The Importance Of Silicon In The Struggling U.S. Economy

Silicon is crucial in technology and the economy. Technology has transformed into one of the top-five drivers of economic growth in recent decades, which saw the increase of Silicon Valley as well as leading to a Silicon Revolution. 

But Silica Valley is struggling currently due to a variety of factors including reduced government spending, globalization, and automation. This article looks at the technology impact on economics and how Silicon Valley can recover. 

Image Source: Google

Silicon Valley is a region in Northern California that is home to some of the world's leading technology companies. The Valley includes capital cities such as San Jose, San Francisco and Sunnyvale, as well as smaller regional centers such as Palo Alto and Mountain View. 

These companies are responsible for the tech industry revolution and have made Silicon Valley one of the leading regions in the United States. There are more than 25 million people economically tied to Silicon Valley while more than half of all venture capital investment dollars go into Silicon Valley. 

These factors make up why Silicon Valley is considered a national economic powerhouse. The impact of technology on economics has significantly increased over time, with one study showing that technological innovation contributed $2 trillion to the U.S. GDP in 1998. 

The Internet has been one of the most important influences on economic growth through the ability for companies to grow with faster transactions and easier availability to global markets.