The Bay Area in a Global World

1
The Bay Area in a Global World

2
Bay Area Strengths

• Well Positioned in Globally Oriented, Growing
  Technology Sectors
• Export oriented
• Ability to manage global technology, product
  development, and production operations
• Technology Pump Global Technology Development
  Center
• Silicon Valley has been the undisputed global
  center of information technology
• Two world class research universities, Berkeley
  and Stanford
• Center of cross disciplinary technlogy
  development with additional stregths in telecom,
  bio- and nano-technologies
• The region is a technology pump, pulling in the
  best and exporting people and technology
• Note The region receives very substantial RD
  net-funding out of US Defense Spending
• An advantage to some
• A problem in the eyes of others
• Infrastructure for Venture New Business Creation
• The region has a highly developed system to
  support venture industry
• Finance
• Law
• Recruitment

3
The Weaknesses

• Simple Version -- Cost
• The region has become very expensive, too
  expensive for
• Mass production
• Back office
• IT and Telecom industries are weaknesses as well
  as strength
• The twin collapse of the dot com
• The dot com illusion
• The network fantasy
• Volatile
• Increasingly mature and commoditized
• Commodity pricing
• Volatility and maturity is weakening of
  innovation phase of lead sectors
• Weakness in capturing full value of innovation
• Mechanisms for Sustained Innovation in Product
  and Process are weak
• Inability to sustain product innovation if
  incremental innovation is weak
• Not where is manufacturing but where is the
  know how for next generation products
• The unique position within many of the basic
  technologies have made the region less strong in
  application domains