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Cold War Armory: Military Contracting in Silicon Valley

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  • Heinrich, Thomas

Abstract

Silicon Valley is frequently portrayed as a manifestation of postindustrial entrepreneurship, where ingenious inventor-businessmen and venture capitalists forged a dynamic, high-tech economy unencumbered by government's “heavy hand.†Closer examination reveals that government played a major role in launching and sustaining some of the region's core industries through military contracting. Focusing on leading firms in the microwave electronics, missile, satellite, and semiconductor industries, this article argues that demand for customized military technology encouraged contractors to embark on a course of flexible specialization, batch production, and continuous innovation. Thriving throughout much of the Cold War, major military contractors fell on hard times when defense markets started to shrink in the late 1980s, because specialized design and production capabilities were rarely applicable to civilian product lines. But Pentagon funding for research and development helped lay the technological groundwork for a new generation of startups, contributing to Silicon Valley's economic renaissance in the 1990s.

Suggested Citation

  • Heinrich, Thomas, 2002. "Cold War Armory: Military Contracting in Silicon Valley," Enterprise & Society, Cambridge University Press, vol. 3(2), pages 247-284, June.
    • Handle: RePEc:cup:entsoc:v:3:y:2002:i:02:p:247-284_01
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    Cited by:

    1. David R. King & John D. Driessnack, 2007. "Analysis Of Competition In The Defense Industrial Base: An F‐22 Case Study," Contemporary Economic Policy, Western Economic Association International, vol. 25(1), pages 57-66, January.
    2. Mu-Jeung Yang, 2021. "The interdependence imperative: business strategy, complementarities, and economic policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 392-415.
    3. Christopher R. Esposito, 2020. "The Emergence of Knowledge Production in New Places," Papers in Evolutionary Economic Geography (PEEG) 2046, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2020.
    4. Malmio, Irja, 2023. "Ethics as an enabler and a constraint – Narratives on technology development and artificial intelligence in military affairs through the case of Project Maven," Technology in Society, Elsevier, vol. 72(C).
    5. Peter Adjei‐Bamfo & Hadrian Geri Djajadikerta & Ferry Jie & Kerry Brown & Reza Kiani Mavi, 2023. "Public procurement for innovation through supplier firms' sustainability lens: A systematic review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 387-407, January.

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