We recently released our 10th Annual CEO Business Climate Survey – completed by 177 Silicon Valley CEOs and senior officers, who drive the earth’s innovation economy. They are cautiously optimistic about the Valley economy in 2013, with roughly half expecting to hire this year and only 10 percent expecting staff reductions.

The survey also identified strengths to celebrate and challenges to address:

The strengths, which I call the “six t’s” of Silicon Valley’s secret sauce:

1. Access to skilled labor – talent

2. Entrepreneurial mindset – temperament

3. Proximity to customers and competitors – territory

4. World class universities – training

5. Access to venture capital – treasure

6. The climate and weather – temperature

The challenges:

1. High housing costs

2. High personal income tax rates for our workers and families

3. Business regulations – especially the misuse of the California Environmental Quality Act

4. Traffic congestion

The full survey results are available here. Let’s make time to make a difference.