N C E 54 | 57
Percentage of Population Receiving Food Stamps
8%
7% Food Stamp Usage

6%
Percent Difference
June 2007 to June 2009
5%
4% Silicon Valley +0.8%

3% California +1.9% Appendices 68 | 72
June 2007 June 2009
2% Acknowledgments | 73
1%
0%
Silicon Valley California
Data Source: New York Times, Food Stamp Usage Across the Country; U.S. Department of Agriculture;
U.S. Census Bureau, Population Estimates
21
Innovation
Silicon Valley continues to invent, invest
and transform - laying the foundation
for the next rebound.
ECONO
W HY I S T HIS I MP O RTA N T ? While total investment has been down in 2009 (with an uptick in the
third quarter), the distribution of investment across industries
Innovation drives the economic success of Silicon Valley. More than offers valuable insight into how Silicon Valley’s industry mix is
just in technology products, innovation includes advances in changing. Since 2002, the software industry has continued to
business processes and business models. The ability to generate attract the largest percentage of total venture capital investment
new ideas, products and processes is an important source of in the region; however, it has dropped from 25 percent to 20
regional competitive advantage.To measure innovation, we examine percent as opportunities in other industries grow. Venture capital
the investment in innovation, the generation of new ideas, and investment in networking and equipment has been on a downward
the value-added across the economy. trend since 2002, when the industry ranked second behind
software; however, investment in networking and equipment did
Additionally, tracking the areas of venture capital investment over time
increase by 13 percent between 2008 and 2009.
provides valuable insight into the region’s longer-term direction
of development. The activity of mergers and acquisitions and Over most of the period, semiconductors attracted the next largest
initial public offerings indicate that a region is cultivating innovative investment share following software. In 2008, it was displaced by
and potentially high-value companies. The movement of business biotechnology and medical devices, while in 2009 industrial/energy
establishments to and out of the region provides some insight took the second spot behind software. Venture capital investment
into the continued attractiveness of the region for businesses. in the areas of industrial/energy, medical devices, and biotechnology
have now outpaced investment in semiconductors.
H O W A RE W E D O IN G ? After peaking at $1.9 billion in 2008, cleantech venture capital investment

dropped to $1.2 billion in 2009, a five percent increase over 2007
A key indicator for the overall health of the region’s economy is values. In 2009, Silicon Valley accounted for 55 percent of California
productivity. Measured as gross regional product per worker, investments and 19 percent of United States investments. While
productivity (i.e. value added per worker) slowed in 2007 and the region accounted for the same percentage of California
2008 and then shot up four percent in 2009. This recent growth investments as it did in 2008, its share of total U.S. investments
is based in large part on productivity gains due to companies decreased 12 percent. The bulk of investments were in energy
cutting jobs and work hours. The sustainability of these gains in generation (41%) and energy efficiency (26%) with values increasing
Silicon Valley will depend on many different factors. Since 2001, in energy efficiency by 121 percent over last year.
value added per employee has increased by 12 percent in Silicon
Valley, 18 percent in California and 14 percent in the United States. The world market for initial public offerings showed some life in 2009
up 44 percent from the prior year. Silicon Valley’s single offering
The number of patents registered in Silicon Valley declined less than in 2009 was Fortinet, a network security appliances company.
one percent in 2008, while the total number of U.S. patents
decreased by 2.6 percent. Despite the decline, Silicon Valley's The number of merger and acquisition deals in Silicon Valley during
percentage of total registrations in California and the U.S. increased the first three quarters of 2009, represented the same percentage
between 2007 and 2008. of total deals in California (50%) and the U.S. (12%) for 2008.
Overall, Silicon Valley’s patent registrations in 2008 were similar to Silicon Valley has continued to generate new companies and attract
volumes in the prior year; however, when examined by technology, existing companies. Between January 2007 and 2008, the region
registrations are picking up in technologies related to electronic witnessed a net gain of approximately 9,500 establishments, twice
communication, optics, computing and electricity generation. the average annual net gain over the whole period. On average,
Between 2000 and 2008, patents related to Computers, Cameras, between 1995 and 2008, Silicon Valley gained approximately 15,400
Optics, & Other Devices increased by 57 percent, Electricity establishments due to businesses opening or moving in, while
Generation & Circuitry increased by 26 percent, and Engines & losing an average of approximately 10,700 establishments due to
Pumps increased by 53 percent. businesses closing or leaving the region.
Patent registrations in green technology in Silicon Valley are growing. The movement of the region’s business establishments is primarily
During the recent period 2006-2008, more than one hundred contained within California.2 In 2008, 73 percent of businesses
green technology patents were registered in the region, increasing moving into Silicon Valley moved from other regions in California
by seven percent over the prior three-year period. Silicon Valley while 68 percent of businesses moving out of Silicon Valley
accounts for an increasing percentage of green patent activity remained in California.
nationwide. Over the recent period, 12 percent of U.S. solar
patent registrations were registered in the region, up from three
percent in the mid-nineties.
2 This work parallels the findings of Junfu Zhang with the Public Policy Institute of California. In the 2003 “High tech Start-
Ups and Industry Dynamics in Silicon Valley,” Zhang found that 84 percent of establishments relocating out of Silicon
Valley between 1990 and 2001 remained within California.
22
Value Added
Value Added per Employee Table of Contents | 03
Santa Clara & San Mateo Counties, California and U.S.
$140,000 Index at a Glance 06 | 07
Value-Added per Employee (Inflation Adjusted)
120,000
100,000 PEOPLE 12 | 15
80,000
60,000
ECONOMY
40,000 Employment
16-19
20,000
Income
0 20-21
Innovation
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
22-27

Data Source: Moody’s Economy.com
Analysis: Collaborative Economics SOCIETY 28 | 39
Percent Change in Value Added per Employee

2008–2009 1990–2009
Silicon Valley +3.8% +26.1%
California +4.2% +25.3%
United States +1.2% +36.0%
Patent Registrations
Top Cities for Patents Silicon Valley’s Percentage of U.S. and California Patents
PLACE 40 | 53
Registered Patents–2008
60%
San Jose 2,163
Percentage of California and U.S. Patent Registrations
50%
Austin 1,479
San Diego 1,051 40%
Sunnyvale 971 30%
San Francisco 811

20%
Boise 798
10%
Palo Alto 798
0%
G O V E R N A N C E 54 | 57
Houston 688
1993
1995
1997
1999
2001
2003
2005
2007
2008
Fremont 686
Percentage of California Percentage of U.S.
Seattle 646
Data Source: U.S. Patent and Trademark Office
Cupertino 640
Mountain View 600 Number of Patents–2008 Appendices 68 | 72
Redmond 551 Silicon Valley 9,474
Portland 540 California 19,288
Santa Clara 479 United States 77,888
23
Innovation
ECONO
By Technology Area
Silicon Valley
12,000
Other
10,000
Metallurgy
8,000 Manipulation
(of Raw Materials)
& Tools
Separation &
Mixing (of Chemicals
6,000 or Raw Materials)
Chemistry
4,000
Human Necessities
Electricity
2,000 Generation &
Circuitry
Computers,
Cameras, Optics &
Other Devices
0
2000 2001 2002 2003 2004 2005 2006 2007 2008
Note: Other includes Micro/Nano Tech, Textiles & Paper, Synthetic Chemistry, Weapons & Explosives, Construction & Excavation,
Nuclear Physics & Engineering, Engineering Materials, Engines & Pumps, Lighting & Heating/Cooling, Printing & Writing
Instruments,Transportation.
Data Source: U.S. Patent and Trademark Office
Patents Registered by Green Technology
Silicon Valley Percentage of U.S. Green Technology Patents
Silicon Valley Percentage of U.S. Green Technology Patents
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Energy Geothermal Hydro Hybrid Wind Fuel Batteries Solar
Infrastructure Energy Power Systems Energy Cells Energy
1994-96 1997-99 2000-02 2003-05 2006-08

Data Source: 1790 Analytics, Patents by Technology; USPTO Patent File
Venture Capital Investment

Billions of Dollars Invested
Silicon Valley
$30
Billions of Dollars Invested (Inflation Adjusted)
25
20
15
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Data Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, Thomson Reuters
24
Venture Capital by Industry
Venture Capital Investment in Silicon Valley by Industry
Table of Contents | 03
100% Electronics/ Index 2010 Highlights 04 | 05
Instrumentation
Top Growers 90% Computers and

Peripherals
Since 2002 80% Telecommunications

• Industrial/Energy Other*
70% PEOPLE 12 | 15
• Media & Entertainment IT Services
• Biotechnology 60% Networking & Equip
• Medical Devices Media & Entertainment

50%
Semiconductors
ECONOMY
40% Biotechnology Employment
Medical Devices
16-19
30%
Industrial/ Income
Energy
20-21
20% Software
Innovation
Highlighted fields
10% 22-27
indicate longer
term areas
0%
of growth
2002 2003 2004 2005 2006 2007 2008 2009
*Other includes Financial Services, Retailing/Distribution, Business Products & Services, Consumer Products & Services,
Healthcare Services, and other unclassified deals
SOCIETY 28 | 39
Data Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, Data: Thomson Reuters
Venture Capital Investment in Clean Technology

Millions of Dollars Invested
Silicon Valley
$2,000 Cleantech Investment

Millions of Dollars Invested (Inflation Adjusted)
Growth
1,600
2007-09 2008-09
1,200 Silicon Valley +5% -37%
PLACE 40 | 53
Rest of CA +27% -35%
800
400 Silicon Valley

Cleantech VC, 2009
0 55% of California
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
19% of the United States

Data Source: Cleantech GroupTM, LLC (www.cleantech.com)
VC Investment in Clean Technology by Segment

Percentage of Total VC Investment in Clean Technology G O V E R N A N C E 54 | 57
Silicon Valley
100%
Percentage of Total VC Investment
80% Manufacturing/Industrial
in Clean Technology
Agriculture
60%
Water & Wastewater
Air & Environment Appendices 68 | 72
40%
Energy Storage Acknowledgments | 73
20% Materials
Transportation
0%
2008 2009
Data Source: Cleantech GroupTM, LLC (www.cleantech.com)
25
Innovation
ECONO
Initial Public Offerings
Total Number of IPO Pricings
Silicon Valley, California, U.S., and International Companies
300
Number of Priced Initial Public Offerings
Silicon Valley
250 23
Rest of California
27
200 International
60
Rest of U.S.
150
1 Silicon Valley
2 Silicon Valley 5 Rest of CA
100
3 Rest of CA 13 International
162 12 International
50
26 43
0
2007 2008 2009
Note: Location based on corporate address provided by IPOhome.com
Data Source: Renaissance Capital’s IPOhome.com
Mergers & Acquisitions

Number of Deals in Silicon Valley, California, and U.S.
1600 80%
Percentage of California and U.S. Deals

1400 70%
Number of Silicon Valley Deals
1200 60%
1000 50%
800 40%
600 30%
400 20%
200 10%
0 0%
*
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Silicon Valley Deals

Percentage of Total California Deals Percentage of Total U.S. Deals
*Includes data for Quarters 1-3, 2009

Note: Deals include Buyers and Sellers
Data Source: Factset Mergerstat LLC
26
Establishment Churn
San Mateo & Santa Clara Counties Table of Contents | 03
25,000 Index 2010 Highlights 04 | 05
20,000 Index at a Glance 06 | 07
15,000
Establishments
10,000
PEOPLE 12 | 15
5,000
-5,000
ECONOMY
Employment
-10,000
16-19
-15,000
Income
7
8
6
20-21
-9
-9
-9
-0
-0
-0
-0
-0
-0
-0
-0
-0
-9
96
97
98
99
00
01
02
03
04
05
06
07
95
19
19
19
19
20
20
20
20
20
20
20
20
19
Innovation
Firms Moving In Firm Closings
Net Firm Churn 22-27
Firm Openings Firms Moving Out (Gains - Losses)
Data Source: National Establishment Time Series Database (NETS)

SOCIETY 28 | 39
Establishment and Job Churn

Establishments Jobs
1995-1996 2007-2008 1995-1996 2007-2008
Percent of Total
From Rest of California 88% 73% 73% 54%
From Rest of U.S. 12% 27% 27% 46% PLACE 40 | 53
To Rest of California 82% 68% 55% 79%
To Rest of U.S. 18% 32% 45% 21%
G O V E R N A N C E 54 | 57

Appendices 68 | 72
27
Preparing for Economic Success
Graduation rates are making modest
gains, but fewer graduates are meeting
UC/CSU requirements
SOCIETY
W H Y I S T H I S I MP O RTA N T ? Falling two percent over the prior year, the overall dropout rate for
Silicon Valley for the 2007-2008 school year was 10 percent. All
The future success of the region’s young people in a knowledge-based ethnic groups reported falling dropout rates except African
economy will be determined largely by how well elementary and American and Filipino students.The drop out rate among Hispanics
secondary education in Silicon Valley prepares its students for (the largest ethnic group) dropped from 22 to 19 percent.
higher levels of education.
The percentage of 8th graders enrolled Algebra II has remained relatively
How well the region is preparing its youth for postsecondary education constant over the last six years. Enrollment is slightly higher in
can be observed in graduation rates and the percentage of the region (0.2%) than statewide (0.15%). Of those tested in
graduates completing courses required for entrance to the Silicon Valley, 72 percent scored in the advanced level, a drop of
University of California (UC) or California State University (CSU). six percent from the prior year, and eleven percent scored basic
Likewise, high school dropouts are significantly more likely to be or below level, an increase of three percent. Comparatively, up
unemployed and earn less when they are employed than high 13 percent from the previous year, 54 percent of students tested
school graduates. Indicators in early education, such as reading statewide scored at the advanced level while 21 percent scored
proficiency, are highly correlated with later academic success. at basic or below level, a decrease of eleven percent. More Asian
students are enrolling in Algebra II followed by White and Hispanic
students. Asian groups also represent the highest percentage of
HOW ARE WE DOING? students scoring in the advanced level (Asian – 82%, Chinese –
81%, and Asian Indian – 77%).
The region experienced a modest improvement in the graduation rate
of one percent, but a slippage of five percent in the share of Enrollment in the University of California (UC) and California State
graduates who met the UC/CSU requirements. The region’s University (CSU) schools has been growing for the last four years,
overall graduation rate for the 2007-2008 school year was 86 with an overall increase of eight percent. In 2008, enrollment
percent - up from 85 percent the previous year. Graduation rates reached its highest level since the 1996/97 academic year. Two
by ethnicity indicate that Asian (93%), White (92%) and Filipino thirds of the enrollment is in the CSU system whereas one third
(90%) groups had the highest graduation rates with Hispanics is in the UC system. Enrollment has increased in both university
having the lowest at 71 percent. systems since 2003 by over nine percent. Both systems have
exhibited a steady increase in growth since the 1996/97 academic
Forty-seven percent of Silicon Valley graduates met UC/CSU
year, with the exception of the CSU system experiencing a slight
requirements in 2007-2008, down from 52 percent the previous
decline in 2002/03 to 2003/04. As a result of recent budget cuts,
year. Exceeding the average, 68 percent of Asians and 52 percent
CSU officials have recently announced that enrollment will have
of white students met the UC/CSU requirements.
to be slashed by up to 40,000 students in the upcoming school
year.3 Similarly, UC officials indicated that enrollment cuts of up
to six percent will be necessary.4
3 2009, November 10. California State University officials outline enrollment cuts and preview 2010-2011 budget. Retrieved
from http://www.calstate.edu/pa/News/2009/enrollment-budget.shtml
4 Gordon, L. 2009, January 10. University of California officials urge 6% cut in freshmen for fall. Retrieved from
http://articles.latimes.com/2009/jan/10/local/me-ucfreshmen10
28
High School Graduation
Rate of Graduation and Share of Graduates Who Meet UC/CSU Requirements Table of Contents | 03
Silicon Valley High Schools
100% Index at a Glance 06 | 07
Percentage of High School Graduates
86%
85%
80%
Who Meet UC/CSU Requirements
81%
80%
PEOPLE 12 | 15
70%
60%
50%
52%
47%
40% 36% ECONOMY 16 | 27

30%
34%
12%
10%
20%
21%
19%
10%
0%
2006-2007 2007-2008 2006-2007 2007-2008
Graduation Rates % of Graduates Who Meet UC/CSU Requirements Dropout Rates
Notes: 2006-07 marks the first year in which the CDE derived graduate and dropout counts based upon student level data
Data Source: California Department of Education
SOCIETY
Economic Success
28-31
Early Education
32-33
High School Graduation Rates
Arts and Culture
By Ethnicity 34-35
Silicon Valley High Schools, 2007-2008
Percentage of High School Students who Graduated in 4 Years
100% Quality of Health

36-37
90%
95%
93%
92%
86% Safety
80%
38-39
82%
78%
77%
70%
71%
60%
50%
PLACE 40 | 53
40%
30%
20%
10%
0%
Asian White Filipino Pacific American African Hispanic Silicon
Islander Indian American Valley
Total
G O V E R N A N C E 54 | 57

Appendices 68 | 72
29
SOCIETY
Graduates with UC/CSU Required Courses
Percentage of Graduates Who Meet UC/CSU Requirements by Ethnicity
Silicon Valley High Schools, 2007-2008
80%
70%
Percentage of High School Graduates
Who Meet UC/CSU Requirements
68%
60%
50%
52%
47%
40%
44%
High School Student Population By Ethnicity

38%
30% Silicon Valley High Schools, 2007-2008

28%
20%
24%
24%
White
10%
29%
0%
Asian White Filipino American Pacific Hispanic African Silicon
Indian Islander American Valley Hispanic
Asian
Total
23% 33%
<1%
American
Filipino 6% Indian
African American 4%
1% Pacific
*Other 4% Islander
*Other includes students who selected
multiple or did not respond
High School Dropout Rates

Dropout Rate by Ethnicity
Silicon Valley High Schools, 2006-07 and 2007-08
Percentage of High School Students who Dropout
24%
2006-07 2007-08
20%
16%
12%
12%
10%
8%
4%
0%
Hispanic African American Pacific Other* Filipino White Asian Silicon
American Indian Islander Valley
Total
*Other includes students who selected multiple or did not respond
30
PEOPLE 12 | 15
Algebra II Scores
Percentage of Eighth Graders Tested Who Scored at Benchmarks on CST Algebra II Test ECONOMY 16 | 27
Silicon Valley Public Schools
90%
Percentage of Eighth Graders Tested Who Scored at
80%
78%
Benchmarks on CST Algebra II Test
72%
70%
69%
69%
60%
50%
2008
2006
2007
2009
SOCIETY
40%
Economic Success
28-31
30%
Early Education
27%
26%
20% 32-33
16%
6%
13%
10% Arts and Culture

5%
4%
4%
3%
2%
2%
2%
2%
0% 34-35
0%
0%
0%
Advanced Proficient Basic Below Basic Far Below Basic Quality of Health
Data Source: California Department of Education 36-37
Safety
38-39
PLACE 40 | 53
Total Enrollment
University of California and California State Universities
1998 to 2008
700,000
600,000
Number of Students Enrolled
500,000
400,000
300,000
200,000 G O V E R N A N C E 54 | 57
100,000
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
University of California
*2008 Data based upon estimated enrollment figures
Data Source: National Center for Educational Statistics California State University Special Analysis cont. 58 | 67
Appendices 68 | 72
31
Early Education
Disparities persist by ethnicity
in English language arts proficiency.
SOCIETY
Childcare Arrangements
Type of Care for Children 12 Years Old and Younger
60%
50%
When children are subject to positive early childhood – including
attendance in high quality preschool programs – experiences that
Percentage of Children
40%
enhance their physical, social, emotional and academic wellbeing
and skills, they enter school ready to learn and are more likely
30%
to perform better in later school years. Children’s school success
is in part a function of increasing literacy. Research shows that
20%
children who read well in the early grades are far more successful
in later years; and those who fall behind often stay behind when
it comes to academic achievement.5 Success and confidence in 10%
reading are critical to long-term success in school.

0%
2001 2003 2005 2007 2001 2003 2005 2007
H O W A RE W E D O IN G ? Silicon Valley
*Other includes Head Start/State Program, Preschool Childcare Center
California
or Nursery School, Non-Family Member, and Other Source

More than any single source, families are seeking care from multiple Note: Childcare for children receiving 10 or more hours
Grandparent or Family Member
Other*
types of childcare arrangements. Forty percent of the region’s of childcare a week
Data Source: UCLA California Health Interview Survey More than One Source
children experience multiple sources of care. Other sources of Analysis: Collaborative Economics
care including non-family members, nursery schools, and state-
sponsored programs have increased in share. The percentage of
children in the care of a grandparent or other family member
has increased almost seven percent (6.5%) since 2001 while the
share at childcare centers has dropped nearly three percent
(2.5%). Statewide, care by a family member is four percent more Students Entering Kindergarten
prevalent, and in terms of overall trends, family and other types Percentage of Entering Kindergarten Students with Preschool Experience
of care have been declining while childcare center-base care has Santa Clara & San Mateo Counties
increased moderately. 80%
Preschool attendance of entering kindergarteners increased ten percent

in Silicon Valley between 2005 and 2008. Incoming kindergarteners
70%
60%
78%
in Santa Clara County experienced an 11 percent increase in
previous preschool attendance whereas San Mateo County
50% 66%
40%
experienced a 13 percent increase from 2005 to 2008.
30%
In terms of kindergarten readiness, the percentage of children significantly 20%
below teachers’ desired levels of proficiency has continued to
10%
improve in Santa Clara County, but has remained relatively
unchanged in San Mateo County since 2005. Kindergarten 0%
2005 2008
Academics reflects a child’s ability to engage with books and Data Source: Peninsula Community Foundation, Santa Clara County Partnership for School Readiness, United Way Silicon Valley,
recognize letters among other skills. Modest improvement was Applied Survey Research
reported in San Mateo and strong progress in Santa Clara County
since 2005. Following up on San Mateo County kindergarten
students assessed in 2001, 2002 and 2003, Applied Survey Research
recently examined the children’s achievement test scores at third,
fourth and fifth grades. They found that children’s proficiency on
Kindergarten Academics was strongly associated with their
performance in both English and math at third grade.6
Disparities exist in English-Language Arts proficiency by race and
ethnicity: 72 percent of Latinos and 70 percent of African American
students scored at the basic, below basic or far below benchmark
levels. Of all groups, ethnic Chinese children had the largest share
(57%) in the advanced level with an additional 27 percent scoring
at the Proficient level.
5 Snow, C., M.S. Burns & P. Griffin. 1998. Preventing Reading Difficulties in Young Children. Washington, D.C.: National Academy
Press.
6 Applied Survey Research. 2008. ìDoes Readiness Matter? How Kindergarten Readiness Translates into Academic Success.î
(April).
32
Kindergarten Readiness/Teacher Expectations
Children Significantly Below Teachers’ Desired Levels of Proficiency Table of Contents | 03
Percent of Children Below Teachers’ Desired Levels of Proficiency
25% Index at a Glance 06 | 07

20%
PEOPLE 12 | 15
15%
ECONOMY 16 | 27
10%
5%
0%
2005 2008 2005 2008
San Mateo Santa Clara County
SOCIETY
Economic Success
Overall Readiness Kindergarten Academics 28-31
Data Source: Peninsula Community Foundation, Santa Clara County Partnership for School Readiness, United Way Silicon Valley, Early Education
Applied Survey Research
Analysis: Collaborative Economics 32-33
Arts and Culture

34-35
Quality of Health
36-37
Safety
38-39
Third Grade English-Language Arts Proficiency by Race/Ethnicity

San Mateo and Santa Clara Counties, 2009
100% PLACE 40 | 53
90%
English-Language Arts Proficiency Rate
80%
70%
60%
50%
40%
30%
20%
10%
0%
G O V E R N A N C E 54 | 57
e
n
n
se
an
se
er
er
an
o
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sia
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di
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In
an
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A
Note: Ethnic groups not included did not have data available Far Below Basic, Below Basic, and Basic
Proficient and Advanced Special Analysis cont. 58 | 67
Appendices 68 | 72
33
Arts and Culture
Arts organizations are small
but vibrant and reflect the region’s
rich ethnic diversity
SOCIETY
Arts & Culture Budgets
Arts & Culture Organizations with Operating Budgets of over $10 Million
2008
14
W HY I S T HIS I MP O RTA N T ? 12
Art and culture are integral to Silicon Valley’s economic and civic future. 10
Participation in arts and cultural activities spurs creativity and 8

increases exposure to diverse people, ideas and perspectives.
6
Creative expression is essential for an economy based on
innovation. How well the region supports its arts and cultural 4
organizations—especially in relation to household income—is an
2
important measure of our overall vitality.
0
nd
go
x
i
tin
r
y
is
tle
m
ve
le
ni
sc
ol
ie
ia
la
us
at
l
oe
H O W A RE W E D O IN G ?
en
ci
Va
ap
rt
D
Se
A
an
Ph
D
ne
Po
on
n
Fr
Sa
in
lic
M
n
Si
Sa
Although the number of new arts and culture organizations slowed Data Source: National Center for Charitable Statistics
Analysis: 1st Act Silicon Valley
in 2008 due to the current recession, Silicon Valley is home to a
vibrant arts and culture community. Seventy percent of all Silicon
Valley cultural organizations are less than 20 years old. And,
reflecting the region’s cultural diversity, more than 30 percent of Foundation Support of Arts & Culture Organizations
all new organizations are ethnically focused. Percentage of Total Giving by Silicon Valley’s 25 Largest Foundations
2008
Typically, the region’s arts and culture organizations are small, and
compared to other regions, very few have annual operating budgets 25%
over $10 million. Of comparatively sized regions, only Austin has

fewer arts and culture groups with budgets over $10 million. At 20%
the same time, two thirds (67%) of Silicon Valley arts organizations
are very small, volunteer-driven, community groups operating on 15%
annual budgets of less than $50,000.

10%
Funding is a challenge. Compared to the national average, Silicon Valley
arts and culture groups generate a greater portion of their 5%
revenues (10% more) from earned income but receive a significantly
lower portion of support from individual contributions (17% less). 0%
o
y
tle
go
gh
nd
is
tin
le
sc
Local investment in the area of arts and culture by foundations is
ol
ur
ie
la
at
us
ci
Va
ap
D
rt
sb
Se
an
ne
Po
on
tt
Fr
Sa
in
Pi
currently trailing behind that of other regions. In 2008, only nine
lic
n
Si
Sa
percent of the investments made by the top 25 foundations in Data Source: Foundation Center Database
Silicon Valley supported arts and culture organizations. Despite
the accomplishments of these organizations, funding has been low.
Foundation Giving
Percentage of Local Foundation Total Giving Invested in Region
25 Largest Foundations, 2008
80%
70%
60%
50%
40%
30%
20%
10%
0%
y
is
gh
go
nd
tle
tin
o
le
sc
ol
ur
ie
la
at
us
l
Va
ci
ap
rt
D
sb
Se
A
an
ne
Po
on
n
tt
Fr
Sa
in
Pi
lic
M
n
Si
Sa
Data Source: Foundation Center Database

34
Funding Sources for Arts & Cultural Organizations
2008 Table of Contents | 03
7% PEOPLE 12 | 15
7%
ECONOMY 16 | 27
50% Nationwide
31%
SOCIETY
Economic Success
28-31
Early Education
32-33
Arts and Culture

34-35
Quality of Health
Earned
36-37
Individuals Safety
38-39
Foundations
Government
Corporations
PLACE 40 | 53
8%
8%
9%
Silicon Valley G O V E R N A N C E 54 | 57
14% 60%
Appendices 68 | 72
Data Source: Americans for the Arts

Analysis: 1st ACT Silicon Valley
35
Quality of Health
Progress is being made in early child
health care in terms of rising
immunization rates and dropping
SOCIETY
Care Sensitive Conditions (ACSCs) represent twelve health
conditions that are serious enough to result in hospital admissions
mortality rates. but could have been prevented if they had been treated earlier
in the outpatient or ambulatory care setting. Avoiding or reducing
such admissions should result in reduced healthcare costs as well
W HY I S T HI S I M PO RTA N T ? as reduced morbidity and suffering for patients with these diseases.
Poor health outcomes generally correlate with poverty, poor access Over the longer period, between 2003 and 2008, hospitalizations for
to preventative health care, lifestyle choices, and education. Early these preventable conditions have declined in both the Silicon
and continued access to quality, affordable health care is important
Valley (-11%) and California (-15%). Recently, from 2007 to 2008,
to ensure that Silicon Valley’s residents are healthy and prosperous.
For instance, timely childhood immunizations promote long-term there has been a slight increase in the preventable hospitalization
health, save lives, prevent significant disability and reduce medical rate in both Silicon Valley (1%) and California (0.4%). This increase
costs. Health care is expensive, and individuals with health insurance comes after two consecutive years of declining rates. In 2008,
are more likely to seek routine medical care and to take advantage Silicon Valley experienced 330 fewer preventable hospitalizations
of preventative health-screening services. per 100,000 adults than the state as a whole. The difference
between the rates in the Silicon Valley and California has fluctuated
Infant mortality, measured as the number of deaths per live births, is
one of the fundamental indicators of public health. Population over the past six years, but has primarily been on the decline as
characteristics of a region can be linked to certain health problems. the rates in both regions have declined, with California's at a
For instance, a large percentage of Silicon Valley’s residents were slightly faster rate.
born outside the U.S. Nationally, tuberculosis cases are more
common among minority and foreign-born populations; and in
2008, foreign-born residents were 10 times more likely to contract
Tuberculosis than U.S.-born residents.7
Child Immunization Rate
H O W A RE W E D O I N G ? Percentage of Children Ages 19-35 Months

Santa Clara County, California, and United States
The infant mortality rate in Silicon Valley continued to drop in 2009, 90%
with only four in every thousand births ending in death for the
80%
child. From the high of 5.5 deaths per thousand in 1997, the rate
of child deaths at birth has fallen 1.5 points. California, on the 70%
whole, has been experiencing the reverse of Silicon Valley; 2009
saw infant mortality rates rise to seven per thousand births. In 60%
1994 and 1995, California and Silicon Valley were near parity in 50%
terms of infant deaths but since then state and local trends have
differed greatly. 40%
30%
Silicon Valley showed more progress than California and the United
States in 2008 as immunizations of children between 19 and 35 20%
months reached 84 percent – matching the highest percentage
on record (in 2004). California and the nation as a whole lagged 10%
behind at 80 percent and 78 percent respectively. 0%

1998 1999 2000 2001 2002 2003 2004 2005* 2006 2007* 2008
Although access to health insurance has overall remained fairly steady *2005 and 2007 data not available for Santa Clara County
among Silicon Valley residents, the percentage of the population Note: Immunizations based upon rate of children receiving: 4 or more doses of DTaP, 3 or more doses
of poliovirus vaccine, 1 or more doses of any MMR, 3 or more doses of Hib, and 3 or more
Santa Clara County
with health insurance varies widely based upon language spoken doses of HepB California
at home. Since 2001, the percentage of all Silicon Valley residents Data Source: Center for Disease Control, National Center for Health Statistics
United States
with health insurance has remained between 90 and 92 percent.
In 2007, 96 percent of the population who spoke English at home
had health insurance, compared with just 69 percent of Chinese Healthy People 2010 Objective:
speakers. The percentage of population who spoke Chinese at
home showed the largest drop in health insurance coverage, 90% of children immunized by 24 months of age
shrinking by 24 percent since 2005.Vietnamese speakers accounted
for the largest growth in coverage, increasing 15 percent since Type of Current Health Coverage Source
2005. Compared to the state and the nation, a much higher
proportion of Silicon Valley’s children and adults are covered by For Residents Under 65 Years of Age
Santa Clara and San Mateo Counties, 2007
health insurance. In Silicon Valley, 95 percent of residents under
18 years of age have health insurance, compared with 89 percent Healthy Families/ CHIP & Other Public 2%
in California and 90 percent nationwide. Roughly 85 percent of
the region’s 18- to 64-year-old population is insured, compared
to 77 percent in California and 80 percent in the United States. Privately Purchased 7% Employment-
based
When people do not have regular access to healthcare either through 72%
a good insurance policy or some other means, people tend to Medicaid 9%
wait until they find themselves in an urgent situation before they
seek attention for an otherwise preventable condition. Ambulatory
Uninsured 10%
Data Source: California Health Interview Survey
7 Centers for Disease Control and Prevention, Division of Tuberculosis Elimination. Analysis: Collaborative Economics
36
Infant Mortality Rate
Number of Deaths per 1,000 Live Births Table of Contents | 03
Santa Clara & San Mateo Counties, California
7 Index at a Glance 06 | 07
6
Number of Deaths per 1,000 Live Births

5 PEOPLE 12 | 15
3
ECONOMY 16 | 27
2
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Data Source: California Department of Public Health, Center for Health Statistics Silicon Valley
California
SOCIETY
Percentage of Population with Health Insurance Economic Success
28-31
By Language Spoken at Home
Santa Clara and San Mateo Counties Early Education
32-33
100%
Arts and Culture
90% 34-35
80% Quality of Health
Health Insurance by Age Group 36-37
70%
2008
60% Safety
SV CA US 38-39
50%
40% Under 18 years 95% 89% 90%

30%
18 to 64 years 85% 77% 80%
20% PLACE 40 | 53
65 years or over 98% 98% 99%
10%
0% Note: Data is for civilian noninstitutionalized population

Chinese Spanish Vietnamese Other English Silicon Valley Data Source: U.S. Census Bureau, American Community Survey
Total Analysis: Collaborative Economics
Data Source: California Health Interview Survey
2001 2003 2005 2007
Preventable Hospitalizations
Across Twelve Targeted Health Conditions Treatable in an Outpatient Setting
Silicon Valley and California
1600
1400
Hospital Discharge Rate per 100,000 Adults
G O V E R N A N C E 54 | 57
1200
1000
800
600
400
Appendices 68 | 72
200 Acknowledgments | 73
0
2003 2004 2005 2006 2007 2008
Note: 12 PQIs are grouped together for an overall Preventable Hospitalization indicator. Combining data
may result in double counting of persons if they are discharged from the hospital more than once. Silicon Valley
Data Source: Office of State Health and Planning Department; U.S. Census Bureau,
American Community Survey California
37
Safety
Adult and juvenile felony offenses continue
to drop, but child welfare services are
coming under new pressure.
SOCIETY
Child Abuse
Substantiated Cases of Child Abuse per 1,000 Children
Silicon Valley and California
W HY I S T HI S I M PO RTA N T ?
Substantiated Cases of Child Abuse, per 1,000 Children

14
The level of crime is a significant factor affecting the quality of life in 12

a community. Incidence of crime not only poses an economic
burden, but also erodes our sense of community by creating fear, 10
frustration and instability. Occurrence of child abuse/neglect is
extremely damaging to the child and increases the likelihood of 8
drug abuse, poor education performance and of criminality later
in life. Research has also linked adverse childhood experiences, 6
such as child abuse/neglect, to poor health outcomes including
4
heart disease, depression, and liver and sexually transmitted
diseases. Safety for the community starts with safety for children 2
in their homes.
0
H O W A RE W E D O I N G ?
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Until 2003, the rate of substantiated child abuse cases in Silicon Valley
remained consistently at half the statewide average. Since then,
the trend began to rise while California rates fell. The most Data Source: California Department of Social Services, UC Berkeley Center for Social Services Research
recent year’s data shows a steep decline in Silicon Valley’s rate of Analysis: Collaborative Economics
child abuse, dropping from 7.1 per 1,000 children in 2007 to 4.5
in 2008.
Substantiated Cases
The recent decline in cases from 2007 to 2008 can be explained in 2007 2008 % Change
part by large funding cuts in social services programs for children.
As the State cuts the number of social workers in child welfare Silicon Valley 4,172 2745 -34%
programs, fewer reports of child abuse and neglect are investigated
California 107,372 96,575 -10%
and more abused children are left without help.8 Unfortunately,
with more cuts to child protective programs, it is expected that
the rate of substantiated child abuse cases will further decline.
In the past year, California has directly cut $121 million in child
Felony Offenses
welfare and foster care programs.9 This combined with indirect
cuts is estimated to cost the state 1,318 social workers in the Felony Offenses per 100,000 Adults and Juveniles
Emergency Response program, resulting in roughly 250,000 reports Santa Clara & San Mateo Counties and California
of child abuse and neglect will not be investigated in the coming year.10
Both California and Silicon Valley witnessed a drop in felony offenses 2000
by adults; seven percent in California and five percent in Silicon
Valley. This trend represents a third and fourth consecutive year 1800
Rates per 100,000 Adults and Juveniles
of decline for California and Silicon Valley, respectively.

1600
Since 2006, the number of juvenile felony offenses has seen a downward
trend in Silicon Valley. In 2008, juvenile felony arrests in Silicon
Valley showed a decline of four percent from 2007 levels, the 1400
second consecutive year of decline. Overall, from 1996 to 2008,
juvenile offenses have fallen by 49 percent. California has charted 1200
a steadier downward course over the same 14 year period;
starting at a high of 2,011 offenses per 100,000 in 1996 which 1000
leveled off in 2003.
800
For the third consecutive year adult drug offenses dropped, reaching
an all-time low of 327 per 100,000 adults_a decrease of 10 percent
600
from 2007-2008. The last five years have seen only minor changes
in the number of patients checked into a drug and alcohol
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2007
rehabilitation center.
California Adults Silicon Valley Juveniles
The past five years have seen an average of 6.7 percent increase per California Juveniles Silicon Valley Adults
year in the number of juvenile felony offenses. At the same time,
juvenile patients in rehabilitation clinics had been on the rise from Note: Felony offenses include violent, property, and drug offenses
Data Source: California Department of Justice
2005 to 2007 but saw a drop of 19 percent in 2008. Analysis: Collaborative Economics
Over the last two school years, expulsions due to violence or drugs
have decreased moderately by 0.2 per 1,000 enrolled students Percent Change in Felony Offenses
in Silicon Valley and by 0.4 statewide. Silicon Valley has traditionally per 100,000 Adults or Juveniles in the Region
trended 0.8 points lower than the state. Silicon Valley has averaged 2006-2008
two expulsions per 1,000 students while California has averaged
2.8 expulsions per 1,000 over the last five years. Adults -11%
8Mecca, F.J. (2008, January 25). Child welfare services funding cut. Retrieved from Juveniles -5%
http://www.cwda.org/downloads/priorities/budget2008/BudgetMemo9.pdf
9 Mecca, F.J. (2009, October 13). Cuts in California how billions in budget cuts will affect the Golden State. Retrieved from
http://projects.nytimes.com/california-budget/Social%20Services
10 Mecca, F.J. (2009, May 22). Child welfare services and foster care program cuts for abused and neglected children.
38 Retrieved from http://www.cwda.org/downloads/priorities/budget2009/BudgetMemo_07.pdf
Drug Offenses & Services – Adult
Adult Drug & Alcohol Rehabilitation Clients & Felony Drug Offenses Table of Contents | 03
Santa Clara and San Mateo Counties
14,000 500 Index 2010 Highlights 04 | 05
Number of Drug and Alcohol Rehabilitation Clients
Felony Drug Offense Rate per 100,000 Adults

12,000 400 Special Analysis 08 | 11
8000 300 PEOPLE 12 | 15
6000 200
ECONOMY 16 | 27
3000 100
0 0
FY 2000
FY 2001
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
Drug and Alcohol

Felony Drug Offenses
Rehabilitation Clients
Note: Data is in fiscal years
SOCIETY
Data Source: California Department of Justice; Santa Clara County Department of Alcohol & Drug Services; Economic Success
Alcohol & Drug Services Research Institute; San Mateo County Human Services Agency, Planning & Evaluation 28-31
Drug Offenses & Services – Juvenile Early Education
32-33
Juvenile Drug & Alcohol Rehabilitation Clients & Felony Drug Offenses
Santa Clara & San Mateo Counties Arts and Culture
34-35
Number of Alcohol and Drug Rehabilitation Clients
1500 200 Quality of Health

36-37
Felony Drug Offense Rate per 100,000

1200 160 Safety
38-39
900 120
600 80
PLACE 40 | 53
300 40
0 0
FY 2000
FY 2001
FY 2002
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
Juvenile Drug Clients Felony Drug Offenses

Note: Data is in fiscal years
Data Source: California Department of Justice; Santa Clara County Department of Alcohol & Drug Services;
Alcohol & Drug Services Research Institute; San Mateo County Human Services Agency, Planning & Evaluation
Public School Expulsions Due to Violence/Drugs

G O V E R N A N C E 54 | 57
Expulsions Per 1,000 Enrolled K-12 Students
Silicon Valley , California
3.5
Expulsions per 1,000 Enrolled Students
3.0
2.5
2.0
Appendices 68 | 72
1.5
Silicon Valley
California
1.0
0.5
0.0
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

39
Environment
The region is making progress in
environmental improvements; however,
more progress must be made toward
PLACE
achieving greater regional sustainability.
W H Y I S T H I S I MP O RTA N T ? HOW ARE WE DOING?

Water is one of the region’s most precious resources, serving a Residents of Silicon Valley are reducing their water consumption. From
multitude of needs, including drinking, recreation, supporting 2000 to 2008, gross per capita consumption fell by four percent
aquatic life and habitat, and agricultural and industrial uses. Water and since 2007, gross per capita consumption fell by roughly one
is also a limited resource because water supply is subject to percent.The percentage of total water used that is recycled grew
changes in climate and state and federal regulations. Sustainability by roughly two percent from 2000 to 2008.
in the long-run requires that households, workplaces and agricultural
Electricity consumption per capita is a measure of efficiency, and
operations efficiently use and reuse water.
consumption per capita in Silicon Valley is higher than the rest
Energy consumption impacts the environment with the emissions of of the state. Over the long-term, consumption per capita has
greenhouse gases and atmospheric pollutants through the increased at a faster rate statewide than in Silicon Valley. Between
combustion of fossil fuels. Sustainable energy policies include 1998 and 2008, electricity consumption per capita increased by
increasing energy efficiency and the use of clean renewable energy four percent in the Valley and 17 percent in the rest of California.
sources. Electricity productivity illustrates the degree to which While electricity consumption per capita in California has grown
the region’s production of economic value is linked with its by 0.1 percent since 2007, consumption levels in Silicon Valley
electricity consumption. have declined by less than one percent.
Environmental quality directly affects the health of all residents and The economic value produced per megawatt hour consumed is a
the ecosystem in the Silicon Valley region, which is in turn affected measure of the region’s electricity productivity. In 2008, Silicon
by the choices that residents make about how to live—how we Valley's electricity productivity was 14 percent higher than that
chose to access work, other people, goods and services; where of California. Electricity productivity in Silicon Valley has increased
we build our homes; how we use our natural resources; and how four percent since 2003, while California increased by three
we enforce environmental guidelines. percent. Silicon Valley has seen an increase in electricity productivity
of one percent since 1998, while California has had an increase
Preserving open space protects natural habitats, provides recreational
of 10 percent.
opportunities, focuses development, and maintains the visual
appeal of our region. Further, climate change threatens to displace The new capacity of solar power installed in the region fell back 24
wildlife populations from their current habitats, and this increases percent in 2009 from the prior year and increased by 22 percent
the importance of maintaining open space corridors that may in the rest of the state. Silicon Valley's share of the state's solar
permit migration to new habitats. Protected lands include habitat capacity added to the grid through the California Solar Initiative
and wildlife preserves, waterways, agricultural lands, flood control decreased slightly to 11 percent in 2009. Residential and
properties, and parks. Commercial sectors accounted for 89 percent and seven percent,
respectively, of the solar capacity added in the Silicon Valley.
In 2009, protected open space made up 31 percent of Silicon Valley's
total acreage. Since 2008, the amount of protected open space
increased 2.1 percent. The total protected lands acreage in the
region grew 44 percent and the amount of protected land accessible
to the public increased by 43 percent from 2002 to 2009.
40
Water Resources
Gross Per Capita Consumption & Share of Consumption from Recycled Water Map of Silicon Valley 02 |
Silicon Valley BAWSCA Members
180 4.5%
Per Capita Index 2010 Highlights 04 | 05
Recycled Percentage of Total Water Used

Water Consumption 160 4.0% Index at a Glance 06 | 07
Gross Per Capita Consumption

(Gallons Per Capita Per Day
2007–2008 140 3.5% Special Analysis 08 | 11
-1.3% 120
100
3.0%
2.5% PEOPLE 12 | 15
80 2.0%
60 1.5%
40 1.0%
20 0.5% ECONOMY 16 | 27
0 0.0%
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
FY
FY
FY
FY
FY
FY
FY
FY
FY
Gross Per Capita Consumption (GPCPD) Percentage of Total Water used in
Silicon Valley that is recycled
Data Source: Bay Area Water Supply & Conservation Agency Annual Survey
SOCIETY 28 | 39
Electricity
Electricity Productivity and Electricity Consumption per Capita
Santa Clara & San Mateo Counties, Rest of California
of GDP Relative to Consumption of Megawatthours)
Electricity Productivity (Inflation Adjusted Dollars
10,000 9,000
9000 8000 Percent Change of
Electricity Consumption per Capita
8000 7000 Electricity Productivity

7000
2003–2008 2007–2008
(kWh per person)
6000
6000
5000
PLACE
Environment
5000 SV +3.9% +0.1%
4000 40-43
4000
3000
3000 CA +3.2% -1.4% Transportation
2000 2000 44-45
1000 1000 Land Use
0 0 46-47
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Housing
Silicon Valley Electricity Consumption per Capita Rest of CA Electricity Consumption per Capita 48-51
Silicon Valley Electricity Productivity Rest of CA Electricity Productivity
Commercial Space
Data Source: Moody’s Economy.com; California Energy Commission; State of California, Department of Finance 52-53
G O V E R N A N C E 54 | 57

Appendices 68 | 72
41
Environment
PLACE
Solar Installations
Capacity (kW) Installed Through the California Solar Initiative
Silicon Valley
9,000
8,000
11% of California’s solar 7,000
capacity added in 2009 Installed kilowatts

6,000
was in Silicon Valley 5,000
4,000
3,000
2,000
1,000
0
2007 2008 2009
Data Source: California Public Utilities Commission, California Solar Initiative
Solar Installations by Sector

Capacity (kW) Installed Through the California Solar Initiative
Silicon Valley
6,000
Growth in Solar Capacity

(kW) installed through the 5,000
California Solar Initiative

4,000
2008–2009
Installed kilowatts
Silicon Valley -24% 3,000
Rest of California 22% 2,000
1,000
0
Non-Profit Government Residential Commercial
Data Source: California Public Utilities Commission, California Solar Initiative 2007 2008 2009
42
Protected Open Space
Permanently Protected Open Space Map of Silicon Valley 02 |
Silicon Valley
350,000
300,000 Index at a Glance 06 | 07

250,000
200,000
PEOPLE 12 | 15
Acres
150,000 Protected Lands
100,000
ECONOMY 16 | 27
50,000
Accessible Protected Lands
0
2002
2003
2004
2005
2006
2007
2008
2009
Includes data for the cities of Atherton, Belmont, East Palo Alto, Foster City, Menlo Park, Portola Valley, Redwood City, San Carlos,
San Mateo, Woodside, Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill,
Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga, Sunnyvale, Scotts Valley, Union City, Newark, Fremont
Data Source: GreenInfo Network
Analysis: Collaborative Economics SOCIETY 28 | 39
PLACE
Environment
40-43
Transportation
44-45
Land Use
46-47
Housing
48-51
Commercial Space
52-53
G O V E R N A N C E 54 | 57

Appendices 68 | 72
43
Transportation
Silicon Valley drivers are driving less
and shifting to cleaner vehicles.
PLACE
Vehicle Miles of Travel per Capita and Gas Prices
10,000 $4.00
Average Annual Gas Prices (inflation adjusted)

8,750 3.50
Vehicle Miles of Travel per Capita

7,500 3.00
The modes of transportation we use to access work, other people,
goods, and services, including the type of cars we drive, impacts 6,250 2.50
the quality of our air and the region’s transportation infrastructure.
5,000 2.00
Motor vehicles are the major source of air pollution for the Bay
Area. By utilizing alternative modes of transportation, such as 3,750 1.50
public transit and walking, as well as choosing vehicles that are
more fuel efficient or use alternative sources of fuel, residents 2,500 1.00
can reduce their ecological footprint. 1,250 0.50
Shifting from carbon-based fuels to renewable energy sources and 0 0.00

reducing consumption together have the potential for wide-
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
reaching impact on our environmental quality in terms of local
air quality and global climate change.
Note: Gas prices are average annual retail gas prices for California
Data Source: California Department of Transportation; Energy Information Administration, U.S. Department of Energy;
California Department of Finance
H O W A RE W E D O IN G ? Analysis: Collaborative Economics
Vehicle miles of travel (VMT) have been declining as gas prices have Percent Change
risen. From 2007 to 2008, gas prices in California grew by ten 2007–2008
percent while VMT in Silicon Valley decreased by four percent.
This trend began in 2002: since then gas prices have increased VMT per Capita –4%
91 percent and while VMT has decreased 14 percent.
Gas Prices +10%
Silicon Valley residents have been consuming less fuel on a per capita
basis since 2000. Between 2000 and 2008, fuel consumption per
capita dropped by 13 percent in the region, compared with a two
percent decline in the rest of the state. Although fuel consumption Fuel Consumption
per capita was higher in Silicon Valley in 2000 than in the rest of Per Capita Fuel Consumption
California, this trend has reversed. In 2008, Silicon Valley residents San Mateo & Santa Clara Counties and the Rest of California
consumed roughly 50 gallons of fuel less per person than the rest 550
of Californians.
500
Silicon Valley commuters are using more alternatives to driving alone.
In 2008, 75 percent of commuters drove alone, down from 78 450 496 494 496 483 482
percent from five years before. 400 455 434 433
Gallons of Fuel Consumption per Capita
In 2009, transit ridership in Silicon Valley decreased slightly (1%), but 350
has remained at roughly 28 rides per capita since 2008.
300
In 2008, Silicon Valley accounted for eight percent of newly registered 250
gasoline vehicles in California and 13 percent of newly registered
alternative fuel vehicles. Alternative fuel vehicles comprise a 200
growing percentage of newly registered vehicles. In 2008, alternative 150

fuel vehicles accounted for 3.1% of newly registered vehicles in
100
the region, compared with 0.1% in 2000.
2008*
2000
2005
2007
50
0
*2008 figures are projections
Note: Fuel Consumption consists of gasoline and diesel fuel usage on all public roads
Data Source: California Department of Transportation, California Department of Finance
Per Capita Fuel Consumption

2000–2008
Silicon Valley –13%
Rest of California -2%
44
Means of Commute
Percentage of Workers Map of Silicon Valley 02 |
100%
90%
70%
Percentage of Workers
60% PEOPLE 12 | 15
50%
40%
30%
78% 75%
ECONOMY 16 | 27
20%
10%
0
2003 2008
Walked Other Means Worked at Home
Public Transportation Carpooled Drove Alone

Note: Other means includes taxicab, motorcycle, bicycle and other means not identified separately within the data distribution.
Taxicabs are included in 2002 (2003?) Public Transportation data and 2008 Other Means data.
SOCIETY 28 | 39
Data Source: U.S. Census Bureau, American Community Survey
Transit Use
Number of Rides per Capita on Regional Transportation Systems
35
30
Number of Rides per Capita
25
20
15
10
PLACE
Environment
5 40-43
Transportation
0
44-45
2002 2003 2004 2005 2006 2007 2008 2009
Note: Date is in fiscal years Land Use
Data Source: Altamont Commuter Express, Caltrain, Sam Trans,Valley Transportation Authority, California Department of Finance
Alternative Fuel Vehicles Housing

48-51
Alternative Fuel Vehicles as a
Percentage of Newly Registered Vehicles by Fuel Type Commercial Space
Silicon Valley and the Rest of California 52-53
3.5%
3.0% Natural Gas G O V E R N A N C E 54 | 57

Electric
Hybrid
2.5%
18X
2.0%
1.5%
22X Special Analysis cont. 58 | 67

1.0%
Appendices 68 | 72
0.5% Acknowledgments | 73
0.0%
2000 2008 2000 2008
Data Source: R.L. Polk & Co.
45
Land Use
Transit-oriented development continues
to expand, and to varying levels of success,
cities are developing permitting to reflect
PLACE
growing demand for installation of
renewable energy systems.
W HY I S T HIS I MP O RTA N T ? Since 2008, Silicon Valley cities have implemented new green building
codes. Up from 19 cities in 2008, 2009 now boasts 21 cities with
By directing growth to already developed areas, local jurisdictions can green building codes. Of those 19, thirteen have mandatory
reinvest in existing neighborhoods, use transportation systems building codes for residential or commercial, new construction
more efficiently, and preserve the character of adjacent rural and retrofits. Even beyond that, nine of the cities have enacted
communities. Focusing new commercial and residential incentives and sanctions to enforce their policies.
developments near rail stations and major bus corridors reinforces
Historically, California has been looked to as the model for environmental
the creation of compact, walkable, mixed-use communities linked
progress; the renewable energy movement in Silicon Valley is
by transit. This helps to reduce traffic congestion on freeways,
quickly living up to this reputation. In Silicon Valley, solar energy
preserve open space near urbanized areas, and improve energy
is taking the lead with 4,762 installations producing 216 megawatts
efficiency. By creating mixed use communities, Silicon Valley gives
of electricity (962 permits have been issued this year alone). An
workers alternatives to driving alone and increases access to jobs.
average permitting period of seven days and fees as low as
The adoption of green building policies fosters energy efficiency;
$35 have helped keep the barrier to entry low for those with
however, the length of a municipality’s required permitting process
solar aspirations.
can pose significant barriers especially to the widespread adoption
of renewable energy installations. Permit times for wind, geothermal and electric vehicle charging stations
tend to take longer on average than solar. Required permit times
In recent years, residents and businesses have become increasingly
average 12.6 days for wind installations, nine days for geothermal
interested in investing in renewable energy installations. For the
average and 12.2 days for electric vehicle charging stations. The
first time this year, we examine our region’s growing clean energy
longest permit times were experienced by geothermal and electric
generation capacity and the related permitting requirements,
vehicle charging stations for which some cities require six to eight
as well as the expansion of electric vehicle charging stations in
weeks to issue a permit. The shortest permitting times required
the region.
by a city consisted of waits measured in hours and were equally
as efficient across each renewable energy category.
H O W A RE W E D O IN G ?
Silicon Valley is continuing its progress in increasing the density levels
for new residential construction, and 2009 marks the fifth year
in which newly-approved housing has averaged more than 20
units per acre. This streak comes after five years (2000-2004) of
new residential construction averaging a density almost half the Residential Density
current trend. Since 1998, the unit per acre density of new Average Units Per Acre of Newly Approved Residential Development
housing has increased from 6.6 to a high of 22.75 in 2006. Silicon Valley
Another trend, that is becoming the norm rather than the exception, 25
is new housing being located in close proximity to mass transit.
More than 60 percent of new residential construction is being
sited within walking distance of Silicon Valley’s transit infrastructure; 20
Average Dwelling Units per Acre
2009 represents the second year in a row that this holds true.
This new trend follows a pattern of steady increases, starting in 2004. 15
In a reversal from 2008, 2009 marks the second largest increase in

new, non-residential construction near transit, adding more than 10
four million square feet of buildings.
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Note: Beginning in 2008, the Land Use Survey expanded its geographic definition of Silicon Valley to include cities northward
along the U.S. 101 corridor (Brisbane, Burlingame, Millbrae, San Bruno and South San Francisco)
Data Source: City Planning and Housing Departments of Silicon Valley
46
Housing Near Transit
Share of New Housing Units Approved That Will Be Map of Silicon Valley 02 |
Within 1/4 Mile of Rail Stations or Major Bus Corridors
Silicon Valley Table of Contents | 03
70%
60%
PEOPLE 12 | 15
50%
40%
30%
ECONOMY 16 | 27
20%
10%
0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
along the U.S. 101 corridor (Brisbane, Burlingame, Millbrae, San Bruno and South San Francisco)
Data Source: City Planning and Housing Departments of Silicon Valley SOCIETY 28 | 39
Development Near Transit

Change in Non-Residential Development Near Transit
Silicon Valley
7,500,000
6,500,000
5,500,000
Net Square Feet
4,500,000
3,500,000
2,500,000
1,500,000
PLACE
Environment
500,000 40-43
(500,000) Transportation
44-45
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Land Use
46-47
Non-residential development further than 1/4 mile from transit
Housing
Non-residential development near transit
48-51
along the U.S. 101 corridor (Brisbane, Burlingame, Millbrae, San Bruno and South San Francisco) Commercial Space
Time Required for Permitting Process for Renewable Energy Installations G O V E R N A N C E 54 | 57
Average Shortest Longest Number of Number of

Installation Permitting Permitting Permitting Cities Above Cities Below
Type Length (Days) Length (Days) Length (Weeks) Average Average
Solar Systems 8 1 3-4 7 16

Wind Turbines 13 0 3-4 6 3 Appendices 68 | 72
Geothermal
Systems 9 0 6-8 7 4
Electric Vehicle
Charging Stations 12 0 6-8 5 5
47
Housing
As a result of the financial crisis, housing
costs are falling.
PLACE
W HY I S T HI S I M PO RTA N T ? The financial crisis and high foreclosure rates have been significant
factors in the rising home affordability index. Since 2007, the
The affordability of housing affects a region’s ability to maintain a viable home affordability index has been on the rise in the Silicon Valley
economy and high quality of life. Lack of affordable housing in a having hit its six-year low in 2007 at 22 percent. In 2009, 54
region encourages longer commutes, which diminish productivity, percent of first-time home buyers in Silicon Valley could afford
curtail family time and increase traffic congestion. Lack of affordable to buy a median priced single family home. This same trend can
housing also restricts the ability of crucial service providers— be seen in other parts of California, with Sacramento consistently
such as teachers, registered nurses and police officers—to live reporting the highest affordability index of the five communities
in the communities in which they work. The current financial included in this analysis. Since 2003, 2009 marks the highest
crisis is greatly adding to housing pressures in the region. affordability index for all five California communities and the State
as a whole.
H O W A RE W E D O I N G ? With roughly 5,400 home foreclosures in Silicon Valley in 2009,

residential foreclosure activity dropped by 39 percent since its
Affordable housing units accounted for eleven percent of new housing peak in 2008. Similarly, foreclosure activity in California has also
units in the region in 2009. This share has doubled since 2008, been ebbing. In 2009, there were 139,115 foreclosure sales across
showing an increased emphasis on providing affordable new the state, down by 42 percent compared with 2008. In the first
housing in Silicon Valley. At the same time, the push for affordable three quarters of 2009, residential foreclosure sales accounted
housing is tempered by the fact that the eleven percent amounts for nearly one quarter of home sales in the region. The cities
to 1,273 units-- 131 fewer units than in 2008. This can be put with the lowest levels of foreclosure activity include Atherton,
into perspective when taking into account the explosive growth Palo Alto, Los Altos, Portola Valley, with foreclosures accounting
in housing that 2008 witnessed; in total 25,765 new housing units for two percent of home sales. Silicon Valley cities where
were approved. In response to the economic downturn, in 2009, foreclosure activity is higher than the regional average, and
47 percent fewer new housing units were approved for development. foreclosures contribute more than one third of home sales include
Brisbane (43%), San Martin (42%), Gilroy (40%), Newark (39%),
In the past year, average rents declined six percent from 2008, the first
Union City (38%), Montara (38%), Daly City (38%), South San
drop in rents since 2005. Rental rates have been growing over
Francisco (35%).
the longer-term, increasing ten percent since 2005.
Building Affordable Housing

Total New Housing Units Approved, Including New Affordable Housing Units
Silicon Valley
28,000
24,000
20,000
16,000
12,000
8,000
4,000
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Regular Units Affordable Units
Note: Beginning in 2008, the Land Use Survey expanded its geographic definition of Silicon Valley to include cities northward along the U.S.
101 corridor (Brisbane, Burlingame, Millbrae, San Bruno and South San Francisco)
48
Rental Affordability
Apartment Rental Rates at Turnover Compared to Median Household Income Map of Silicon Valley 02 |
$2,000 $100,000
Median Household Income (Inflation Adjusted)

1,800 90,000
1,600 80,000
Average Rent (Inflation Adjusted)
1,400 70,000
PEOPLE 12 | 15
1,200 60,000
1,000 50,000
800 40,000
600 30,000
ECONOMY 16 | 27
400 20,000
200 10,000
0 0
*
2002
2003
2004
2005
2006
2007
2008
2009
Average Rent Median Household Income
* Estimate based on Quarters 1-3, 2009

Data Source: Real Facts; United States Census Bureau, American Community Survey SOCIETY 28 | 39
2008–2009
Average Rent -6%
Home Affordability
Percentage of Potential First-Time Homebuyers That Can
Afford to Purchase a Median-Priced Home
Silicon Valley & Other California Regions
80%
PLACE
Percentage of first-time Environment
70%
40-43
homebuyers that can afford
60% Transportation
to purchase a median priced 44-45
50%
home in 2009 Land Use
40% 46-47
54% Silicon Valley Housing
30%
67% California 48-51
20%
Commercial Space
52-53
10%
0%
*
G O V E R N A N C E 54 | 57
2003
2004
2005
2006
2007
2008
2009
Sacramento Silicon Valley San Diego

California Los Angeles Santa Barbara Area
* Estimate based on Quarters 1-3, 2009
Data Source: California Association of Realtors, Home Affordability Index; DataQuick Information Systems

Appendices 68 | 72
49
Housing
PLACE
Residential Foreclosure Activity
Annual Number of Foreclosure Sales
Silicon Valley
10,000
by Silicon Valley City
9,000 2009 (Q1 - Q3)
Number of Foreclosures
8,000
-39%
Number of Foreclosure as a % of
Home Sales Sales Home Sales
7,000 Stanford 2 - 0%
Number of Foreclosure Sales
Atherton 60 1 2%
6,000
Palo Alto 295 5 2%
5,000
Los Altos 348 7 2%
Portola Valley 47 1 2%
4,000 Cupertino 366 12 3%
Mountain View 501 21 4%
3,000 Burlingame 255 11 4%
San Carlos 242 13 5%
2,000
El Granada 15 1 7%
1,000
Saratoga 225 16 7%
Menlo Park 351 25 7%
0 Millbrae 139 14 10%
*
Belmont 174 19 11%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Sunnyvale 792 89 11%

Los Gatos 366 47 13%
Campbell 279 36 13%
California
San Mateo 838 131 16%
250,000
Santa Clara 738 152 21%
Fremont 1,773 367 21%
225,000
Redwood City 555 122 22%
200,000 -42%
Pacifica 269 61 23%
SILICON VALLEY 22,178 5,404 24%
175,000 Milpitas 619 155 25%
Number of Foreclosure Sales
Scotts Valley 75 19 25%

150,000
East Palo Alto 347 89 26%
San Bruno 277 72 26%
125,000
Half Moon Bay 80 21 26%
100,000 San Jose 8,881 2,679 30%
Moss Beach 13 4 31%
75,000 Morgan Hill 386 121 31%
S. San Francisco 434 150 35%
50,000
Daly City 622 236 38%
Montara 13 5 38%
25,000
Union City 689 265 38%
0 Newark 399 155 39%
*
Gilroy 633 253 40%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
San Martin 38 16 42%

* Estimate based on Quarters 1-3, 2009 Brisbane 23 10 43%
Data Source: RAND California; DataQuick Information Systems
Number of Residential Foreclosure Sales

Q1-Q3
2008 2009 % Change
Silicon Valley 8,894 5,401 -39%
California 238,396 139,115 -42%
50
Foreclosure Sales as a Percentage of Home Sales Map of Silicon Valley 02 |
2009 Q1-Q3
Residential
Number Foreclosure
of Residential
Sales as a Percentage Index at a Glance 06 | 07
Foreclosure Sales as a
of Home Sales Special Analysis 08 | 11
Percentage of Home Sales
LessLess
than 10%
than 10%
PEOPLE 12 | 15
Daly City 10%–19%
Brisbane
10%–19%
Pacifica South San Francisco 20%–29%
20%–29%
Millbrae San Bruno 30%–39%
30%–39%
San Mateo Union City
Burlingame 40%40%
or or more
more
Newark ECONOMY 16 | 27
Montara Belmont Fremont
Moss Beach San Carlos
El Granada Redwood City
Menlo Park Milpitas

Half Moon Bay Sunnyvale
East Palo Alto Santa Clara
Atherton
Palo Alto San Jose
Stanford
Portola Valley SOCIETY 28 | 39
Los Altos Morgan Hill
San Martin
Mountain View
Cupertino
Campbell
Saratoga
Los Gatos
Scotts Valley
Gilroy
0 0.0150.03 0.06 0.09 0.12

Decimal Degrees
PLACE
Data Source: California RAND Environment
Analysis and Cartography: Collaborative Economics 40-43
Transportation
44-45
Land Use
46-47
Housing
48-51
Commercial Space
52-53
G O V E R N A N C E 54 | 57

Appendices 68 | 72
51
Commercial Space
Commercial vacancies jumped 33 percent
over the prior year, and office vacancy
rates are at an all-time high since 1998.
PLACE
Commercial Space
Change in Supply of Commercial Space
Santa Clara County
W HY I S T HI S I M PO RTA N T ? 20
Space Added/Absorbed (million sq. ft.)

15
This indicator tracks the supply of commercial space, rates of commercial
10
vacancy, and cost, which are leading indicators of regional economic
activity. In addition to office space, commercial space includes 5
R&D, industrial, and warehouse space. The change in the supply 0
of commercial space, expressed as the absorption rate, reflects
-5
the amount of space rented, becoming available, and added through
new construction. Gross absorption is a measure for total activity -10
over a period while net absorption is the outcome. A negative -15

change in the supply of commercial space shows a tightening in -20
the commercial real estate market. The vacancy rate measures
2009 *
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
the amount of space that is not occupied. Increases in vacancy,
as well as declines in rents, reflect slowing demand relative to supply.
Net Change in Supply
New Construction Added Net Absorption of Commercial Space
H O W A RE W E D O I N G ?
* As of October 2009
Data Source: Colliers International
The continued decrease in demand for commercial real estate combined

with the creation of 1.7 million square feet of new commercial
space has caused the net change in occupied space (absorption
rate) to drop further than the decline in 2007. From 2008 to
2009, net absorption decreased 61 percent from -6.6 million
square feet to -10.7 million square feet. Commercial Vacancy
Annual Rate of Commercial Vacancy
In 2009, vacancy rates continued their upward trend across all Santa Clara County
commercial space sectors, with an overall percent change increase
of 33 percent over 2008. Warehouse vacancy rates increased by 25%
the largest margin of all commercial product categories with a
percent increase of 57 percent.
20%
All sectors experienced a decline in rents form 2008 to 2009: R&D
(15%), Office (10%), Warehouse (10%) and Industrial (7%). As of
15%
October 2009, 1.7 million square feet (an 84% increase over
2008) of new commercial space construction has been added in
Santa Clara County; all of this space is attributed to the office sector. 10%
5%
0%
2009 *
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
All Commercial Space Office R&D
Industrial Warehouse
* As of October 2009
52
Commercial Rents
Annual Average Asking Rents Map of Silicon Valley 02 |
Santa Clara County
$8
7 Special Analysis 08 | 11
6
PEOPLE 12 | 15
Dollars per Square Foot
3
ECONOMY 16 | 27
2
2009 *
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Office R&D Industrial Warehouse
* As of October 2009 SOCIETY 28 | 39

New Commercial Development

By Sector
Santa Clara County
5
Millions of Square Feet
PLACE
Environment
3 40-43
Transportation
2
44-45
1 Land Use
46-47
0 Housing
2009 *
48-51
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Commercial Space
Office R&D Industrial Warehouse 52-53
*As of October 2009
G O V E R N A N C E 54 | 57

Appendices 68 | 72
53
Civic Engagement
The region’s voter participation
climbed in 2008.
GOVERN
Voter Participation
Eligible Voter Participation Rate and Absentee Voting Rate
Santa Clara & San Mateo Counties and California
W HY I S T HI S I MP O RTA N T ? 80%
70%
An engaged citizenry shares in the responsibility to advance the
Percentage of Total Voters

60%
common good, is committed to place and has a level of trust in
community institutions.Voter participation is an indicator of civic 50%
engagement and reflects community members’ commitment to 40%
a democratic system, confidence in political institutions and optimism
30%
about the ability of individuals to affect public decision-making.
20%
10%
HOW ARE WE DOING? 0%
The Nov. 4, 2008 general election provided one of the biggest voter 2009
1998
2000
2002
2004
2006
2008
Special
turnouts in recent California election history. In this election, 62 Election
percent of Silicon Valley eligible voters and 59 percent of California's Eligible Voter Participation Rate: Silicon Valley California
eligible voters participated in the election. This compares to 51 Absentee Voting Rate: Silicon Valley California
percent Silicon Valley eligible voter turnout and 52 percent for
Note: All yearly figures are based upon general election date, excluding 2009 special election
California's eligible voter turnout in the 2000 general election. Data Source: California Secretary of State, Elections Division
A substantially higher percentage of Silicon Valley’s eligible voters (62%)
voted in the 2008 general election than in the 2000 general
election (51%).
The absentee voting rate continues to climb and at a faster rate in the
Valley than statewide. In 2009, 74 percent of Silicon Valley voters
submitted an absentee ballot compared to 24 percent in 2000.
In California, 62 percent of voters voted absentee in 2008
compared to 25 percent in 2004. In the last year alone, Silicon
Valley and California have experienced an increase in the absentee
voting rate of 20 percent and 21 percent, respectively.
54
ANCE
Change in Absentee Voting Rate About the 2010 Index | 01
2000 2009 2000-2009 Map of Silicon Valley 02 |
Silicon Valley 24% 74% +50% Table of Contents | 03
California 25% 62% +38% Index 2010 Highlights 04 | 05

PEOPLE 12 | 15
ECONOMY 16 | 27
SOCIETY 28 | 39
PLACE 40 | 53
GOV.
Civic Engagement
54-55
Revenue
56-57

Appendices 68 | 72
55
Revenue
Since 2006, Silicon Valley has accounted
for an increasing share of total state
tax revenue.
GOVERN
City Revenue
Aggregate Silicon Valley Revenue by Source
Silicon Valley
$3.5
W H Y I S T H I S I MPORTANT ?
Billions of Dollars (Inflation Adjusted)

3.0
Governance is defined as the process of decision-making and the
2.5
process by which decisions are implemented. Many factors influence
the ability of local government to govern effectively, including the 2.0
availability and management of resources. To maintain service 1.5

levels and respond to a changing environment, local government
1.0
revenue must be reliable. Local revenues are affected by economic
fluctuations and by state takings of locally generated revenue. 0.5
0.0
Property tax revenue is the most stable source of city government
revenue, fluctuating much less over time than do other sources
FY 1994-95
FY 1995-96
FY 1996-97
FY 1997-98
FY 1998-99
FY 1999-00
FY 2000-01
FY 2001-02
FY 2002-03
FY 2003-04
FY 2004-05
FY 2005-06
FY 2006-07
of revenue, such as sales, hotel occupancy and other taxes. Since
property tax revenue represents less than a quarter of all revenue,
other revenue streams are critical in determining the overall
Sales Tax *Other Taxes Property Tax *Other Revenue Sources
volatility of local government funding. Municipalities can issue *Other Taxes and Other Revenue include revenue sources such as transportation taxes, transient lodging taxes, business license
bonds to finance capital projects. Amassing excessive amounts of fees, other non-property taxes and intergovernmental transfers
Data Source: California State Controller’s Office
municipal debt obligations can lead to potential funding shortfalls Analysis: Collaborative Economics
in the future and also raise the cost associated with future debt.
H OW A R E W E D OI NG ?
Although trends following 2007 are likely to be very different in
City Revenue Trends
response to the current economic downturn, total city revenue
in the region has been on the rise since fiscal year 2004. Between Growth in City Revenues since 1990
fiscal years 2005-2006 and 2006-2007, total Silicon Valley revenue Silicon Valley
has grown by 3.4 percent. With an increase of 12.4 percent since 250
2006, property tax accounts for the highest growing revenue
source. Other revenue sources account for nearly half of total 225
revenue in the region and increased six percent since 2006; these
Indexed to 1990 (100=1990 values)
include intergovernmental transfers, special benefit assessments, 200

fines, permits, and investments.
175
Relative to 1990, city revenues have grown in all areas except sales
tax.While sales tax revenues were 14 percent lower in fiscal year
150
2007 relative to 1990, revenues from property tax more than
doubled, other tax revenue grew by 72 percent, and revenue from
125
other sources increased 64 percent.
Since 1999, there have been more than 2000 debt issuances on behalf 100
of public entities in San Mateo and Santa Clara Counties. Public
entities in San Mateo and Santa Clara Counties have issued on 75
average a combined annual municipal debt of $2.8 billion since
FY 1989-90
FY 1990-91
FY 1991-92
FY 1992-93
FY 1993-94
FY 1994-95
FY 1995-96
FY 1996-97
FY 1997-98
FY 1998-99
FY 1999-00
FY 2000-01
FY 2001-02
FY 2002-03
FY 2003-04
FY 2004-05
FY 2005-06
FY 2006-07
1999. In the past ten years, the most debt has been issued to fund
education - nearly $850 million every year on average. Total
municipal debt including short term, long term and notes, has
fluctuated over the past 10 years, with peaks in both 2002 ($3.5 Sales Tax *Other Revenue Sources
billion) and 2006 ($4 billion). Low municipal debt levels were *Other Taxes Property Tax
observed in 2000 ($1.8 billion) and 2004 ($2.3 billion). As of July, *Other Taxes and Other Revenue include revenue sources such as transportation taxes, transient lodging taxes, business license
fees, other non-property taxes and intergovernmental transfers
2009, public entities in San Mateo and Santa Clara Counties have Data Source: California State Controller’s Office
issued $1.2 billion. Analysis: Collaborative Economics
With comparatively high income levels relative to the state, Silicon

Valley accounts for a large share of total state tax revenue. In
2008, the region contributed 16 percent of state revenues from
personal income tax while accounting for seven percent of
California’s population. Silicon Valley's contribution to California
tax revenue through personal income tax has steadily increased
since 2006, with a one percent increase in each of the past two
years. The region’s share of state tax revenue reached a high in
2000, accounting for 24 percent of state tax revenue.
56
ANCE
Municipal Debt Obligations
Issued by Category Map of Silicon Valley 02 |
$4.0 Index 2010 Highlights 04 | 05
Billions of Dollars of Debt (Inflation Adjusted)
3.5 Redevelopment
Housing
3.0
Parks & Recreation
PEOPLE 12 | 15
2.5 Transportation Infrastructure
Other Public Infrastructure

2.0
Miscellaneous
1.5 Water & Wastewater

ECONOMY 16 | 27
Education
0.5
Financing
0.0 Health Care Infrastructure
2009 *
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
*As of July 2009

Data Source: California State Treasurer’s Office
SOCIETY 28 | 39
Regional-State Interface
Contribution to California State Revenues from Personal Income Tax
25%
Contribution to California State Revenues
20%
from Personal Income Tax
15%
10%
PLACE 40 | 53
5%
0%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Data Source: California Franchise Tax Board, Economic and Statistical Research Bureau
GOV.
Civic Engagement
54-55
Revenue
56-57

Appendices 68 | 72
57
continued from page 11
1. GLOBAL CONNECTIONS CONTINUE TO EXPAND

Maintaining global connections with other innovative regions is vital. Silicon Valley’s deep linkages with other innovation centers in the
world accelerate and expand learning by firms and institutions. By integrating globally, regions can achieve higher productivity and
higher wages for their workers as well as higher profits for their firms.1
But how have Silicon Valley’s global linkages in terms of talent, patent collaboration and investment changed given the current economic
crisis? In the current global economic crisis, China is rebounding while in the U.S. and the Euro Area, shrinkage is expected to slow
by 2010. How are the economies of our top global partners faring, and how will this impact Silicon Valley’s recovery? Overall, our
economy is becoming more integrated with the global economy in terms of investment, idea and talent flows.
Investment Flows between Silicon Valley and Abroad Are Growing

Silicon Valley is increasingly investing venture capital in international markets. This activity builds strong interpersonal connections
between global regions, facilitates an exchange of technical know-how and also of business practices.2 While total venture capital
investments from Silicon Valley increased almost 15 percent ($57 billion to $65.4 billion) over the past ten years, foreign investments
by Silicon Valley venture capital firms more than tripled (4% to more than 12% of total venture capital from Silicon Valley) over that
same period.
Since 2000, China has been the preferred foreign market for Silicon Valley venture capital. Between 2006 and 2008, Chinese companies
received more than $2.2 billion in venture capital from Silicon Valley investors, nearly double the amount received by Denmark ($1.1
billion) the second-ranked market during that same period.
In terms of flows to Silicon Valley, the United Kingdom has been the largest source of foreign venture capital investment over the past
decade. Germany, Israel, and Switzerland have also become significant sources of venture capital for Silicon Valley. Over the entire
period, Germany moved up from 7th to the 2nd largest source of foreign venture capital funding in Silicon Valley. Similarly, Israel
climbed from 6th to 3rd place in total investment to Silicon Valley while Switzerland rose from 10th to 6th place.
Conversely, the relative significance of venture capital investment from Taiwan and Japan has decreased. In 1999 Taiwan led all foreign
investors with approximately $193 million in venture capital investment in Silicon Valley; by 2008 Taiwan had fallen to 5th and the
level of investment had fallen to $100.6 million. Similarly, the $191 million received from Japan in the 1997-1999 period ranked
3rd behind Taiwan and the United Kingdom. By 2008, Japan had fallen to 9th as its venture capital investment in Silicon Valley
fell to approximately $85.7 million.

Flows Between Silicon Valley and Countries
Top Countries by Total Investment in 2006-2008
China United Kingdom
Denmark Germany
United Kingdom Israel
India Canada
Canada Taiwan
Ireland Switzerland
Israel Australia
Germany Singapore
France Japan
Sweden Hong Kong
South Korea South Korea
$0 500 1,000 1,500 2,000 2,500 $0 200 400 600 800

Millions, 2009 U.S. Dollars Millions, 2009 U.S. Dollars
1997-1999 2003-2005
Data Source: Thompson Reuters Investment Analytics Report
2000-2002 2006-2008
58
Global Collaborations
Percentage of Patents with SV inventors that have Foreign Co-Inventors

Patents with Silicon Valley & Foreign Co-Inventors
1,400 10%
9%
1,200
8%
1,000 7%
Number of Patents
6%
800
5%
600
4%
400 3%
2%
200
1%
0 0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Note: Patent counts reported here refer to all patents with an inventor from
Silicon Valley, regardless of sequence number of inventor Number of Patents with Silicon Valley & Foreign Co-Inventors
Data Source: U.S. Patent & Trade Office
Percentage of all Patents with Silicon Valley Inventor that have Foreign Co-Inventors
International Patent Collaboration Continues to Rise

Patent registrations that include co-inventors from Silicon Valley and inventors outside the U.S. increased in number by 13 percent between
2007 and 2008 and represent a growing percentage of all patents with inventors from the region. This bodes well for innovation in
the region, because it illustrates that knowledge flows are increasing between talent here and in other wellsprings of innovation in
the world.
The patterns of patent collaboration are changing. Japan is by far Silicon Valley’s top partner in patent collaboration; however, activity
is slowing. The next rung of activity has consistently been held by the U.K., Canada and Germany and now Taiwan has caught up.
Silicon Valley’s co-patenting has increased at a faster rate with emerging economies. For example, activity has increased by a factor of
57 with India and a factor of 48 with China since the early 1990s. Over the most recent two periods (2001-2004 and 2006-2008),
China has overtaken seven top ranked collaborator countries; and Taiwan, Israel, and India have overtaken France.
Global Patent Collaboration by Top Partner Country

International Patent Co-Registrants
Silicon Valley
1,400
1,200
1,000
Number of Co-Registrants
800
600
400
200
0
Japan United Canada Germany Taiwan Israel India China France Netherlands Russia Singapore Malaysia Switzerland South
Kingdom Korea
Note: Analysis includes all patents with an inventor from Silicon Valley, regardless of sequence of inventor.
1993-1996 2001-2004
Data Source: U.S. Patent & Trade Office 1997-2000 2005-2008
59
The Region is Dependent on Global Talent Flows

A significant factor in Silicon Valley’s history has been the valuable contribution of immigrant entrepreneurs in the region. Many arrived
as students in the broader region, and while building their networks here and maintaining close ties with their home countries, these
individuals laid the foundations of Silicon Valley’s strong global connections. When a region can both produce high-quality university
graduates and attract highly-skilled talent from abroad, the region not only benefits from steady streams of talent but also creates
valuable opportunities for closer integration with other countries. AnnaLee Saxenian, from the University of California at Berkeley,
has observed that because of their shared language, culture, and professional and educational experiences, these global professionals
possess the skills necessary for long-distance collaboration and global product management.3
Sixty percent of Silicon Valley’s science and engineering (S&E) workforce was born outside the U.S. Nationally, this is the case for only 21
percent. Across all occupations, the percentage of foreign-born workers is growing and growing at a faster rate in the region than nationally.
The largest number and fastest growing group of foreign-born S&E talent in the region is from India. Accounting for 20 percent in 2000,
Indians now make up 28 percent of the Valley’s S&E talent. Talent flows from China and Korea are also growing in share.
As the region is becoming increasingly dependent on foreign-born talent, an area of vulnerability is revealed in the dropping number of
S&E degrees conferred nationally and to foreign-born students in the region. As the total number of S&E degrees conferred in the
U.S. has dropped ten percent since 2004, the number of S&E degrees conferred to foreign students in the broader Silicon Valley
region has been falling since 2005. The U.S. is falling back in its generation of S&E talent, and as educational and economic
opportunities improve in other parts of the world, fewer students are coming to the U.S. to study
Foreign-Born Talent Total Science & Engineering Degrees

Percentage of Employed Talent who are Foreign Born Conferred to Temporary Nonpermanent Residents
Silicon Valley and the United States; 2000 and 2008 Universities In and Near Silicon Valley and the United States
Percentage of Employed Talent who are Foreign Born
70% 2,500 50,000
Total S&E Degrees Conferred in the United States

Total S&E Degrees Conferred in Silicon Valley
60% 45,000
60% 2,000 40,000
50%
50% 35,000
40%
47%
40% 1,500 30,000
30%
25,000
20% 1,000 20,000
21% 17%
18%
10% 14% 15,000
0% 500 10,000
2000 2008 2000 2008 2000 2008 2000 2008
5,000
Silicon Valley U.S. Silicon Valley U.S.
0 0
S&E Occupations All Occupations 1995 96 97 98 99 2000 01 02 03 04 05 06 07
Note: Data are based on first major and include bachelors, masters
and doctorate degrees. Data for 1999 is not available. Degrees conferred in SV
Note: Foreign-born includes people born in U.S. territories/island areas
Data Source: U.S. Census Bureau, 2000 Decennial PUMS, 2008 American Community Survey PUMS Data Source: National Center for Educational Statistics, IPEDS
Degrees conferred in the U.S.
Analysis: Collaborative Economics Analysis: Collaborative Economics
Foreign-Born Science & Engineering Talent

by Place of Origin
Silicon Valley
30%
Percentage of All Foreign-Born S&E Talent
2008
25%
20%
2000
15%
10%
5%
0%
India China Vietnam Taiwan Philippines South Hong Japan Russia Canada Iran United Mexico Germany France
Korea Kong Kingdom
Data Source: U.S. Census Bureau, 2000 Decennial PUMS, 2008 American Community Survey PUMS
60
Growth in Emerging Markets will Continue to Outpace Advanced Economies
The current recession has truly been global in scope, affecting emerging and advanced economies alike. Between 2008 and 2009, real
GDP growth declined by 4.5 percent in emerging and developing economies and by 4.7 percent in advanced economies.
The International Monetary Fund is projecting the advanced economies to remain flat (0% growth) in 2010, while the growth rate of
emerging and developing economies will climb to four percent. As the recovery slowly surfaces in advanced economies, more
opportunities will arise in the emerging and developing economies. This may have real implications for Silicon Valley’s continued
ability to attract the world’s top talent.
Real GDP Growth

Annual Percent Change
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012* 2013* 2014*
*Data is current through September of 2009 and projected for remaining years
Data Source: International Monetary Fund, World Economic Outlook Database, April 2009 Emerging and Developing Economies Advanced Economies World
2. CONTINUED TALENT ATTRACTION AND DEVELOPMENT

IS ESSENTIAL BUT THREATENED
Besides maintaining linkages to global talent pools, Silicon Valley must continue to attract top, young talent and retain experienced talent
in order to maintain its global competitive edge. Total inflows of core talent aged 35-54 are down from 2000; however, the talent still
moving to the region is increasingly highly skilled.
These high-skilled jobs are increasingly filled by people from outside the U.S.; however, as illustrated in the preceding section, the flows
of foreign students to the region are waning as opportunities grow in the emerging economies. Furthermore, state general fund spending
on higher education dropped 17 percent in 2008, and total spending per student dropped 19 percent. These trends suggest that the
continued supply of top, qualified talent in the region is in question.
Silicon Valley Is Increasingly Dependent on Global Flows for Highly Skilled Talent
Understandably, since 2000, total talent flows into the region have slowed; however, the characteristics of the flows have changed. In
both 2000 and 2008, half of the region’s employed workers between the ages of 35 and 54 who moved to the region in the previous
year had at least a four-year degree. However, since 2000, the inflows of the core talent base are increasingly specialized in science
and engineering (S&E) and born outside the U.S.
Across all occupations, highly educated U.S.-born migrants accounted for 56 percent and foreign-born 44 percent in 2000. In 2008, this
distribution flipped. Additionally, foreign-born S&E talent with higher degrees accounted for 72 percent of total inflows in 2008, up
from 60 percent in 2000.
61
Silicon Valley’s total S&E talent base is growing in number and increasingly foreign born. These trends are far more pronounced in the
region than nationally. Between 2000 and 2008, the total number of S&E workers increased twelve percent in the Valley and 16
percent nationally. Over the same period, the foreign-born share of the region’s S&E workforce increased from 50 percent to 60 percent.
Talent Mobility of Core Workforce Age 35-54

Origin Of Employed Talent Moving to Silicon Valley
EDUCATIONAL PLACE OF 2000 2008

ATTAINMENT OCCUPATIONS ORIGIN Total Talent U.S.-Born Foreign-Born Total Talent U.S.-Born Foreign Born
Domestic 234,407 61% 39% 59,160 43% 57%
All Foreign 24,267 11% 89% 2,938 14% 86%
All Education Total 258,674 56% 44% 62,098 42% 58%
Levels Domestic 39,347 51% 49% 11,825 31% 69%
S&E Foreign 5,387 7% 93% 1,016 0% 100%
Total 44,734 46% 54% 12,841 29% 71%
Domestic 112,888 60% 40% 29,869 48% 52%
Bachelor's All Foreign 13,874 12% 88% 2,003 10% 90%
Degree or Total 126,762 55% 45% 31,872 45% 55%
Higher Domestic 30,245 46% 54% 10,640 31% 69%
S&E Foreign 4,903 7% 93% 1,016 0% 100%
Total 35,148 40% 60% 11,656 28% 72%
Note: Migration within California includes people who moved within Silicon Valley in the last year. Foreign-born includes people born in U.S. territories/island areas.
Science & Engineering Talent by Place of Origin

Silicon Valley and the United States
250,000 10,000,000
S&E Workers in Silicon Valley
200,000 +12% +16% 7% 8,000,000

19%
S&E Workers in the U.S.

23%
7% 21%
150,000 21% 18% 6,000,000
27%
100,000 4,000,000
72%
60% 75%
50,000 2,000,000
50%
0 0
2000 2008 2000 2008
Silicon Valley United States
Born in California Born in Rest of U.S. Born outside of U.S.
The Region Has Highly Specialized Occupational Needs

In addition to the jobs every community needs to support vital services, Silicon Valley requires a highly specialized mix of skills,
particularly concentrated in science and engineering, as demanded by its unique industry base. This means that in order for the
region to flourish, its companies need to be able to attract top talent to the region. If talent inflows from abroad become less reliable,
the region will depend more on the development of domestic talent which will require the strong commitment of public leaders largely
outside the region to investment in education and training.
Twenty-one of the 25 most highly concentrated occupations in Silicon Valley are in science and engineering. Since 1999, seven of these
occupations have doubled in concentration. Training requirements and earnings for the region’s most concentrated occupations vary
widely. All of the 25 most concentrated occupations that are becoming more highly concentrated in the region and that are also
increasing in number require at least a four-year degree. This is also the case for all of these occupations that have at least doubled
in number in the region over the last decade.
62
These changes in occupational demand are reflective of changes taking place in the region’s industrial mix and business practices relative
to national trends. For example:
• Sales Engineers (people with technical skills who support sales and support activities) were 2.6 times more concentrated
in the region than nationally in 1999; by 2008, they were 13 times more concentrated. In total employment, this
group tripled in size.
• Budget Analysts more than tripled in numbers. Compared to the national average, Budget Analysts in Silicon Valley
accounted for a smaller percentage of employment in 1999, but in 2008 they were more than three-times more
concentrated than the nation.
• The largest employment increase of the 25 most highly concentrated occupations was the 6.8 fold growth in Medical
Scientists (excluding Epidemiologists).
Occupational Growth in Silicon Valley

by Most Concentrated Occupations, 1999 and 2008
Median Annual
Wage 2008*
Computer Hardware Engineers $118,061 Bachelor's degree
Semiconductor Processors 36,202 Associate degree
Sales Engineers 106,113 Bachelor's degree
Computer Software Engineers, Systems 113,775 Bachelor's degree
Electronics Engineers, except Computer 104,885 Bachelor's degree
Electro-Mechanical Technicians 56,803 Associate degree
Oral & Maxillofacial Surgeons 163,955** First professional degree
Computer & Information Scientists, Research 121,358 Doctoral degree
Engineering Managers 152,759 Bachelor's degree, plus work experience
Electromechanical Equipment Assemblers 31,876 Short-term on-the-job training
Computer Software Engineers, Applications 106,479 Bachelor's degree
Electrical Engineers 103,875 Bachelor's degree
Marketing Managers 147,186 Bachelor's degree, plus work experience
Materials Engineers 99,510 Bachelor's degree
Technical Writers 90,254 Bachelor's degree
Electrical & Electronics Drafters 64,406 Postsecondary vocational award
Medical Scientists, except Epidemiologists 94,748 Doctoral degree
Biochemists & Biophysicists 95,708 Doctoral degree
Computer & Information Systems Managers 153,254 Bachelor's degree, plus work experience
Tapers 55,734 Moderate-term on-the-job training
Electrical & Electronic Engineering Technicians 55,665 Associate degree
Biomedical Engineers 95,976 Bachelor's degree
Electrical & Electronic Equipment Assemblers 31,530 Short-term on-the-job training
Market Research Analysts 99,064 Bachelor's degree
Budget Analysts 91,343 Bachelor's degree

0 7,000 14,000 21,000 28,000 0 3 6 9 12 15 18 21
1999 Number of Jobs 1999 Employment Concentration
2008 2008 relative to U.S. (1.0=U.S.)
*Median annual wage is inflation adjusted
**California median annual wage used
Note: Silicon Valley data is for San Jose-Sunnyvale-Santa Clara MSA. Prior to 2005, San Benito was not included in MSA
Data Source: Bureau of Labor Statistics, Occupational Employment Statistics, September 2009
63
Statewide Spending on Higher Education is Waning

Total statewide spending on higher education in 2008 dropped 18 percent from the previous year to a total of $15.9 billion. On average,
state general fund spending has accounted for 56 percent of all higher education spending in California over the last 25 years, while
federal funding has accounted for 37 percent. While state funding of higher education has been falling, the cost of higher education
has continued to rise, which is resulting in continued student fee increases and falling enrollment.
In the last year, total general fund spending on higher education decreased 17 percent, while general fund spending per student decreased
19 percent.
Higher Education Funding of Public Institutions

Spending by Fund Source
California
$24
20
Billions of Dollars (Inflation Adjusted)
16
12
0
1984 85 86 87 88 89 1990 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 2008
Note: Data in California fiscal years General Fund Bond Funds
Data Source: California Legislative Analyst’s Office
Federal Funds Special Funds
Higher Education Funding of Public Institutions

Total and per Student General Fund Spending
California
Per Student General Fund Spending (Inflation Adjusted)

$14 $7,000
Total General Fund Spending in Billions of Dollars
12 6,000
10 5,000
(Inflation Adjusted)
8 4,000
6 3,000
4 2,000
2 1,000
0 0
1984 85 86 87 88 89 1990 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 2008*
* Data for enrollment is based upon projections
Note: Data in California fiscal years
Data Source: California Legislative Analyst’s Office and the California Postsecondary Education Commission
64
3. VENTURE CAPITAL INVESTMENT IS RETURNING
AND HEADING INTO NEW AREAS
Silicon Valley has experienced many different waves of innovation driven by new technology, changing public policy, and other factors.
Examining shifts in venture capital investment patterns helps to illustrate how the region’s industrial mix is evolving. While total
investment has been down in 2009 with an uptick in the third quarter, the distribution of investment across industries offers valuable insight.
Since 2002, the software industry has continued to attract the largest percentage of total venture capital investment in the region; however,
it has dropped from 25 percent to 20 percent as opportunities in other industries have grown. Venture capital investment in networking
and equipment has been on a downward trend since 2002, when the industry ranked second behind software; however, investment
in networking and equipment did increase by 13 percent between 2008 and 2009.
Over most of the period, semiconductors attracted the next largest share of venture Top Growers since 2002
capital investment after software. In 2008, it was displaced by biotechnology and • Industrial/Energy
medical devices, while in 2009 industrial/energy took the second spot behind • Media & Entertainment
software. Venture capital investment in the areas of industrial/energy, medical • Biotechnology
• Medical Devices
devices, and biotechnology have now outpaced investment in semiconductors.

Billions of Dollars Invested
Silicon Valley
Billions of Dollars Invested (Inflation Adjusted)
$30
25
20
15
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Data Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, Thomson Reuters
4. STATE AND FEDERAL POLICY IS CRITICAL TO THE REGION’S SUCCESS

State policy has always been critical to the region’s success, and never more so than now. However, the inability of the state to make major
decisions and the resulting budget crisis has led to disinvestment in a range of critical public services and an erosion in the region’s
quality of life.
Historically, the Federal government has played an important role in the emergence of Silicon Valley as a high technology region and
throughout its development. Its most vital role has been to invest in research and development (R&D), and in the procurement of
high-tech products and services. In addition to the direct weapons procurement during the Cold War, Silicon Valley attracted funding
through the Advanced Research Projects Agency (ARPA) resulting in the creation of the internet among other things. However,
according to findings of a recent study by the Organization for Economic Cooperation and Development (OECD), U.S. Federal policy
may be currently undermining innovation, obstructing global talent flows, and offering one of the least generous R&D tax credits of
all OECD countries.4
Current DARPA (Department of Defense) spending is investing in game-changing technologies that will support the needs of U.S. troops
such as compact fuel cells, mobile renewable energy systems, and algal aviation fuel.5 Civilians will eventually also benefit from these
new products. In 2007, ARPA-E was created to support the rapid development of clean energy technology, and the program now has
$400 million from the stimulus package.6 This is in addition to the $3.5 billion in stimulus funds for the development of renewable
technologies. As of January 2010, cleantech manufacturers in the region have been awarded $260 million in federal tax credits and
accounted for 11 percent of the national total. Awarded on a competitive basis, these projects were judged according to their commercial
viability, technological innovation, completion date, job creation and potential for reducing greenhouse gas emissions. With our
emerging clean energy economy, Silicon Valley should be well positioned to attract funding on a competitive basis from these programs
for a wide range or related projects.
65
Federal Procurement Spending has Slowed

Yet Silicon Valley has been slipping in its attraction of federal procurement dollars, since peaking in 1994. While total federal procurement
spending has increased at an average annual rate of nearly four percent over the last 15 years, spending in Silicon Valley has decreased
by a tenth of a percent on an annual rate. In contrast, spending in Huntsville, Alabama and Washington D.C. over the same period
has exceeded the national average, increasing 4.5 percent and 7.2 percent respectively.
In 2008, Silicon Valley received $ 6.7 billion in procurement spending from the federal government, representing 1.3 percent of total
federal procurement spending, slightly higher than that of Huntsville. In 1993, the region accounted for over two percent of total federal
procurement. Up from eight percent in 1993, Washington D.C. accounted for 13.4 percent of total federal procurement spending in 2008.
Federal Procurement Total Federal Procurement

Total Spending Average Annual Growth Rate from 1993 to 2008 Percentage of Spending
Silicon Valley; Huntsville, Alabama; Washington D.C.
8%
18%
Total Spending Average Annual Growth Rate
6% 16%
14%
4% Percentage of Spending 12%

10%
2% 8%
6%
0%
4%
2%
-2%
Silicon United Huntsville Washington 0%
Valley States Alabama D.C. 1993 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 2008
Note: Data in U.S. Fiscal Years Note: Data in U.S. Fiscal Years
Data Source: U.S. Census Bureau, Governments Division, Federal, State, Data Source: U.S. Census Bureau, Governments Division, Federal, State,
and Local Government Consolidated Funds Report and Local Government Consolidated Funds Report
Analysis: Collaborative Economics Analysis: Collaborative Economics
Federal Funding for Small Business Innovative Research

Federal funding for small business innovation in Silicon Valley has been on the decline since 2004 in both the number of grants and
dollars awarded. Nationally, Small Business Innovation Research (SBIR) Awards have increased in number and in total funding.
The SBIR Awards program provides funding to small innovative companies to spur development and the commercialization of ideas
into products and services. There are two phases of awards, with the second phase depending upon the success of the first phase
and also providing a larger amount of funding.
Silicon Valley attracted over $84.5 million in total awards for SBIR and STTR phase 1 and 2 in 2008. While this represents an increase
of 56 percent since 1990, it is a 27 percent drop since 2004. This drop is steeper than the 19 percent reduction in total national
SBIR funding since 2004.
Small Business Innovation and Technology Awards

Total Value of Awards Granted to Small Businesses
Value of SV Awards in Millions (Inflation Adjusted)
Value of U.S. Awards in Billions (Inflation Adjusted)
Silicon Valley and the United States

$120 $2.7
2.4
100
2.1
80 1.8
1.5
60
1.2
40 0.9
0.6
20
0.3
0 0
1990 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 2008
Note: Small Business Innovation Research (SBIR) Awards and Small Business Technology Transfer (STTR) are included data
Data Source: U.S. Small Business Administration, Office of Technology
66
ARE WE A REGION AT RISK?
Yes. Silicon Valley has become a globally connected region, but we require a highly fertile innovation habitat in order to respond to
complex forces of technology, demographic and policy change. The material presented here indicates there are clear warning signs:
• We cannot continue to rely on foreign talent to fill some of the most concentrated and growing areas of employment
in our region.
• Silicon Valley may be lagging behind other regions in federal investments in R&D and procurement, especially
at a time when the federal government has reemerged as a major force in the economy at a level not seen since
World War II.
• State policy is not supporting our innovative economy and community, especially as seen by cutbacks in higher
education, but also as a result of budgetary gridlock and governance failure.
To be sure, Silicon Valley does have many of the key ingredients necessary for a resilient region. We still have a strong talent base and
outstanding technology assets. Our entrepreneurs are agile in their ability to move into new global markets. As demonstrated by
the recent shift into clean energy, Silicon Valley firms can move quickly toward emerging opportunities.
What may be the most critical ingredient is the ability of regional stakeholders from business, government, education and the community
to work together to solve major challenges. We as a region—defined as a regional community that defines a set of common interests—
must recognize these challenges—both external and internal—and act in an intentional way to address them.
We need to be both innovative and resilient to succeed in a future where uncertainty will be the new normal. Without investment in
our talent and technology base and supportive state and federal policies, we will not be able to take advantage of
the strengths of our global connections. Above all, we need a shift in our mindset from one of complacency to one
that recognizes the challenges that we face and mobilizes to address them as a regional community.
SIGNS OF RESILIENCE SIGNS OF VULNERABILITY

We continue to attract global talent: 60% of S&E talent (and 47% of all We are relying on foreign in-migration to grow our S&E talent base: since
workers) were foreign-born in 2008, compared to 50% (and 40% of all 2000, the absolute number and relative share of California and U.S.-born
TWO KEY DETERMINANTS OF SUCCESS IN SILICON VALLEY
workers) in 2000. S&E talent has dropped.

We are particularly a magnet for talent from emerging economies: most of We face increasing competition for talent: emerging economies have
global talent flow since 2000 has been from India and China grown rapidly over the past decade, and are likely to recover faster
TALENT
We are attracting talent that is increasingly highly skilled: 51% of new arrivals than advanced economies
in 2008 had bachelors’ degrees or higher (versus 49% in 2000). This We are educating less foreign talent here: the number of S&E degrees
high-skilled talent is increasingly foreign-born: 72% of migrants with conferred to foreign students has dropped since 2004-2005 in both
S&E bachelors’ degrees or higher were foreign-born (versus 60% Silicon Valley and the U.S.
in 2000). We are faced with disinvestment in the public higher education system:
state spending dropped 17% in 2008.
We need increasing numbers of highly-educated people to fuel our
economy: 19 of the region’s top 25 most concentrated occupations
require a four-year degree.
We are benefiting from a growing number of global innovation partners: co- We have seen some declines in foreign investment in Silicon Valley: some
patenting is on the rise with partners in both advanced and emerging key countries decreased their investment in the region in the past
economies, and now represents almost 10% of total patents. five years (Taiwan, Japan, Switzerland, Singapore)
We continue to attract investment and are increasingly attractive to top We experienced a substantial drop in VC investment in 2009: while there
TECHNOLOGY
foreign funders: Silicon Valley venture capital up 15% to $65 billion has been an increase in 3rd quarter 2009 investment levels, we are
over past decade. VC investment in Silicon Valley from foreign funders clearly vulnerable to global financial turbulence.
has risen in recent years. We are not a major player in federal R&D funding: Silicon Valley receives
We are investing in other countries: Foreign investments by Silicon Valley just over one percent of federal procurement, well behind Washington
VCs tripled over the past decade (from 4% to 12% of total investments). D.C. (13%).
We are investing in both long-standing strengths and new areas of innovation: If anything, we have lost ground to other regions since the early 1990s:
Software and semiconductors continue to draw large shares of VC; The average annual growth rate for federal procurement is over 3.5
however, since 2002, growing areas are industrial/energy, percent; regions like Washington D.C. (7.2%) and Huntsville (4.5%)
media/enter tainment, biotechnology, and medical devices. have attracted increasing levels of funding, while Silicon Valley’s levels
have declined.
Endnotes
1 As John Hagel and John Seely Brown explain it, it is not enough for firms to produce abroad and collaborate with suppliers, firms must form “creation networks” on a global basis. (John Hagel and John Seely Brown. 2005. The Only
Sustainable Edge. Why Business Strategy depends on Productive Friction and Dynamic Specialization. Boston: Harvard Business School Press.) AnnaLee Saxenian contends that “brain circulation” among regions is driving global integration.
(AnnaLee Saxenian. 2006. The New Argonauts. Regional Advantage in a Global Economy. Cambridge: Harvard University Press.) New research sponsored by the Small Business Administration points again to the important contribution
to innovation and economic vitality that immigrant entrepreneurs make in the technology fields. (David M. Hart, Zoltan J. Acs, and Spencer L. Tracy, Jr. 2009. “High-tech Immigrant Entrepreneurship in the United States.” Small Business
Administration. Corporate Research Board, LLC.)
2 Foreign investment can take different forms such as a company opening an affiliate in the U.S. or investors from abroad investing in venture capital funds here. When a foreign company opens an affiliate in Silicon Valley, a new avenue for
the exchange of knowledge is also opened.
3 AnnaLee Saxenian. 2006. The New Argonauts. Regional Advantage in a Global Economy. Cambridge: Harvard University Press. Page 328.
4 OECD 2009
5 Steve LeVine. 2009. “Can the Military Find the Answer to Alternative Energy?” The Outlook for Energy. Business Week. (July 23, 2009).
6 Elise Craig. 2009. “An ARPA for Energy Is Greeted With Enthusiasm.” The Outlook for Energy. Business Week. (July 23, 2009).
67
APPENDIX A
FRONT PAGE STATISTICS

Area
Data are for Santa Clara and San Mateo Counties, Fremont, Newark, Union City, and Scotts Valley. Land Area data (except for Scotts Valley) is from the U.S. Census Bureau: State and County QuickFacts. Data is derived from Population Estimates, 2000 Census of Population
and Housing, 1990 Census of Population and Housing, Small Area Income and Poverty Estimates, County Business Patterns, 1997 Economic Census, Minority- and Women-Owned Business, Building Permits, Consolidated Federal Funds Report, Census of Governments. Scotts
Valley data is from the Scotts Valley Chamber of Commerce.
Population
Data for the Silicon Valley population come from the E-1: City/County Population Estimates with Annual Percent Change report by the California Department of Finance and are for Silicon Valley cities. Population estimates are for 2009.
Jobs
Silicon Valley employment data are provided by the California Employment Development Department and are from Joint Venture: Silicon Valley Network’s unique data set. The data set counts jobs in the region and uses data from the Quarterly Census of Wages and Employment
program that produces a comprehensive tabulation of employment and wage information for workers covered by State unemployment insurance (UI) laws and Federal workers covered by the Unemployment Compensation for Federal Employees (UCFE) program. Employment
data exclude members of the armed forces, the self-employed, proprietors, domestic workers, unpaid family workers, and railroad workers covered by the railroad unemployment insurance system. Covered workers may live outside of the Silicon Valley region. Multiple jobholders
(i.e., individuals who hold more than one job) may be counted more than once. Data for Quarter 2 2009 are preliminary-revised. Data is for Santa Clara and San Mateo Counties, Scotts Valley, Fremont, Newark, and Union City.
Average Annual Earnings

Figures were derived from the EDD/Joint Venture Silicon Valley Network data set and are reported for Fiscal Year 2009 (Q3 & Q4 2008, Q1 & Q2 2009). Wages were adjusted for inflation and are reported in first half of 2009 dollars using the U.S. city average Consumer
Price Index (CPI) of all urban consumers, published by the Bureau of Labor Statistics. Data for Quarter 2 2009 are preliminary-revised. Data is for Santa Clara and San Mateo Counties, Scotts Valley, Fremont, Newark, and Union City.
Foreign Immigration and Domestic Migration

Data are from the E-6: County Population Estimates and Components of Change by County - July 1, 2000-2009 report by the California Department of Finance and are for Solano County and California. Estimates for 2009 are provisional. Net migration includes all legal and
unauthorized foreign immigrants, residents who left the state to live abroad, and the balance of hundreds of thousands of people moving to and from California from within the United States.
Age Distribution, Adult Educational Attainment, Foreign Born, and Ethnic Composition
Data for age distribution, adult educational attainment, and foreign born (front page statistics) are for Santa Clara and San Mateo Counties and are derived from the United States Census Bureau, 2008 American Community Survey. For educational attainment, Some College
includes Less than 1 year of college; Some college, 1 or more years, no degree; Associates degree; Professional certification.
PEOPLE
Population Change and Net Migration Flows
Data are from the E-6: County Population Estimates and Components of Change by County - July 1, 2000-2009 report by the California Department of Finance and are for Solano County and California. Estimates for 2009 are provisional. Net migration includes all legal and
unauthorized foreign immigrants, residents who left the state to live abroad, and the balance of hundreds of thousands of people moving to and from California from within the United States.
Percentage of Population that Speaks Language Other than English at Home

Data is from the U.S. Census Bureau, 2000-2008 American Community Survey. English speaking, multilingual households are recorded as the non-English language of the first ranked member of the household. Household members are ranked in the following order: householder,
spouse, parent, sibling, child, grandchild, other relative, stepchild, unmarried partner, housemate or roommate, and other nonrelatives.
Language Spoken at Home

Data is from the U.S. Census Bureau, 2000-2008 American Community Survey. Spanish language households include Spanish Creole speaking households. Other Indo-European language households includes French (including Patois, Cajun, Creole), Italian, Portuguese (including
Creole), Scandinavian languages, Greek, Russian, Polish, Serbo-Croatian, other Slavic languages, Armenian, Persian, Gujarathi, Hindi, Urdu, other Indic languages, and other Indo-European languages. Other Asian and Pacific Island language households include Japanese, Korean, Mon-
Khmer, Cambodian, Miao, Hmong, Thai, Laotian, and other Asian languages. All other language households include Navajo, other native North American languages, Hungarian, Arabic, Hebrew, African languages, and other, unspecified languages.
Percentage of Science & Engineering Degrees Conferred to Nonpermanent U.S. Residents; and Foreign Students
State and regional data for 1995-2007 are from the National Center for Education Statistics, IPEDS. Regional data for the Silicon Valley includes the following post secondary institutions: Menlo College, Cogswell Polytechnic College, University of San Francisco, University of
California (Berkeley, Davis, Santa Cruz, San Francisco), Santa Clara University, San Jose State University, San Francisco State University, Stanford University, Golden Gate University. The academic disciplines include: computer and information sciences, engineering, engineering-
related technologies, biological sciences/life sciences, mathematics, physical sciences and science technologies. Data were analyzed based on 1st major, citizenship, and level of degree (bachelors, masters or doctorate). Data for 1999 is not available.
ECONOMY
Employment
Monthly Jobs and Change in Total Nonfarm Jobs
Monthly jobs data are from the Bureau of Labor Statistics, Current Population Survey (CPS) and Local Area Unemployment Statistics (LAUS). Data is not seasonally adjusted. Data is for the San Mateo and Santa Clara Counties. December data is preliminary.
Quarterly Job Growth

(i.e., individuals who hold more than one job) may be counted more than once. Data for Quarter 2 2009 are preliminary-revised. Data is for Santa Clara and San Mateo Counties, Scotts Valley, Fremont, Newark, and Union City.
Unemployment Rate
Monthly unemployment rate data are from the Bureau of Labor Statistics, Current Population Statistics (CPS) and the Local Area Unemployment Statistics (LAUS) and the California Employment Development Department, LAUS. Data is not seasonally adjusted. Data is for
the Silicon Valley region is the San Mateo and Santa Clara Counties. December data is preliminary.
Employment Services, Total Number of Jobs by Month

Data is not seasonally adjusted and includes only employment for the Employment Services industry. Monthly jobs data are from the Bureau of Labor Statistics, Current Employment Statistics Survey (CES). Data is for the San Jose-Sunnyvale-Santa Clara MSA. December data
is preliminary.
Nonemployer Firms
Data for Nonemployers are from the U.S. Census Bureau. Nonemployer statistics summarizes the number of establishments and sales or receipts of businesses without paid employees that are subject to federal income tax. Most nonemployers are self-employed individuals
operating very small unincorporated businesses, which may or may not be the owner’s principal source of income.
Major Areas of Economic Activity

(i.e., individuals who hold more than one job) may be counted more than once. All industries are included in the major areas of economic activity. Quarter 2 2009 are preliminary-revised. Data is for Santa Clara and San Mateo Counties, Scotts Valley, Fremont, Newark, and
Union City.
Total Business Establishments Jobs in the Core Green Economy

The accounting of green business establishments and jobs is based on the methodology originally developed on behalf of Next 10 for the California Green Innovation Index. This database has been built through the use of multiple data sources for the identification and
classification of green businesses (such as New Energy Finance and Cleantech GroupTM, LLC and others) and leveraged a sophisticated internet search process. The National Establishment Time Series (NETS) database based on Dun & Bradstreet establishment data was
sourced to extract business information such as jobs. The operational definition of green is based primarily on the definition of “cleantech” established by the Cleantech GroupTM, LLC. This sample offers a conservative estimate of green jobs in California.
Income
Real per Capita Income
Total personal income and population data are from Economy.com. Income values are inflation-adjusted and reported in first-half 2009 dollars, using the CPI for the U.S. City Average from the Bureau of Labor Statistics. Silicon Valley data includes Santa Clara and San Mateo
Counties.
Median Household Income

Data for Distribution of Income and Median Household Income are from the 2000-2008 American Community Survey from the U.S. Census Bureau. All income values are inflation-adjusted and reported in first half 2009 dollars, using CPI for the U.S. City Average from the
Bureau of Labor Statistics. Silicon Valley data includes Santa Clara and San Mateo Counties. Household Income includes wage or salary income; net self-employment income; interest, dividends, or net rental or royalty income from estates and trusts; Social Security or railroad
retirement income; Supplemental Security Income; public assistance or welfare payments; retirement, survivor, or disability pensions; and all other income; excluding stock options.
Income Distribution
Data for Distribution of Income are from the American Community Survey from the U.S. Census Bureau. Income ranges are in nominal values. Silicon Valley data includes Santa Clara and San Mateo Counties. Income is the sum of the amounts reported separately for the
following eight types of income: wage or salary income; net self-employment income; interest, dividends, or net rental or royalty income from estates and trusts; Social Security or railroad retirement income; Supplemental Security income; public assistance or welfare payments;
retirement, survivor, or disability pensions; and all other income.
Rate of Total Non-Business Bankruptcy Filings per 1,000 Persons

The bankruptcy data reported by RAND is for California, regions, and counties, and U.S. states, and is based upon data from the Administrative Office of the U.S. Bankruptcy Courts. The source for population data used to calculate per capita rates is RAND California for years
1996 through 2007; Population is estimated for some time periods. The California Department of Finance population figures were used for County and State 2008 and 2009 population figures. The U.S. 2008 and 2009 population figures came from the US Census Bureau
(2008 Estimated; 2009 Projected)
Food Stamp Usage

Data is from the New York Times, Food Stamp Usage Across the Country; the U.S. Department of Agriculture; and the U.S. Census Bureau, Population Estimates. Food Stamp Usage rates are based off county-level estimates. Silicon Valley includes Santa Clara and San Mateo
Counties.
Innovation
Value Added per Employee
Value added per employee is calculated as regional gross domestic product (GDP) divided by the total employment. GDP estimates the market value of all final goods and services. GDP and employment data are from Moody's Economy.com. Employment data does not
68 include farming. All GDP values are inflation-adjusted and reported in first half 2009 dollars, using CPI for the U.S. City Average from the Bureau of Labor Statistics. Silicon Valley data is for Santa Clara and San Mateo Counties.
Patent data comes from the U.S. Patent and Trademark Office, and consists of Utility patents granted by inventor. Geographic designation is given by the location of the first inventor named on the patent application. Silicon Valley patents include only those patents filed by
residents of Silicon Valley cities. Data are based on Joint Venture's city defined region of Silicon Valley.
Patents Registrations by Technology Area

Patent data is provided by the U.S. Patent and Trademark Office, and consists of utility patents granted by inventor. Geographic designation is given by the location of the first inventor named on the patent application. Silicon Valley patents include only those patents filed by
residents of Silicon Valley cities. Data are based on Joint Venture's city defined region of Silicon Valley. Technology areas are based on the International Patent Classification System (IPC) and grouped according to certain technologies (see Patent Technology Areas table).
Green Technology Patents

1790 Analytics developed and performed the search of detailed U.S. Patent data from the U.S. Patent & Trade Office based on search criteria defined by Collaborative Economics for the eight technology areas: solar, wind, hydro and geothermal energy generation, energy
storage, fuel cells, hybrid systems and energy infrastructure. Data are based on Joint Venture’s ZIP-Code-defined region of Silicon Valley.
Venture Capital: Total, by industry, Share of U.S.

Data are provided by The MoneyTree™ Report from PriceWaterhouseCoopers and the National Venture Capital Association based on data from Thompson Reuters. For the Index of Silicon Valley, only investments in firms located in Silicon Valley, based on Joint Venture’s ZIP-
code defined region, were included. Values are inflation-adjusted and reported in 2009 dollars using the CPI for the U.S. City Average from the Bureau of Labor Statistics.
Cleantech Venture Capital: Total & by Segment

Data provided by Cleantech Group™, LLC. For this analysis, venture capital is defined as disclosed clean tech investment deal totals. Data are based on Joint Venture’s ZIP-code-defined region of Silicon Valley. The Cleantech Group describes cleantech as new technology and
processes, spanning a range of industries that enhance efficiency, reduce or eliminate negative ecological impact, and improve the productive and responsible use of natural resources. See box for cleantech industry segments. All values are inflation-adjusted and reported in first-
half 2009 dollars, using the CPI for the U.S. City Average from the Bureau of Labor Statistics.
Initial Public Offerings

Data is from Renaissance Capital's IPOhome.com and the location based on corporate address provided by IPOhome.com. The data was pulled from the website on January 05, 2010.
Mergers & Acquisitions

Data provided by FactSet Mergerstat LLC. Data are based on Joint Venture’s ZIP-code-defined region of Silicon Valley. All merger and acquisition deals do not disclose value. Total values are based on all of the deals with values disclosed. All forms of mergers and acquisitions
are included in count except for joint ventures.
Silicon Valley Churn: Establishments

The National Establishment Time-Series Database (NETS), prepared by Walls & Associates using Dun & Bradstreet establishment data, was sourced for jobs data and establishment counts. Silicon Valley is defined as Santa Clara and San Mateo Counties in this analysis.
SOCIETY
High School Graduation Rate & Percentage that Meet UC/CSU Entrance Requirements, High School Student Population, and High School Graduation Rates by Ethnicity
Data for the 2007-2008 academic year are provided by the California Department of Education. 2006-2007 was the first year statistics have been derived from student level records. California Legislature enacted SB1453, which establishes two key components necessary for a
long-term assessment and accountability system: (1) Assignment of a unique, student identifier to each K-12 pupil enrolled in a public school program or in a charter school that will remain with the student throughout his or her academic 'career' in the California public school
system; and (2) Establishment of a longitudinal database of disaggregated student information that will enable state policy-makers to determine the success of its program of educational reform. Historical data are final and are from the California Department of Education. The
methodology used calculates an approximate probability that one will graduate on time by looking at the number of 12th grade graduates and number of 12th, 11th, 10th and 9th grade dropouts over a four year period. Silicon Valley and California Dropout Rates data is from
the same source as the High School Dropout Rate chart data (see below).
High School Dropout Rate

Data for the 2007/2008 academic year are provided by the California Department of Education. This is the second year that statistics have been derived from student level records. California Legislature enacted SB1453, which establishes two key components necessary for a
long-term assessment and accountability system: (1) Assignment of a unique, student identifier to each K-12 pupil enrolled in a public school program or in a charter school that will remain with the student throughout his or her academic 'career' in the California public school
system; and (2) Establishment of a longitudinal database of disaggregated student information that will enable state policy-makers to determine the success of its program of educational reform. The 4-year derived dropout rate is an estimate of the percent of students who
would drop out in a four year period based on data collected for a single year.
Algebra II Scores
Data are from the California Department of Education, California Standards Tests (CST) Research Files for San Mateo and Santa Counties. In 2003, the California Standards Tests (CST) replaced the Stanford Achievement Test, ninth edition (SAT/9. The CSTs in English–language
arts, mathematics, science, and history–social science are administered only to students in California public schools. Except for a writing component that is administered as part of the grade four and grade seven English–language arts tests, all questions are multiple-choice.
These tests were developed specifically to assess students' knowledge of the California content standards. The State Board of Education adopted these standards, which specify what all children in California are expected to know and be able to do in each grade or course. The
2009 Algebra II CSTs were required for students who were enrolled in the grade/course at the time of testing or who had completed a course during the 2008–09 school year, including 2008 summer school. The following types of scores are reported by grade level and
content area for each school, district, county, and the state: % Advanced, % Proficient, % Basic, % Below Basic and % Far Below Basic is the percentage of students in the group whose scores were at this performance standard. The state target is for every student to score at the
Proficient or Advanced Performance Standard.
Total Enrollment in UC/CSU Systems

Data are from the National Center for Education Statistics' Integrated Postsecondary Education Data System (IPEDS) enrollment survey. School includes 10 schools within the University of California system, and 24 schools within the California State system. Data are based
upon fall enrollment of all students.
Early Education
Childcare Arrangements
Data provided by the UCLA California Health Interview Survey. Data are for San Mateo and Santa Clara counties. The type of childcare reflects childcare arrangements for 10 or more hours per week. The childcare topic is asked of all children - with "Type of Childcare" asked
of children with regular childcare for 10 hours or more in a typical week. Even though a child may be in school most of the day, this question is designed to account for before-school and after-school childcare arrangements. By childcare, it is meant any arrangement where
someone other than the parents, legal guardian, or stepparents takes care of (CHILD). {This includes preschool and nursery school, but not kindergarten.} Children are aged birth to 12 years of age. Other includes Head Start/State Program, Preschool or Nursery School,
Non-Family member, and Other Source.
Percentage of Entering Kindergarten Students with Preschool Experience and Kindergarten Readiness/Teacher Expectations
The source for this data is Applied Survey Research in conjunction with the Peninsula Community Foundation, Santa Clara County Partnership for School Readiness, and United Way Silicon Valley. The data is based upon the Kindergarten Observation Form I and Parent
Information Form administered for the 2005 and 2008 academic years. For purposes of this report, the term “preschool” is used to indicate that children had regular experience in a formal, curriculum_based, child care center during the year prior to kindergarten. A child was
considered to have preschool experience if at least one of the following were true: (1) the kindergarten teacher indicated that the child had participated in an state preschool or district Child Development Center (CDC), a Head Start program, or another licensed preschool/
child care center; and / or (2) parents listed a preschool or child care center that was checked and verified against a 4Cs list of valid, licensed, child care centers. Any child who was not confirmed as having preschool experience in one of these ways was not included in the
calculation of the sample’s preschool rate.
Third grade English-Language Arts Proficiency by Race/Ethnicity

Data is from the California Department of Education, California Standards Tests (CST) Research Files for San Mateo and Santa Counties. The CSTs in English–Language Arts for third graders was administered only to students in California public schools and all questions were
multiple-choice. These tests were developed specifically to assess students' knowledge of the California content standards, set by the State Board of Education. The 2009 English Language Arts CSTs were required for students who were enrolled in the grade/course at the time
of testing or who had completed a course during the 2008–09 school year, including 2008 summer school. The following types of scores are reported by grade level and content area for each school, district, county, and the state: % Advanced, % Proficient, % Basic, % Below
Basic and % Far Below Basic is the percentage of students in the group whose scores were at this performance standard. The state target is for every student to score at the Proficient or Advanced Performance Standard.
Arts & Culture

Arts & Culture Organizations with Operating Budgets of over $10 Million, Foundation Support of Arts & Culture Organizations Percentage of Total Giving by Silicon
Valley’s 25 Largest Foundations, Funding Sources for Arts & Cultural Organizations, and New Arts & Culture Start Up Organizations
Data on nonprofit organizations in this overview has been generated from 1stACT’s development of an exhaustive, proprietary cultural organization database capturing 659 active arts, culture, and humanities organizations operating in the Joint Venture defined region Silicon
Valley region as of December 2008. A dynamic online database was chosen so as to provide 1st ACT the option to update the data for ongoing use and to be able to analyze trends, to formulate strategies, and to benchmark results. Options for organization type are based on
the NTEE codes (National Taxonomy of Exempt Entities) Classification System developed by The National Center for Charitable Statistics. Organizational description is based on the NEA (National Endowment for the Arts) grant application options. Organizational and Targeted
Race/ethnicity categories are from National Census categories. To procure a primary universe of organizations for Silicon Valley, consultants performed a search of Guidestar.org (the premier online holder of nonprofit data) for the zip codes of Silicon Valley derived from the
2005 Joint Venture Silicon Valley definition. Guidestar data contributed a universe of over 700 organizations. This search focused on organizations that self-coded as an "arts" organization, was a 501c3, within the geographic scope. This search provided NTEE codes, addresses,
and most current reported financial data. Additional organizations were added from current and past grant records of the San José Office of Cultural Affairs and Arts Council Silicon Valley. Additionally, organization lists were provided by Artsopolis, and cross-referenced. A
significant number of these were not listed elsewhere as nonprofits. Although the majority of organizations were already captured through the Guidestar search, the grant applications and Artsopolis provided information on smaller organizations in the area.
Quality of Health
Immunization for Children Ages 19-35 Months
The source for the annual Santa Clara County, California and United States data is the U.S. Department of Human Health and Services, Center for Disease Control and Prevention. The data based on immunization rates of children 19 to 35 months of age. Data reflects
4:3:1:3:3: 4 or more doses of DTaP, 3 or more doses of poliovirus vaccine, 1 or more doses of any MMR, 3 or more doses of Hib, and 3 or more doses of HepB.
Prevention Quality Indicator: Hospital Discharges for Ambulatory Care Sensitive Condition
Data for the Preventable Hospitalizations indicator is provided by the Office of Statewide Health Planning and Development (OSHPD). OSHPD provided the number of hospital discharges as they relate to 12 Prevention Quality Indicators (PQI) created by the US Agency
for Healthcare Research and Quality (AHRQ). The discharges for these 12 indicators have been combined and divided by the population to calculate an overall prevention hospitalization rate for the Silicon Valley and California. The source for the 18 and over population
figures is the American Community Survey, U.S. Census Bureau. The PQIs represent health conditions that are serious in nature but are referred to as ambulatory care sensitive conditions (ACSCs). ACSCs are distinct conditions for which timely intervention and high quality
outpatient care can potentially prevent the need for hospitalization. Avoiding or reducing such admissions related to these conditions should result in reduced healthcare costs as well as reduced morbidity and suffering for patients with these diseases. AHRQ developed the
Prevention Quality Indicators (PQIs) as a tool for tracking these conditions. The PQIs were designed to identify community healthcare needs in the outpatient setting, providing information on the quality of the healthcare system outside the hospital. However, they are not
intended to be stand-alone measures of community healthcare quality. Prevention Quality Indicators included in the overall prevention quality indicator are the following: PQI 1 – Diabetes short term complication admission rate, PQI 3 – Diabetes long-term complication
admission rate, PQI 5 – Chronic obstructive pulmonary disease (COPD) admission rate, PQI 7 – Hypertension admission rate, PQI 8 – Congestive heart failure (CHF) admission rate, PQI 10 – Dehydration admission rate, PQI 11 – Bacterial pneumonia admission rate, PQI 12
– Urinary tract infection admission rate, PQI 13 – Angina admission without procedure, PQI 14 – Uncontrolled diabetes admission rate, PQI 15 – Adult asthma admission rate, and PQI 16 – Rate of lower-extremity amputation among patients with diabetes.
Health Insurance by Language Spoken at Home and by Source

All data on insurance coverage are drawn from the California Health Interview Survey, carried out by the UCLA Center for Health Policy Research. For health insurance coverage, the indicator measures the share of people who
answered “yes” when asked by the interviewer whether or not they are covered by health insurance. Data are for Santa Clara and San Mateo Counties. The indicator gives no indication of the quality or comprehensiveness of
insurance coverage.
Percentage of Population with Health Insurance Coverage by Age Group

Data is from the U.S. Census Bureau, 2008 American Community Survey. Silicon Valley data is for Santa Clara and San Mateo Counties. In 2008, the American Community Survey began asking about current health insurance coverage.
Infant Mortality Rate

Data is provided by the California Department of Health, Center for Health Statistics, 1994-2007. Silicon Valley estimates are for San Mateo and Santa Clara Counties.
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APPENDIX A
Safety
Substantiated Cases of Child Abuse per 1,000 Children
Child maltreatment data are from the California Children's Services Archive, CWS/CMS 2008 Quarter 4 Extract. Data are downloaded from the Center for Social Services Research at the University of California at Berkley. Population Data Source: California Department of
Finance annual population projections (Based on the 2000 U.S. Census).
Felony Offenses: Adult and Juvenile

Crime data are from the FBI’s Uniform Crime Reports, as reported by the California Department of Justice in their annual “Criminal Justice Profiles”. Data are reported for Santa Clara and San Mateo Counties, and California. Felony offenses include violent, property and drug offenses.
Drug and Alcohol Rehabilitation Clients & Felony Drug Offenses: Adult and Juvenile
Felony drug offenses are from the FBI’s Uniform Crime Reports, as reported by the California Department of justice in their annual “Criminal Justice Profiles”. Drug rehabilitation data include the number of clients across all modalities utilizing residential and outpatient drug
and alcohol rehabilitation services provided by Santa Clara and San Mateo counties. Data are an unduplicated count of residents served. Data is provided by the Santa Clara County Department of Alcohol and Drug Services, and by the San Mateo County Behavioral Health
and Recovery Services.
Public School Expulsions due to Violence/Drugs

Data is obtained from the California Department of Education, Dataquest site. Numbers reflect suspensions across all grades (K-12) and are presented as a percentage of enrollments. Data was collected for Santa Clara County, San Mateo County and California.
PLACE
Environment
Protected Open Space
Data are from GreenInfo Network's Bay Area Protected Lands Database, and are for Santa Clara and San Mateo Counties, Scotts Valley, Fremont, Newark, and Union City. Data include lands owned by public agencies and non-profit organizations that are protected primarily
for open space uses and that are accessible to the general public without any special permission. Previously, parks less than 10 acres were excluded from the dataset, but in the 2006 update, there was no acreage cut-off. The data was updated for the years 2005 and 2006.
Solar Installations by Sector

The California Solar Initiative (CSI) is part of the Go Solar California campaign, an unprecedented $3.3 billion ratepayer-funded effort that aims to install 3,000 MW of new grid-connected solar over the next decade and to transform the market for solar energy. CSI is overseen
by the California Public Utilities Commission and provides incentives for solar system installations to customers of the state's three investor-owned utilities (IOUs): Pacific Gas & Electric, San Diego Gas & Electric (SDG&E) and Southern California Edison. The program tracks
the solar capacity added, and the data reflected in the Index includes all projects with confirmed registration dates.
Water Resources
Data for this indicator was provided by the Bay Area Water Supply and Conservation Agency (BAWSCA). Data is compiled annually among BAWSCA agencies to update key information and assist in projecting suburban demand
and population. Gross per capita consumption includes residential, non-residential, recycled and unaccounted for water use among the Santa Clara and San Mateo County BAWSCA agencies.
Electricity Productivity and Electricity Consumption per Capita

Gross Domestic Product (GDP) data is from Moody's Economy.com. Electricity Consumption data is from the California Energy Commission. GDP values are inflation-adjusted and reported in first-half 2009 dollars, using the CPI for the U.S. City Average from the Bureau of
Labor Statistics. To compute per capita values, “Revised County Population Estimates, 1970-2008, December 2008 from the California Department of Finance for California were used.” Silicon Valley data includes Santa Clara and San Mateo Counties.
Transportation
Means of Commute
Data on the means of commute to work are from the United States Census Bureau, 2003 and 2008 American Community Survey. Data are for workers 16 years old and over residing in Santa Clara and San Mateo Counties commuting to the geographic location at which
workers carried out their occupational activities during the reference week whether or not the location was inside or outside the county limits. The data on employment status and journey to work relate to the reference week; that is, the calendar week preceding the date on
which the respondents completed their questionnaires or were interviewed. This week is not the same for all respondents since the interviewing was conducted over a 12-month period. The occurrence of holidays during the relative reference week could affect the data on
actual hours worked during the reference week, but probably had no effect on overall measurement of employment status. People who used different means of transportation on different days of the week were asked to specify the one they used most often, that is, the
greatest number of days. People who used more than one means of transportation to get to work each day were asked to report the one used for the longest distance during the work trip. The category, “Car, truck, or van,” includes workers using a car (including company
cars but excluding taxicabs), a truck of one-ton capacity or less, or a van. The category, “Public transportation,” includes workers who used a bus or trolley bus, streetcar or trolley car, subway or elevated, railroad, or ferryboat, even if each mode is not shown separately in the
tabulation. The category “Other Means” includes taxicab, motorcycle, bicycle and other means that are not identified separately within the data distribution.
Transit Use
Estimates are the sum of annual ridership on the light rail and bus systems in Santa Clara and San Mateo Counties, and rides on Caltrain. Data are provided by Sam Trans, Valley Transportation Authority, Altamont Commuter Express, and Caltrain. Revised County Population
Estimates, 1970-2008, December 2008 from the California Department of Finance were used to compute per-capita values.
Alternate Fuel Vehicles Registered

Alternative fuel vehicle data are provided by R.L. Polk & Co. Data is for Santa Clara and San Mateo Counties, Scotts Valley, Fremont, Newark, and Union City. Data includes newly registered vehicles for new and used vehicles.
Vehicle Miles of Travel and Gas Prices

Vehicle Miles Traveled (VMT) is defined as total distance traveled by all vehicles during selected time period in geographic segment. VMT estimates are from the California Department of Transportation’s “2008 California Motor Vehicle Stock, Travel, and Fuel Forecast.” Data
includes annual total VMT on State highways and non-state highways. In order to calculate VMT, Caltrans multiplies the road section length (length in miles along the centerline of the roadway) by Average Annual Daily Traffic (AADT). AADT are actual traffic counts that the
city, county, or state have taken and reported to the California Department of Transportation. To compute per-capita values, Revised County Population Estimates, 1970-2008, December 2008 from the California Department of Finance were used. Gas prices are average
annual retail gas prices for California, and come from the Weekly Retail Gasoline and Diesel Prices (Cents per Gallon, Including Taxes) dataseries reported by the U.S. Department of Energy, Energy Information Administration. Gas prices are All Grades All Formulations Retail
Gasoline Prices (including taxes) and have been adjusted into first half of 2009 dollars using the U.S. city average Consumer Price Index (CPI) of all urban consumers, published by the Bureau of Labor Statistics. Silicon Valley data is for Santa Clara and San Mateo Counties.
Fuel Consumption per Capita

Fuel consumption data are from the Caltrans, 2008 “California Motor Vehicle Stock, Travel, and Fuel Forecast” and include estimates for diesel and gasoline. Figures for 2008 are projections. Silicon Valley data is for Santa Clara and San Mateo Counties. To compute per-capita
values, Revised County Population Estimates, 1970-2008, December 2008 from the California Department of Finance were used.
Land Use
Residential Density
Joint Venture: Silicon Valley Network conducted a land-use survey of all cities within Silicon Valley. Collaborative Economics completed the survey compilation and analysis. Participating cities included: Belmont, Brisbane, Burlingame, Campbell, Cupertino, East Palo Alto, Foster
City, Fremont, Gilroy, Hayward, Hillsborough, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Millbrae, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Newark, Palo Alto, Portola Valley, Redwood City, San Bruno, San Carlos, San Jose, San Mateo, Santa Clara, Saratoga, Scotts
Valley, South San Francisco, Sunnyvale, Union City and Woodside. Santa Clara and San Mateo Counties are also included. In 2008, the survey was expanded to include more cities along the 101 corridor: Belmont, Brisbane, Burlingame, Millbrae, San Bruno, and South San
Francisco. Most recent data are for fiscal year 2009 (July ’08-June’09). The average units per acre of newly approved residential development are reported directly for each of the cities and counties participating in the survey.
Housing and Development Near Transit

Data are from Joint Venture: Silicon Valley Network of Survey Cities. The number of new housing units and the square feet of commercial development within one-quarter mile of transit are reported directly for each of the cities and counties participating in the survey.
Places with one-quarter mile of transit are considered “walkable” (I.e. within a 5- to 10-minute walk, for the average person).
Adoption of Green Building Policies

Data are from Joint Venture: Silicon Valley Network of Survey Cities. In recent years, cities have adopted green building codes, and in July of 2008 California approved statewide codes. In order to track achievements in this area, beginning in 2008, the survey included questions
related to green building codes.
Renewable Energy Permitting

Data are from Joint Venture: Silicon Valley Network of Survey Cities. In recent years, residents and cities have begun investing substantially in renewable energy technology to provide electricity for their property and homes. In order to track achievements in this area, this
year’s survey included questions related to the renewable energy portfolios of the surveyed cities and its residents.
Housing
Building Affordable Housing
Data are from Joint Venture: Silicon Valley Network of Survey Cities. Affordable units are those units that are affordable for a four-person family earning up to 80 percent of the median income for a county. Cities use the U.S. Department of Housing and Urban Development’s
(HUD) estimates of median income to calculate the number of units affordable to low-income households in their jurisdiction.
Rental Affordability
Data on average rental rates are from RealFacts survey of all apartment complexes in Santa Clara and San Mateo Counties of 40 or more units. Rates are the prices charged to new residents when apartments turn over and have been adjusted into 2009 dollars using the U.S.
city average Consumer Price Index (CPI) of all urban consumers, published by the Bureau of Labor Statistics. Median household income data is from the United States Census Bureau, American Community Survey.
Home Affordability
Data are from the California Association of Realtors' (CAR) Housing Affordability Index. CAR stopped producing the Housing Affordability Index for all home buyers since the end of 2005 and now produces a Housing Affordability Index for first-time buyers, which has been
updated historically to 2003. The data for Silicon Valley includes Santa Clara and San Mateo County and is based on the median price of existing single family homes sold from CAR's monthly existing home sales survey, the national average effective mortgage interest rate as
reported by the Federal Housing Finance Board, and the median household income as reported by Claritas/NPDC. Quarterly Sales Volume for Existing Single Family Detached Home Sales data were provided by DataQuick Information Systems through 2008 Quarter 2 and
RAND from 2008 Quarter 3 through 2009 Quarter 3.

Foreclosure and number of home sales data are from RAND California. RAND compiled originating data from the California Realtors Association and DataQuick News. Data reflects total foreclosures and number of home sales for townhomes, condominiums and single
family homes. Foreclosure data for 2009 is through October. Data are based on Joint-Venture’s ZIP-code-defined region of Silicon Valley.
Commercial Space
Commercial Space
Data is from Colliers International. Commercial space includes office, R&D, industrial and warehouse space. The vacancy rate is the amount of unoccupied space and is calculated by dividing the sum of the direct vacant and sublease vacant space by the building base. The
vacancy rate does not include occupied space that is presently being offered on the market for sale or lease. Net absorption is the change in occupied space during a given time period. Average asking rents are inflation-adjusted and reported in first-half 2009 dollars, using the
CPI for the U.S. City Average from the Bureau of Labor Statistics.
70
Commercial Vacancy
Commercial Rents
New Commercial Development

GOVERNANCE Municipal Debt Obligations Issued

Category Groupings
Civic Engagement
Education
Voter Participation College, University Facility
Data is from the California Secretary of State, Elections and Voter Information Division and the California State Archives Division. The eligible population is determined by the Secretary of State using Census
population data provided by the California Department of Finance. Silicon Valley data is for Santa Clara and San Mateo Counties. K-12 School Facility
Percentage of Registered Voters Declaring Party Affiliation Other, Multiple Educational Uses
Data is from the California Secretary of State, Elections and Voter Information Division in the form of Voter Registration and Participation data by election. Silicon Valley data is San Mateo and Santa Clara Financing
Counties. Cash Flow, Interim Financing
Revenue Insurance and Pension Funds
Project, Interim Financing
City Revenue by Source and City Revenue Trends Health Care Infrastructure
Data for city revenue are from the State of California Cities Annual Report. Data include all cities and towns and dependent special districts and do not include redevelopment agencies and independent Health Care Facilities
special districts. Data include all revenue sources to cities except for utility-based services (which are self-supporting from fees and the sales of bonds), voter-approved indebtedness property tax and sales
Hospital
of bonds and notes. The “other taxes” and “other revenue” include revenue sources such as transportation taxes, transient lodging taxes, business license fees, other non-property taxes and intergovernmental
transfers. Data are for Silicon Valley cities.
Housing/Miscellaneous
Multifamily Housing
Municipal Debt Obligations Issued Single-Family Housing
The California Debt and Investment Advisory Commission Database (CDIAC), as maintained by the California Department of Treasurer, was used to compile the municipal bond data for both Santa Clara Convention Center
and San Mateo Counties. State law that took effect in 1982 requires all governmental agencies which issue debt to report information on each issuance to CDIAC [Government Code Sections 8855(k)
Equipment
and 8855(i)]. Agencies must provide data to CDIAC 30 days prior to each issuance, and within 45 days after the signing of the bond purchase contract in a negotiated or private financing, or after the
acceptance of a bid in a competitive offering. Data includes both short and long term bonds as well as notes. Debt was grouped chronologically according to the sale date of type of debt (see table). Parking
Prisons, Jails, Correctional Facilities
Regional-State Interface Other Purpose
The State of California Franchise Tax Board, Economic and Statistical Research Bureau provided tax liability data by county for years 1995-2006. Data for 2007 and 2008 are provided by zip code. Silicon
Theatre/Arts/Museums
Valley data includes Santa Clara and San Mateo Counties. All tax liability values are inflation-adjusted and reported in first half 2009 dollars, using CPI for the U.S. City Average from the Bureau of Labor
Statistics.
Other Public Infrastructure
Flood Control, Storm Damage
SPECIAL ANALYSIS Multiple Capital Improvements, Public Works

Other Capital Improvements, Public Works
Global Connections Power Generation/Transmission
Public Building
Global Venture Capital Flows Solid Waste Recovery Facilities
Thompson Reuters produced special tabulations on venture capital investment to and from Silicon Valley. Silicon Valley was defined by area codes 408 and 650. All investment values are adjusted into Parks & Recreation
2009 U.S. dollars using CPI for the U.S. City Average from the Bureau of Labor Statistics.
Parks, Open Space
Foreign-Born S&E Students Recreation and Sports Facilities
Data are from the National Center for Education Statistics, IPEDS. The academic disciplines include: computer and information sciences, engineering, engineering-related technologies, biological sciences/life Redevelopment Transportation Infrastructure
sciences, mathematics, physical sciences and science technologies. Data were analyzed based on 1st major, citizenship, and level of degree (bachelors, masters or doctorate). Data for 1999 is not available. Redevelopment, Multiple Purposes
Changing Global Markets Airport
Data on global markets is provided in the International Monetary Fund (IMF) World Economic Outlook Database. The data used in this analysis is from the October 2009 edition of the World Economic Bridges and Highways
Outlook Database and was accessed using the IMF Data Mapper. Ports, Marines
Public Transit
Talent Street Construction and Improvements
Demographic Patterns in Population Mobility Water & Wastewater
Data provided by the United States Census Bureau, 2000 Decennial Public Use Micodate Sample files (PUMS) and the 2008 American Community Survey PUMS. Data based on Public Use Microdata Wastewater Collection, Treatment
Area Codes for Silicon Valley. Foreign-born or people born outside of the U.S. includes people born in U.S. territories/island areas. Water Supply, Storage, Distribution
Occupational Concentrations
Occupational data is from Occupational Employment Statistics, Occupational Employment (May 1999 and 2008). Data provided by the U.S. Bureau of Labor Statistics, Occupational Employment Statistics
released in September 2009. Silicon Valley includes data for the San Jose-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA). Prior to 2005, the county of San Benito was not included in the MSA.
The median annual wage values are inflation-adjusted and reported in first half 2009 dollars, using CPI for the U.S. City Average from the Bureau of Labor Statistics.
Flows of Foreign-born S&E Talent

Data provided by the United States Census Bureau, 2000 Decennial Census and 2008 American Community Survey Public Use Microdata Samples (PUMS). The category of foreign-born includes people born in U.S. territories/island areas, residents, and naturalized citizens.
Technology Change
Patents Registrations by Technology Areas & Global Patent Collaboration
Patent data is provided by the U.S. Patent and Trademark Office, and consists of utility patents granted by inventor. Geographic designation is given by the location of the first inventor named on the patent application. Silicon Valley patents include only those patents filed by
residents of Silicon Valley cities. Data are based on Joint Venture's city defined region of Silicon Valley. Technology areas are based on the International Patent Classification System (IPC) and grouped according to certain technologies (see table).
Trends in VC Investment
Refer to the Appendix entry for “Venture Capital: Total, by industry, Share of U.S.” above in ECONOMY: Innovation.
Industrial Composition Change

Total employment data is from the Bureau of Labor Statistics, U.S. Department of Labor, Quarterly Census of Employment and Wages (QCEW). The QCEW produces a comprehensive tabulation of employment and wage information for workers covered by State unemployment
insurance (UI) laws and Federal workers covered by the Unemployment Compensation for Federal Employees (UCFE) program. Employment data exclude members of the armed forces, the self-employed, proprietors, domestic workers, unpaid family workers, and railroad
workers covered by the railroad unemployment insurance system. Covered workers may live outside of Silicon Valley (San Mateo and Santa Clara Counties). Multiple jobholders (i.e., individuals who hold more than one job) may be counted more than once.
Federal Policy
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Awards
Data is from the U.S. Small Business Administration, Office of Technology Small Business Innovation Research Program (SBIR). Small businesses must be American-owned and independently operated, for-profit, principal researcher employed by business, and company size
limited to 500 employees to participate in the program. Data for phase 1 and phase 2 awards are included in totals. Award values are inflation adjusted into 2009 half-year dollars using the U.S. city average Consumer Price Index (CPI) of all urban consumers, published by the
Bureau of Labor Statistics.
SBIR and STTR Funding per $1 million GDP

Data is from the U.S. Small Business Administration, Office of Technology Small Business Innovation Research Program (SBIR). Small businesses must be American-owned and independently operated, for-profit, principal researcher employed by business, and company size
limited to 500 employees to participate in the program. Data for phase 1 and phase 2 awards are included in totals. Gross Domestic Product (GDP) estimates the market value of all final goods and services. GDP data is from Moody's Economy.com. Award values and GDP
are inflation adjusted into 2009 half-year dollars using the U.S. city average Consumer Price Index (CPI) of all urban consumers, published by the Bureau of Labor Statistics.
Procurement Patterns by Agency

Data is provided by the U.S. Census Bureau, Governments Division: Federal, State, and Local Governments Consolidated Federal Funds Report. Huntsville data is comprised of Madison County, and Silicon Valley data includes Santa Clara and San Mateo Counties. Washington
D.C. data incorporates Calvert, Charles, Frederick, Montgomery, and Prince George's Counties from Maryland; as well as Arlington, Fairfax, Loudoun, Prince Williams, and Stafford Counties from Virginia. Procurement spending values are inflation-adjusted and reported in first
half 2009 dollars, using CPI for the U.S. City Average from the Bureau of Labor Statistics. All data is in U.S. federal government fiscal years.
Stimulus Funds
Data is provided by the Independent Recovery Transparency and Accountability Board. Huntsville data is comprised of zip codes from Madison County, and Silicon Valley data includes zip codes from Santa Clara and San Mateo Counties. Washington D.C. data incorporates zip
codes from Calvert, Charles, Frederick, Montgomery, and Prince George's Counties from Maryland; as well as zip codes from Arlington, Fairfax, Loudoun, Prince Williams, and Stafford Counties from Virginia. Any zip codes that are in one or more counties are attributed to the
county will the largest share of that zip code.
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APPENDIX B
Silicon Valley Major Areas of Economic Activity

Percent of Total Percent Change
Employment Silicon Valley
2009 Q2 Employment 2007 - 2008 2008 - 2009
Total Employment 1,322,634 100.0% 1.4% -6.4%
Community Infrastructure 759,307 57.4% 1.1% -5.5%
Health & Social Services 127,591 9.6% 3.2% 1.4%
Retail 123,151 9.3% -1.4% -8.9%
Education 103,897 7.9% 2.3% 0.0%
Accomodation & Food Services 103,789 7.8% 1.5% -3.9%
Construction 56,703 4.3% -4.5% -22.2%
Consumer Services 39,294 3.0% -2.3% -8.0%
Wholesale Trade 34,323 2.6% -2.5% -7.4%
Transportation 27,152 2.1% 3.3% -5.1%
Federal Government Administration 26,073 2.0% -0.4% 0.9%
Arts, Entertainment, & Recreation 24,576 1.9% -3.7% -2.8%
Consumer Financial Services 20,778 1.6% -10.7% -5.8%
Goods Movement 20,692 1.6% 1.4% -13.3%
Other (Private Households & Unclassified Industries) 19,425 1.5% 96.6% -5.3%
Nonprofits 12,429 0.9% 2.6% 1.5%
Local Government Administration 12,206 0.9% 3.7% -0.8%
Utilities 5,007 0.4% -0.9% -2.1%
Warehousing & Storage 2,155 0.2% 2.0% -4.3%
State Government Administration 66 0.0% -12.7% -4.3%
Information Products & Services 272,845 20.6% 4.1% -7.7%
Software 82,965 6.3% 4.3% -8.0%
Computer Hardware 41,785 3.2% 9.9% -1.0%
Semiconductor & Semiconductor Equipment Manufacturing 36,408 2.8% 1.7% -8.0%
Internet & Information Services 23,764 1.8% 10.1% -1.0%
Electronic Component Manufacturing 22,660 1.7% -3.2% -20.1%
I.T. Wholesale Trade 20,187 1.5% 3.6% -12.7%
Communications Services & Equipment Manufacturing 19,196 1.5% 1.7% -1.2%
Instrument Manufacturing 18,857 1.4% -3.0% -11.0%
Other Media & Broadcasting 5,124 0.4% 39.6% -5.2%
I.T. Repair Services 1,899 0.1% 5.1% -5.1%
Innovation & Specialized Services 139,449 10.5% -0.3% -7.7%
Technical & R&D 48,422 3.7% 0.3% -2.7%
Management Offices 26,785 2.0% -1.3% 9.5%
Personnel 22,792 1.7% -2.6% -27.4%
Specialized Financial Services 20,991 1.6% 3.3% -7.9%
Legal 10,453 0.8% -2.8% -5.4%
Marketing/Ad/PR 6,312 0.5% 2.4% -5.0%
Design 3,694 0.3% -0.1% -25.1%
Business Infrastructure 60,122 4.5% -0.9% -5.3%
Facilities 38,160 2.9% -0.6% -3.7%
Administrative Services 21,962 1.7% -1.5% -8.0%
Other Manufacturing 58,373 4.4% -1.5% -10.3%
Diversified Ag & Food Manufacturing 13,941 1.1% -2.8% -4.5%
Other Primary & Fabricated Metal Manufacturing 12,374 0.9% -3.8% -24.1%
Other Misc. Manf. & Space & Defense Manufacturing 12,003 0.9% 1.1% 2.5%
Other Machinery & Equipment Manufacturing 10,630 0.8% 0.4% -3.9%
Other Petrochemical Manufacturing 4,623 0.3% 3.1% -13.7%
Textile, Wood, & Furniture Manufacturing 2,943 0.2% -3.5% -24.5%
Paper & Packaging Manufacturing 1,647 0.1% -3.5% -11.5%
Mining 212 0.0% -15.7% -25.6%
Life Sciences 32,538 2.5% 4.8% -5.8%
Medical Devices 11,010 0.8% -6.9% -9.6%
Biotechnology 10,923 0.8% 24.2% -6.5%
Pharmaceuticals 10,605 0.8% 1.9% -0.8%
Note: Data is for San Mateo and Santa Clara Counties, Scotts Valley, Fremont, Newark, and Union City.
Data Source: California Employment Development Department, Labor Market Information Division, Quarterly Census of Employment and Wages
72
AC K N OW L E D G M E N T S
Special thanks to the following organizations

that contributed data and expertise:
1st ACT Silicon Valley Moody's Economy.com

1790 Analytics National Center for Education Statistics
Altamont Commuter Express National Center for Charitable Statistics
Americans for the Arts Next 10
Applied Survey Research New York Times, Food Stamp Usage Across the United States
Bay Area Water Supply and Conservation Agency PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report,
California Association of Realtors Data: Thomson Reuters
California Department of Education Peninsula Community Foundation
California Department of Finance Public Policy Institute of California
California Department of Justice R.L. Polk & Co.
California Department of Public Health RAND Corporation
California Department of Social Services RealFacts
California Department of Transportation Renaissance Capital
California Employment Development Department SamTrans
California Energy Commission San Mateo County Human Services Agency, Planning & Evaluation
California Franchise Tax Board Santa Clara County
California Office of Statewide Health Planning and Development Santa Clara County Department of Alcohol & Drug Services, Alcohol & Drug Services
California Public Utilities Commission Research Institute
California Secretary of State Santa Clara County Partnership for School Readiness
California State Controller’s Office Silicon Valley City Managers
California State Treasurer’s Office Silicon Valley Community Foundation
Caltrain U.S. Bankruptcy Courts
Center for Disease Control, National Center for Health Statistics U.S. Bureau of Labor Statistics
Center for Social Services Research, University of California Berkeley, U.S. Census Bureau
School of Social Welfare U.S. Department of Agriculture
Center for the Continuing Study of the California Economy U.S. Department of Commerce
City Planning and Housing Departments of Silicon Valley U.S. Department of Energy
Cleantech Group™, LLC U.S. Patent and Trademark Office
Colliers International U.S. Small Business Administration
DataQuick Information Systems UCLA Center for Health Policy Research
FactSet Mergerstat, LLC United Way Silicon Valley
Foundation Center Valley Transportation Authority
GreenInfo Network Walls & Associates
International Monetary Fund
Midpeninsula Open Space District
J O I N T V E N T U R E : S I L I C O N VA L L E Y N E T WO R K
Established in 1993, Joint Venture: Silicon Valley Network provides analysis and action on issues affecting our region's economy and
quality of life. The organization brings together established and emerging leaders—from business, government, academia, labor and the
broader community—to spotlight issues, launch projects, and work toward innovative solutions.
S I L I C O N V A L L E Y C O M M U N I T Y F O U N D AT I O N
As a comprehensive center for philanthropy serving all of San Mateo and Santa Clara Counties, our mission is to strengthen the common
good, improve the quality of life and address the most challenging problems.
73
Joint Venture: Silicon Valley Network Investors Council
PRIVATE SECTOR Lucile Packard Children’s Hospital at Stanford Varian Medical Systems
Accenture McKinsey & Company Volterra
Accretive Solutions Menlo College Wells Fargo
Adobe Systems Morgan Family Foundation Wilmer Hale, LLP
Adura Technologies Microsoft Wilson Sonsini Goodrich & Rosati, LLP
Akeena Solar Mitsubishi International Corporation Zanker Road Resource Management, Ltd
Alston & Bird LLP Mozes
Applied Materials New Spectrum Foundation PUBLIC SECTOR
AMD Notre Dame de Namur University City of Belmont
AT&T O’Connor Hospital City of Brisbane
Bank of America Oakland Athletics City of Burlingame
Bay Area SMACNA Optony City of Campbell
Benhamou Global Ventures Orrick, Herrington & Sutcliffe LLP City of Colma
Berliner Cohen, LLP Pacific Gas & Electric Company City of Cupertino
Better Place Packard Foundation City of Daly City
Bingham McCutchen, LLP Pipe Trades Training Center of Santa Clara County City of East Palo Alto
Burr, Pilger, Mayer Robert Half International City of Foster City
Cisco Systems SamTrans/Caltrain City of Fremont
Cogswell Polytechnical College San Francisco 49ers City of Gilroy
Colliers International San Jose Convention and Visitor’s Bureau City of Half Moon Bay
Comerica Bank San Jose Sharks City of Los Altos
CommerceNet San Jose/Silicon Valley Business Journal City of Menlo Park
Cooley Godward, LLP San Jose/Silicon Valley Chamber of Commerce City of Milpitas
Cypress Semiconductor Corporation San Jose State University Research Foundation City of Monte Sereno
Cypress Envirosystems SanDisk City of Morgan Hill
Deloitte & Touche Santa Clara Building & Construction Trades Council City of Mountain View
DLA Piper, LLP Santa Clara Valley Water District City of Newark
DMB Redwood City Saltworks Silicon Valley Bank City of Pacifica
El Camino Hospital Foundation Silicon Valley Community Foundation City of Palo Alto
Ernst & Young Silicon Valley Power City of Redwood City
Frieda C. Fox Family Foundation Skoll Foundation City of San Bruno
Foothill-De Anza Community Sobrato Development Companies City of San Carlos
College District Foundation SolutionSet City of San Jose
Google South Bay Piping City of San Mateo
Grant Thornton LLP South Bayside Waste Management Authority City of Santa Clara
Greenberg Traurig, LLP Stanford University City of Santa Cruz RDA
Greenstein Rogoff Olsen Studley City of Saratoga
Half Moon Bay Brewing Company Summerhill Land City of South San Francisco
Hewlett-Packard Sun Microsystems City of Sunnyvale
Hoge Fenton, LLP SunPower Corporation City of Union City
Hood & Strong, LLP SVB Financial Group City of Watsonville
Intero Real Estate Synopsys County of San Mateo
JETRO TDA Group County of Santa Clara
Johnson Controls Therma County of Santa Cruz
Juniper Networks The San Jose Marriott Town of Atherton
Kaiser Permanente Trident Capital Town of Portola Valley
KPMG University of California, Santa Cruz Town of Los Altos Hills
Koret Foundation Valley Medical Center Foundation Town of Los Gatos
Town of Woodside
JO INT VE NTU R E : SIL ICO N VAL L E Y NE TWO R K SIL ICO N VAL L E Y CO M M U NITY FO U NDATIO N
100 W. San Fernando Street, Suite 310 2440 West El Camino Real, Suite 300
San Jose, CA 95113 Mountain View, California 94040-1498
t: 408 298-9330 f: 408 404-0865 t: 650 450-5400 f: 650 450-5401
email: info@jointventure.org email: info@siliconvalleycf.org
www.jointventure.org www.siliconvalleycf.org
Copyright ©2010 Joint Venture: Silicon Valley Network, Inc. All rights reserved Printed in the U.S.A. on recycled paper
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OF

PEOPLE ECONO MY SOCI E T Y PL ACE GOVE R N A NCE

Chester Haskell Jeff Ruster

Russell Hancock, Ph.D. Emmett D. Carson, Ph.D.

Half Moon Bay

2 0 1 0 IND E X HIG HL IG HTS 4

Talent Flows and Diversity 12

Preparing for Economic Success 28

Arts and Culture 34

SP E CI A L A NA LYSI S c o nti nue d 58

Silicon Valley’s households are feeling the pressure.

Silicon Valley’s economic and innovation engine has cooled off.

Progress is being made in early childhood health; however, challenges

Silicon Valley is improving in environmental quality and resource efficiency;

Silicon Valley’s contribution to state coffers continues to rise.

Net Population Change Change in Jobs Relative

100=Dec 2008 Values

Percent Change between

WHAT IS AN INDICATOR? Population Change between Venture Capital Investment

Special Analysis continued 58 | 67

ANALYSIS When the current recession ends—and of

course it will—how will Silicon Valley emerge?

Will we take up our place again as one of the

world’s most dynamic economies, and a

powerhouse for state and national GDP?

Will we remain the epicenter of innovation?

Specifically, we examine how four key considerations shape our habitat:

Among our key findings:

• California state policy has become a hindrance to

Trade & Investment

around the world. In particular, immigrant entrepreneurs have -15,000

HOW ARE WE DOING? California 38,134,496 38,487,889 +0.9%

The population of the two-county region continued to grow in 2009

an Asian or Pacific Islander language (43%), just ahead of the share

the downward trend since 2003 continues similar to statewide

Percentage of Population that Speaks Language

Total S&E Degrees Conferred in the United States

16% Talent Flows and Diversity

Silicon Valley California United States SOCIETY 28 | 39

Percentage of S&E Degrees Conferred to

Special Analysis cont. 58 | 67

Monthly Employed Residents Relative to December 2007

Monthly Employed Residents Relative to December 2008

(100=December 2007 Values)

(100=December 2008 Values)

unemployment rates of the population residing in the Valley reveals 93 93

employment such as through temporary employment services 0

jobs in Employment Services have increased 23 percent since

1,200,000 Percent change -6.4%

Percent Change in Jobs Q1 2008 – Q1 2009

Silicon Valley: -4.3% Rest of CA: -4.3% United States: -3.7%

Special Analysis cont. 58 | 67

*Data for December 2009 is preliminary

Major Areas of Economic Activity

800,000 Silicon Valley Employment Growth

0 Other Manufacturing -10.3%

Total Number of Jobs in the Core Green Economy

Total Number of Establishments

in the Core Green Economy

Data Source: Green Establishment Database