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California has long been home to a thriving innovation ecosystem. The state boasts a robust network of leading tech companies, renowned research institutions, and imaginative startups. The Bay Area, Los Angeles, and San Diego metros account for nearly half of all venture capital (VC) investment nationwide, with the Bay Area alone accounting for over one-third of total investment. While VC growth has continued to increase in California, other states are seeing investment rise at faster rates. Many have been aggressively developing their own innovation ecosystems in recent years and offer more appealing incentives, lower costs of doing business, and greater housing affordability. Massachusetts, Washington, New York, and Nevada, for example, have seen significant growth in VC investments in Clean Tech. Investments in Gaming are increasing in Connecticut, Washington, Delaware, and Nevada. Colorado, Texas, Georgia, and Pennsylvania have all outperformed California’s growth in Space Technology investments. And Pennsylvania, New Jersey, and Connecticut are becoming more attractive destinations for Advanced Manufacturing investment. Although California still ranks first across many measures in absolute terms, it needs to take shifting market dynamics more seriously. To maintain its competitive edge, California will need to do more to preserve and nurture the very industries that fueled its growth. #Innovation #Technology #EconomicDevelopment #TechSector

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