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===Law firms===
===Law firms===
The rise of Silicon Valley was also bolstered by the development of appropriate legal infrastructure to support the rapid formation, funding, and expansion of high-tech companies, as well as the development of a critical mass of litigators and judges experienced in resolving disputes between such firms. From the early 1980s onward, many national (and later international) [[law firm]]s opened offices in San Francisco and Palo Alto in order to provide Silicon Valley startups with legal services. Furthermore, [[California law]] has a number of quirks which help entrepreneurs establish startups at the expense of established firms, such as a nearly absolute ban on [[non-compete clause]]s in employment agreements.
The rise of Silicon Valley was also bolstered by the development of appropriate legal infrastructure to support the rapid formation, funding, and expansion of high-tech companies, as well as the development of a critical mass of litigators and judges experienced in resolving disputes between such firms. From the early 1980s onward, many national (and later international) [[law firm]]s opened offices in San Francisco and Palo Alto in order to provide Silicon Valley startups with legal services. Furthermore, [[California law]] has a number of quirks which help entrepreneurs establish s at the expense of established firms, such as a nearly absolute ban on [[non-compete clause]]s in employment agreements.


===Venture capital firms===
===Venture capital firms===

Revision as of 16:21, 27 July 2013

For the video game, see Space Station Silicon Valley.
Downtown San Jose, dubbed "Capital of Silicon Valley".
Downtown San Jose as seen with uplit palms.

Silicon Valley is the southern region of the San Francisco Bay Area in Northern California, in the United States. The region, whose name derives from the Santa Clara Valley in which it is centered, is home to many of the world's largest technology corporations as well as thousands of small startups.[1] The term originally referred to the region's large number of silicon chip innovators and manufacturers, but eventually came to refer to all the high-tech businesses in the area, and is now generally used as a metonym for the American high-tech sector.

Despite the development of other high-tech economic centers throughout the United States and the world, Silicon Valley continues to be the leading hub for high-tech innovation and development, accounting for one-third (1/3) of all of the venture capital investment in the United States.[2] Geographically, Silicon Valley encompasses all of the Santa Clara Valley including the city of San Jose (and adjacent communities), the southern Peninsula Valley, and the southern East Bay. However, with the rapid growth of technology jobs in the San Francisco metropolitan area, some commentators now argue that the traditional boundaries of Silicon Valley have expanded north to include the rest of San Mateo County and the City and County of San Francisco, as well as parts of Marin County.[3]

Origin of the term

The term Silicon Valley was coined by Ralph Vaerst, a successful Central California entrepreneur. Its first published use is credited to Don Hoefler, a friend of Vaerst's, who used the phrase as the title of a series of articles in the weekly trade newspaper Electronic News. The series, entitled "Silicon Valley in the USA", began in the paper's issue dated January 11, 1971. The term did not become widely known and used, however, until the early 1980s, essentially synonymous with the introduction of the IBM PC and numerous related hardware and software products to the consumer market. Valley refers to the Santa Clara Valley, located at the southern end of San Francisco Bay, while Silicon refers to the high concentration of companies involved in the making of semiconductors (silicon is used to create most semiconductors commercially) and computer industries that were concentrated in the area. These firms slowly replaced the orchards and related agriculture and food production companies which gave the area its initial nickname - the "Valley of Heart's Delight."

Demographics

Depending on what geographic regions are included in the meaning of the term, the population of Silicon Valley is between 3.5 million and 4 million. Despite an image of a male-dominated region, females outnumber males in the majority of the localities in Silicon Valley, and the proportion of women never drops under 49%, with the exception of Milpitas, with 48.9%.[4]

History

"Perhaps the strongest thread that runs through the Valley's past and present is the drive to "play" with novel technology, which, when bolstered by an advanced engineering degree and channeled by astute management, has done much to create the industrial powerhouse we see in the Valley today."[5]

Looking west over northern San Jose (downtown is at far left) and other parts of Silicon Valley

Stanford University, its affiliates, and graduates have played a major role in the development of this area.[6] Some examples include the work of Lee De Forest with his invention of a pioneering vacuum tube called the Audion and the oscilloscopes of Hewlett-Packard.

A very powerful sense of regional solidarity accompanied the rise of Silicon Valley. From the 1890s, Stanford University's leaders saw its mission as service to the West and shaped the school accordingly. At the same time, the perceived exploitation of the West at the hands of eastern interests fueled booster-like attempts to build self-sufficient indigenous local industry. Thus, regionalism helped align Stanford's interests with those of the area's high-tech firms for the first fifty years of Silicon Valley's development.[7]

During the 1940s and 1950s, Frederick Terman, as Stanford's dean of engineering and provost, encouraged faculty and graduates to start their own companies. He is credited with nurturing Hewlett-Packard, Varian Associates, and other high-tech firms, until what would become Silicon Valley grew up around the Stanford campus. Terman is often called "the father of Silicon Valley".

During 1955-85, solid state technology research and development at Stanford University followed three waves of industrial innovation made possible by support from private corporations, mainly Bell Telephone Laboratories, Shockley Semiconductor, Fairchild Semiconductor, and Xerox PARC. In 1969, the Stanford Research Institute (now SRI International), operated one of the four original nodes that comprised ARPANET, predecessor to the Internet.[8]

Social roots of information technology revolution

Main article: Microcomputer revolution

It was in Silicon Valley that the silicon-based integrated circuit, the microprocessor, the microcomputer, among other key technologies, were developed. The region employs about a quarter of a million information technology workers.[citation needed] Silicon Valley was formed as a milieu of innovations by the convergence on one site of new technological knowledge; a large pool of skilled engineers and scientists from major universities in the area; generous funding from an assured market with the Defense Department; the development of an efficient network of venture capital firms; and, in the very early stage, the institutional leadership of Stanford University.[9]

Roots in radio and military technology

The San Francisco Bay Area had long been a major site of United States Navy research and technology. In 1909, Charles Herrold started the first radio station in the United States with regularly scheduled programming in San Jose. Later that year, Stanford University graduate Cyril Elwell purchased the U.S. patents for Poulsen arc radio transmission technology and founded the Federal Telegraph Corporation (FTC) in Palo Alto. Over the next decade, the FTC created the world's first global radio communication system, and signed a contract with the Navy in 1912.[5]

In 1933, Air Base Sunnyvale, California, was commissioned by the United States Government for use as a Naval Air Station (NAS) to house the airship USS Macon in Hangar One. The station was renamed NAS Moffett Field, and between 1933 and 1947, U.S. Navy blimps were based there.[10] A number of technology firms had set up shop in the area around Moffett Field to serve the Navy. When the Navy gave up its airship ambitions and moved most of its west coast operations to San Diego, the National Advisory Committee for Aeronautics (NACA, forerunner of NASA) took over portions of Moffett Field for aeronautics research. Many of the original companies stayed, while new ones moved in. The immediate area was soon filled with aerospace firms, such as Lockheed.

Stanford Industrial Park

After World War II, universities were experiencing enormous demand due to returning students. To address the financial demands of Stanford's growth requirements, and to provide local employment opportunities for graduating students, Frederick Terman proposed the leasing of Stanford's lands for use as an office park, named the Stanford Industrial Park (later Stanford Research Park). Leases were limited to high technology companies. Its first tenant was Varian Associates, founded by Stanford alumni in the 1930s to build military radar components. However, Terman also found venture capital for civilian technology start-ups. One of the major success stories was Hewlett-Packard. Founded in Packard's garage by Stanford graduates William Hewlett and David Packard, Hewlett-Packard moved its offices into the Stanford Research Park shortly after 1953. In 1954, Stanford created the Honors Cooperative Program to allow full-time employees of the companies to pursue graduate degrees from the University on a part-time basis. The initial companies signed five-year agreements in which they would pay double the tuition for each student in order to cover the costs. Hewlett-Packard has become the largest personal computer manufacturer in the world, and transformed the home printing market when it released the first thermal drop-on-demand ink jet printer in 1984. In addition, the tenancy of Eastman Kodak and General Electric made Stanford Industrial Park a center of technology in the mid-1990s.[11]

Silicon transistor and birth of the Silicon Valley

In 1953, William Shockley left Bell Labs in a disagreement over the handling of the invention of the transistor. After returning to California Institute of Technology for a short while, Shockley moved to Mountain View, California in 1956, and founded Shockley Semiconductor Laboratory. Unlike many other researchers who used germanium as the semiconductor material, Shockley believed that silicon was the better material for making transistors. Shockley intended to replace the current transistor with a new three-element design (today known as the Shockley diode), but the design was considerably more difficult to build than the "simple" transistor. In 1957, Shockley decided to end research on the silicon transistor. As a result of Shockley's abusive management style, eight engineers left the company to form Fairchild Semiconductor; Shockley referred to them as the "traitorous eight". Two of the original employees of Fairchild Semiconductor, Robert Noyce and Gordon Moore, would go on to found Intel.[12][13]

Law firms

The rise of Silicon Valley was also bolstered by the development of appropriate legal infrastructure to support the rapid formation, funding, and expansion of high-tech companies, as well as the development of a critical mass of litigators and judges experienced in resolving disputes between such firms. From the early 1980s onward, many national (and later international) law firms opened offices in San Francisco and Palo Alto in order to provide Silicon Valley startups with legal services. Furthermore, California law has a number of quirks which help entrepreneurs establish s at the expense of established firms, such as a nearly absolute ban on non-compete clauses in employment agreements.

Venture capital firms

By the early 1970s, there were many semiconductor companies in the area, computer firms using their devices, and programming and service companies serving both. Industrial space was plentiful and housing was still inexpensive. The growth was fueled by the emergence of the venture capital industry on Sand Hill Road, beginning with Kleiner Perkins in 1972; the availability of venture capital exploded after the successful $1.3 billion IPO of Apple Computer in December 1980.

The rise of software

Although semiconductors are still a major component of the area's economy, Silicon Valley has been most famous in recent years for innovations in software and Internet services. Silicon Valley has significantly influenced computer operating systems, software, and user interfaces.

Using money from NASA and the United States Air Force, Doug Engelbart invented the mouse and hypertext-based collaboration tools in the mid-1960s, while at Stanford Research Institute (now SRI International). When Engelbart's Augmentation Research Center declined in influence due to personal conflicts and the loss of government funding, Xerox hired some of Engelbart's best researchers. In turn, in the 1970s and 1980s, Xerox's Palo Alto Research Center (PARC) played a pivotal role in object-oriented programming, graphical user interfaces (GUIs), Ethernet, PostScript, and laser printers.

While Xerox marketed equipment using its technologies, for the most part its technologies flourished elsewhere. The diaspora of Xerox inventions led directly to 3Com and Adobe Systems, and indirectly to Cisco, Apple Computer, and Microsoft. Apple's Macintosh GUI was largely a result of Steve Jobs' visit to PARC and the subsequent hiring of key personnel.[14] Cisco's impetus stemmed from the need to route a variety of protocols over Stanford's campus Ethernet.

Internet bubble

Silicon Valley is generally considered to have been the center of the dot-com bubble, which started in the mid-1990s and collapsed after the NASDAQ stock market began to decline dramatically in April 2000. During the bubble era, real estate prices reached unprecedented levels. For a brief time, Sand Hill Road was home to the most expensive commercial real estate in the world, and the booming economy resulted in severe traffic congestion.

After the dot-com crash, Silicon Valley continues to maintain its status as one of the top research and development centers in the world. A 2006 The Wall Street Journal story found that 12 of the 20 most inventive towns in America were in California, and 10 of those were in Silicon Valley.[15] San Jose led the list with 3,867 utility patents filed in 2005, and number two was Sunnyvale, at 1,881 utility patents.[16]

Economy

According to a 2008 study by AeA in 2006, Silicon Valley was the third largest high-tech center (cybercity) in the United States, behind the New York metropolitan area and Washington metropolitan area, with 225,300 high-tech jobs. The Bay Area as a whole however, of which Silicon Valley is a part, would rank first with 387,000 high-tech jobs. Silicon Valley has the highest concentration of high-tech workers of any metropolitan area, with 285.9 out of every 1,000 private-sector workers. Silicon Valley has the highest average high-tech salary at $144,800.[17] Largely a result of the high technology sector, the San Jose-Sunnyvale-Santa Clara, CA Metropolitan Statistical Area has the most millionaires and the most billionaires in the United States per capita.[18]

The region is the biggest high-tech manufacturing center in the United States.[19][20] The unemployment rate of the region was 9.4% in January 2009, up from 7.8% in the previous month.[21] Silicon Valley received 41% of all U.S. venture investment in 2011, and 46% in 4Q11.[22]

Media

Local and national media cover the Silicon Valley region and its companies. Patch.com operates paloalto.patch.com, mountainview.patch.com and others, providing local news, discussion and events for residents of Silicon Valley. CNN, The Wall Street Journal, and Bloomberg News operate Silicon Valley bureaus out of Palo Alto. Public broadcaster KQED (TV) and KQED-FM, KGO-TV/ABC operates a bureau in San Jose. NBC's local Bay Area Affiliate "NBC Bay Area" is located in San Jose. Produced from this location is the nationally distributed TV Show "Tech Now" as well as the CNBC Silicon Valley bureau. San Jose-based media serving Silicon Valley include the San Jose Mercury News daily and the Metro Silicon Valley weekly. Specialty media include El Observador and the San Jose / Silicon Valley Business Journal.

Notable companies

See also: Category:Companies based in Silicon Valley

Thousands of high technology companies are headquartered in Silicon Valley. Among those, the following are in the Fortune 1000:

Adobe Systems
Advanced Micro Devices (AMD)
Apple Inc.
Cisco Systems
eBay
Intel
Intuit
Nvidia
Oracle
Sun Microsystems
Yahoo!

Additional notable companies headquartered (or with a significant presence) in Silicon Valley include (some defunct or subsumed):

Silicon Valley is also home to the high-tech superstore retail chain Fry's Electronics.

Notable government facilities

Universities and colleges

Cities

A number of cities are located in Silicon Valley (in alphabetical order):

Surrounding cities associated with the region:

See also

Media

Organizations

References

  1. ^ [1] from SiliconValley.com
  2. ^ [2] from PriceWaterhouseCoopers.com
  3. ^ "San Francisco—Silicon Valley North from The Wall Street Journal
  4. ^ "Cities and Towns by County". Bay Area Census. 2010.
  5. ^ a b Timothy J. Sturgeon, Massachusetts Institute of Technology | Timothy J. Sturgeon, Massachusetts Institute of Technology Template:PDFlink
  6. ^ Markoff, John (2009-04-17). "Searching for Silicon Valley". New York Times. The New York Times Company. Retrieved 2009-04-17.
  7. ^ Stephen B. Adams, "Regionalism in Stanford's Contribution to the Rise of Silicon Valley", Enterprise & Society 2003 4(3): 521-543
  8. ^ Christophe Lécuyer, "What Do Universities Really Owe Industry? The Case of Solid State Electronics at Stanford," Minerva: a Review of Science, Learning & Policy 2005 43(1): 51-71
  9. ^ The Information Technology Revolution by Marvel Castells (On the history of formation of Silicon Valley by Rogers and Larsen 1984 and Malone 1985)
  10. ^ moffettfieldmuseum
  11. ^ 1984 printer
  12. ^ Goodheart July 2, 2006
  13. ^ Silicon Valley: 110 Year Renaissance, McLaughlin, Weimers, Winslow 2008.
  14. ^ Graphical User Interface (GUI) from apple-history.com
  15. ^ Reed Albergotti, "The Most Inventive Towns in America", Wall Street Journal, 22–23 July 2006, P1.
  16. ^ Ibid.
  17. ^ Cybercities 2008: An Overview of the High-Technology Industry in the Nation's Top 60 Cities
  18. ^ "America's Greediest Cities". Forbes. 3 December 2007.
  19. ^ Albanesius, Chloe (24 June 2008). "AeA Study Reveals Where the Tech Jobs Are". PC Magazine.
  20. ^ Silicon Valley and N.Y. still top tech rankings
  21. ^ Silicon Valley unemployment rate jumps to 9.4 percent
  22. ^ "Venture Capital Survey Silicon Valley Fourth Quarter 2011". Fenwick.com. Retrieved 2013-07-08.
  23. ^ [3][dead link]

Further reading

  • Making Silicon Valley: Innovation and the Growth of High Tech, 1930–1970 by Christophe Lécuyer, MIT Press (2006)
  • Hackers: Heroes of the Computer Revolution by Steven Levy, Garden City, New York: Anchor Press/Doubleday (1984)
  • A History of Silicon Valley: The Greatest Creation of Wealth in the History of the Planet by Arun Rao and Piero Scaruffi, Omniware Press (2010), ISBN 0-9765531-8-X
  • Behind the Silicon Curtain: The Seductions of Work in a Lonely Era, Dennis Hayes, London: Free Association Books (1989)
  • Silicon Valley, Inc.: Ruminations on the Demise of a Unique Culture, The San Jose Mercury News (1997)
  • Cultures@Silicon Valley, J. A. English-Lueck, Stanford: Stanford University Press (2002)
  • The Silicon Valley of Dreams: Environmental Injustice, Immigrant Workers, and the High-Tech Global Economy, David Naguib Pellow and Lisa Sun-Hee Park, New York University Press (2003)
  • What the Dormouse Said: How the Sixties Counterculture Shaped the Personal Computer Industry, John Markoff, Viking (2005)
  • Silicon Follies: A Dot. Comedy, Thomas Scoville, Pocket Books (2000)
  • The Silicon Boys: And Their Valleys Of Dreams, David A. Kaplan, Harper Perinneal (April 2000), ISBN 0-688-17906-1
  • Cities of knowledge: Cold War science and the search for the next Silicon Valley, Margaret Pugh O’Mara, New Jersey: Princeton University Press, (2005)
  • Accidental Empires: How the boys of Silicon Valley make their millions, battle foreign competition, and still can't get a date, Robert X. Cringely, Addison-Wesley Publishing, (1992), ISBN 0-201-57032-7
  • "Silicon Valley: a five part series, documentary narrated by Leonard Nimoy. Silicon Valley Historical Association (2012)."
  • Silicon Valley: 110 Year Renaissance, John McLaughlin, Leigh Weimers, Ward Winslow, Santa Clara Valley Historical Association (2008), ISBN 0-9649217-4-X
  • "Technology, Entrepreneurs and Silicon Valley, by John McLaughlin and Carol Whiteley, Santa Clara Valley Historical Association (2002), ISBN 096492174X
  • Fire in the Valley: The Making of The Personal Computer by Paul Freiberger & Michael Swaine, McGraw-Hill (1984)
  • Regional Advantage: Culture and Competition in Silicon Valley and Route 128 by AnnaLee Saxenian, Harvard University Press (1996), ISBN 0-674-75340-2
  • Clusters of Creativity: Enduring Lessons on Innovation and Entrepreneurship from Silicon Valley and Europe's Silicon Fen by Rob Koepp, John Wiley (2002), ISBN 0-471-49604-9
  • The Nudist on the Late Shift: And Other True Tales of Silicon Valley by Po Bronson, Random House (1999), ISBN 0-375-50277-7

Template:USLargestMetros 37°22′N 122°02′W / 37.37°N 122.04°W / 37.37; -122.04

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