Our third international case study for the London-Stansted-Cambridge-Corridor-Growth-Commission is the San Francisco / Silicon Valley area in California in the USA.
Through these case studies we hope to learn what might drive further growth and prosperity in the London-Stansted-Cambridge Corridor and understand what kinds of priorities and actions might be sensible to consider as a basis for collaboration going forward. You can download the full report here.
SAN FRANCISCO AND SILICON VALLEY: THE GLOBAL LEADER IN ENTERPRENEURSHIP, INVESTMENT CAPITAL AND TECHNOLOGY
The leading global region for entrepreneurship, investment and tech business. Its highly-skilled talent and ability to develop and commercialise technology and launch businesses is unparalleled. Many of the world’s most innovative technological advances have been conceived, incubated and scaled in Silicon Valley, generating economic growth and prosperity for the region’s companies and residents.
The San Francisco / Silicon Valley Area consists of 101 cities, but it is one economy with more than 7 million people living, working and recreating across the region. If the San Francisco / Silicon Valley area were a country, its economy would rank 23rd in the world. Since 2010, Bay Area employment has grown at nearly double the rate of other US metropolitan areas.
Corporates and start-ups. Many world-famous companies have their own campuses in Silicon Valley, but many smaller companies prefer to locate in San Francisco. Many firms start in San Francisco and move to Silicon Valley when they get larger. With 2.33 million square metres of office space, the SoMa (South of Market Street) area is the leading tech centre in San Francisco.
Labour productivity was 62 per cent higher than the U.S. average in 2013. The share of science, technology, engineering and maths (STEM) jobs in the region’s economy was 2.6 times higher than the national average in 2013. The area’s technology industry is highly diverse, spanning hardware, software, biotech, clean tech, communications, and social media.
Transport is a critical challenge in San Francisco / Silicon Valley. Although there are high levels of demand, extensive commuter rail and three major airports – the historic under-funding, numerous modes, two-dozen transit operators, and fragmented strategic management – has led to greater congestion and increased commuter journey times.
Other challenges related to housing, falling R&D spending and lack of effective workforce and skills planning and development. The San Francisco / Silicon Valley area housing costs and rent prices are at an all-time high, largely as a result of the failure to construct new housing in line with demand. Falling investment in R&D in the region’s universities is a growing concern and may affect innovation leadership in the long run. The San Francisco / Silicon Valley area’s labour market is regional, but current workforce development efforts are limited and uncoordinated.
READ THE FULL REPORT HERE.