Metropolitan regions all over the country — and the world — have been doing it, and finally, we are too! Just what am I talking about? Regions in our globally competitive economy are organizing to promote their strengths and brand themselves in unprecedented ways. And it’s paying off — just look at success stories like Austin, Texas, and New York City, and you soon realize the potential of these regional strategy investments. The greater Silicon Valley is a little late to this party, due in large part to a long history of organic economic growth fueled by abundant innovation. But the time has come to reconsider regionalism from an economic development standpoint.

Led by the San Jose Silicon Valley’s Chamber of Commerce, the Regional Economic Development Initiative (REDI) is a new private-public partnership engaging stakeholders in a collaborative effort to create jobs by focusing on Silicon Valley’s most promising economic opportunities. The first phase of REDI included an analysis focused on the changing dynamics of Silicon Valley’s core economy and a growing interdependence of major export engines, support industries, and the service economy. A new wave of innovation, like the Internet of Things (IoT), is a key driver of future opportunities in Silicon Valley. This is creating a number of new opportunities for companies to connect with each other and with public sector partners to leverage exciting innovations in:

  • R&D Centers: Silicon Valley is the Research and Development (R&D) home for global technology firms that are attracted by a high concentration of skilled talent. These R&D centers are building the platforms (hardware and software) that make IoT.
  • Agile Manufacturing: Collaboration between traditional tech firms, local contract manufacturers, and global manufacturing firms in the design and prototyping of new kinds of “smart” hardware represents an exciting opportunity for innovation, driven by IoT.
  • Health IT: Advanced health care services and research in the region are converging with information technology, advancing Health IT services. The integration of IoT and traditional health services is giving both health care institutions— as well as the individual consumer — better access to real-time data and processing power.
  • Smart Buildings: Building and construction industries are being transformed by a move toward greater energy efficiency and new advanced materials, devices, and systems that promote greater productivity and savings. IoT represents the integration of traditional energy savings technology with the power of big data’s predictive and intelligent capabilities.

The next stage in the REDI process will be to engage private sector business leaders in each of these opportunity areas to lead the planning and execution of REDI’s action plan. The initiative will recruit influential members of the private sector (“civic entrepreneurs”) who are committed to the success of the region and understand the benefits of working collaboratively. While previously, the private sector collaborated to work on infrastructure and transportation issues, REDI seeks to be holistic and unified, working to improve conditions inside and outside of businesses.

This is a significant milestone in Silicon Valley regional relations, and Fremont has a critical role to play in this conversation, particularly regarding Agile Manufacturing and Research & Development. Look for updates in the coming months as action plans develop, and let’s look forward to collectively strengthening the Bay Area’s competitive edge.

REDI Phase 1: Initial Findings – March 2015 – pg. 5