Your SlideShare is downloading. ×
Russell Hancock about Silicon Valley 10-10-2011 at AIM event
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Russell Hancock about Silicon Valley 10-10-2011 at AIM event

639
views

Published on

Published in: Education, Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
639
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
27
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Silicon ValleyAmerica’s Pathbreaking Cluster Economy Russell Hancock President & Chief Executive Officer Joint Venture Silicon Valley 10 October 2011
  • 2. What isSilicon Valley?
  • 3. Some things SiliconValley is NOT: •NOT a place you can point to on a map •NOT a place with a defined identity •NOT a planned phenomenon •NOT characterized by silicon or semiconductors
  • 4. So, what isSilicon Valley?
  • 5. What is SiliconValley?1,500 square miles35 Cities, 4 counties2.4 million people, 41 percentforeign born1.2 million workers81 percent high schooldiploma; 40 percent collegedegree25 percent of workforce inhigh-skill occupationsIncome average 60 percenthigher than US6 percent US GNP, 11percent of US patentsProductivity rate growing50% higher than US average
  • 6. So what is Silicon Valley?A remarkablyenduring hotbed ofinnovation andentrepreneurship
  • 7. Our most important characteristic:We keep re-inventing ourself Silicon Valley’s Waves of Innovation
  • 8. America’s Top Patent Generating CitiesRANK CITY REGISTERED PATENTS 1 SAN JOSE 1,960 2 Austin 1,221 3 Boise 1,028 4 San Diego 900 5 SUNNYVALE 842 6 PALO ALTO 766 7 FREMONT 698 8 Houston 661 9 CUPERTINO 633 10 MOUNTAIN VIEW 522 Source: Silicon Valley Index, 2010
  • 9. Milestone Silicon Valley Innovations Vacuum Tube1940s Transistors1950s Semiconductors, Defense1960s Technology Integrated Circuit, Graphical User1970s Interface Personal Computers, Workstations,1980s Relational Databases, Biotechnology Network Computing, Packet1990s switching, Internet Search Social media, Web 2.02000s
  • 10. However, theValley’s edgedoesn’t stem frominnovation alone…
  • 11. … but also from entrepreneurship Defense Electronics1950s Hewlett-Packard, Varian Semiconductors1960s National Semiconductor, Fairchild, Intel, AMD Biotechnology1970s Genentech, Genencor Personal Computers, Workstations1980s Apple, Silicon Graphics, Sun Network Computing, Packet Switching Cisco Systems, Sun1990s Internet Netscape, Yahoo, eBay, Google Social Media2000s Facebook, YouTube
  • 12. The Valley also generatesnew business modelsInternet-based commerce (Netscape)Free search, supported by advertising(Google, Yahoo)Music downloads (Apple itunes)Social networking (Facebook,MySpace)Consumer as producer (You Tube)
  • 13. Largest Silicon Valley Employers 1982 2002 1. Hewlett-Packard 1. Hewlett-Packard 2. National Semiconductor 2. Intel 3. Intel 3. Cisco* 4. Memorex 4. Sun* 5. Varian 5. Solectron 6. Environtech* 6. Oracle 7. Ampex 7. Agilent* 8. Raychem* 8. Applied Materials 9. Amdahl* 9. Apple10. Tymshare* 10. Seagate Technology 11. Palm,* Google,* Cadence,* Adobe,* Yahoo* *no longer existed in 2002 *didn’t exist in 1982 Source: Stanford Project on Regions of Innovation & Entrepreneurship
  • 14. Largest Detroit Employers 1982 20021. General Motors 1. General Motors2. Ford 2. Ford3. Chrysler 3. Daimler-Chrysler Source: I made it up!
  • 15. But the other story is Silicon Valley’s small companies Source: Joint Venture: Silicon Valley Network, Silicon Valley Index (2005)
  • 16. Technology Regions Will AlwaysExperience “Boom-Bust” Cycle• New technologies drive dynamic waves• Entrepreneurs take advantage of new opportunities• Swarms of new firms cluster around new technologies creating short term bubbles• New products eventually become commodities, bubbles burst.• New technologies emerge from the convergence of old technologies and the process of “creative destruction” begins again
  • 17. “SILICON VALLEY LOSING ITS EDGE.”Cover Story, Business Week.“DREAMS OF STRIKING IT RICH FADINGIN SILICON VALLEY.” Front page, LosAngeles Times“SILICON VALLEY WILL NO LONGER BEAN ICON.” Po Bronson, Wired
  • 18. “SILICON VALLEY LOSING ITS EDGE.”Cover Story, Business Week, 1985.“DREAMS OF STRIKING IT RICH FADINGIN SILICON VALLEY.”Los Angeles Times, 1991.“SILICON VALLEY WILL NO LONGER BEAN ICON.”Po Bronson, 2003.
  • 19. Bubbles aren’t new• Between 1846 and 1852 telegraph miles in the US rose from 2,000 to 23,000. Three lines covered New York and Boston, though there wasn’t enough traffic for one.• In 1894 the US had 192 railroads in bankruptcy (41,000 miles of track)
  • 20. Bubbles aren’t all bad• Between 1846 and 1852 telegraph miles in the US rose from 2,000 to 23,000. Three lines covered New York and Boston, though there wasn’t enough traffic for one. But the spread of cheap telegraphy fostered other key innovations: Associated Press, national markets in stocks.• In 1894 the US had 192 railroads in bankruptcy (41,000 miles of track). But railroads served as crucial platform for new industries: Sears & Roeback
  • 21. After the dot-com bubble:• Prices plunged: servers, digital cameras, domain-name registration, web design, web hosting, office space• System in place for transmitting data, voice, documents; companies like Vonage and Skype move up.• Google prospered by lashing together thousands of cheap servers and tapping into an installed base of 172 million web surfers, and hiring redundant engineers
  • 22. So what’s the secret?
  • 23. A Habitat for InnovationResults-oriented meritocracy.Climate that rewards risks, tolerates failureStrong markets (capital, labor)Mobile, fluid workforceFavorable government policiesUniversity-industry collaborationSpecialized infrastructure (venture funding,lawyers, executive search, accountancies)Quality of lifeCluster effect
  • 24. INDUSTRY CLUSTERS:geographic concentrations of related industries Exporting Companies Specialized Suppliers Supporting Infrastructure
  • 25. An example of the cluster effect:SEMICONDUCTORS AMD INTEL CYPRESS chemicals, equipment, software tools, clean room design, toxics monitoring research, workforce training, building inspectors, electricity, airports, executive search, accountancies, law firms
  • 26. CLASSIC EXAMPLE OF CLUSTER EFFECT:Kleiner Perkins Network, ca. 1998 Thin line: partnership between two KP companies Dotted: exec from one KP company on the board of another Thick: KP partner sits on board of more than one company
  • 27. Cluster effect transcends national boundaries Taiwan Value-added IC design Productization EXAMPLE: Advanced IC manufacturing Applied Materials, Inc. Maximizing the Semiconductor Food Chain Silicon Valley ChinaSystems and Chip Architecture Regional Distribution Global Marketing Low Cost Manufacturing Capital Investment Three Regional Centers growing together, increasing the overall size of the pie
  • 28. So what’shappeningright now inSiliconValley?
  • 29. We are buildingnew clusters inrenewableenergyand cleantechnology
  • 30. VC investment in cleantechnology nearly doubled …Venture Capital Invested in Clean TechMillions of Dollars, Silicon Valley Region
  • 31. Cleantech jobs are growing …Jobs in the ‘Green’ EconomySilicon Valley
  • 32. The number of cleantechestablishments is growing …Green Business EstablishmentsSilicon Valley
  • 33. The mix is diverse …Green Jobs by SegmentSilicon Valley
  • 34. and so is theinvestment mix …VC Investment in Clean TechnologySilicon Valley
  • 35. Silicon Valley holds thelead in green patents …Green Technology Patent RegistrationsSilicon Valley as a percentage of the United States
  • 36. Silicon Valley leads in theproduction and use ofrenewable energy …Solar InstallationsCapacity (kw) added through the CA Solar Initiative Silicon Valley
  • 37. We lead in the use of alternative-fuel vehicles …Alternative Fuel Vehicles as a Percentage ofNewly (New & Used) Registered VehiclesSilicon Valley and the Rest of California
  • 38. However …
  • 39. SiliconValley hassignificantchallengesto address.
  • 40. Our Litany of Troubles:TransportationAffordable HousingInfrastructureQuality of LifeHealth care, health insuranceEducationWorkforce developmentEnvironmentDysfunction in Sacramento
  • 41. Even more importantly, wehave some very seriousnon-local issues: Cleantech is not like IT Federal Funding: we’re losing Talent drain Dysfunction in government
  • 42. Yet SiliconValley has nooverarchingframework forregionaldecisionmaking.
  • 43. Joint Venture:Silicon ValleyNetwork wasestablished to fillthis void.
  • 44. The Joint Venture Framework Business Community Labor Organizations Government Academia “Joint Venture is like the United Nations of Silicon Valley.” Rob Kwasnik, Intel
  • 45. The mission of Joint Venture is to:1.Convene the region’s leaders, acrossevery major sector.1.Provide data and analysis.1.Launch initiatives that delivermeasurable results.
  • 46. We are applyingthe model to theemergence of theclean-tech sector
  • 47. We issued a“greenprint”outlining our strategy
  • 48. JointVenture’sInitiativeStructure
  • 49. CLIMATE PROSPERITY COUNCIL CHAIRSCo-Chair: Chuck Reed, Mayor, San Jose Co-Chair: Chris DiGiorgio, Accenture COUNCIL MEMBERSBetter Place Electric Storage InstituteCypress Semiconductor Applied MaterialsUC Santa Cruz Akeena SolarOptony McCalmont EngineersNASA/Ames PG&ESilicon Valley Leadership Group McKinsey & CompanyCity Managers (Dave Knapp) Sun PowerGoogle Wilson SonsiniPG&E Adura Technologies STAFFKelly Krpata, Applied Materials Director of Climate ProsperityRachel Massaro, Associate Director
  • 50. Work Plan:Power purchasing agreementsSmart GridPermittingElectrical Vehicle InfrastructureFederal Funding
  • 51. San Jose Mayor touting the greenprint
  • 52. Ribbon cutting at a solar installation
  • 53. Thank you for the honorof your invitation.Russell HancockPresident & Chief Executive OfficerJoint Venture: Silicon Valley Network100 West San Fernando Street, Suite 310San Jose, California 95113(408) 298-9330www.jointventure.org