Post on 17-Dec-2015
egeo312 Silicon Valleyegeo312 Silicon Valley 11
Rogers, Everett M. and Judith K. LarsenRogers, Everett M. and Judith K. Larsen. .
1984.1984. Silicon Valley Fever: Silicon Valley Fever: Growth of High Technology Growth of High Technology
CultureCulture. . New York: Basic Books Inc.New York: Basic Books Inc.
From Chapter 13 From Chapter 13 "The Spread of "The Spread of
Silicon Valleys"Silicon Valleys"
egeo312 Silicon Valleyegeo312 Silicon Valley 22
I. Four Factors In Silicon I. Four Factors In Silicon Valleys SuccessValleys Success
1. Proximity to Research 1. Proximity to Research UniversityUniversity
2. Infrastructure2. Infrastructure
3. Climate, Amenities, 3. Climate, Amenities, and Quality of Lifeand Quality of Life
4. Entrepreneurship -- 4. Entrepreneurship -- Critical MassCritical Mass
egeo312 Silicon Valleyegeo312 Silicon Valley 33
II. HistoryII. History
http://itel.mit.edu/itel/meetings/Jan00/mit_map.html
http://cs.ua.edu/~greg/personal.htm
l
A. The Boston -- Route 128 StoryA. The Boston -- Route 128 Story
1. The Great Depression -- MIT President 1. The Great Depression -- MIT President Compton's responseCompton's response– Encourages applying new technologies Encourages applying new technologies – Helps faculty to set-up own companies Helps faculty to set-up own companies – Goal re-build, re-industrialize the local economyGoal re-build, re-industrialize the local economy
egeo312 Silicon Valleyegeo312 Silicon Valley 44
II. History - Boston and Route 128II. History - Boston and Route 128
2. Need for financial infrastructure2. Need for financial infrastructure Previously centered in NYC Previously centered in NYC Pres. Compton -- Initiates first Boston Pres. Compton -- Initiates first Boston
venture capital firm venture capital firm – American Research and Development American Research and Development
Corporation Corporation – Bankrolled from Insurance Companies Bankrolled from Insurance Companies – Provide high risk start-up funds Provide high risk start-up funds
egeo312 Silicon Valleyegeo312 Silicon Valley 55
II. History- Boston and Route 128II. History- Boston and Route 128
3. WWII -- "the big easy" -- war research 3. WWII -- "the big easy" -- war research funding pours infunding pours in
MIT builds up research funding MIT builds up research funding Spins-off entrepreneurs Spins-off entrepreneurs New companies climb from 39 to 1,200 New companies climb from 39 to 1,200
http://ww
w.scienceclarified.com
/everyday/images/scet_02_im
g0192.jpg
egeo312 Silicon Valleyegeo312 Silicon Valley 66
II. History- Boston and Route 128II. History- Boston and Route 128
4. High Growth era 1955-19714. High Growth era 1955-1971– the Cold War gives warm feeling to Aerospace the Cold War gives warm feeling to Aerospace
industries industries
5. Viet Nam Era winds down 1972 - 19805. Viet Nam Era winds down 1972 - 1980– economy sours economy sours – 12,000 engineers/techies our of work 12,000 engineers/techies our of work
http://w
ww
.chicoto
wn
.com
/p
ics/military-in
dustria
l-co
mp
lex.jp
g
egeo312 Silicon Valleyegeo312 Silicon Valley 77
II. History- Boston and Route 128II. History- Boston and Route 128
6. Second Coming post 1980 -- The “Mini” 6. Second Coming post 1980 -- The “Mini” & PC Computer Boom& PC Computer Boom– Local spatial agglomeration gives competitive Local spatial agglomeration gives competitive
advantage to Boston advantage to Boston – Large skilled labor pool Large skilled labor pool – ““Mini”-computer commercial launch Mini”-computer commercial launch – First developed at MIT -- Lincoln Lab under First developed at MIT -- Lincoln Lab under
Military contract Military contract – Boston's Route 128 means mini-computers Boston's Route 128 means mini-computers
egeo312 Silicon Valleyegeo312 Silicon Valley 88
Silicon Valley StorySilicon Valley Story
B. Silicon Valley -- Fred Terman and B. Silicon Valley -- Fred Terman and California DreamingCalifornia Dreaming1. 1942: California boy sent east to fight WWII in 1. 1942: California boy sent east to fight WWII in
the labs of MIT (not the labs of MIT (not “halls of Montazuma…”)“halls of Montazuma…”)
2. Hates the cold climate (weather and people)2. Hates the cold climate (weather and people)
3. Post war: Heads home, but brings the "MIT 3. Post war: Heads home, but brings the "MIT model"model"
egeo312 Silicon Valleyegeo312 Silicon Valley 99
Silicon Valley StorySilicon Valley Story
4. Convinces Stanford to go one-up 4. Convinces Stanford to go one-up on MITon MIT– Stanford U. -- Leyland Stanford's old Stanford U. -- Leyland Stanford's old
ranch ranch 1860s Leyland famous robber 1860s Leyland famous robber
baron/railroad magnate/importer of baron/railroad magnate/importer of Chinese labor/governor of California Chinese labor/governor of California
– And you thought ENRON "owned" And you thought ENRON "owned" government!!! government!!!
Bequested his ill-gotten gains to Bequested his ill-gotten gains to immortalize self (and John Elway) creates immortalize self (and John Elway) creates Stanford U Stanford U
http://ww
w.hum
anities.uci.edu/history/chssp/G
earUp/G
earUp.htm
egeo312 Silicon Valleyegeo312 Silicon Valley 1010
Silicon Valley StorySilicon Valley Story
4. Terman Convinces Stanford to go one-up 4. Terman Convinces Stanford to go one-up on MITon MIT– 1950s Stanford needs use for ranch lands 1950s Stanford needs use for ranch lands – Terman suggests -- build an industrial park Terman suggests -- build an industrial park
incubator for new IT start-up firms incubator for new IT start-up firms builds on "garage" companies of the valley builds on "garage" companies of the valley
http://images.pahistory.org/PAHA/image/301.jpg
Stanford Industrial Park
egeo312 Silicon Valleyegeo312 Silicon Valley 1111
Silicon Valley StorySilicon Valley Story
5. The rest is history5. The rest is history– Silicon Valley has/develops all four factors in Silicon Valley has/develops all four factors in
abundance abundance 1. Proximity to Research University(ies)1. Proximity to Research University(ies)
2. Infrastructure (R&D)2. Infrastructure (R&D)
3. Climate, Amenities, and Quality of Life (California Dreamin’)3. Climate, Amenities, and Quality of Life (California Dreamin’)
4. Entrepreneurship -- Critical Mass (Garage Inventors)4. Entrepreneurship -- Critical Mass (Garage Inventors)
The garage where HP started
http://ww
w.travelnotes.de/california/silicon/landm
ark/p976.jpg
http://www.tabsiliconvalley.com/
egeo312 Silicon Valleyegeo312 Silicon Valley 1212
Silicon Valley StorySilicon Valley Story
5. The rest is history5. The rest is history– Premier IT Premier IT Growth PoleGrowth Pole in the World in the World – Can't afford a place to sleep? Ride an all night Can't afford a place to sleep? Ride an all night
bus. bus. Renters [in California] are being forced to be inventive:
• $250/month in Fontana provides a shed for a home.• "Motel 22" is a $3 all-night bus ride in South Bay.
www.housingadvocates.org
egeo312 Silicon Valleyegeo312 Silicon Valley 1313
Research TriangleResearch Triangle
C. The Research Triangle -- The South C. The Research Triangle -- The South Shall Rise Again (or carpet baggers Shall Rise Again (or carpet baggers heaven?)heaven?)1. 1960 Governor worried by declining Textile 1. 1960 Governor worried by declining Textile
industryindustry2. Public--Private Partnership2. Public--Private Partnership– Textile Executives provide funding Textile Executives provide funding – Government provides services and planning Government provides services and planning 3. Raleigh -- Durham -- Chapel Hill become 3. Raleigh -- Durham -- Chapel Hill become
center based on Universitiescenter based on Universities
egeo312 Silicon Valleyegeo312 Silicon Valley 1414
Research TriangleResearch Triangle
4. Advantages4. Advantages– Low taxes Low taxes – Low wages, non-union Low wages, non-union
area area – nice climate nice climate
5. Only trails Silicon 5. Only trails Silicon Valley and Boston as Valley and Boston as growth pole in IT growth pole in IT industry industry
http://www1.american.edu/carmel/ab5293a/Casestudy/Research_Triangle/RTParea.gif
egeo312 Silicon Valleyegeo312 Silicon Valley 1515
I. Review Four Factors In I. Review Four Factors In Silicon Valleys’Silicon Valleys’ Success Success
1. Proximity to Research University1. Proximity to Research University
2. Infrastructure2. Infrastructure
3. Climate, Amenities, and Quality of 3. Climate, Amenities, and Quality of LifeLife
4. Entrepreneurship -- Critical Mass4. Entrepreneurship -- Critical Mass
egeo312 Silicon Valleyegeo312 Silicon Valley 1616
Can anyone copy this?Can anyone copy this?
Research Schools can always be builtResearch Schools can always be built Infrastructure can be created through private and Infrastructure can be created through private and
public meanspublic means Amenities are of two types:Amenities are of two types:
– Natural – impossible to createNatural – impossible to create– Social – might be possible to createSocial – might be possible to create
Entrepreneurship – historically this is only learned Entrepreneurship – historically this is only learned through mentoring, this has prevented the artificial through mentoring, this has prevented the artificial creation of a “Silicon Valley”creation of a “Silicon Valley”
egeo312 Silicon Valleyegeo312 Silicon Valley 1717
GROWTH POLEGROWTH POLE
““Growth does not appear everywhere at Growth does not appear everywhere at the same time; it becomes manifest at the same time; it becomes manifest at points or poles of growth, with variable points or poles of growth, with variable intensity; it spreads through different intensity; it spreads through different channels with variable terminal effects channels with variable terminal effects on the whole economy.”on the whole economy.” Francois Perroux Francois Perroux
egeo312 Silicon Valleyegeo312 Silicon Valley 1818
GROWTH POLEGROWTH POLE
The Silicon Valley is a Growth Pole The Silicon Valley is a Growth Pole Like lightning strikingLike lightning striking
egeo312 Silicon Valleyegeo312 Silicon Valley 1919
Growth Poles & their impacts:Growth Poles & their impacts:
1.1. Centers of Technology & Innovation suddenly Centers of Technology & Innovation suddenly appear on the landscape (ex. Silicon Valley)appear on the landscape (ex. Silicon Valley)
2.2. Surrounding region benefits in a distance Surrounding region benefits in a distance decay function (further away less benefit)decay function (further away less benefit)
3. As original technology ages, Growth Pole 3. As original technology ages, Growth Pole faces crisisfaces crisis
Can decline (Detroit, Cleveland,... Can decline (Detroit, Cleveland,... Can move on to new technology (Boston: Can move on to new technology (Boston:
textiles to computers)textiles to computers)
egeo312 Silicon Valleyegeo312 Silicon Valley 2020
Silicon ValleySilicon Valley
This development literally came out of the This development literally came out of the “garage”“garage”
But might it now be headed for India? Or But might it now be headed for India? Or elsewhere?elsewhere?
When he was in eighth grade, Steve Jobs, later the co-founder of Apple Computer, telephoned William Hewlett, president of Hewlett-Packard. "Bill answered, and I said, 'Hi, you know, uh, I'm 12 years old and I'm trying to build a frequency counter,' " Jobs recalls. Hewlett, a symbol of entrepreneurial success in the Santa Clara Valley, chatted graciously with Jobs for 20 minutes. When it was over, the kid got not only the Hewlett-Packard parts he needed but a summer job at the company as well. http://projects.edtech.sandi.net/lewis/computerhist/applejobs.htm