Thread: Silicon valley

In the middle of the desert some people set up a software company. Nowadays Silicon Valley is the most succesfull software innovation cluster in the world. How did it become so succesfull? Why does clustering of industries happen anyway? (e.g. automobile factories in the Northern USA, finance in London, greenhouse flowers and vegetables in Holland).

230 views but 0 replies? surely you could take a guess :wink:

Originally Posted by Pendragon

230 views but 0 replies? surely you could take a guess :wink:

Oh, all right.

Pre-existing resources, such as intellectual talent, infrastructure, distribution networks, investors, and raw materials.

As for Silicon Valley in particular? Bankers did NOT insist that the company officers put up their houses as collateral for business loans for start-ups. Software companies do not have the same kind of assets as manufacturing facilities.

Maybe that will get something started.

They took a chance when they started up their companies and reduced their overhead by developing a place to build their products away from the "high rent" areas where they charge enormous amounts for leasing property or office spaces. It was a risk for them and they didn't realize they would hit the jackpot with their businesses. It was serindipity they erected their offices there.

true, but why is it so succesfull?

There are numerous examples of clusters of firms of the same branche in an area, so for some reason it seems to be advantageous for firms to be located close to eachother. Maybe firms learn from eachother when they're close to eachother, or they find it easier to make deals when they see eachother often.

Originally Posted by cosmictraveler

They took a chance when they started up their companies and reduced their overhead by developing a place to build their products away from the "high rent" areas where they charge enormous amounts for leasing property or office spaces. It was a risk for them and they didn't realize they would hit the jackpot with their businesses. It was serindipity they erected their offices there.

I would have to agree with this. If you are a startup, you do want something that is inexpensive and if things don't turn out well, you aren't into debt up to your eyes.

the reason Silicon Valley is so succesful is in the name. because of the large amounts of Silicon. just like when gold was found in alsaska and Calafornia. if you find something somebody wants, you will be succesful.

chamilton, please stop talking nonsense. You are welcome to post on any and all threads, but I would welcome
a) Something, occasionally, that is of more subtance than two sentences.
b) Accuracy in what you are saying.

There are, for your information, large amounts of silicon everywhere. Silicon is the key ingredient of the crust and the mantle, both of which are made principally of silicate minerals.

I just read an article on the Silicon Valley, and it says that the reason the silicon valley is as successful as it is, is because of Stanford University. They had 8,000 acres of land, and needed money to fund the university. They wanted to promote technology, and make constant money over long periods of time. So, they sold land only to big companies and made long-term leases to attract the companies. Once a few companies came, it attracted more and more industry, and it grew to what it is today.

Anyhow, that is what I understood from the article.

Originally Posted by Ophiolite

chamilton, please stop talking nonsense. You are welcome to post on any and all threads, but I would welcome
a) Something, occasionally, that is of more subtance than two sentences.
b) Accuracy in what you are saying.

There are, for your information, large amounts of silicon everywhere. Silicon is the key ingredient of the crust and the mantle, both of which are made principally of silicate minerals.

first of all, 4 sentances but 2 lines, and how is this not acurate? oops, this is just 2 sentances, my bad, shoot me.

I'm gonna agree with Ophiolite - chamilton you've amassed 100 posts now in what, 4 days? Every time I click the site I see a giant pile of threads where you are the last person to comment. Most of them are a line or 2 and many of them are topics which have pretty much died down already. You're the first poster who's making me click "mark all topics read" singlehandedly. Far be it from me to tell people how often to post but maybe a little more selectivity on your part would benefit us all :P

Erm, the reason it is called the Silicon Valley is because the companies that first came to the silicon valley were the ones who invented computers and all that good stuff. Computers... Silicon... Silicon is not the reason why the companies came...

Originally Posted by Neutrino

I'm gonna agree with Ophiolite - chamilton you've amassed 100 posts now in what, 4 days? Every time I click the site I see a giant pile of threads where you are the last person to comment. Most of them are a line or 2 and many of them are topics which have pretty much died down already. You're the first poster who's making me click "mark all topics read" singlehandedly. Far be it from me to tell people how often to post but maybe a little more selectivity on your part would benefit us all :P

5 days counting today. i'll admit most of my posts are short, but that is mostly because what i have to say is short and simple. E=mc2 is short, but it got the job done. people dont really have the time to read long posts. i guess ill just ramble on about the same thing when ive already stated my point. i post the genaral idea, than explain further when asked. one example was when i said meditation made you smarter. the guy asked for a source on the thing. ask, and you shall recieve.

Here is a way to classify posts:

Long posts that say little or nothing that is of interest or value.
Long posts that say something of interest or value.
Short posts that say little or nothing that is of interest or value.
Short posts that say something of interest or value.

Half of these categories contain posts that say little or nothing of interest or value. That may be worth contemplating.

From the looks of it, more and more businesses gravitated towards Silicon Valley. Why? Well, any place around San Francisco will be populated if the rent's cheaper.

The following link will help you to get the detailed info about the sucess story of silicon vallley :

http://www.netvalley.com/svhistory.html

....and?

Originally Posted by weknowtheword

The following link will help you to get the detailed info about the sucess story of silicon vallley :

http://www.netvalley.com/svhistory.html

So, in addition to pre-existing resources [talent, land, silicon], there was a decision to create hot-zone for a specific industry and specific plan to do so.

So, why do some such plans work, and others not? Other areas have tried to do the same, but are NOT hot-zones. Was the planning better? Were the resources greater? Was there more external support from local governments? Was there more outside investment?

Was it serpendipity, the right idea at the right time? Or did the ideas have such a profound effect that they essentially created the time?

actually silicon valley is 99% hype. there are high tech areas all over the country and many much larger growing quite fast. the SF area is built in a hilly area, spread out with lots of green grass and very attractive but far the the biggest. a good deal of electronic equipment is shipped into SF area from around the world, but in general these products are transfered on from the San Jose area. a good many of the original companies have gone under or moved as well.

the concept of "Industrial Parks'' or areas set aside for business dates back to at least the early 40's. most every city and a good many towns have such parks. many like Fort Worth have an airport in the park that cater strictly to business. since these are generally city or town planning i would assume promotion (incentives) are involved in success. frankly i do not think many just fail.

erm... its the worlds most busiest computer making factorys

Originally Posted by manadude2

erm... its the worlds most busiest computer making factorys

Not quite true; Most all computer components, are not made anyplace in the US. Then those that are assembled here, are in many locations none of which are in SV...

Apple is located just South of Sacramental California, Dell main plant in Round Rock Texas, Microsoft in Washington State, IBM out of NY, still in larger complex units has several eastern location and so on...They all do have several plants, not only in the US, but worldwide. Think the largest 'High Tech' concentration of Business is in the Chicago Area, followed by both Houston and Dallas/Fort Worth and North Carolina has a couple larger areas. Imports, do primarily come through SF area, for convenience reason, but are container shipped to all parts the US and I might add the 401 Corridor of South Eastern Canada...