Silicon Valley: Lessons Learned

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Silicon Valley Lessons Learned

• Jeff Saperstein
• sapermktg_at_earthlink.net
• Creatingregionalwealth.com

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Lessons Learned

• Artificial Intelligence vs Augmentation
• The scientist/academic as entrepreneur
• What is Silicon Valley?
• SV Regional development
• Government funding
• Immigrants, diasporas and linkage

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Augmentation vs AI

• AI---replace humans with machines
• Augmentation---creating work groups where human
  intelligence was augmented by computers
• The schism between Information propertarians and
  libertarians divides the digital world

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What is Silicon Valley?

• A region?
• A type of eco-cluster?
• An ethos?
• A blueprint for globalization?

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Silicon Valley Eco-cluster

• Regional network-based industrial system
  (proximity of all professions and skills needed
  for technology based businesses)
• Social networks and open labor markets that
  encourage experimentation and entrepreneurs
• Informal communication and collaborative
  practices
• Abundant venture capital
• Educational institutions and technology parks as
  incubator hubs and a skilled workforce generator
• Government at federal, state and local level
  facilitating the speed for investment and quick
  problem-solving

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Scientist as Entrepreneur

• Basis of Innovation in new technology industries
  both within companies and start-ups
• Google vs GM

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Silicon Valley Ethos

• "Can do" attitude with contagious enthusiasm for
  collaborative projects
• Emphasis on teamwork, openness and egalitarianism
• Encouragement for risk-taking, innovation, and
  tolerance for failure that is based on learning
  so best practices can be discovered and applied
  in future projects
• A focus on productivity and practical goal
  setting
• The ability to be intellectually agile, while
  working on projects that have tight, ambitious
  timetables for completion
• Individual freedom and self-discipline are
  integrated
• People are respected for their knowledge and
  contribution to the team, not their job title
• Knowledge must be translated into action with a
  potentially positive outcome

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What is happening in SV?

• How significant is SV and the BA in the global
  high tech economy?
• Which tech sectors are most important?
• What is the prospect for the future?

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First, the bad news

• Since 2001 loss of 15 jobs 300,000
• Commercial real estate vacancies (25-30) about
  64 million square feet (more than six world trade
  centers)
• New company growth not translated into regional
  jobs (Google)

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SF Bay Area
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Productivity Per Employee
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Wealth Creation
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BioNano Concentration
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SemiCon/Software Concentration
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Government role

• Support RD through grants 135 billion in 2006
• 28.6 billion in biomedical research through NIH
• Doubled since 1999 although Homeland Security
  and Space Program account for increase in 2006

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