On the macro level, California is finally coming out of the Great Recession, but on amicro level, this recovery is precariously balanced on the shoulders of one region. If something were to happen to the Silicon Valley-Bay Area region, the Golden State currently has no Plan B. This isn’t meant as a critique of the other regions of California, but rather a critique of how Sacramento has largely been blinded by the macro-level data to the detriment of exploring ways to spur growth in a more diversified manner.
Just like anywhere in the world, there are many potentially serious policy threats looming under the surface that could inhibit the Silicon Valley-Bay Area regions’ competitiveness into the future. And there is strong evidence that these issues are already starting to have an impact. Between 2008 and 2014, 33% of the businesses that left California came from the Silicon Valley-Bay Area region; moreover, 8 of the top 15 business disinvestment municipalities are located within the Silicon Valley-Bay Area region. This is largely because the tech industry experienced the third most disinvestment during this time period.
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