1. Is Silicon Valley Sustainable?
Tapan Munroe, PhD
Triple Helix 2011 Conference
Stanford University
Stanford, CA
July 17, 2011

2. The Innovation Ecosystem Model
Framework
The Innovation Ecosystem Model 4.
Workforce
2. Entrepreneurs 5.
Social and Professional Networks 6.
Quality of Life 8.
Integrative Organizations,QB3,CONNECT
© T. Munroe, 2011 7.
Government 3.
Investment Capital 1.
Research
Universities
Tapan Munroe, PhD

3. Innovtion Ecosystem Issues
Discussion of issues relating to each element of the innovation ecosystem follows:

4. California Budget Crisis Threatens State’s Top Universities
Key Element #1: Universities
California Budget Crisis Threatens State’s Top Universities
$500 million cut from the UC system
Research budgets cut
Difficult to retain world-class faculty
3 prominent bio-scientists recently lured away from UC Davis to Rice University in Texas
More may follow from UC Berkeley, UCLA, and UC San Diego
Tapan Munroe, PhD

5. Key Element #1: Universities
Top Entrepreneurial Universities: U.S.: Only 4 in Top 10 (3 are West Coast)
Rank University Location
1st Stanford University Palo Alto, CA, USA
2nd MIT Boston, MA, USA
3rd Cambridge University Cambridge, UK
4th UC Berkeley Berkeley, CA, USA
5th Indian Institutes of Technology India
6th Oxford University Oxford, UK
7th National Univ. of Singapore Singapore
8th University of Copenhagen Copenhagen, Denmark
9th Stockholm University Stockholm, Sweden
10th UC Davis Davis, CA, USA
Source: YouNoodle.com
Tapan Munroe, PhD

6. How are Universities Ranked? Algorithm Developed by YouNoodle.com
Key Element #1: Universities
How are Universities Ranked? Algorithm Developed by YouNoodle.com
Rank based on university’s significance a startup community
Determined by factors:
Number and quality of the startups
Activity of its groups
Business plan competitions
Availability of talent
Investment in the area
Success of past startups
Tapan Munroe, PhD

7. Business Plan Competitions: Many More Around the World
Key Element #1: Universities
Business Plan Competitions: Many More Around the World
Source: YouNoodle.com
Tapan Munroe, PhD

8. Start-ups: Key to Sustainability
Key Element #2: Entrepreneurs
Start-ups: Key to Sustainability
The Valley’s success depends on a constant process of renewal
Start-ups transform ideas and money into new products and services
Start-ups ultimately create jobs and prosperity
Net U.S. job growth comes from start-ups
Need to encourage innovative gazelles
Need to support scale –ups.
Tapan Munroe, PhD

9. Skills Gap: A Serious Challenge
Key Element #4: Workforce
Skills Gap: A Serious Challenge
Workforce Lacks Skills for Today’s Jobs
Growing Number of Unfilled Jobs as U.S. Economy Recovers:
Feb million unfilled jobs(mostly STEM related)
Much higher in 10 yrs if nothing is done to the education-to-employment system
Talent War in Silicon Valley!
Tapan Munroe, PhD

10. Skills Gap is a Global Issue
Key Element #4: Workforce
Skills Gap is a Global Issue
Eastern Europe:
Consistent drain of talent to Western Europe
44% employers listed skills shortages as their primary obstacle to growth
Middle East:
A minimally trained labor force
Severe restrictions of foreign labor
Latin America
Lack of skilled labor
Sources: NASSCOM, New York Times, McKinsey
Tapan Munroe, PhD

11. Place Matters Even in Our Digital Age
Key Element #6: Quality of Life
Place Matters Even in Our Digital Age
Smart people like to live in good places
Silicon Valley is challenged by:
Traffic congestion / Limited public transit
High cost of housing (even with prices down)
Declining educational performance
Tapan Munroe, PhD

12. Fiscal Crisis May Undermine Valley Innovation
Key Element #7: Government
Fiscal Crisis May Undermine Valley Innovation
U.S. fiscal crisis is likely to deter government investments in major cleantech projects
Recommendation: need intense innovation effort in the Valley to make cleantech economically competitive
State (Ca.)and regional governments can’t afford …
Critical improvements in infrastructure
Subsidies for Valley cleantech projects
Tapan Munroe, PhD

13. Integrative Organizations(IO’s): Innovation Accelerators
Key Element #8: Integrative Organizations
Integrative Organizations(IO’s): Innovation Accelerators
IOs bring elements together and stimulate collaboration
Traditional universities aren’t equipped to play the entrepreneurial role
States are creating new IO organizations:
Within the university (e.g. QB3)
Outside (e.g. USTAR, Science Foundation Arizona, CONNECT, San Diego)
IO’s: “The next generation of industry-university research partnerships”
Focused on creating, sustaining, and growing the innovation ecosystem
Tapan Munroe, PhD

14. Silicon Valley: Still the Top Innovation Region
Assessment
Silicon Valley: Still the Top Innovation Region
Strengths
World-class culture of innovation and collaboration
Easy access to capital and expertise
Highly resilient: Silicon Valley has an incredible record of sustained success through numerous boom/bust cycles
Once again the Valley is in a boom after a major recession
Opportunities:
Continuous process of innovation
Example: Make cleantech cost effective
New technology breakthroughs
Tapan Munroe, PhD

15. Silicon Valley: Facing Many Risks – Local and Global
Assessment
Silicon Valley: Facing Many Risks – Local and Global
Weaknesses:
Quality of life issues e.g. traffic congestion & education
skills gap-local as well as a global issue
Poor results with scaling-up of startups.
Threats:
Increasing Competition from other tech regions
Another bout of irrational exuberance?
UC campuses losing faculty and funding?
Cleantech may lose government subsidies?
Tapan Munroe, PhD

16. Is Silicon Valley Sustainable?
Observations & Conclusion
Is Silicon Valley Sustainable?
Observation:
Silicon Valley has the capacity, experience and know-how to remain competitive in the global innovation race
Conclusion:
Yes, of course! But, the Valley’s innovation ecosystem faces many risks.

17. “Global economic competition is all about who can innovate the best and fastest”
…..Marty Beard, President, Sybase 365,in Closing America’s Job Gap, January 2011

18. Thank You Tapan Munroe, PhD www.TapanMunroe.com