A lot has been reported this past week about the growth in cleantech jobs in California over the latter part of 2008. Cleantech seems to be providing a small bit of relief to California’s economy at the moment.
While job loss in Silicon Valley has risen in the last year, capital invested into cleantech companies and green technology research has boomed at the same time.
The term cleantech covers a range of industries in the green sector some of which include renewable energy (solar, wind, biofuels, etc.), electronic and computing innovations, environmental safety (household cleaning products, for example), automotive engineering, LEED construction, and creating a smart grid.
Silicon Valley receives the most funding for cleantech with a whopping 94 percent growth in venture capital funding over the previous year. And while job loss in the valley has taken a severe downturn the last part of 2008, green job growth has enjoyed a steady rise over the last eight years.
Innovative companies like Silver Spring Networks help give a more positive outlook on California’s economy after a recent deal made with PG&E to supply the utility company with a “smart meter” - an energy reader that tells the consumer and the utility company important information on power usage and therefore helps eliminate areas of waste as well as lower utility bills.
PG&E is spending billions to replace old energy meters with the new smart meter from Silver Spring.
At Silicon Valley’s ‘State of the Valley’ conference on February 20, cleantech growth was a major topic, as was its future in the valley’s economic growth. There was talk there of plans to train those who lost their jobs with energy and technology companies, and shift them into areas of green technology and renewable energy.
But Orange County’s contributions to the California economy with green innovations and job growth in cleantech can not be ignored – just last year VC funding went over $320 million to the area for green technology.
With companies like Broadcom and Ingram Micro advancing green IT, and UC Irvine conducting research focused on the environment and energy, Southern California is not only providing cleantech advances, but also helping its economy.
VC investors began funding green and clean technologies after the high tech bubble burst in the early part of the century, turning to new and innovative technologies that, lucky for everyone, not only help our environment but are now helping our economy to get back on track.
While cleantech job growth in the OC and Silicon Valley are a relief to California’s economy, this will hopefully spread to the rest of the country. Combined with the current administration’s economic stimulus bill that offers funding for green technology initiatives, California’s cleantech growth brings a sunnier view of our economic future.
More jobs created, cutting-edge technology and innovation, a cleaner, more efficient planet – all so needed after the recent real estate catastrophe, high unemployment rate (getting higher by the minute), and multiple bank bailouts.
The rest of the country might do well to look to Silicon Valley as an example of a social and economic rescue plan that will not hurt but offer relief to the taxpayer, and also bring us better and more opportunities and a hopeful promise of a brighter future.
After becoming a nation of low producers and high consumers, and falling way behind in global innovation and industry, there appears to be hope for us yet!
