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Russell Hancock, President and CEO of Joint Venture: Silicon Valley Network spoke this evening at Saratoga Men’s Club.  Established in 1993, Joint Venture: Silicon Valley Network provides analysis and action on issues affecting our region’s economy and quality of life. The organization brings together established and emerging leaders – from business, government, academia, labor and the broader community – to spotlight issues and work toward innovative solutions.

Hancock spoke about how extraordinary Silicon Valley is with 41% of the work force with advanced college degrees. 41% of us come from somewhere else, making us the second most ethnically diverse metropolitan area after Miami. With a median income of $79,000, Silicon Valley is 60% higher than the national average; but, it also has a very high cost of living. It’s output represents 6% of national GDP – higher than the entire state of New York at 5%, including New York City!

Silicon Valley is also currently under stress; the effects of the world wide recession are finally being felt here.  The increase in unemployment started to kick in November 2008 and will continue to be a problem for 18-24 months. Some people are still doing very well, but the lower quartile (under $35,000/year is growing) and the middle class is shrinking too. Silicon Valley had 6,900 foreclosures in 2008 and we are starting to work out this mounting problem.

But Silicon Valley is also incredibly inventive area, changing and reinventing itself with every wave of new technological innovation.  Instead of corporate giants, most future growth will be by nimble and lean organizations that rely on the very brightest contract labor – people who are the best available with niche job skills, experience and knowledge.  Green and Clean are the upcoming areas of innovation for Silicon Valley, but entrepreneurs will need to learn to work with greater government involvement.  Leaders are working on a Greenprint for the future.