Where will the next Silicon Valley appear?

Summary:

According to the KPMG report, Silicon Valley will lose its status as a technology center in the next four years;

New York leads the future global technology city, and other cities include: Beijing , Tokyo, London and Shanghai, etc.;

In a recent survey, the international accounting firm KPMG stated that nearly two-thirds of technology executives believe that within the next four years, the world’s innovation center will Will move from Silicon Valley to other regions. This survey has been conducted for seven years. It is a survey of global technology executives and interviewed more than 740 technology executives around the world. So why do executives think Silicon Valley will be replaced? Which places will be the challengers of Silicon Valley? Youtoufang explains it for everyone.

Silicon Valley Big Data

From 2017 to 2018, the median home price soared 21% to nearly $1.18 million;

From 2007 to 2017 , the average commute time increased by 20%, taking 43 hours more per year;

The net population decreased by about 2,000 people in 2018;

From 2017 to 2018, venture capital investment increased 31% to $19 billion:

From 2017 to 2018, the median home price in Silicon Valley soared 21% to nearly $1.18 million. In 2000, the median home price in Silicon Valley was about $700,000. In 2018, the median home price in the United States was only $221,000.

Median home prices in Silicon Valley (green), San Francisco (purple), and California

In Silicon Valley, 6.5% of people are now “supercommuters,” spending money commuting to and from their home Three hours. This is up from 3% in 2011.

Silicon Valley (green), San Francisco (purple) and the proportion of "super commuters" in California

Between 2012 and 2018, the cost of infant care and preschool education increased by 30% to 57%. It depends on the age of the child and the type of school. For example, the average cost of preschool increased from approximately $11,000 to $15,000 in 2018.

In 2018, 20,000 more foreigners moved into Silicon Valley than left. The opposite is true across the United States, with 23,000 more people leaving than moving in. Overall, Silicon Valley's net population decreased by about 2,000 people in 2018.

Silicon Valley Net Foreign Immigration, Net Domestic Immigration, and Total Net Immigration

Silicon Valley loves electric cars. As of 2018, the cumulative sales of electric vehicles in Silicon Valley have increased to at least 48,000 vehicles, accounting for 18% of total sales in California, but the actual number may be higher. Nissan and Chevrolet each accounted for 22% of the total sales of the above-mentioned electric vehicles, and Tesla accounted for 21%.

From 2017 to 2018, venture capital investment in Silicon Valley also surged. In Silicon Valley, that number grew 31% to $19 billion.

Silicon Valley has long occupied the position of the world's science and technology innovation center, but now the development of Silicon Valley is also full of problems. Former Cisco CTO Judy Estrin pointed out that Cisco and other fast-growing large companies began to acquire startups to realize the company's technological innovation, rather than developing innovation internally. What’s even more interesting is that startup entrepreneurs start their companies with the goal of selling themselves to large technology companies, and venture investors also encourage startups to do the same. This method of innovation is very widespread in Silicon Valley and even the United States. What's more serious is that innovators develop new ideas so that big companies can buy them, rather than true technological breakthroughs. So, in some ways, Silicon Valley innovation seems to be booming, but too much is short-term, incremental innovation rather than breakthrough. This will put Silicon Valley's innovation into a difficult situation. If it continues, current speculation will surely face a future innovation crisis.

Many people believe that the main problems in Silicon Valley are:

Technology company executives are shaken and lack confidence in their companies;

The direction of innovation Speculation in acquiring start-up companies, rather than real breakthroughs in self-innovation;

Technology companies invest a lot of money in non-Silicon Valley traditional innovation and development models, and there is a serious risk of investment;

Add to this the high cost of living in Silicon Valley and the inability of infrastructure to keep up with economic growth.

KPMG’s survey report gives a list of cities that may become challengers to Silicon Valley. In the list of challengers that will become Silicon Valley in the next four years, New York is the number one challenger, Beijing ranks second, and Tokyo and London rank third. An interesting point mentioned in the survey is that Taipei tied for fifth place with Shanghai in this ranking. This is due to Taipei’s continuous improvement in its smart hardware business.

KPMG Silicon Valley Challenge City Ranking

New York’s performance this year is a bit surprising. Last year, New York was only ranked third, but this year it surpassed Shanghai, which has always been at the top.

KPMG stated in the survey that New York surpassed Shanghai to take the first place this year because more and more large technology companies, such as Google, are choosing to settle in New York, which makes New York’s status as a technology center rising.

Beijing ranks second in this year's rankings, ahead of Shanghai. Regarding Beijing's performance, KPMG said this was expected. Beijing has been China's tech hub since entrepreneurship and venture capital began to take off in China about 20 years ago. At the same time, Beijing's development direction is more towards deep technology, while Shanghai's development focuses on entertainment, marketing and financial technology.