Silicon Valley has become a destination place for companies and families wanting to settle here and make it their home because the region is a leader in innovation and creativity. In no other place are the elements that form its "secret sauce" present, according to a major stakeholder in the region.
Carl Guardino, president and CEO of the Silicon Valley Leadership Group (SVLG), recently told members of the Silicon Valley Association of REALTORS® (SILVAR) that San Francisco, Santa Mateo County, Santa Clara County and portions of Santa Cruz and Alameda counties, make up Silicon Valley, a region with 2.4 million people and one million jobs. Just a couple of years ago, the region's unemployment rate was in the double digits. Today, unemployment is at 5.4 percent, below the state and nation's unemployment rates of 7.3 percent and 6.3 percent, respectively.
Six core strengths make up the "secret sauce" that drives the region's economy, innovation, and creativity: talent, technology, temperament, training, treasure and temperature. Guardino noted only in Silicon Valley are all these six core strengths present.
Silicon Valley has access to skilled labor and global talent, with 53 percent of engineers, half of CEOs and founders of tech companies, half of college professors and more than half of students that are foreign born. The global talent is a tremendous strength that creates jobs and innovation, said Guardino.
Every industry is in the region, from high-tech to biotech to green tech. The Valley has aerospace/defense, semiconductors, personal computers, software, the Internet, smartphones, electric vehicles.
Due to its proximity to customers and competitors, the region has "frenemies and co-opetition," where companies compete, but they also get along. "We don't burn bridges in Silicon Valley because we know today's competitor is today's customer," said Guardino.
Top colleges and universities provide the best training. Three of the top 15 U.S. universities are Stanford University, UC Berkeley and UC San Francisco.
Silicon Valley has the most access to venture capital. Bay Area companies received 50 percent of all nationwide venture capital funding in the first quarter of 2014.
"The global venture capitalists are here," Guardino proudly announced.
Last, but not least, Guardino exclaimed only in the Valley are there 300 days of sunshine and an average temperature of 72 degrees.
Silicon Valley does have challenges, which must be addressed. "We can't rest on our laurels," said the SVLG CEO.
In a survey conducted by the public policy trade association that represents more than 385 of Silicon Valley's most respected companies, SVLG found that housing costs, recruitment/retention costs, traffic congestion, business regulations and business taxes are the top challenges their businesses face. Their employees are challenged by housing, high taxes, traffic congestion, health care and the quality of K-12 education.
Prompted by these survey findings, Guardino said the SVLG has come up with top three priorities for 2014: immigration reform, housing and transportation. The trade association plans to lobby legislators on these issues because they affect jobs and jobs are what keep California's economy going, said Guardino. He noted, one job in electronic computer manufacturing creates nine new jobs, which amounts to a total of $808,000 in annual wages and benefits and an annual revenue (state and local taxes and fees) of $114,900.
"Were going through a great time, but it's a cyclical economy. We have to keep our strengths and work on our challenges," Guardino told the REALTORS®.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.