STEVEN BOCHNER– Co-Chair, Wilson Sonsini Goodrich & Rosati HON. SAM LICCARDO– Co-Chair, City of San Jose RUSSELL HANCOCK– President & CEO,Joint Venture Silicon Valley Prepared by: RACHEL MASSARO Designed by: JILL MINNICK JENNINGS ADVISORY BOARD GEORGE BLUMENTHAL University of California, Santa Cruz JUDITH MAXWELL GREIG Notre Dame de Namur University DENNIS JACOBS Santa Clara University STEPHEN LEVY Center for Continuing Study of the California Economy MARY PAPAZIAN San Jose State University DIRECTORS OFFICERS JOINT VENTURE SILICON VALLEYBOARD OF DIRECTORS INSTITUTE FOR REGIONAL STUDIES JOHN AITKEN Mineta San Jose Int’l Airport JOHN BOLAND KQED DAN BOXWELL Accenture SCOTT BRANDT University of California, Santa Cruz MIKE CALLAHAN LinkedIn RAHUL CHANDHOK San Francisco 49ers FRED DIAZ City of Fremont DIANE DOOLITTLE Juniper Networks DAVID ENTWISTLE Stanford Health Care JOSUE GARCIA Santa Clara & San Benito CountyBuilding Trades Council JAVIER GONZALEZ Google TODD HARRIS TechCU ERIC HOUSER Wells Fargo DENNIS JACOBS Santa Clara University DAVE KAVAL Oakland Athletics JIM KEENE City of Palo Alto HON. RO KHANNA United States Congress KAROLYN KIRCHGESLER Team San Jose IBI KRUKRUBO Ernst & Young MATT MAHAN Brigade GREG MATTER Jones Lang LaSalle TOM McCALMONT McCalmont Engineering JEAN McCOWN Stanford University CURTIS MO DLA Piper MAIRTINI NIDHOMHNAILL Countsy MARY PAPAZIAN San Jose State University JOSEPH PARISI Therma Inc. HON. DAVE PINE San Mateo CountyBoard of Supervisors ROBERT RAFFO Hood & Strong LLP CRAIG ROBINSON Silicon Valley Bank SHERRI R. SAGER Lucile Packard Children's Hospital JARED SHAWLEE San Jose Earthquakes SUSAN SMARR Kaiser Permanente JOHN A. SOBRATO The Sobrato Organization JOHN TORTORA Sharks Sports & Entertainment MICHAEL UHL McKinsey & Company SUMMER VAN PELT University of Phoenix JOHN VARELA Santa Clara Valley Water District DANIEL YOST Orrick, Herrington & Sutcliffe, LLP SENIOR ADVISORY COUNCIL MARK BAUHAUS Bauhaus Productions ConsultingFRANK BENEST City of Palo Alto (Ret.) ERIC BENHAMOU Benhamou Global Ventures CHRISTOPHERDiGIORGIO Accenture (Ret.) BEN FOSTER Fosterra Clean Energy Consulting HARRY KELLOGG, JR.SVB Financial GroupKIM POLESEClearStreet, Inc. 2018 Silicon Valley Index2 Russell Hancock President & Chief Executive OffcerJoint Venture Silicon ValleyInstitute for Regional Studies ABOUT THE 2018SILICON VALLEY INDEX Dear Friends: Summing up Silicon Valley’s economy and community in 2018 is not altogether easy. The data point usin different directions—indicating enormous success in some instances, and revealing shortfalls in others.On the positive side, Silicon Valley continues to grow jobs at a rate anybody would envy. The techsector is fueling our growth, and venture capitalists continue to invest in local innovators who in turnare generating patents at a dizzying pace. Our well-established, iconic companies are choosing tostay, adding armies of talented people, investing in impressive facilities and remaking our landscape.Unemployment is at a historic low. Median household income continues to grow, and it is outpacinginfation.Without question, Silicon Valley is still a hotbed, and the pages of this report make this clear. But don’t we also want the region to be a place where families can thrive Our spectacular success hassomehow created a harsh environment for this. This report also documents how housing is out of reachfor all but a very few. Those who can’t afford it are living challenging lives, or commuting in from far-fungplaces. Most people don’t fnd transit options compelling, so we spend ghastly amounts of time in traffc.We’re an affluent region and that also makes us a high-cost region. Child care costs are risingprecipitously, and so are the costs of other necessities. Middle-skill and mid-wage jobs are vanishing,and this places a limiting factor on our local (and potentially incoming) families. Income inequalitybecomes more pronounced with each passing year. Today nearly a third of Silicon Valley householdsrequire some form of assistance in order to get by, and ten percent of our residents are food insecure.How do we continue to grow without adverse effects How do we fnd the will and the wherewithal toprovide the kind of infrastructure that a thriving region requires How do we add to our housing stockHow do we replenish our community with young people, ensure they have an education that makesthem competitive for the region’s jobs, and make it affordable enough for them to stay These are the questions assailing Silicon Valley in 2018. Now there needs to be some very seriousensuing conversation, fully informed by the facts. We’re pleased to provide them, and to facilitate aprocess of regional dialogue and decision-making. Wouldn’t it be remarkable if Silicon Valley’s drive to succeed in the marketplace were matched by acorresponding drive to solve community problems Yours, 2018 Silicon Valley Index3 WHAT IS AN INDICATORAn Indicator is a quantitative measure of relevance to SiliconValley’s economy and community health, that can be examinedeither over a period of time, or at a given point in time. Good Indicators are bellwethers that reflect the fundamentalsof long-term regional health, and represent the interestsof the community. They are measurable, attainable, andoutcome-oriented. Appendix A provides detail on data sources and methodologies for eachindicator. THE SILICON VALLEY INDEX ONLINE Data and charts from the Silicon Valley Index are available ona dynamic and interactive website that allows users to furtherexplore the Silicon Valley story. For all this and more, please visit the Silicon Valley Indicatorswebsite at siliconvalleyindicators. PEOP LEE CONO MYS OCIE TYP LACE GOV ERNA NCE SILICON VALLEYINSTITUTEforREGIONAL STUDIES The Silicon Valley Index has been telling the Silicon Valley story since 1995. Releasedearly every year, the Index is a comprehensive report based on indicators that measurethe strength of our economy and the health of our community—highlighting challengesand providing an analytical foundation for leadership and decision-making. WHAT IS THE INDEX 2018 Silicon Valley Index4 。。。。。。