Silicon Valley
(Santa Clara, California, US)
Group Members:
Ayesha Sohail(070269)
Anam Pervaiz(070163)
Hafsah Nazir (070289)
Arshya tahir
Javeria Javed (070360)
Location and History
• Location
Silicon Valley is an area that "located on the San Francisco, California,
peninsula, radiates outward from Stanford University. It is contained by
the San Francisco Bay on the east, the Santa Cruz Mountains on the west,
and the Coast Range to the southeast.
• History
Since the early twentieth century, Silicon Valley has been home to a
vibrant, growing electronics industry. The industry began through
experimentation and innovation in the fields of radio, television, and
military electronics. Stanford University, its affiliates, and graduates have
played a major role in the evolution of this area.
Significance
• It is the hub of information technology.
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Most of the major companies are situated there e.g.
Hewelett-Packard, Intel , Google , e bay , apple etc.
Most of the major inventions had taken place
here.
• It is like a backbone in US economy.
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Demographics
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Area: 1,854 square miles
Population: 2.9 million
Jobs: 1,322,634
Average Annual Salary: $75,390
Foreign Immigration: +14,264
Domestic Migration: -3,728
Adult educational attainment:
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11% Less than High School
18% High School Graduate
28% Some College
26% Bachelor’s Degree
17% Graduate or Professional Degree
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Age distribution:
13% 0-9 years old
13% 10-19
36% 20-44
26% 45-64
12% 65 and older
Ethnic composition:
40% White, non-Hispanic
29% Asian, non-Hispanic
25% Hispanic
2.6% Black, non-Hispanic
<4% Multiple and Other
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Foreign Born: 36%
Origin:
58% Asia
31% Americas
9% Europe
1% Oceana
1% Africa
PEOPLE
Population Growth
Immigration
Society
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Education
Health
Safety
Culture
Place
• Environment
– Protected open space
– Solar installation
– Water resources
– Electircity
Place
• Transportation.
– Means of commute
– Transit use
– Gas prices
– Fuel consumption per capita
Place
• Land use
– Residential density
– Housing and development
– Home affordability
– Renewable energy permitting.
Place
• Commercial space
– Commercial vacancy
– Commercial rents
– New commercial development
ECONOMY
Employment
• Monthly Jobs and Change in Total Nonfarm Jobs
• Quarterly Job Growth
• Unemployment Rate
• Employment Services, Total Number of Jobs by Month
• Nonemploying Firms
• Major Areas of Economic Activity
• Total Business Establishments Jobs in the Core Green
Economy
Economy
Income
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Real per Capita Income
Median Household Income
Income Distribution
Rate of Total Non-Business Bankruptcy Filings per
1,000 Persons
• Food Stamp Usage
Economy
Innovation
• Value Added per Employee
• Patent Registrations
• Patents Registrations by Technology Area
• Green Technology Patents
• Venture Capital: Total, by industry, Share of U.S.
• Cleantech Venture Capital: Total & by Segment
• Initial Public Offerings
• Mergers & Acquisitions
• Silicon Valley Churn: Establishments
Governance
• Civic engagement
Voter participation
• Revenues
City Revenue by Source and City Revenue Trends
Municipal Debt Obligations Issued
Regional-State Interface
INDUSTRIES
(IT & TECHNOLOGY)
• The role of Stanford University
• Prof. Frederick Terman played a crucial role in the development of
the local high-tech industry after and before World War II
• During 1930s students of Stanford founded many small electronic
companies (Hewlett Packard.)
• Stanford industrial park
• Defense programs stimulated Silicon Valley growth during 1950s.
• In 1950s silicon came to the valley
• During 1960s and 1970s, Silicon Valley high tech industry moved
from specialized high tech to mass production (Intel)
• The PC revolution
• Silicon Valley to Internet Valley
• Research and development
Venture Capital Industry
• The semi conductor industry brought many
bioinformatics, or computational molecular biology.
• Fairchild's success led also to an extraordinary
entrepreneurial expansion on the Peninsula in the
• Electronic component businesses and the venture
capital industry provided the foundation for Silicon
Valley's explosive growth around new system industries
such as computing, instrumentation, and
telecommunication in the 1970s and 1980s
Biotech Industry and pharmacy
• In parallel with the explosion of the information technology
industries, the Valley saw the emergence of a new sector,
biotechnology, in the second half of the 1970s and in the 1980s
with the discovery that DNA could be cloned.
• The University of California, San Francisco (UCSF), Stanford, and the
University of California, Berkeley had strong molecular biology
programs – which acted as a breeding ground for scientists as well
as the source of key innovations.
• Also, the Valley's venture capital industry heavily funded
biotechnology businesses and in some cases played a critical role in
the formation of biotech corporations
• The region's strength in biotechnology and information
technologies gave birth to hybrid technologies and industries like
bioinformatics, or computational molecular biology.
• Today, the region is clearly the national leader in biotechnology
• In 2003 venture capital investment in life
sciences outpaced investment in all other
industry sectors.
• Estimates predict that by 2010, the biotech
industry will grow by nearly 30 percent.
Clean Tech and Energy industry
• U.S. concerns about energy are probably greater today than at any
• The more immediate drivers for the interest in alternative energy
today are technological improvements and declining costs.
• Silicon Valley is advancing in technologies regarding sprayable solar
coatings for roofs, cheaper catalytic converters, wave energy, Clarke
Energy (natural gas from landfills); and Bowman Power (micro
turbines).
• At Stanford's engineering school, one of three primary research
areas is fossil fuel alternatives, or "clean" technology. ExxonMobil,
Toyota, Schlumberger and General Electric together are expected to
invest $225 million in the university's Global Climate Energy Project
by 2010.
• Government regulations
• Concept of hybrid cars
Agriculture and Dairy Industry
• Before its industrial period, the region was an agrarian economy
• By the 1920s, as farms began to industrialize, a big push occurred
next in manufacturing, namely in automobile production,
shipbuilding, and food canning.
• Agriculture accounts for just slightly over 2% of California's $1.85
trillion gross state product
• California agriculture is nearly a $36.6 billion dollar industry that
generates $100 billion in related economic activity
• California is the leading dairy state
• The rise of California’s dairy industry from humble beginnings to
national and even international prominence is a story of
technological innovation, legislative efforts, and masterful
marketing, but most of all the cooperative spirit and organizational
acumen of its dairymen.
ANALYSIS
• Global connections
– Global venture capital flows
– Foreign born students
– Changing global Market
• Talent
– Demographic patterns in population ability
– Occupational concentrations
– Flow of foreign born talent.
Analysis
• Technological change
– Patents, registrations by technology areas and
global patent collaboration
– Trends in venture capita investment
– Industrial composition change
Analysis
• Federal policy
– Small business innovation research and small
business technology transfer awards.
– Funding per dollar 1 million GDP
– Procurement patterns by agency
– Stimulus funds
Silicon Valley Major areas of economic
Activity
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Community infrastructure
Information products and services
Innovation and specialized services
Other manufacturing
Business infrastructure
Life sciences
ANALYTICAL APPROACHES
• PESTEL Analysis
• Porter’s 5 forces Analysis
• SWOT
Conclusion
• Favorable or unfavorable for an investor
• Pakistan and need for a Silicon Valley