G O V E R N A N C EP L A C ES O C I E T YE C O N O M YP E O P L ES I L I C O N V A L L E Yi n d e xO F2 0 1 3Russell Hancock President the number of loans issued increased 16 percent, and total loan values rose five percent. Silicon Valley reached a five-year high of 17 initial public offerings (IPOs) in 2012, representing 52 percent of statewide IPOs and 15 percent nationally. Entrepreneurship has been constrained in recent years by lack of access to financing; however, a 90 percent growth in angel investments in 2012 suggests an improved investment environment. Mergers and acquisitions (M the regions proportion of disconnected youth was four percent lower than in California overall. Juvenile felony drug offenses edged up to 152 offenses per 100,000 juveniles, and the number of substance abuse rehabilitation clients shot up 13 percent in 2010. For the first time in four years, the percentage of eighth graders scoring advanced on the Algebra I test fell.While some traditional health concerns are less prevalent, new issues are surfacing. Infant mortality rates subsided to a nearly two-decade low of 2.9 deaths per 1,000 live births. Of employed Silicon Valley residents between the ages of 18 and 64, 87 percent were covered by health insurance in 2011, compared to 78 percent statewide. Student obesity levels in Silicon Valley remained consistent at around 33 percent of the student population, while adult obesity rates have fluctuated. The proportion of the population that is overweight fell to 29.7 percent, while the obesity rate reached a decade high of 18.8 percent. Over a third of Silicon Valley residents between the ages of 53 and 64 provided care to a family member or friend in 2009.6San Mateo and Santa Clara Counties +3.6%010,00020,00030,00019962012Net Population ChangePercent Change between 2011 and 2012Silicon Valley+1.2% California+0.7%40,00099103104Dec 2011105U.S. +1.7%Dec 2012100=Dec 2011 Values102 101 1000$9732009201020112012-10,0000200025,000-25,0002012 Net Foreign Immigration Net Domestic Migration-50,00051Asian60%0%50%40%30%20%10%59%White53%AfricanAmerican23%Multiple Limited housing production; Competition for tax revenues and resulting fiscal inequities and among jurisdictions; Fragmented regional transit service with limited coordination; Lack of preparation to respond to inevitable consequences of climate adaptation.There are numerous other issues of regional concern, each reflective of an inadequate governance system. These include preparing for a major earthquake and drafting a long-term recovery plan post-event, identifying sufficient supply of drinking water for the regions future needs, or ensuring that the regions three major airports remain fiscally strong and can effectively manage demand among them to reduce crowding and delays.The five issues we selected are challenges with solutions from other regions that point a possible way forward for the Bay Area. Solving them requires collaboration across jurisdictions or separate institutions. Addressing them will strengthen the regions economic competitiveness; ignoring them will threaten it.Issue 1: Jobs are sprawling in a decentralized pattern with too few adjacent to reliable transit.During the post WWII years when regional planning laid the groundwork for our great regional victories around transportation and open space jobs were more heavily concentrated in fewer centers. San Francisco alone accounted for 30 percent of the Bay Areas jobs in 1960.13 Today it is about 16 percent.Increasingly, jobs are spreading out and existing centers and transit areas are not capturing a big share of the growth. While the decades since 1960 coincide with the rise of Silicon Valley and the boom in jobs in Santa Clara County, the pattern of those jobs was a shift from the past. Most new employment took place in emerging office parks and corporate campuses with easy access to freeways and suburban arterials.1220,00030,00050,000-10,00010,00040,000199619971998199920002001200220032004Natural Change* Provisional population estimates for 2012 Data Source: California Department of Finance Analysis: Collaborative EconomicsComponents of Population Change Santa Clara Silicon Valley made employment strides across all major areas of employment activity, except manufacturing and life sciences. From Q2 2011 to Q2 2012, Innovation pre-recession unemployment rates in Silicon Valley were 4.3 percent.According to a Brookings study, the San Jose metropolitan regions exports represented 18 percent of its total gross domestic product (GDP) in 2010, ranking it fourth out of the top 100 metro areas in the nation. Computer American Community Survey Analysis: Collaborative EconomicsData Source: U.S. Census Bureau, American Community Survey Analysis: Collaborative EconomicsData Source: ALH Urban U.S. Census Bureau, Current Population Survey Analysis: Robert W. Fairlie, University of California, Santa Cruz0.6%0.5%0.4%0.3%0.2%0.0% San Jose, Sunnyvale