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)