Silicon Valley has the following six major areas of economic activity: Information Products & Services, Life Sciences, Innovation & Specialized Services, Business Infrastructure, Community Infrastructure, and Other Manufacturing. Roll over the graphic below to learn more about each area.
Silicon Valley’s innovation-driven economy could not thrive without the policies and activities that nurture the region’s habitat for living and working. In addition to the region’s globally-oriented, high-technology industries, the Valley’s economy is characterized by industries that serve the local population and local businesses. It is this mix and overlap of export-oriented industries, cross-cutting support industries, and the surrounding Community Infrastructure that create the complex system of an innovation habitat.
Silicon Valley is a hotbed for clean technology. Businesses providing products and services that improve resource conservation and reduce environmental impacts have increased in number by 29% since 1995. These businesses include producers of state-of-the-art technology for renewable energy generation and energy management as well as lower-tech recycling services. In terms of jobs, the region has seen 88% growth since 1995 and 23% just since 2005. Jobs in Energy Generation account for the largest percentage of all green jobs, and these are primarily in solar system installation. Job growth since 2005 has been strongest in Green Building (424%), Transportation (140%) and Advanced Materials (54%).
Almost 5% of Silicon Valley’s employment is in the area of Business Infrastructure. This consists of services such as facilities and administrative services that support basic business operations across all industries.
Silicon Valley is a vital center for Life Sciences. Although relatively small in employment, the Life Sciences are almost three times more concentrated in Silicon Valley than the U.S. as a whole. In Pharmaceuticals, the concentration of employment is four-times that of the nation. Life Sciences include medical devices, pharmaceuticals, and biotechnology.
Community Infrastructure is the region’s largest area of economic activity, accounting for almost 57% of Silicon Valley’s total employment in 2007. Community Infrastructure is largely comprised of population-driven industries including health services, education, retail, transportation, government administration, as well as other local serving industries. Some of these industries such as Transportation and some sub-segments of Education are highly specialized and also serve export markets.
With 285,600 employees, Information Products & Services accounts for over 20% of regional employment, and is the region’s most concentrated area of economic activity. Compared to the United States, Information Products & Services is almost five times more concentrated in Silicon Valley, and includes export-oriented industries such as computer software and hardware, internet and information services, semiconductor and electronic component manufacturing, as well as communications services and equipment manufacturing.
In addition to the manufacturing industries in the area of Information Products and Services, Silicon Valley is home to a diverse array of other manufacturing industries. Other Manufacturing accounts for approximately 5% of regional employment, and includes industries such as other primary and fabricated metal manufacturing, diversified agriculture and food manufacturing, space & defense manufacturing, as well as other miscellaneous manufacturing.
Innovation & Specialized Services represents roughly 11% of Silicon Valley’s employment. These activities provide high-value services in support of businesses across the economy and especially in export-oriented industries. With more than twice the employment concentration of the nation, Silicon Valley is an important center for R&D and technical services. Innovation & Specialized Services includes technical and R&D services, specialized financial services, and design services.
Developers of green (or clean) technologies and providers of related products and services are present and growing across these areas of economic activity. Because of their wide distribution across industries, estimating green business and employment counts require a different approach. According to current estimates, the region’s green economy accounts for almost 700 businesses and over 10,000 jobs.