WASHINGTON, USA: Even though the world is said to be slowly recovering from economic crisis that has seen many giants fall, the recession has taken a heavy toll on Silicon Valley, according to a recent report.

"There are clear warning signs suggesting Silicon Valley has entered a new phase of uncertainty, and that our competitive standing is at risk," says '2010 Silicon Valley Index', a report by the Silicon Valley Community Foundation and the Joint Venture: Silicon Valley Network.

The report said the economic crisis had resulted in 90,000 job losses in the Silicon Valley region alone between the second quarter of 2008 and the second quarter of 2009.

Silicon Valley is no longer able to attract the foreign talent which has been its "lifeblood" and funding innovation through locally raised venture capital and public offerings "can no longer be taken as a given," the report said.

As per the report, inflows from China and India to the Valley continue to rise, as does investment and collaboration between the Valley and those two nations, but China and India are both experiencing rapid economic growth. As they do, opportunities in those countries will slow the flow of talent here. The report also blamed California’s legislative gridlock for the supposed fall of the IT innovation hub of the US.

“Silicon Valley’s innovation engine has driven the region’s prosperity for 60 years, but at the moment we’re stalled,” said Russell Hancock, CEO of Joint Venture. “What’s hard to say is whether we’re stuck in neutral, which has happened before, or whether it’s time now for a complete overhaul,” said Hancock.

Emmett D. Carson, CEO and president of Silicon Valley Community Foundation, said, “On the heels of the worst economic year since the Great Depression, our region has entered a new era of uncertainty in which our ability to attract top talent, fund innovation and preserve a decent quality of life is no longer guaranteed.”

The 76-page 2010 Index reports the latest data and trends in economic development, workforce, housing, education, public health, land use, environment, governance, arts and culture and other sectors throughout Santa Clara and San Mateo Counties and portions of Alameda and Santa Cruz Counties.

An accompanying Special Analysis section of the report each year takes a closer look at a particularly significant topic.