Workforce Intelligence

“Change and Challenge for Silicon Valley’s Economic Future”

City of San Jose “Green Vision”

Emerging Industry Clusters

Presented By:

Existing Industry Cluster Analysis

Emerging Industries Analysis

GIS Mapping of Local Business and Industry Clusters

Labor Market Data Research on Wages and Occupations

Development of Career Pathways for Emerging Industries

Identification of Training Courses and Providers

work2future’Workforce Intelligence

Change & Challenge for Silicon Valley’s Economic Future

Presented to work2future - Board of Directors

March 2008

Introduction

• Examine the key issues that will shape economic and workforce development in the region for the next 10 years

Identify the key economic drivers that will shape the region’s economic and workforce development

Develop regional indices to compare San Jose (MSA) with comparable high technology regions by each of the economic drivers identified, and

Identify the region’s strengths and weaknesses as they relate to the economic drivers

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Economic Drivers

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I. The integration of the international economy within the regional marketplace,

II. The growth and evolution of high technology clusters, and

III. The re-birth of advanced manufacturing in Silicon Valley.

Integration of the International Economy

Results of the regional globalization index show that of the 379 US metro areas that were evaluated, San Jose ranked 10th

nationally

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0

0.2

0.4

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RaleighSan Diego Seattle Austin WDC San Jose LosAngeles

Chicago Boston SanFrancisco

New YorkCity

Evolution of Technology Clusters

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Biotechnology and the life sciences – The most established of the new wave of industry clusters with over 10,000 currently employed in this industry within Santa Clara County

Clean technology – is the market driven response touse innovative technology to produce cleaner goods andservices (renewable energy, transportation, water. . .)

Nanotechnology - like information technology twenty years ago provides the promise of designing and building more complex products with greater efficiency

Rebirth of Advanced Manufacturing

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50

75

100

San Jose Austin Boston Chicago LosAngeles

New YorkCity

Raleigh San Diego SanFrancisco

Seattle WashingtonDC

Bio & Pharm. Manu. Medical Devices Manu. Other Adv. Manu.

San Jose had the highest regional concentration of advanced manu. employment in two of the three sectors examined

Conclusions I

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I. Remain vigilant in developing and expanding the innovation economy –

• The region is currently leading the country in many measures of innovative activity but other regions are committed to catching up.

II. Regional government must play a stronger supporting role in the next wave of economic growth –

• Unlike information technology which is relatively unregulated, healthcare and the energy industry are highly regulated and present a very different economic environment than what the region faced in the late 90’s.

Conclusions II

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III. Fostering the region’s international connectivity will support emerging clusters and strengthen advanced manufacturing in the region –

• The three economic drivers identified in this study are highly connected and policies or events that positively or negatively influence one will likely have a domino effect on the others

IV. The development of production and manufacturing opportunities should be a key metric in evaluating economic development success.

Questions to Consider

• The key questions generated from the study

Will the region’s connectivity to the international economy, insulate it from the domestic economic downturn?

Will the emerging industry clusters become the dominant employers in the region and if so when?

Will the next wave of advanced manufacturing in the region create a sizeable number of middle-income jobs that have been on the decline in the region?

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City of San Jose “Green Vision

Presented by:

Collin O’Mara

City of San Jose Office of Economic Development

Javier Vangawork2future

Workforce Intelligence

Emerging Industry Clusters Advance Manufacturing

• Clean Technology

• Renewable Energy

• Green Industry/Technology

Lets Define

Clean TechnologyCleantech is a term used to describe knowledge-based products or services that improve operational performance, productivity, or efficiency while reducing costs, inputs, energy consumption, waste, or pollution. Its origin is the increased consumer, regulatory and industry interest in clean forms of energy generation—specifically, perhaps, the rise in awareness of global warming and the impact on the natural environment from the burning of fossil fuels.

By definition, renewable energy is "clean" - producing few or no hazardous emissions or pollutants, and

having minimal impact on fragile ecosystems. There are five main types of renewable energy: hydro,

biomass, geothermal, solar and wind.

Renewable Energy

Green Technology includes products and processes that conserve the natural environment and resources and minimize the negative effect of human activity on the environment. The field of “green technology” is continuously evolving and diverse.  

 

Green Technology

Job Market Clean/Green technology impacts many sectors of the economy and will result in both the creation and redesign of a broad range of jobs. A study conducted by Cleantech Network, a venture capital firm for green business, predicts that a half million new jobs in ecologically responsible trades will emerge in the next three years alone.

The City of San Jose’s Green Vision goal is to create 25,000 new jobs by 2014.

Solar-Bioscience-Nanotechnology

Workforce Demand in Energy & Technology

The Solar industry is one of the largest component in EnergyGeneration. A recent assessment of Solar’s current and future workforce in Silicon ValleySilicon Valley revealed-

• Currently 1,500 workers in Silicon Valley in Solar Industry

• Industry growth is currently at about 35 percent per year

• By 2017, Silicon Valley expect another 10,000 to 20,000 solar workers – 60% manufacturing & installation, 20%sales & marketing, and 20 percent in engineering

Source: Solartech White Paper, June 2007

Bay RegionSolar Industry Workforce StudyPreview of Key FindingsFebruary 13, 2008

Solar Industry –Bay Area

There are approximately 800 firms in California, of which 32% are located in the Bay Area. The majority of Bay Area solar firms (82%) are small—less than 25

employees.

Job Boom

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600

800

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1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

New Jobs

Solar firms in the Bay Area are expecting to increase employment by up to 17% in the next year resulting in about 1,200 new jobs.

Bay Region

Solar Industry Workforce Study

Preview of Key Findings

February 13, 2008

Bioscience Industry Santa Clara County

Over 600 NAICS Identified Business in Santa Clara County

Bioscience Employment

Over 21,000 Employees

Nanotechnology“Nanotechnology plays a critical role as an “enabling platform technology,” for emerging high growth sectors including Nano-Bio and Clean Technologies. Nanotechnology has immense potential to generate economic growth in California because of its profound impact on a wide spectrum of industries. In the United States, the National Science Foundation forecasts up to 2 million jobs will be created in the next 15 years utilizing nanotechnology. It is estimated that approximately 200,000 jobs in nanotechnology will be created in the State of California by 2020.”

Lloyd L. Tran President, International Association of Nanotechnology Director, California Institute of Nanotechnology

Nanotechnology Companies Nanometrics, Inc. Milipitas Tools and Instruments

NanoSensors, Inc. Santa Clara Tools and Instruments

Nanostructures, Inc. Santa Clara Materials

Pacific Nanotechnology, Inc. Santa Clara Imaging and Microscopy

Parallel Synthesis Technologies, Santa Clara Materials

PSIA, Inc. Santa Clara Imaging and Microscopy

Sequence Design, Inc. Santa Clara Tools and Instruments

sp3, Inc. Santa Clara Tools and Instruments

Sun Microsystems, Inc. Santa Clara Tools and Instruments

Symyx Technologies, Inc. Santa Clara Tools and Instruments

Transfer Devices, Inc. Santa Clara Electronics

Ahwahnee, Inc. San Jose Materials

Applied Microstructures, Inc. San Jose Materials

BlueMoonGoods, LLC San Jose Materials

Cadence Design Systems San Jose Electronics

International Association of Nanotechnology San Jose Organization

Komag, Inc. San Jose Materials

Magma Design Automation, Inc. San Jose Electronics

NanoNexus, Inc. San Jose Electronics

NeoPhotonics Corporation San Jose Electronics

Semiconductor Equipment and Materials InternationalSan Jose Organization

Semiconductor Industry Association San Jose Organization

Silicon Genesis Corporation San Jose Energy and Environmental

Sysview Technology, Inc. San Jose Electronics

Ultratech, Inc. San Jose Tools and Instruments

We have Identified over 90 Nano Companies in the Bay Area

SolarNanosolarSunPower CorporationBright SolarHutching ConstructionMalone Controls CorporationOngrid Solar

Energy SystemsFat Spaniel TechnologiesInterPhases Research*Davis Energy GroupNuEdison*SVV Technology Innovations, Inc.*

Energy EfficiencyPhilips LumiledsOSRAM Opto SemiconductorsSynergy E. V., Inc.*AFS Trinity Power Corporation*One-Cycle Control*

Other Renewable Energy Sources

Biofuel/BiodieselParathon Energy*Silicon Valley Biodiesel*Hydropower/PurificationIncAquaEssDigital Sun, Inc.*Eksterand Associates*

WindSelsam Innovations*Wind Tower Systems*

GeothermalThermoChem Inc.*

*Current participants in Environmental Business Cluster

Existing San Jose ‘Clean Tech’Firms (production & installation)

Available Training CoursesCommunity Colleges-Certificates and AA

Advanced Transportation TechnologyApplied Biological TechnologiesEnvironmental StudiesGeographic Information SystemsHorticulture and DesignEnergy ManagementSolar PV InstallationBiotechnicianBio-Manufacturing Certificate Program

 Local Training Providers

Nanotechnology Certified Nanotechnology Technician Program   Executive & Business-Re-engineering Program

 Solar Solar Panel Installation

 Biotechnology Biotechnology Business Management Biotechnology Technician

Existing Occupations That

are Considered

Green/Clean

Electricians

Carpenters

Plumbers and Pipefitters

Construction Laborers and Managers

General Operations Managers

1st Line Supervisors of Construction

Sheet Metal Workers

Architectural Drafters

Refuse & Recyclable Collectors

Architects, Building

Engineering Managers

Helpers – Electricians

Maintenance and Repair Workers

Electronics Engineers

Clean Tech Institute Forum

Lloyd Tran