Abstract
Silicon Valley plays a key role in developing innovative technologies and paving the way for new global trends. The region remains, for now, the undisputed leader of the global startup and innovation scenes. So how did this special innovation ecosystem develop, and which factors were at play in turning Silicon Valley into the epicenter of startups and new technologies? Who are the main actors in the region, and how do they contribute to fueling innovation and entrepreneurship?
This chapter aims to shed light on Silicon Valley’s unique history and its central role in the global technology community. A special focus is given to cultural characteristics fostering collaboration and experimentation, as well as the social networks that underline the emergence and development of startups and new technologies. The SWOT analysis assesses the region’s strengths and weaknesses in a structured way and discusses the opportunities and threats that could fuel or jeopardize Silicon Valley’s leading role in global innovation. The lessons learned highlight some of the phenomena that underlie the regions entrepreneurial strengths and provide ideas for unlocking similar innovative potential in other regions around the world.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Iansiti M and Levien R (2004) The Keystone Advantage: What the New Dynamics of Business Ecosystems Mean for Strategy, Innovation, and Sustainability. Harvard Business School Press: Boston, MA.
- 2.
Moore JF (1996) The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems. HarperBusiness: New York, NY.
- 3.
Walker R and Schafran A (2015) The strange case of the Bay Area. Environment and Planning. 47: 14.
- 4.
Bay Area Council Economic Institute and McKinsey & Company (2018) Continuing Growth and Unparalleled Innovation: Bay Area Economic Profile. July 2018. Accessed: http://www.bayareaeconomy.org/report/continuing-growth-and-unparalleled-innovation/
- 5.
Silicon Valley Index 2020, Joint Venture Silicon Valley & Institute for Regional Studies, https://jointventure.org/publications/institute-publications/1903-2020-silicon-valley-index
- 6.
Castilla EJ, Hwang H, Granovetter M and Granovetter E (2000) Social Networks in Silicon Valley. Chap. 11 in The Silicon Valley Edge: A Habitat for Innovation and Entrepreneurship, edited by Chong-Moon Lee, William F. Miller, Henry Rowen, and Marguerite Hancock. Stanford: Stanford University Press.
- 7.
For example: Massachusetts Institute of Technology (MIT) and Harvard University in (Cambridge near) Boston, ETH in Zurich, TMU and LMU in Munich, Imperial College and LSE in London, Columbia University and New York University (NYU) in New York, to name just a few.
- 8.
Matkin G 1990 Technology Transfer and the University. New York: MacMillan, pp. 240–274.
- 9.
Witt P (2006) Stand und offene Fragen der Gründungsforschung, Studie für das Bundesministerium für Bildung und Forschung (BMBF), März 2006, Dortmund.
- 10.
Eesley C and Miller W (2012) Impact: Stanford University’s Economic Impact via Innovation and Entrepreneurship, October 2012, Stanford University, Palo Alto, USA.
- 11.
- 12.
Bay Area Council Economic Institute (2019) The Bay Area Innovation System: Science and the Impact of Public Investment. March 2019. Accessed: http://www.bayareaeconomy.org/report/the-bay-area-innovation-system/
- 13.
- 14.
“About Us,” SRI International, https://www.sri.com/about-us/
- 15.
“About PARC,” PARC, A Xerox Company, https://www.parc.com/about-parc/
- 16.
- 17.
Silicon Valley Index 2020, Joint Venture Silicon Valley & Institute for Regional Studies, https://jointventure.org/publications/institute-publications/1903-2020-silicon-valley-index
- 18.
Bay Area Council Economic Institute and McKinsey & Company (2018) Continuing Growth and Unparalleled Innovation: Bay Area Economic Profile. July 2018. Accessed:
- 19.
Mason C and Matthew S (2004) What do Investors Look for in a Business Plan? A Comparison of the Investment Criteria of Bankers, Venture Capitalists and Business Angels, 2004 22: 227 International Small Business Journal.
- 20.
- 21.
- 22.
Freeman J and Engel JS (2007) Models of Innovation: Startups and Mature Corporations, Fall 2007, Vol. 50, No. 1, UC Berkeley.
- 23.
Senor D and Singer S (2011), Start-Up Nation The Story of Israel’s Economic Miracle“. Council on Foreign Relations. April 2011.
- 24.
- 25.
- 26.
- 27.
More on the accelerator trend: Dempwolf CS/Auer J and D’Ippolito M (2014) Innovation Accelerators: Defining Characteristics Among Startup Assistance Organizations. US Small Business Administration, Office of Advocacy, October 2014.
- 28.
Fuerlinger G (2014) Incubators vs. Accelerators: Fostering university spin-offs by leveraging exploration and execution. Presentation at University Industry Conference, in Barcelona, Spain. April 2014.
- 29.
Blank S (2013) Why the lean Start-Up changes Everything, Harvard Business Review, May 2013, p. 65–72.
- 30.
Pages ER, Freedman D and von Bargen P (2003) Entrepreneurship as a state and local economic development strategy. In D. M. Hart (Ed.), The emergence of entrepreneurship policy: Governance, start - ups, and growth in the U.S. knowledge economy (pp. 240–259) Cambridge: Cambridge University Press.
- 31.
- 32.
Lazerson M and Lorenzoni G (1999) The Firms That Feed Industrial Districts: A Return to the Italian Source. Industrial and Corporate Change 8, no. 2:235–66.
- 33.
Regalado A (2013) In Innovation Quest, Regions Seek Critical Mass, MIT Technology Review, September/October 2013, Vol. 116, No. 5. P. 84–86.
- 34.
Timmons J (1994) New Venture Creation. Entrepreneurship for the twenty-first century. Volume 4, Irwin, Boston.
- 35.
Fuerlinger G (2014) Die Bausteine eines Gruenderoekosystems. In Thomas Funke & W. Axel Zehrfeld (Hg.) Abseits von Silicon Valley: Beispiele erfolgreicher Gruendungsstandorte, Frankfurter Allgemeine Buch, Frankfurt.
- 36.
Fuerlinger G (2014) Die Bausteine eines Gruenderoekosystems. In Thomas Funke & W. Axel Zehrfeld (Hg.) Abseits von Silicon Valley: Beispiele erfolgreicher Gruendungsstandorte, Frankfurter Allgemeine Buch, Frankfurt.
- 37.
Fuerlinger G (2020) The Impact of Human and Social Capital on University Startup Performance: Evidence from Entrepreneurship Ecosystems in USA and Europe. Doctoral Thesis, Vienna University of Technology, December 2020.
- 38.
Fuerlinger G and Leitner KH (2017) Kulturelle Aspekte der Förderung universitärer Spin-offs, in Wissenschaftsmanagement - Handbuch & Kommentar, Lemmens Medien GmbH, Bonn – Berlin, 1. Auflage, November 2017, ISBN: 978-3-86856-013-8.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Fuerlinger, G., Garzik, L. (2022). Silicon Valley Innovation System. In: Garzik, L. (eds) Successful Innovation Systems. Future of Business and Finance. Springer, Cham. https://doi.org/10.1007/978-3-030-80639-2_14
Download citation
DOI: https://doi.org/10.1007/978-3-030-80639-2_14
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-80638-5
Online ISBN: 978-3-030-80639-2
eBook Packages: Business and ManagementBusiness and Management (R0)