The report is here:
http://www.jointventure.org/publicatons/index/2007%20Index/The%202007% 
20Index%20of%20Silicon%20Valley.pdf
---

Dear Friends:

Silicon Valley has entered a new phase in its dynamic evolution.

The economy is clearly growing and transforming, evidenced by the  
region adding more than 30,000 jobs over last year’s total. Moreover,  
the employment gains are quite broadly based, spanning most sectors  
of the economy and not just our driving industry clusters. Per capita  
income, average pay, and value-added per worker have been on the rise  
now for three years running, but over the past year they showed  
substantial increases.

Venture capital, always our strength, is showing a shift into some  
important new areas like renewable energy and clean technology. Is  
Silicon Valley leading America to a new energy future? It’s too early  
to tell, but it is interesting that local entrepreneurship in these  
new sectors is being matched by some significant trends in the way we  
develop, and the way we live. The density of new housing units is at  
a historic high, and continues to increase. Forty percent of new  
units are located near transit. Valley residents are embracing  
alternative energy, in their vehicles and in their homes. Protected  
and accessible open space continues to grow.

Yes, there’s a great deal that is encouraging in our report, and yet  
we have some major challenges to address.

Some of these challenges are old and familiar: though our income  
averages are impressive, we all know that averages don’t tell the  
whole story. The portion of residents unable to afford median-level  
housing is increasing, and foreclosures are spiking upward. Too many  
are unprepared to compete in today’s economy. It’s alarming to see  
juvenile crime on the increase. Our cities, overly dependent on the  
most volatile revenue sources, face shrinking budgets. Our  
educational institutions are straining under the demands heaped upon  
them.

But some of our challenges feel new, or at least less familiar. They  
relate to our competitive position in the global economy, and our  
transformation as a global region. You can read about them in our  
Special Analysis section, where we observe that Valley companies are  
now thoroughly global—including even our start-ups, from the time of  
their inception. You’ll also read that Silicon Valley now ranks among  
the world’s most culturally diverse regions, with forty percent of  
our workforce coming from overseas. These are developments to  
celebrate, because they go to the heart of our success, but they also  
raise important questions: how do we address local issues when our  
companies and even our people are increasingly less tied down to  
place? Are we looking at a future where our companies do well in the  
global scheme, and yet the region doesn’t prosper?

At Joint Venture we want to be as innovative about these broad  
community challenges as the Valley’s entrepreneurs have been with  
their commercial challenges. We invite you to join us.

Sincerely,

Russell Hancock
President & Chief Executive Officer


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