Is Silicon Valley Reproducible?

sunil99 asks: "Paul Graham, in his latest essay, looks at the ingredients which make Silicon Valley what it is. From the essay: 'Could you reproduce Silicon Valley elsewhere, or is there something unique about it? It wouldn't be surprising if it were hard to reproduce in other countries, because you couldn't reproduce it in most of the US, either. What does it take to make [a Silicon Valley]?'. In his opinion: 'I think you only need two kinds of people to create a technology hub: rich people and nerds'. He concludes that if a city can attract these people, it can stand a chance of replicating Silicon Valley. What do you think of Paul's opinions? If you would like some changes to the current Silicon Valley, what would those be?" While the people are an important part to the Silicon Valley experience, they are only part of the requirement. What local characteristics must also be present, even if Silicon Valley is to be duplicated on a smaller scale? What draws technology companies to a specific location?

Comments

history and other problems

[barutanseijin]

However you want to define it, "Silicon Valley" is a product of history. That being the case there are a lot of things that went into producing what we now know as "Silicon Valley". In no particular order:

• The Cold War. (the impetus for much basic computer research)
• Massive investments in education from both the State of California and the US federales. (Nerds are made, not born)
• Relatively cheap land (obviously not anymore.)
• The youth rebellion of the '60s. (contributed in no small part to the popularity of mini/personal computers, *nix, free software, WozJobsMacintosh etc.)
• Communications and transportation infrastructure. (Some degree of connectivity was important, but too much makes centralisation unnecessary.)

As a general principle, what was a possibility for previous generations is a possibility for us, too. Whether it's likely or not is another question.

I think the article overemphasises economic factors at the expense of the cultural and historical. Silicon Valley is history, and history is a lot more complicated than that.

Silicon Hills?

[SydShamino]

Austin, Texas, is known as the Silicon Hills because it has reproduced Silicon Valley, albeit on a smaller scale.

It also has a major research university (University of Texas), which might be a key component. It also has a good supply of risk takers, and plenty of money.

But, it also has a few things that Silicon Valley lacks. Namely, it has a better cultural scene for folks. I don't mean the high-class snobby rich folks that fit in well in California. I mean young folks, the kind that like to live someplace that is the live-music capital of the world, with two world-class music festivals, a world-class movie festival, site of the flagship whole foods, the state's only public nude beach, and plenty more to keep you busy every week.

Re:Silicon Hills?

[spxero]

Could that be a reason it hasn't flourished as well? When you have a bunch of geeks with nothing to do but get excited about tech, I bet they can do more than geeks with everything to do. Austin has its festivals, nude beach (not always a plus), and plenty to keep you busy. But silicon valley's a 3.5 hour drive to the snow, a 1 - 1.5 hour drive to the ocean, 30 min to San Fran, and 6 hours to L.A. There's plenty to do there (I was born and raised in the east bay, now I live in Texas), and from my visits to Austin, you can find close to all that near silicon valley. The music scene may not be as advertised as Austin's, but it's there.

After being in Texas, the people are just different out here. It's more laid back (except Houston), and there's a lot more of a get-it-done-when-it-gets-done feeling. I think that's what contributes to Austin's silicon hill not being as recognized. Silicon hill may erupt, but I think that the extra-curricular activities and different attitude keep it from being larger than Silicon Valley.

Re:First thing's first

[seanadams.com]

Actually, you hit on a good point.

Housing was not always expensive here. When Wozniak was developing the Apple I, middle-class homes were routinesly built on 10,000 square foot lots because land was so plentiful, and blue-collar jobs could confortably pay a mortgage.

In that environment, you can imagine how a young man could dedicate two or three years to desigingin something while taking insignificant personal financial risk.

Just another reason why we CAN'T have another "silicon valley" here - living expenses prohibit one from starting a full-time garage business.

I could share a funny personal story about threatening investors to leave the valley so that I could get a cheap house and work from my garage, rather than having to take their money so I could draw a salary. I've thought about this one a bit. :)

It's also unique to California

[i am kman]

I lived in Silicon Valley and the DC region and worked with VCs in both areas. There's a tremendous difference in culture between the two regions. West coast startups are all about innovation and foster new ideas. East coast companies are all about services and contract execution. That's why you have SUN and Apple in California and AOL and Verizon on the east.

California focuses on brilliance and creativity. East coast focuses on formality and contract execution. I was think that was government-related, but it's also true within NYC with financial services and more old-school business.

So, Silicon Valley CULTURE is very unique and it's far more important than $$ and nerds.

Critical Mass

[georgewilliamherbert]

What started Silicon Valley was that it had critical mass, of everything that modern tech companies needed to grow out of.

The article lists a lot of that, but misses some other things. Pre-existing tech and engineering companies... before it was Silicon Valley, HP and Varian already started here, IBM was a major major force in the area (one of IBM's bigger research centers), GE was here in force. Lockheed is here, doing unmentionable space stuff, and Space Systems Loral's predecessors.

These were all more traditional tech companies, but the untraditional tech companies were in a sense a spinoff from the density of skills and suppliers and environment that the larger tech companies had been growing in for decades previously.

Silicon Fen

[DataCannibal]

They tried to reproduce Silicon Valley near Cambridge in the UK. As far as I've heard it's not been the rip-roaring success that the people who thought of the idea imagined. The impression I get from a friend who works there is that there are a lot of start-ups which quickly turn into tits-ups. He's having more success with his home business making and selling infra-red controllers http://www.redrat.co.uk/.

There's a number of pulled-out-of-my-arse random reasons why it hasn't taken off like Silicon Valley:

1. It was pushed by National and Local Government. This never works, otherwise the North East of England would be like Silicon Valley after the amount of money that has been plowed into the region through Government and through the regional development agencies.

2. The Weather: as another post mentioned the weather in Silicon Valley is brilliant. In Cambridge it is the opposite. Nine months of the year an east wind blows out of the Russian steppes, across the North Sea and blasts across the flat fens of Norfolk towards Cambridge. It gets a bit warmer for a month or two in the Summer but if you try something like punting in the Cam and fall in, you could still die of hypothermia in August.

3. Marketing: No-one outside of the flat and soggy corner of England that is East Anglia knows what the fuck a "Fen" is. Anyone readin the name "Silicon Fen" will know straight away that it will be a cheap knock-off of Silicon Valley. Doh! The people who built Silicon Valley didn't call it that, it was called that by people who saw what he entrepeneurs and risk takers were doing.

4. Food: The UK is well known for having the worst food in Europe. I know there are more Michelin starred restaurants in London that ever before but 99.9% of the food in the UK does not come from Micehelin starred restaurants and who want to come and live here in you can live in California, France etc. This ties i with point 2 as well.

5. Risk Aversion: most brits don't like taking risks. They are terrified of risks, even more so then the Germans. One kid cuts their knee on a school trip and all school trips are banned because they are too dangerous. One person gets stabbed with a knife and know they are talking of banning all carrying of knives in public places. No more camping knofe fro me then when I head off into the mountains. Is it any wonder that people living and growing up in such an atmosphere aren't willing to take business risks. We will never see the likes of Alan Sugar, Richard Branson and Anita Roddick again.

I'm sure there quite a few more.

Re:Silicon Fen

[DataCannibal]

I don't normally reply to anonymous cowards but in your case I;ll make and exception:


1) As someone who started his own company using government agencies for support I can tell you it's none other than great advice. And I received a grant from 3 sources no less.

Of course there's no problem getting the money and advice from the government agencies, but if throwing money at things was the answer why isn't the North East of England the hot-bed of entepreneurship that it could be.


2) The wind rarely blows from Russia, we have a well known gulf stream.

Apart from the difference between the wind and an ocean current they get a fucking cold wind in Cambridge and I say that as a Geordie.


3) A fen is just a name, I think you'll find people arn't stupid and can work out it's meaning. (We have places called "Cul-de-sac's" aswell - wonder what those are?)

If they have to work out it's meaning it's not a very good marketing name, is it.


4) Food, again what are you talking about? ... We have a very diverse population, food is not a problem. You've just heard a comment some french president said and repeated it like a parrot.
No I have eaten food the length and breadth of Britain. THe food the you get from most restaurants (including indian, chinese, thai italian the lot), all motorway service areas, works canteans, on airlines, at corner shops, at chippies is all crap. It's not just the preparation and cooking that is bad, no-one if France, for example, would consider serving you an hot toasted sandwich in a plastic bag, so that the bag is full if condensation and your sandwich soggy within seconds. No one in France would think it is a good idea to pack freshly cut cheese in antimicrobial cling film, no German chef would serve the same mixture of boiled or steamed vegetables with every single meal they serve in their restaurant with no sauce or seasoning. You can shut your eyes and shout about the arsehole Chirac as much as you want but British food is crap


5) 2 Million people are Sole-Traders, many more self-employed in other areas, with over 19,000 business were started last year.


2 million window cleaners, mini-cab drivers and "Earn £35 per hour in your spare time" types does not mean that we have a thriving entrepreurial economy

Re:I did my Masters research on this..

[Sqreater]

How about the national personality of Americans? We are a nation of risk-takers. All immigrant. Uprooters. Destroyers and builders on the ruins. You can't replicate that in Europe. Change your laws. Throw money around. But that is one of, no doubt, the many x factors involved. Greece during the rise of Athens. Italy during the Renaissance. Books are written on why and how they arose. None satisfy entirely. Paradigm shifts occur. Never can they be replicated deliberately. Success in other parts of the world? No. Where are their shifts?