Tottenham have produced several young England internationals recently, and had the youngest starting lineup in the Premier League for much of last season, and Pearce said that he couldn't remember the North Londoners ever producing so many talented youngsters.
"Certainly at this moment in time Tottenham's academy are producing as many players as I've ever known," he told Spurred On.
"When you look at the Townsends, the Harry Kanes, the Masons that are coming through and doing extremely well. Obviously buying players from other clubs at a young age like Danny Rose and bringing them into the fold as well - they've done an outstanding job."
Even though the former Nottingham Forest legend emphasised how many quality young players the White Hart Lane side were producing at the moment, he made sure to pay tribute to the club's last two managers, both of whom have made a point of putting their faith in the talent coming up from the academy.
Of course, that included current Aston Villa boss Tim Sherwood, who was axed by Daniel Levy in favour of current head coach Mauricio Pochettino, but who Villa fans hope will be able to encourage the same success from their own promising youngsters.
"The good thing as well is Spurs are not afraid to put them into the first team," Pearce added. "It's all well having a good academy system but you have to have a manager that has got the confidence, as Tim Sherwood did and the current manager does, of putting them in to the first team and credit to him for that."
Next season sees more talented young players coming through for Pochettino, with Alex Pritchard, Tom Carroll, and Dele Alli all likely to get a chance in the first team after impressive loan spells.