A new leadership group is poised to steer Silicon Valley into a "green-tech revolution" that could keep the valley from being displaced by other regions around the world.
Energy is the only field offering the same range of opportunities as information technology, say regional leaders.
The "Greenprint Project" goal is to develop a new, 21st-century energy system that would
displace the oil-dependent economy and create a second Industrial Revolution that matches the impact of the massive social and economic shift of the mid-1800s.
Chris DiGiorgio of Accenture, Inc. and San Jose Mayor Chuck Reed, unveiled the Greenprint Project, described as a blueprint initiative to turn global climate change into a thriving local industry. The plan seeks ways to build a new infrastructure from the ground up.
The Bay Area initiative would
- attract or train talent to meet needs of the new industry
- retrain workers from industries that are contracting
- invent new energy technologies to replace the oil-dependent economy
- build a support system for improved housing, health care, education and ancillary services that will keep people coming to or staying in the Bay Area
Applied Materials is providing a $300,000 donation over the next two years to fund a "director of climate prosperity" position for the Greenprint project.
Russell Hancock, president and CEO of Joint Venture, which is the initiative coordinator, sounded a warning that the national economic woes have begun to impact the valley, which had been relatively insulated from the worst effects. More bad economic news should be expected throughout the year as companies continue to contract.
Implementing a regional infrastructure that includes building a network of charging stations and retrofitting the 90% of existing homes and offices with energy-efficient technologies -- will allow the new energy products to be applied at home and position the suppliers for broader market growth. Venture capital investment in clean technology in Silicon Valley increased 94 percent in 2008 to boost new companies and new industry sectors.
But investment isn't limited to new companies. Firms such as Cypress Semiconductor, Applied Materials and PG&E are investing in the growing solar and smart-metering and plug-in markets.
Communities are entering the green regional initiative, as well. San Jose's "green vision" aims to show the world how energy efficiency and the new clean technologies can stimulate the economy and bring financial returns. Within 15 years, San Jose plans to create 25,000 clean-tech jobs and reduce per capita energy use by 50%. The city wants to build or retrofit 50 million square feet of green buildings and ensure that 100% of its public fleet will run on alternative fuels. All of San Jose's electrical power is expected to come from clean renewable resources
The regional collaboration hopes to encompass business, government, academia, labor and community organizations. The green economy isn't a shoo-in for American leadership in the global marketplace.
Fareed Zakaria, international editor at Newsweek, said Silicon Valley must bolster its social and support network if it hopes to remain a global player. Zakaria said everywhere he has gone in the world -- in China, Korea and Singapore -- he saw America slipping from having the biggest or best, from Ferris wheels and shopping malls to gambling centers. To stay ahead on the new global racetrack, Silicon Valley will have to get away from the prevailing belief that has swayed the country since 1979: that America has a unique place in the global economy.
Silicon Valley must be prepared to take advantage of the opportunities presented by the federal stimulus package and other energy policies by improving a flagging social network exhibited by career opportunities and home ownership. "Home ownership is elusive for many and has squeezed the middle class into an "hour-glass" demographic of the rich and the poor, with only a small percentage in the middle. Only 29% of residents can afford a median-priced home in Silicon Valley, compared with 45% statewide, Hancock said.
Community infrastructure attracts workers to an area -- affordable housing, good education, adult-worker retraining and affordable health care. The best and brightest will flock to whichever countries offers a better way of life.
To be successful, Silicon Valley can't invent the infrastructure in a vacuum -- it will take large infusions of cash and policy support from a well-managed government to achieve dominance in the new world order, Zakaria warned.
"Imagine 100 years from now. Imagine the irony that would strike (analysts). We've gone around telling people to 'open yourselves up ... to the American way of life.' America has managed to fulfill its great historical mission. It globalized the world; it just forgot to globalize itself," he said.