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Technology, Entrepreneurship and Path Dependence: Industrial Clustering in Silicon Valley and Route 128

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  • Kenney, Martin
  • von Burg, Urs
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    Abstract

    Silicon Valley and Route 128 have been the centers of innovation and commercialization for the electronics, computer and data communications industries in the postwar period. However, since the 1960s Silicon Valley has grown more rapidly and from approximately 1985 through 1995 Route 128 experienced retarded growth. Their success had diverged dramatically in the last decade. The most common explanations for this divergence are differing cultures, interfirm relations or/and internal organizational style organization. This paper builds upon path-dependent and dominant design explanations of technical and industrial change, arguing that the technological trajectories of the industries underlying the two regions were different and this led to their differential destinies. To explain the dynamics of the two regions, and analytical separation is made between the economy of the existing firms and a separate economy of institutions that evolved to nurture new firm formation. Copyright 1999 by Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Industrial & Corporate Change.

    Volume (Year): 8 (1999)
    Issue (Month): 1 (March)
    Pages: 67-103

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    Handle: RePEc:oup:indcch:v:8:y:1999:i:1:p:67-103

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    Cited by:
    1. Lee Fleming & Koen Frenken, 2006. "The evolution of inventor networks in the Silicon Valley and Boston regions," Papers in Evolutionary Economic Geography (PEEG) 0609, Utrecht University, Section of Economic Geography, revised Jul 2006.
    2. Stefano Breschi & Francesco Lissoni, 2001. "Knowledge spillovers and local innovation systems: a critical survey," LIUC Papers in Economics 84, Cattaneo University (LIUC).
    3. M. Dakhli & D. De Clercq, 2003. "Human Capital, Social Capital and Innovation: A Multi-Country Study," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/211, Ghent University, Faculty of Economics and Business Administration.
    4. Grimaldi, Rosa & Kenney, Martin & Siegel, Donald S. & Wright, Mike, 2011. "30 years after Bayh-Dole: Reassessing academic entrepreneurship," Research Policy, Elsevier, vol. 40(8), pages 1045-1057, October.
    5. Feldman, Maryann & Martin, Roger, 2005. "Constructing jurisdictional advantage," Research Policy, Elsevier, vol. 34(8), pages 1235-1249, October.
    6. Alfonso Gambardella & Davide Ticchi, 1999. "Technology, Entrepreneurship and Inequality: an Interpretative Model," LEM Papers Series 1999/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Thomas, Jayan Jose, 2005. "Kerala's industrial backwardness: a case of path dependence in industrialization?," World Development, Elsevier, vol. 33(5), pages 763-783, May.
    8. Ács, Zoltán J. & Autio, Erkko & Szerb, László, 2014. "National Systems of Entrepreneurship: Measurement issues and policy implications," Research Policy, Elsevier, vol. 43(3), pages 476-494.
    9. Mollick, Ethan, 2014. "The dynamics of crowdfunding: An exploratory study," Journal of Business Venturing, Elsevier, vol. 29(1), pages 1-16.
    10. Kerstin Press, 2006. "Divide to conquer? The Silicon Valley - Boston 128 case revisited," Papers in Evolutionary Economic Geography (PEEG) 0610, Utrecht University, Section of Economic Geography, revised Dec 2006.
    11. Cordes, Christian & Richerson, Peter J. & McElreath, Richard & Strimling, Pontus, 2008. "A naturalistic approach to the theory of the firm: The role of cooperation and cultural evolution," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 125-139, October.
    12. Maryann Feldman & Roger Martin, 2004. "Jurisdictional Advantage," NBER Working Papers 10802, National Bureau of Economic Research, Inc.

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