Thursday, February 26, 2009

Silicon Valley Ghost Town II

Here’s some reasons why Silicon Valley is losing its edge in technology innovation – and why Asia is chipping away at its lead.

America’s share of research and development spending slipped to 30.1 percent in 2008 from 32.7 percent in two years’ time while Asia’s share rose to 40.8 in 2008 from 36.9. Battelle-Global R&D Report

America still tops all nations for the most patent applications annually – 53,521 of nearly one-third the total in 2008. But that percentage has slipped from 35 percent in 2004. World Intellectual Property Organization

In 2008, South Korea ranked 4th globally with 7,908 patent applications, an increase of 12 percent and a big improvement over 10th place 15 years ago. China placed sixth, applying for 6,089 patents in 2008, a hike of 11.9 percent. China has steadily climbed the charts, from the 7th spot in 2007 and 8th in 2006. WIPO

Last year, venture capital investment outside the U.S. increased 5 percent to $13.4 billion. The U.S. is still the top venture market, but international now accounts for nearly one-third of total venture money invested. Dow Jones VentureSource

Venture capital investments in the U.S. slid 8 percent last year to $28.8 billion while fund raising decreased 25 percent to $24.7 billion. DJ

In 2008, Asian venture investments declined by 22 percent to $22.3 billion.
Asia venture funds jumped 8 percent to $20 billion. AVCJ

In 2008, China raked in $9.3 billion in new venture investments while India weighed in at $8.5 billion. AVCJ

Asia accounted for 62 percent of global IPOs in 2008, up from 53 percent in 2007. North America contributed only 11 percent of 745 IPOs worldwide in 2008. Ernst & Young

China had the most IPOs two years in a row—126 in 2008 and 209 in 2007.
The U.S. chalked up 34 IPOs in 2008 and 178 in 2007. E&Y

U.S. venture-backed companies generated $24.1 billion through IPOs and M&As in 2008, down 58 percent from $57.6 billion in 2007. Just seven venture-financed businesses in the U.S. completed IPOs and raised $551 million, compared to 76 and $6.8 billion in 2007. These were the lowest levels on record since 1992. DJ