Reaping the Rewards

The following is a recent article in the California Financial Times by your’s truly.

Many dynamic California companies are reaping substantial rewards for their leadership in high tech specialties, alternative energy innovation and in export-driven industries.  The Golden State has historically been a leader in developing and capitalizing on emerging technologies, from aerospace to computers and now, clean technologies and information services.  This specialization is particularly profitable when it is combined with the state’s role as a gateway to emerging economies, such as China, that are becoming richer and more urbanized.  As this development continues, demand will increase for electronics and software—think iPads and iTunes—that have become staples in our consumer economy.  Rising wealth is also normally accompanied by greater concern for the environment.  Environmental protection in another area where California’s past development and current expertise could pay big dividends.  Many leading California firms have been phenomenally successful at capitalizing on these trends, which should continue for years into the future.

The investing world already recognizes California’s potential.  In 2011, California scooped up more than half of the entire nation’s venture-backed invest­ment—for the fourth consecutive year.  National venture capital investment exceeded $28 billion in 2011, up 22 percent from 2010—the third highest amount in the past 10 years, according to the National Venture Capital Association.  California ventures received $14.5 billion, a 24 percent jump from 2010.  The Silicon Valley received the lion’s share, $11.6 billion—27 percent more than in 2010.

(To continue reading, go to page 12 here)

1 Comment

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One response to “Reaping the Rewards

  1. I wish this meant something other than that rich people are funding projects that enrich themselves and other rich people. We need only look at the growth of various occupations to discover that most of them are not in software engineering, but in retail, restaurants, and home health.. These jobs don’t pay much, and don’t require much education.

    What’s difficult in California is (a) paying more for existing jobs, (b) providing the infrastructure for the development of better jobs (and I don’t mean old-fashioned manufacturing), and (c) mitigating the damage done by low-wage jobs–affordable housing, subsidized childcare, universal health care and so on. The people funding the development of software don’t want to pay for these things. In fact, they even evade the taxes they should owe.

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