What has made Silicon Valley so productive of new technologies and new
firms? How did its pioneering achievements begin--in computer
networking, semiconductors, personal computing, and the Internet--and
what forces have propelled its unprecedented growth? This collection of
nine chapters by contributors from varied disciplines--business,
geography, history, regional planning, and sociology--examines the
history, development, and entrepreneurial dynamics of Silicon Valley.
Part I, "History," provides context for the Valley's success by
exploring its early industrial roots. It traces the development of the
electronics industry in Silicon Valley back to the founding of Federal
Telegraph in 1908, and discusses the role of defense spending and the
relationship with Stanford University in the region's growth. Part II,
"Institutions," emphasizes the importance of supporting institutions and
practices in helping Valley startups succeed. Four chapters explore the
role of law firms in facilitating the formation of new companies, the
evolution of the venture capital industry and its role in funding new
firms, the importance of labor mobility, and the significance of close
interfirm relationships in the success of Silicon Valley companies.
Part III, "General Explanations," presents three different perspectives
on the environment that has made Silicon Valley so successful. The first
chapter considers Silicon Valley as an ecosystem of interacting
institutions, individuals, and a culture that encourages and nurtures
entrepreneurship. The second chapter argues that Silicon Valley should
not be seen as a region in which relationships are based on civic
virtue, but rather one in which trust is based on performance, which
makes it uniquely permeable to new ideas and talented individuals. The
final chapter contends that institutions specializing in new firm
formation are responsible for Silicon Valley's unique ability to foster
technological advances.
