Silicon valley history and innovation

Silicon Valley History and Innovation

Javed MohammedInnovation and Marketing Consultant

k2film@live.com

alchemyofinnovation.wordpress.com

A K2Vista Production

There are many hi-tech hubs in world

• Boston “Route 128”

• Bangalore, India

• Silicon Wadi, Israel

• Silicon Glen, Scotland• Silicon Glen, Scotland

• But there is only one original, Silicon Valley

Silicon Valley

It all started with the birth of the

transistor in 1947

Schokley and team at Bell Labs in New Jersey

Stanford creates first industrial business

park in 1951

Fred Terman

Schockley moves to West coast, 1955

William Shockley

Arthur Rock moves to bay area in

1961, becoming the first venture

capitalist

Silicon Valley is born

HP and Varian first to move to Stanford

Business Park

Bill Hewlett

David Packard

Lead team from Schockley split and

start Fairchild in 1957

Fairchild's Noyce

and TI’s Kilby

independently

integrate many

transistors on a transistors on a

single device and

invent the

integrated circuit

(IC)

Founders of Fairchild split and start

other Silicon Valley icons

Silicon Valley thrives on innovation

Innovation relies on a good Ecosystem

Ideas&

Commerci-

alization

CapitalBasic

Research

Human

Resources

Laws/

Regulation

Need ongoing waves of Innovation

2nd wave IC

(Fairchild, Intel)

3rd wave PC

(Apple, Silicon Graphics)

4th wave Internet

(Netscape, Yahoo, eBay, Google)

1st wave Defense

(HP, Vairan)

(Fairchild, Intel)

Microprocessors

Internet

Technology Innovation leads to

Product InnovationSocial

Networking

Microwave Radar

Integrated Circuits

Disk Storage

The two Steve’s create the first

Personal Computer, the Apple 1, 1976

First commercial Netscape browser

in 1995 brought the Internet to the

masses

Marc Andreessen

Silicon Valley Fast Facts

• Silicon Valley Residents: 2.5 Million

• 15 cities in Santa Clara county

• But Silicon Valley keeps growing

• Valley now made up of 5 Counties– Santa Clara County

San Mateo County– San Mateo County

– Alameda County

– Contra Costa County

– Marin County

• The Valley continues to grow in all directions

http://next10.org/sites/next10.org/files/silicon%20valley%20econ%20

snapshot.pdf

Silicon Valley Top 10

1. Hewlett-Packard

2. Apple

3. Intel

4. Cisco

5. Oracle5. Oracle

6. Google

7. Applied Materials

8. Synnex

9. eBay

10.Gilead Science

As of Jan 2013

http://www.mercurynews.com/sv150

What makes Silicon Valley tick?

Risk taking: It’s ok to fail

Dream Big

Learn from your mistakes

Encouragement to be an entrepreneur

Results oriented meritocracy

Highly educated workforce and access

to university and government research

Abundance of capital (VCs, Angels)

Favorable labor laws: Easy to hire and

fire

City and State government encourages

startups with little red tape

Ecosystem of lawyers, accountants,

bankers, recruiters

Good Quality of life with easy access to

the beach in summer and mountains

for skiing

Easy to network with peers and culture

that thrives on innovation

Informal & Lack of Hierarchy

Free flow of information

However, Silicon Valley is not paradise

• Since 2003, the region lost more than 300,000 jobs. Nearly 120,000 jobs were lost in 2010

• Offshoring & Outsourcing major trend

• Started with moving low end functions like Mass Production, Quality Assurance, Call centers and Production, Quality Assurance, Call centers and other job functions

• Now moving higher end to research, R&D, design, back office, marketing, legal, healthcare

• There are no sacred cows.

http://techtalk.dice.com/t5/Silicon-Valley/White-Caucasian-men-the-

new-minority-in-Silicon-Valley-IT/td-p/289082

Mckinsey expects global market

for offshore business and technology services to grow

to about $500B by 2020, from the current $80B/yr

http://www.mckinsey.de/downloads/publikation/mck_on_bt/2009/mck_on

_bt_16_india.pdf

http://www.ibsgr.com/our-business/key-facts-and-figures/our-markets.aspx

Big Demographic shift, causing

underlying tension and ethnic enclaves.

• White Caucasians the new minority in Silicon

Valley IT (Non-white 63%)

• Latinos and Black poorly represented in high

wage, hi-tech paying jobswage, hi-tech paying jobs

• White 37%, Asian 30%, Latino 27%, Black 2%,

Other 4%

http://techtalk.dice.com/t5/Silicon-Valley/White-Caucasian-men-the-

new-minority-in-Silicon-Valley-IT/td-p/289082

52% of startups founded by

Immigrants

http://venturebeat.com/2012/10/15/how-indians-defied-gravity-and-

achieved-success-in-silicon-valley/

Venture Beats graph

High cost of living makes valley

unaffordable to those not making a

living wage

http://www.thedigeratilife.com/blog/index.php/2007/10/30/the-

minimum-budget-the-cost-of-living-for-a-family-of-four/

Family of four needs to make a min of $80,000 to survive

What’s next

• Silicon Valley is more than just Hi-tech

• It is also a big hub for Bio-tech, Medical

devices, Clean-tech, Nano-tech,…

• Convergence of Hi-tech + Bio-tech + Nano-

tech,…

• Clean-tech and alternative energies

• Things we can’t predict, that’s why it is the

innovation capital of the world

References

• All images are from public domain and

copyright of respective owners

• William Y. Jiang: Silicon Valley Competitive

Advantage and Knowledge TransferAdvantage and Knowledge Transfer

• Cathy Anterasian & Jeff Hauswirth: Lessons

From Silicon Valley

• Joint Venture: Silicon Valley Network

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All images are from public domain and copyright of respective owners

A K2 Vista Project

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Copyright 2012