Report: The Future of Advanced Technology and Basic Research

California is globally recognized as the world’s leading center for technology, innovation, and entrepreneurial opportunity. While most concentrated in the San Francisco and Silicon Valley Bay Area , technology assets are spread throughout the state. The economic strength that flows from this unique capacity has produced high-value jobs and world-leading companies and puts California at the leading edge of current and emerging technologies that will transform the world’s economy in coming decades. The income that this activity generates is also a critical source of revenue for the state through personal income taxes (PIT) due to the substantial workforce dedicated to advancing technology in California. In the state’s 2019-2020 fiscal year, PIT accounted for 66.19 percent of California’s General Fund revenues, much of which are driven by taxation on technology initial public offerings (IPOs) and stock gains.