Summary:Ross DeVol opened the panel by noting that California is a difficult place in which to do business and throwing out a question: Has the state lost its ability to compete in the global marketplace? On the plus side, he cited some key positive indicators of California's economic potential, such as its high labor productivity and larger concentrations of high-tech industries. The state ranks above the national average in 20 out of 25 high-tech industries, he said, but he cautioned that many observers feel the California's long-term competitive position has severely eroded.
The four panelists were generally optimistic about California's continued economic leadership in high technology, although they did stress the challenges posed by increasing global competition. Susan Decker of Yahoo! Inc. explained that California has managed to retain its core competitive elements — a skilled labor force, university and government R&D investment, and venture capital (35 percent of the U.S. total is located in Silicon Valley, she said) — into the 21st century.
Other panelists echoed Decker's assessment. The best and most creative engineers are still in California, said state Controller Steve Westly, and Greg Papadopoulos of Sun Microsystems added that "it's hard to do engineering globally." And the best engineers don't want to leave the state, said John Shegerian of Electronic Recyclers.
The panelists also discussed California's potential as a leader in future innovation. Westly talked about investments in biotech, nanotech, and stem cell research; Papadopoulos underscored the importance of failure to success and said that California's business climate was more accepting of failure. Shegerian explained how California's political leadership on environmental issues was creating business opportunities in the recycling of e-waste and curbing greenhouse gas emissions. Decker highlighted the potential of social media networks.
There was also a discussion about increased competition from Asia and the free flow of talented people. The panelists agreed that foreign competition was increasing, but the free flow of people between California and Asia was crucial to California's continued competitive edge. Westly noted that the Patriot Act has made it harder to bring people to the United States on H-1B (worker) visas.
All the panelists shared a positive outlook, but Papadopoulos mentioned the importance of quality of life and stated that continued economic prosperity requires investment in our educational systems.
