Last year, we speculated that our region’s ability to sustain its post-recession growth may be eroding. This year’s
update of selected indicators strengthen the case for concern. The region’s innovation industries experienced strong
growth in 2016, but substantially lower than that of 2015. More people are now moving out than moving into our
prosperous but expensive and congested region. We are making better progress compared to other innovation
regions in some areas critical to future innovation, such as STEM degrees conferred per capita and university R&D
expenditures. But, on indicators related to housing, transportation, and English and Math proficiency, the region has
either shown little improvement or worsened.
We in Silicon Valley have proven remarkably adept at walking a tight rope between high productivity and the
high costs of living and doing business. We have also made remarkable progress in finding policy solutions to the
challenges highlighted in this report. Yet, challenges remain, and pose a serious threat. Our housing crisis shows
no signs of abating. Silicon Valley is absorbing billions of dollars in lost productivity due to traffic congestion and is
failing to prepare many of our young people to share in the region’s prosperity. These challenges combined with the
continuing political volatility at the national level require an even stronger focus and level of collaboration within our
region, and with our state. In the face of an uncertain regional situation and an unsettling national climate, now is the
time for more—not less—leadership from Silicon Valley.
