Alternative Energy, High-Tech Development Driving California's Economy into New Year
Dec/Jan 09
Tesla Motors in San Jose is helping the drive towards green technology with a project that includes construction of a $250 million factory for the production of a new $60,000 electronic sedan, as well as the company's headquarters. The Tesla campus, which will employ 1,000 people, is slated to begin production in late 2010. The city's deal gives Tesla an 89-acre parcel that the company can occupy rent-free for 10 years, after which the rent jumps to $1.5 million per year. The city's goal includes adding 25,000 green tech jobs in 15 years. As part of the state's ongoing commitment to clean technology, a new incentive program waives the sales tax on investment in new manufacturing equipment for Zero Emission Vehicles (ZEVs).
Besides fertilizing green projects, the state has passed legislation to promote site preparation and medical research. The state passed proposition 1B and 1C in 2006, a total bond package that includes authorization for almost $20 billion of state general obligation bonds for infrastructure improvements, and 2.8 billion for housing. Also Proposition 71 earmarked $3 billion to support funding for stem-cell research.
McGowan says that most high-tech industry classifications are represented throughout the state: high tech in the Silicon Valley, agri-science in the central valley, biotech in the San Diego area, and entertainment technology in Los Angeles. "We have more Nobel laureates, research and development dollars, and venture capital than any other state," says McGowan.
Innovative leaders in information and computer sciences such as Yahoo, eBay, and Google are connected to California, grabbing global attention. California is the first state to be the official partner of CeBIT, the world's largest trade fair for digital business solutions and information and communications technology (ICT) that will take place in Germany in March. In previous years, CeBIT has partnered with other nations, but never an individual state.
In his 2007 inaugural address, Governor Arnold Schwarzenegger compared California's economic strength, population, and technological force to that of a nation-state. If California were a nation, it would be ranked among the 10 countries for gross domestic product. McGowan says that the weak dollar makes it seem as though we are offering "bargain basement" prices in the United States. He adds that half of the projects locating in California are from the United Kingdom, France, Germany, and other western European nations.
Project Announcements
Most Read
-
In Focus: “Golden Age” of Spec Development
Q3 2022
-
Area Development’s 17th Annual Shovel Awards Recognize State and Local Economic Development Efforts — First Two Platinum Shovels Awarded
Q2 2022
-
The 2021 Top States for Doing Business Reflect Their Locational Advantages
Q3 2021
-
In Focus: Demand for Industrial Land Surges
Q2 2022
-
Explosive Growth of Life Sciences Sector Comes with Challenges
Q3 2022
-
36th Annual Corporate Survey: Executives Focus on Labor, Energy, Shipping Costs
Q1 2022
-
Using Robust Project Controls to Enhance Project Management
Q3 2022