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Meanwhile, attracted to the mild Mediterranean climate, cheap land, and the state's wide variety of geography, filmmakers established the studio system in Hollywood in the 1920s. California manufactured 8. 7 percent of total United States military armaments produced during World War II, ranking third (behind New York and Michigan) among the 48 states. [71] California however easily ranked first in production of military ships during the war (transport, cargo, [merchant ships] such as Liberty ships, Victory ships, and warships) at drydock facilities in San Diego, Los Angeles, and the San Francisco Bay Area. [72][73][74][75] After World War II, California's economy greatly expanded due to strong aerospace and defense industries,[76] whose size decreased following the end of the Cold War. [76][77]Stanford University and its Dean of Engineering Frederick Terman began encouraging faculty and graduates to stay in California instead of leaving the state, and develop a high-tech region in the area now known as Silicon Valley. [78] As a result of these efforts, California is regarded as a world center of the entertainment and music industries, of technology, engineering, and the aerospace industry, and as the United States center of agricultural production. [79] Just before the Dot Com Bust, California had the fifth-largest economy in the world among nations. [80] Yet since 1991, and starting in the late 1980s in Southern California, California has seen a net loss of domestic migrants in most years. This is often referred to by the media as the California exodus. [81]

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