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Silicon valley history and innovation

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An overview of Silicon Valley, it's history and what makes it the innovation capitol of the world.

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Silicon valley history and innovation

  1. 1. Silicon Valley History and Innovation Javed Mohammed Innovation and Marketing Consultant k2film@live.com alchemyofinnovation.wordpress.com A K2Vista Production
  2. 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
  3. 3. Silicon Valley
  4. 4. It all started with the birth of the transistor in 1947
  5. 5. Schokley and team at Bell Labs in New Jersey
  6. 6. Stanford creates first industrial business park in 1951 Fred Terman
  7. 7. Schockley moves to West coast, 1955 William Shockley
  8. 8. Arthur Rock moves to bay area in1961, becoming the first venture capitalist
  9. 9. Silicon Valley is born
  10. 10. HP and Varian first to move to Stanford Business Park Bill Hewlett David Packard
  11. 11. Lead team from Schockley split and start Fairchild in 1957
  12. 12. Fairchilds Noyce and TI’s Kilby independently integrate many transistors on asingle device and invent theintegrated circuit (IC)
  13. 13. Founders of Fairchild split and start other Silicon Valley icons
  14. 14. Silicon Valley thrives on innovation
  15. 15. Innovation relies on a good Ecosystem Ideas & Commerci- alization Basic Capital Research Laws/ Human Regulation Resources
  16. 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. 17. Technology Innovation leads to Product Innovation Social Networking Internet Microprocessors Disk Storage Integrated CircuitsMicrowave Radar
  18. 18. The two Steve’s create the firstPersonal Computer, the Apple 1, 1976
  19. 19. First commercial Netscape browserin 1995 brought the Internet to the masses Marc Andreessen
  20. 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 directionshttp://next10.org/sites/next10.org/files/silicon%20valley%20econ%20snapshot.pdf
  21. 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 2013http://www.mercurynews.com/sv150
  22. 22. What makes Silicon Valley tick?
  23. 23. Risk taking: It’s ok to fail
  24. 24. Dream Big
  25. 25. Learn from your mistakes
  26. 26. Encouragement to be an entrepreneur
  27. 27. Results oriented meritocracy
  28. 28. Highly educated workforce and accessto university and government research
  29. 29. Abundance of capital (VCs, Angels)
  30. 30. Favorable labor laws: Easy to hire and fire
  31. 31. City and State government encourages startups with little red tape
  32. 32. Ecosystem of lawyers, accountants, bankers, recruiters
  33. 33. Good Quality of life with easy access to the beach in summer and mountains for skiing
  34. 34. Easy to network with peers and culture that thrives on innovation
  35. 35. Informal & Lack of Hierarchy
  36. 36. Free flow of information
  37. 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. 38. Mckinsey expects global market for offshore business and technology services to grow to about $500B by 2020, from the current $80B/yrhttp://www.mckinsey.de/downloads/publikation/mck_on_bt/2009/mck_on_bt_16_india.pdfhttp://www.ibsgr.com/our-business/key-facts-and-figures/our-markets.aspx
  39. 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. 40. 52% of startups founded by Immigrants Venture Beats graphhttp://venturebeat.com/2012/10/15/how-indians-defied-gravity-and-achieved-success-in-silicon-valley/
  41. 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 survivehttp://www.thedigeratilife.com/blog/index.php/2007/10/30/the-minimum-budget-the-cost-of-living-for-a-family-of-four/
  42. 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. 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. 44. Please share this Favorite it, Tweet it, Facebook it. LinkedIn itBuy 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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