Highlights of the 2010 Index and Special Analysis include:

• Foreign Talent – With increasing global partnerships, Silicon Valley grows ever more dependent on foreign talent – particularly for filling science and engineering positions. However, the actions of our nation in the wake of 9/11 and the rise of other global regions have made Silicon Valley less accessible and less attractive than it once was. Inflows from China and India continue to rise, as does investment and collaboration between the Valley and those two nations, but China and India are both experiencing rapid economic growth. As they do, opportunities in those countries will slow the flow of talent here.
• Investment Capital – Silicon Valley’s traditional ways of funding innovation – through locally-raised venture capital and public offerings – can no longer be taken as a given. Major structural shifts are underway in the funding community, and the federal government has re-emerged as the major investor in innovation and basic research. However, Silicon Valley is not attracting significant shares of federal funding, and has not for some time.
• Venture Capital – Investment is 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 Government – Silicon Valley is "slammed" by forces beyond its control, most notably the "malaise" in our state government. California’s budget crisis and the political dysfunction in Sacramento has direct and debilitating effects on the region’s ability to prepare the workforce, provide crucial infrastructure, maintain quality of life, and keep pace in the talent race with other regions.
• Higher Education – U.S. and California investment in higher education is declining at a time when talent becomes still more important to Silicon Valley.
• Jobs – Between November 2008 and November 2009, employment in Santa Clara and San Mateo Counties dropped 5.8 percent, compared to 3.8 percent nationally. Silicon Valley lost 90,000 jobs between the second quarter of 2008 and 2009, bringing total employment down to 2005 levels. The "green" economy accounted for 12,000 jobs in the region.
• Housing – Residential foreclosure activity dropped by 39 percent in 2009 yet in some cities more than a third of sales are foreclosures. Housing affordability for first-time homebuyers is improving. New affordable housing units in the region doubled from 2008 to 2009. Average rents declined six percent from 2008, the first drop in rents since 2005.
• Commercial Real Estate – Office vacancy rates are at an all-time high since 1998 and were up 33 percent in 2009 over 2008.
• Transit – Silicon Valley continues to expand transit-oriented development. Newly approved housing averaged more than 20 units per acre for the fifth consecutive year. More than 60 percent of new residential construction is within walking distance of the region’s transit infrastructure.
• Fuel Consumption – Silicon Valley residents consumed roughly 50 gallons of fuel less per person than the rest of California in 2008, a reversal from 2000. Since 2002, vehicle miles traveled has decreased 14 percent while gas prices have increased 91 percent.