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Challenges / Risks for Silicon Valley

SV faces many challenges but focus known as an "opportunity for improvement," could undermine the viability of the innovation ecosystem. The SV has to face the following challenges / risks:

• great competition in the markets

• competition for the best talent and investment capital

• reducing the funding of large research universities such as UC Berkeley and UC San Francisco

• reduced quality of life of the region

• diminished quality of secondary education in the region

• shortage of math graduate students and science universities in the region

• stressed workers

• traffic jams and the high cost of housing.
  

detailed analysis of the main challenges and risks of SV:

• Lack of performance of the Institutes:

SV companies must be able to hire labor work with local and regional talent, not only globally, so that the readiness of students will enter different campus (such as UC Berkeley and Stanford University) has much to do with the future of SV
Between 2004 and 2006 the number of students who completed the teaching ñ secondary dence fell, some students completed that do not meet the admission requirements of the systems UC and CSU addition, dropout rates have Indo SV increased in recent ñ years.

• crisis in maths and science graduates :

On the one hand, SV is a great competition to recruit and retain the best talent, on the other hand, in the Bay Area and are not licensed SV núemro enough engineers and scientists from local universities to meet demand of high-tech industries. The origin of this problem is the low end núemero high school students to enter technical careers in science and mathematics, and the reasons for this are:
-The poor performance of California students in science and math compared with students from other states.
"Many students prefer to take easier courses.
"Many students believe that becoming managers of hedge funds will make money in no time.
"Many students believe that there are few technical jobs, which is not true.
"Many students find boring math and science.
"Many good students are attracted by the financial and housing sectors with the promise of high income.
Lack of math and science teachers.

• work stress:
  

Due to the "culture of achievement" of the SV in that being first is important, long hours are commonplace in
SV

• Congestion and High Cost of Housing:

Rapid economic growth has resulted in increasingly congested freeways and high home prices in SV. With housing prices of $ 800,000, only 15% of households in the region can afford a home in SV, in fact, some CEOs have argued that the high cost of housing in SV has become an impediment when hiring new talent.
In 2005 the rush hour traffic jams cost the workers $ 973 and the loss of 54 hours per capita, with the national average of $ 710 per worker on the move. According Texas Transportation Institute, the total economic cost of traffic congestion to the economy of San Jose was $ 889 million in 2005.

Source: "ecology of innovation", Tapan Munroe, PhD & Mark Wstwind, MPA