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Silicon Valley History and Innovation

            Javed Mohammed
          Innovation 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
•   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
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
       Basic
                                 Capital
       Research



              Laws/         Human
              Regulation    Resources
Need ongoing waves of Innovation
                               4th wave Internet
                               (Netscape, Yahoo, eBay, Google)

              3rd wave PC
              (Apple, Silicon Graphics)

          2nd wave IC
          (Fairchild, Intel)

 1st wave Defense
 (HP, Vairan)
Technology Innovation leads to
                Product Innovation
                                                                  Social
                                                                  Networking
                                                       Internet


                                            Microprocessors

                             Disk Storage


                  Integrated Circuits

Microwave Radar
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
               –   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. 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
                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 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




                                         Venture Beats graph


http://venturebeat.com/2012/10/15/how-indians-defied-gravity-and-
achieved-success-in-silicon-valley/
High cost of living makes valley
                   unaffordable to those not making a
                               living wage




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


http://www.thedigeratilife.com/blog/index.php/2007/10/30/the-
minimum-budget-the-cost-of-living-for-a-family-of-four/
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 Transfer
• Cathy Anterasian & Jeff Hauswirth: Lessons
  From Silicon Valley
• Joint Venture: Silicon Valley Network
Please share this
                 Favorite it, Tweet it, Facebook it. LinkedIn it

Buy the book “The Alchemy of Innovation” by Javed Mohammed on Amazon

  For more information and resources or if you would like me to consult or
        present please go to alchemyofinnovation.wordpress.com




      All images are from public domain and copyright of respective owners
                                A K2 Vista Project
                                 k2film@live.com
                       alchemyofinnovation.wordpress.com
                                  Copyright 2012

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Silicon valley history and innovation

  • 1. Silicon Valley History and Innovation Javed Mohammed Innovation and Marketing Consultant k2film@live.com alchemyofinnovation.wordpress.com A K2Vista Production
  • 2. There are many hi-tech hubs in world • Boston “Route 128” • Bangalore, India • Silicon Wadi, Israel • Silicon Glen, Scotland • But there is only one original, Silicon Valley
  • 4. It all started with the birth of the transistor in 1947
  • 5. Schokley and team at Bell Labs in New Jersey
  • 6. Stanford creates first industrial business park in 1951 Fred Terman
  • 7. Schockley moves to West coast, 1955 William Shockley
  • 8. Arthur Rock moves to bay area in 1961, becoming the first venture capitalist
  • 10. HP and Varian first to move to Stanford Business Park Bill Hewlett David Packard
  • 11. Lead team from Schockley split and start Fairchild in 1957
  • 12. Fairchild's Noyce and TI’s Kilby independently integrate many transistors on a single device and invent the integrated circuit (IC)
  • 13. Founders of Fairchild split and start other Silicon Valley icons
  • 14. Silicon Valley thrives on innovation
  • 15. Innovation relies on a good Ecosystem Ideas & Commerci- alization Basic Capital Research Laws/ Human Regulation Resources
  • 16. Need ongoing waves of Innovation 4th wave Internet (Netscape, Yahoo, eBay, Google) 3rd wave PC (Apple, Silicon Graphics) 2nd wave IC (Fairchild, Intel) 1st wave Defense (HP, Vairan)
  • 17. Technology Innovation leads to Product Innovation Social Networking Internet Microprocessors Disk Storage Integrated Circuits Microwave Radar
  • 18. The two Steve’s create the first Personal Computer, the Apple 1, 1976
  • 19. First commercial Netscape browser in 1995 brought the Internet to the masses Marc Andreessen
  • 20. 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 – 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
  • 21. Silicon Valley Top 10 1. Hewlett-Packard 2. Apple 3. Intel 4. Cisco 5. Oracle 6. Google 7. Applied Materials 8. Synnex 9. eBay 10.Gilead Science As of Jan 2013 http://www.mercurynews.com/sv150
  • 22. What makes Silicon Valley tick?
  • 23. Risk taking: It’s ok to fail
  • 25. Learn from your mistakes
  • 26. Encouragement to be an entrepreneur
  • 28. Highly educated workforce and access to university and government research
  • 29. Abundance of capital (VCs, Angels)
  • 30. Favorable labor laws: Easy to hire and fire
  • 31. City and State government encourages startups with little red tape
  • 32. Ecosystem of lawyers, accountants, bankers, recruiters
  • 33. Good Quality of life with easy access to the beach in summer and mountains for skiing
  • 34. Easy to network with peers and culture that thrives on innovation
  • 35. Informal & Lack of Hierarchy
  • 36. Free flow of information
  • 37. 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 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
  • 38. 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
  • 39. 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 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
  • 40. 52% of startups founded by Immigrants Venture Beats graph http://venturebeat.com/2012/10/15/how-indians-defied-gravity-and- achieved-success-in-silicon-valley/
  • 41. High cost of living makes valley unaffordable to those not making a living wage Family of four needs to make a min of $80,000 to survive http://www.thedigeratilife.com/blog/index.php/2007/10/30/the- minimum-budget-the-cost-of-living-for-a-family-of-four/
  • 42. 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
  • 43. References • All images are from public domain and copyright of respective owners • William Y. Jiang: Silicon Valley Competitive Advantage and Knowledge Transfer • Cathy Anterasian & Jeff Hauswirth: Lessons From Silicon Valley • Joint Venture: Silicon Valley Network
  • 44. Please share this Favorite it, Tweet it, Facebook it. LinkedIn it Buy the book “The Alchemy of Innovation” by Javed Mohammed on Amazon For more information and resources or if you would like me to consult or present please go to alchemyofinnovation.wordpress.com All images are from public domain and copyright of respective owners A K2 Vista Project k2film@live.com alchemyofinnovation.wordpress.com Copyright 2012