The Silicon Valley Perspective

Silicon Valley Leadership Group | svlg.org

The Silicon Valley PerspectiveCarl GuardinoPresident & CEO, Silicon Valley Leadership Group

Cupertino Rotary VisitMarch 30, 2011


“Our job, as CEOs, is not to sit on the sidelines, to cheer or jeer. Our job is to get into the game and move the ball forward.”

David PackardHewlett-Packard CEO and

Silicon Valley Leadership Group Founder


2.4 million people1 million jobs

10.6% unemployment Feb. 2011

7000 high-tech employers

Silicon Valley - Current Status


1. 153 CEO Respondents 2. $1.7 trillion in annual global revenue3. Special Section: 304 Venture-

Backed, High-Tech CEOs – what do they need?

7th Annual CEO Business Climate Survey8th Annual Survey is currently in the field


– By more than 3:1 CEOs see more job growth in their business cluster

– By more than 8:1 CEOs see more job growth for their company

CEO's Speak Out: Silicon Valley Business Climate

Job Growth in 2010


Talent

Technology

Temperament

Training

Treasure

Temperature

CEO's Speak Out: Silicon Valley’s Core Strengths



• 53% of engineers• >50% of CEOs

& founders of tech companies

• >50% of U.S. college professors (advanced technical subjects)

Access to Skilled Labor


Talent

Technology

Temperament

Training

Treasure

Temperature


Talent

Technology

Temperament

Training

Treasure

Temperature

• >50% of U.S. college graduates earning advanced technical degrees are foreign born

• 51.2% of U.S. full-time workforce are women, and more than half of U.S. college graduates are women

Access to Skilled Labor




Talent

Technology

Temperament

Training

Treasure

Temperature

• Sergey Brin, Google• Andrew Grove, Intel• Jerry Yang, Yahoo!

Examples



• Aerospace \ Defense• Semiconductors• Personal Computers• Software• Internet• Green Tech• Smart Phones• Electric Vehicles


Talent

Technology

Temperament

Training

Treasure

Temperature

Entrepreneurial Mindset



• “Frenemies”• “Co-opetition”

Talent

Technology

Temperament

Training

Treasure

Temperature

Proximity to Customers and Competitors



• Three of top 15 universities in the world are in Silicon Valley (Economist Magazine)

Talent

Technology

Temperament

Training

Treasure

Temperature

World Class Universities



• Nationally, venture capitalists (VC) invested $5 billion in U.S. companies in the fourth quarter of 2010

• Bay Area companies received 40 percent of all nationwide Venture funding

• The number of venture capital deals increased by 12 percent to 3,277 in 2010

Talent

Technology

Temperament

Training

Treasure

Temperature

Access to Venture Capital



• 300 Days of Sunshine• Avg. temp: 72F

Talent

Technology

Temperament

Training

Treasure

Temperature

Climate / Weather



• Housing Costs• Business Taxes• Recruitment Costs• State Budget

Structure• Health Care Costs

A CEO’s view:Businesses Challenges




• Housing Costs• High Taxes• Traffic Congestion• Health Care• K-12 education

A CEO’s view:EmployeesBusinesses Challenges




• Housing Costs• High Taxes• Traffic Congestion• Health Care• K-12 education

A CEO’s view:EmployeesBusinesses Challenges

Improve K-12

Education

Continue R&D Tax

Credit

Invest In Traffic Relief

Create Affordable Housing

Improve Higher

Education

Actions State Can Take


• $37.8 million invested• $1.8 billion of total leverage• 8,963 total housing

opportunities

Solutions:Housing Trust of Silicon Valley:Affordable Homes for Silicon

Valley


• 16.1 mile extension• 100,000 daily trips

Solutions:Traffic Congestion Solution:

Bart Extension


• 79-mile corridor• ~40,000 daily riders• $30M Deficit for 2011/12

Solutions:Traffic Congestion Solution:

Keep Caltrain Running


• 74 Teachers trained this year• We trained 275 over four years• This year we began a 12 hour

"Professional Learning Community" component that will take place after the 80 hours of professional development where teachers will meet in small groups to talk about how they are using their new content knowledge to inform their instruction in the classroom

• We hope to train 100 teachers next year and pilot a measurement for student growth

Solutions:Math Initiative:

Teacher Improvements







White Paper Recommendation:Strategic Plan


White Paper Recommendation:Education Reform


White Paper Recommendation:Reform – Pension, Budget & Governance


White Paper Recommendation: Infrastructure / Resources and Revenue


White Paper Recommendation: Energy/Environment


White Paper Recommendation:Developing Markets


‘Siliconia’ USA


Thank you!

Documents

The Silicon Valley Perspective