Chapter 2. Global Entrepreneurs and Marketing of Multinational Companies

   

Silicon Valley has become a geographic metaphor for the Innovation Economy. Yet, it is a relatively small geographic area comprising Santa Clara County and adjacent parts of San Mateo, Alameda, and Santa Cruz counties, with a population of more than 2.5 million people. While the city of San Francisco, located 20 miles north of Silicon Valley, is a worldwide cosmopolitan attraction, Silicon Valley actually has triple the population of San Francisco, with average population growth rates of between 10% to 15% in its counties over the 10 years between 1990 and 2000. San Jose, the largest city in Silicon Valley, increased its population by over 14% during the 1990s, passing San Francisco in size , and is a far more dynamic market than its better-known neighboring city. The term "Silicon Valley" has become generic for worldwide regional technology environments or habitats, all plugging into the global hightech economy.

Silicon Valley combines all of the elements we have discussed as emblematic of the emerging regional networks, with a world-class educational institution (Stanford University), a high concentration of venture capital and risk management, an entrepreneurial spirit, highly skilled immigrants, and companies and linking associations that support each other in a regional network.

Table 2-1. Facts at a Glance ” Silicon Valley

Population

2.5 million

Number of jobs

1.35 million

Exports

$35.2 billion, accounting for 34% of California's non- agricultural exports

Number of technology-based companies

7,000

Amount invested by venture capitalists in Silicon Valley companies in 2000

Almost $17 billion

Average investment

$17.7 million, almost double the average investment in 1999 ($9.6 million)

Average wage in 1999

$66,400 (+9% vs. +2% in U.S. overall)

Software

The fastest -growing category of new jobs, with an average wage of $125,000

Earnings of highest paid 20% of households

An average $149,000

Adult education attainment

88% at least high school graduate, 42% at least bachelor's degree

Foreign born

35% of residents compared with 10% foreign born in the total U.S. population

Ethnic composition

48% white, 24% Hispanic, 24% Asian/Pacific islander, 4% African American

Annual growth of jobs

3% to 5% over the last seven years

Percentage of work force in hightech industries in Silicon Valley

40% (double the norm of the same industry clusters in the greater San Francisco Bay Area)

Commuters going into Santa Clara County to work

20% of work force

Sources: Joint Venture's 2001 Index of Silicon Valley ( www.jointventure.org/resources/2001Index/2001home.html ); United States Census 2000 ( www.census.gov ).

   


Creating Regional Wealth in the Innovation Economy. Models, Perspectives, and Best Practices
Creating Regional Wealth in the Innovation Economy: Models, Perspectives, and Best Practices
ISBN: 0130654159
EAN: 2147483647
Year: 2002
Pages: 237

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