Report: Valley firms must be innovative to stay competitive

SJ Mercury News ^ | 1/20/03 | David A. Sylvester

[NormsRevenge]

In Joint Venture: Silicon Valley Network annual report on the economic state of the valley, states that employees became more productive last year.

The state budget crisis could make Silicon Valley an even more expensive place to do business as taxes rise and services are cut -- jeopardizing any economic recovery -- according to members of a business and government regional group.

[NormsRevenge]

Report: Valley economy ahead of '98 in some areas
By David A. Sylvester
Mercury News

The bursting of the Internet bubble has cost Silicon Valley jobs, wages and income. But so far, the region remains somewhat better off than it was in 1998, at least by some measures, according to Joint Venture: Silicon Valley Network's annual regional report.

For instance, even though jobs have dropped for two years in a row, the valley -- comprising Santa Clara County and parts of San Mateo, Santa Cruz and Alameda counties -- is ahead of where it was in 2000.

Collaborative Economics, which prepared the data for Joint Venture, said the valley had 94,500 more jobs in the second quarter of 2002 than it had during the first quarter of 1998.

In other measures, Joint Venture reports the same pattern. Average annual pay for employees has dropped 6 percent to $62,500, but that's higher than pay in 1998. Real per capita income also fell to $51,744 but that's ahead of $51,200 in 1999.

Other measures are more mixed. There are 22 more public companies in the valley than in 1998, but dramatically fewer fast-growing companies. In 2002, there were only nine sizable public companies that had grown faster than 20 percent a year for four years in a row, the fewest of these so-called ``gazelle'' companies in a decade.

[daviddennis]

Wow! According to realtor.com, there were three (count 'em!) houses less than $600,000 in Woodside, California, with the cheapest at less than $500,000!

Last time I looked, the cheapest house was $595,000 and there was only one.

For those who don't live in the region, these are "cottage homes" all under 900 square feet. You folks in the midwest would probably not even think they were big enough to be called single family homes, although they are on nice large lots.

The most expensive listing is at a cut price $4,490,000 and is 144 acres of land, including an ocean view. That's actually not bad, if you happen to be willing to fight for a Coastal Commission permit. They might let you put a puny shack on the land if you have two years to make your case ... but don't bet the farm on it.

D