Report by local nonprofits paints dim picture for turnaround
A report released this week by Silicon Valley nonprofits poured water on the notion shared by Cisco CEO John Chambers that tech might lead the recovery from the Recession. The Silicon Valley Community Foundation and Joint Venture don’t quite share Chambers’ optimism on tech’s rebound from the lagging economy.
Their report concluded that The Valley will enter a “new phase of uncertainty” coming out of the Recession due to high unemployment, global competition and curtailed investment. Chambers said tech would be among the first industries to recover coming out of the downturn. Cisco even plans to hire 2,000 to 3,000 people.
The nonprofit groups’ reports found that opportunities in China and India may keep nationals there instead of coming here. Not a brain drain, but a brain shut-off valve.
The Valley is also not attracting as much federal funding as it did 40 years ago even though the Feds and providing “major” funding across various disciplines — including broadband infrastructure. Venture funding can’t be taken as a “given,” the report found – VCs are shifting “away from software and semiconductors and into biotechnology, energy, medical devices, and media”:
The level of investment continues to decline, and venture capitalists generally have not realized significant returns for the past decade.
California’s state government isn’t helping matters either, the report found. The state has a budget crisis and a “political dysfunction” that are not conducive to spurring economic growth.
Higher education is lacking investment; the region lost 90,000 jobs between 2008 and 2009; real estate is in the tank; and each person in The Valley bought 50 gallons less of gasoline than they did in 2008, compared to the rest of California.
Not a pretty picture. Green technologies might hold some promise however. The “green” economy accounted for 12,000 jobs in the region last year.
More from Cisco Subnet:
This is Network World’s Cisco Subnet news alert in which we focus on the top items from Cisco Subnet, your source for Cisco news, blogs, discussion items, security alerts, giveaways and more.
Cisco said to be readying major upgrade to CRS-1The scoop on the New TSHOOT Course and ExamCisco shipping 160G Ethernet card for ASR 9000
Another analyst sees Cisco UCS deployment delays
If Cisco buys you, you’re 1 in 100
IPv4 Space is Getting Low – Really Low
Win one of 50 CCNP training books, videos and Cert Kits
Win great stuff from Cisco SubnetCisco Alert newsletter.Like RSS readers? Subscribe to the Cisco Subnet RSS feedLike e-mail? Subscribe to the
Follow all Cisco Subnet bloggers on Twitter.Follow Jim Duffy on Twitter
