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Hidden in Plain Sight: The  Secret  History of Silicon Valley Read the Blog www.steveblank.com Read the Backstory http://bit.ly/SecretStories Rev 5.02 Mar 2010
The Popular View of  Silicon Valley History 1910 1960 1970 1980 2000 1990 Innovation Networks 1930 1940 1950 1920 Fruit Orchards Personal Computers Integrated Circuits Internet Fruit Orchards Fruit Orchards
The Real Story of  Silicon Valley History 1910 1960 1970 1980 2000 1990 Innovation Networks 1930 1940 1950 1920 Microwaves Personal Computers Integrated Circuits Internet Test Equipment Vacuum Tubes
The  Genesis of Silicon Valley Entrepreneurship Steve Jobs   Gordon Moore   Marc Andreessen   Hewlett & Packard   1950 1960 1970 1980 2000 1990 Innovation Networks Defense Personal Computers Integrated Circuits Internet
A few caveats ,[object Object],[object Object],[object Object],[object Object]
Seven Short Stories
Story 1: WWII  The First Electronic War
Dec 7 th  1941: America Enters WWII ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic Bombing of Germany   March 1943:   The Combined Bomber Offensive ,[object Object]
Strategic Bombing of Germany  The Combined Bomber Offensive ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Early Warning Radar Range
The German Air Defense System The Kammhuber Line ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
British/American Air War in Western Europe 28,000 Active Combat Planes 40,000 Allied planes lost or damaged beyond repair:  18,000 American and 22,000 British ( 46 000 planes lost by the USSR in the East) 79,265 Americans and 79,281 British killed,  wounded or captured
Early Warning Radars in Occupied France
Mammoth Early Warning Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Wasserman Early Warning Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Jagdschloss Early Warning Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Himmelbelt   Local Air Defense Network ,[object Object],[object Object]
Himmelbelt  Radar Order of Battle ,[object Object],[object Object],[object Object]
Himmelbelt  Radar Order of Battle ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Himmelbelt  Radar Order of Battle ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Freya   Early Warning Radar ,[object Object],[object Object],[object Object],[object Object]
Giant Wurzburg Ground Control Intercept Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Luftwaffe Signals Intelligence Service ,[object Object],[object Object],[object Object]
Himmelbett  Air Battle Air Traffic Control ,[object Object],[object Object],[object Object],[object Object],[object Object]
 
Flak - Radar Controlled  Anti Aircraft Guns ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],105 mm flak Flak: an abbreviation for Fliegerabwehrkanonen, german for anti-aircraft guns
Wurzburg Anti-Aircraft Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Operation Biting  -  Raid on Bruneval ,[object Object],[object Object],[object Object],[object Object]
German Night-Fighters  On-board Radar ,[object Object],[object Object],[object Object],[object Object]
 
German Day Fighters Vectored by Ground Radar ,[object Object],[object Object]
 
Not many clear days a month in winter over Europe How did they see the target?
Bombing Through Overcast Solution: Air to Ground Bombing Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Math Challenge For every 100 bombers on a mission  4 - 20% would not return Crews had to fly 25 mission to go home
Story 2: The Electronic Shield - Electronic Warfare
Harvard Radio Research Lab  (RRL)  Signals Intelligence and Electronic Warfare ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ELINT –  El ectronic  Int elligence The Line of Sight Problem You got to get close!
ELINT using Ferret’s   Find and understand German Air Defense  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Using ELINT to Map Radar Coverage
Window/Chaff   Jam Wurzburg AAA & GCI Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Blind German Early Warning Radar   Jam Wassermann, Mammoth and Freya ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],MANDREL Jammer DINA Jammer
Shut down Flak & Ground Control Radar  Jam the Wurzburg’s ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Carpet Jammer
Shut down and Spoof Fighter Ground Control Jam Fighter/Ground VHF Radio Links ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
British Jam German Night Fighter Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],MANDREL jamming equipment
Jammer Versus Radar Coverage
Electronic Warfare 1944/45 chaff ELINT GCI Jamming Flak Jamming
Who Ran this Secret Lab and became the Father of Electronic Warfare? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Fredrick Terman   “the Father of Silicon Valley” ,[object Object],[object Object],[object Object],[object Object]
Story 3: Stanford And The Cold War
WWII Office of Scientific Research and Development (OSRD) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Terman’s Postwar   Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Problem: Jammers Need:  More Power and Frequency Agility ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Solution: Electronically Tunable Microwave Power Tubes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Problem: ELINT Receivers Need  Higher Bandwidth & Frequency Agility ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Solution: Electronically Tunable Wideband Amplifiers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Microwave Valley - Components Klystrons, Carcinotrons, & Traveling Wave Tubes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Korean War Changes the Game Spook Work Comes to Stanford ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Cold War and the  Black  Valley ,[object Object],[object Object],[object Object],[object Object]
The Cold War is an Electronic War ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stanford Technical Advisory Meetings ,[object Object],[object Object],[object Object]
Stanford Joins the “Black” World ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stanford Systems Engineering Lab ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Problem: Understand the Soviet Radar Order of Battle ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Solution: A Fleet of ELINT Planes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ELINT –  The Line of Sight Problem   You got to get close! You got to get them turned on!!
The Cost: 23 ELINT Planes
Elint - Is There a Better Way? The U-2
Example: U-2 as an Sigint Platform  (1956) Courtesy of Stanford and Silicon Valley ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
OXCART / A-12   U-2 Successor
CIA: Directorate of Science & Technology ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],* A-12/OXCART was the CIA version of the plane which was kept secret (15 built).  SR-71 was the 2 seat Air Force reconnaissance version which was made public (31 built.) The YF-12 was an Air Force fighter interceptor (3 built.)
Problem: Find All the “Tall Kings” ,[object Object],[object Object],[object Object],[object Object],[object Object]
Solution: Project “Flower Garden”  Shoot the Moon ,[object Object],[object Object],[object Object],[object Object],[object Object]
Radio Dishes Get Funded ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Microwave Valley - Systems  Some   Stanford Alumni’s ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terman Changes the Startup/University Rules Silicon Valley as We Know it Starts Here ,[object Object],[object Object],[object Object],[object Object],[object Object]
Terman and the Cold War  Silicon Valley’s 1st Engine of Entrepreneurship Steve Blank 23 Sept 2008 Free flow of People/Information Entrepreneurs Military Finance Crisis Profit Motivation Cooperative Culture Entrepreneurial Outward-Facing Tech Universities Risk Capital 24/7 Utilities Predictable Economic System Infrastructure Stable Legal System Technical Labs/Universities
Story 4: Applied Engineering
B-52 Bomber Strike on Severodvinsk B-52G: 2 AGM-28 Cruise Missiles 1.1 MT 1 B-53 9 MT gravity bomb Sean O’Connor http://geimint.blogspot.com/
Tall King Primary Soviet Air Defense Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B-52 Bomber Strike on Severodvinsk B-52G TALL KING Early Warning Radar: Range ~300 miles Sean O’Connor http://geimint.blogspot.com/
SAMs- Radar Guided  S urface-to- A ir- M issiles Protect the Soviet Union From U.S. Bombers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B-52 Bomber Strike on Severodvinsk B-52G TALL KING SA-5  Surface to Air Missile :  Range 10-100 miles Altitude 1,000 - 60,000 feet Sean O’Connor http://geimint.blogspot.com/
 
B-52 Bomber Strike on Severodvinsk B-52G TALL KING SA-5 AGM-28 : Nuclear Cruise Missile 1.1 MT weapon, Mach 2 Sean O’Connor http://geimint.blogspot.com/
B-52 Bomber Strike on Severodvinsk B-52G AGM-28 Severodvinsk Sean O’Connor http://geimint.blogspot.com/
B-52 Bomber Strike on Severodvinsk B-52G AGM-28 Severodvinsk SA-2  Surface to Air Missile :  Range 5 – 25 miles Altitude 1,250 - 90,000 feet Sean O’Connor http://geimint.blogspot.com/
Surface to Air Missile Defense of Severodvinsk Sean O’Connor http://geimint.blogspot.com/
B-52 Bomber Strike on Severodvinsk B-52G AGM-28 Severodvinsk SA-2 SA-3  Surface to Air Missile :  Range 2.5 – 15 miles Altitude 60 - 54,000 feet Sean O’Connor http://geimint.blogspot.com/
B-52 Bomber Strike on Severodvinsk B-52G AGM-28 Severodvinsk SA-2 SA-3 SA-5  Surface to Air Missile :  Range 10 – 100 miles Altitude 1,000 – 60,000 feet Sean O’Connor http://geimint.blogspot.com/
Story 5:  1956  - The Year It All Changes Lockheed
Lockheed Comes to Town ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lockheed and WS-117L  NRO -   Move   Reconnaissance to Space Program A: Air Force - imaging and sigint Program B: CIA - Imaging  electroopitcal and sigint Program C: Navy signit Program D: U-2, A-12/Oxcart, D-21/Tagboard SAMOS/SENTRY MIDAS - Program 461 IR - Launch Detection CORONA Imaging VELA Nuclear Detection Program P-11/ 989 SAMOS F-1/2/3 ELINT/SIGINT
Lockheed - Agena  Space Bus for Spy Satellites ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stanford AEL/STL and Rambo ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
STL/Lockheed and de Broekert ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Project Grab  1960-1962   ELINT in Space ,[object Object],[object Object],[object Object],[object Object],[object Object]
Project POPPY  1962-1971   Navy   ELINT in Space ,[object Object],[object Object],[object Object],[object Object]
Villard and Over the Horizon Radar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The End of Classified Work at Stanford April 9, 1969  ,[object Object],[object Object],[object Object],[object Object]
Story 6:  1956   Why It’s  Silicon  Valley   Shockley
Meanwhile, on the Other Side of Town… The Head of Radar Bombing training for Air Force  starts a Company
William Shockley   “ The Other Father of Silicon Valley” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
William Shockley   “ Great Researcher, Awesome Talent Spotter, Horrible Manager” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Semiconductor Genealogy: 1955 - 1976
Shockley’s Legacy ,[object Object]
Story 7:  Why We All Don’t Work for the Government The Rise of  Private  Capital
Venture Capital  Silicon Valley’s 2nd Engine of Entrepreneurship Steve Blank 23 Sept 2008 Free flow of People/Information Crisis Profit Motivation Cooperative Culture Entrepreneurial Outward-Facing Tech Universities Risk Capital 24/7 Utilities Predictable Economic System Infrastructure Stable Legal System Technical Labs/Universities Entrepreneurs Venture Finance
The Valley Attracts Financial Attention The 1st West Coast IPO’s ,[object Object],[object Object],[object Object]
The Rise of Risk Capital Family Money  1940’s - 1960’s ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Rise of Risk Capital   East Coast VC Experiments ,[object Object],[object Object],[object Object],[object Object]
The Rise of Risk Capital   “The Group” 1950’s ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Reid Dennis Remembers ,[object Object],[object Object]
Soviet Union Launches Sputnik and  the U.S. Venture Capital Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Rise of Risk Capital   SBIC Act of  1958 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Defense R&D Budget   Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D
Defense R&D Budget California   Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D California Defense R&D
Defense R&D Budget Silicon Valley   Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D California Defense R&D Silicon Valley Defense R&D
Defense R&D Budget Versus Venture Capital   Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D California Defense R&D Silicon Valley Defense R&D Silicon Valley Venture
Defense R&D Budget Versus Venture Capital   Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D California Defense R&D Silicon Valley Defense R&D Silicon Valley Venture
The Rise of Risk Capital   The Limited Partnership ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Rise of Risk Capital   1978/1979 - A Watershed ,[object Object],[object Object],[object Object],[object Object]
Venture Capital  Silicon Valley’s 2nd Engine of Entrepreneurship Steve Blank 23 Sept 2008 Free flow of People/Information Crisis Profit Motivation Cooperative Culture Entrepreneurial Outward-Facing Tech Universities Risk Capital 24/7 Utilities Predictable Economic System Infrastructure Stable Legal System Technical Labs/Universities Entrepreneurs Venture Finance
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Read the Blog www.steveblank.com Read the Backstory http://bit.ly/SecretStories

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Hidden History of Silicon Valley Revealed

  • 1. Hidden in Plain Sight: The Secret History of Silicon Valley Read the Blog www.steveblank.com Read the Backstory http://bit.ly/SecretStories Rev 5.02 Mar 2010
  • 2. The Popular View of Silicon Valley History 1910 1960 1970 1980 2000 1990 Innovation Networks 1930 1940 1950 1920 Fruit Orchards Personal Computers Integrated Circuits Internet Fruit Orchards Fruit Orchards
  • 3. The Real Story of Silicon Valley History 1910 1960 1970 1980 2000 1990 Innovation Networks 1930 1940 1950 1920 Microwaves Personal Computers Integrated Circuits Internet Test Equipment Vacuum Tubes
  • 4. The Genesis of Silicon Valley Entrepreneurship Steve Jobs Gordon Moore Marc Andreessen Hewlett & Packard 1950 1960 1970 1980 2000 1990 Innovation Networks Defense Personal Computers Integrated Circuits Internet
  • 5.
  • 7. Story 1: WWII The First Electronic War
  • 8.
  • 9.
  • 10.
  • 11.  
  • 13.
  • 14. British/American Air War in Western Europe 28,000 Active Combat Planes 40,000 Allied planes lost or damaged beyond repair: 18,000 American and 22,000 British ( 46 000 planes lost by the USSR in the East) 79,265 Americans and 79,281 British killed, wounded or captured
  • 15. Early Warning Radars in Occupied France
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.  
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.  
  • 33.
  • 34.  
  • 35. Not many clear days a month in winter over Europe How did they see the target?
  • 36.
  • 37. Math Challenge For every 100 bombers on a mission 4 - 20% would not return Crews had to fly 25 mission to go home
  • 38. Story 2: The Electronic Shield - Electronic Warfare
  • 39.
  • 40. ELINT – El ectronic Int elligence The Line of Sight Problem You got to get close!
  • 41.
  • 42. Using ELINT to Map Radar Coverage
  • 43.
  • 44.
  • 45.
  • 46.
  • 47.
  • 49. Electronic Warfare 1944/45 chaff ELINT GCI Jamming Flak Jamming
  • 50.
  • 51.
  • 52. Story 3: Stanford And The Cold War
  • 53.
  • 54.
  • 55.
  • 56.
  • 57.
  • 58.
  • 59.
  • 60.
  • 61.
  • 62.
  • 63.
  • 64.
  • 65.
  • 66.
  • 67.
  • 68. ELINT – The Line of Sight Problem You got to get close! You got to get them turned on!!
  • 69. The Cost: 23 ELINT Planes
  • 70. Elint - Is There a Better Way? The U-2
  • 71.
  • 72. OXCART / A-12 U-2 Successor
  • 73.
  • 74.
  • 75.
  • 76.
  • 77.
  • 78.
  • 79. Terman and the Cold War Silicon Valley’s 1st Engine of Entrepreneurship Steve Blank 23 Sept 2008 Free flow of People/Information Entrepreneurs Military Finance Crisis Profit Motivation Cooperative Culture Entrepreneurial Outward-Facing Tech Universities Risk Capital 24/7 Utilities Predictable Economic System Infrastructure Stable Legal System Technical Labs/Universities
  • 80. Story 4: Applied Engineering
  • 81. B-52 Bomber Strike on Severodvinsk B-52G: 2 AGM-28 Cruise Missiles 1.1 MT 1 B-53 9 MT gravity bomb Sean O’Connor http://geimint.blogspot.com/
  • 82.
  • 83. B-52 Bomber Strike on Severodvinsk B-52G TALL KING Early Warning Radar: Range ~300 miles Sean O’Connor http://geimint.blogspot.com/
  • 84.
  • 85. B-52 Bomber Strike on Severodvinsk B-52G TALL KING SA-5 Surface to Air Missile : Range 10-100 miles Altitude 1,000 - 60,000 feet Sean O’Connor http://geimint.blogspot.com/
  • 86.  
  • 87. B-52 Bomber Strike on Severodvinsk B-52G TALL KING SA-5 AGM-28 : Nuclear Cruise Missile 1.1 MT weapon, Mach 2 Sean O’Connor http://geimint.blogspot.com/
  • 88. B-52 Bomber Strike on Severodvinsk B-52G AGM-28 Severodvinsk Sean O’Connor http://geimint.blogspot.com/
  • 89. B-52 Bomber Strike on Severodvinsk B-52G AGM-28 Severodvinsk SA-2 Surface to Air Missile : Range 5 – 25 miles Altitude 1,250 - 90,000 feet Sean O’Connor http://geimint.blogspot.com/
  • 90. Surface to Air Missile Defense of Severodvinsk Sean O’Connor http://geimint.blogspot.com/
  • 91. B-52 Bomber Strike on Severodvinsk B-52G AGM-28 Severodvinsk SA-2 SA-3 Surface to Air Missile : Range 2.5 – 15 miles Altitude 60 - 54,000 feet Sean O’Connor http://geimint.blogspot.com/
  • 92. B-52 Bomber Strike on Severodvinsk B-52G AGM-28 Severodvinsk SA-2 SA-3 SA-5 Surface to Air Missile : Range 10 – 100 miles Altitude 1,000 – 60,000 feet Sean O’Connor http://geimint.blogspot.com/
  • 93. Story 5: 1956 - The Year It All Changes Lockheed
  • 94.
  • 95. Lockheed and WS-117L NRO - Move Reconnaissance to Space Program A: Air Force - imaging and sigint Program B: CIA - Imaging electroopitcal and sigint Program C: Navy signit Program D: U-2, A-12/Oxcart, D-21/Tagboard SAMOS/SENTRY MIDAS - Program 461 IR - Launch Detection CORONA Imaging VELA Nuclear Detection Program P-11/ 989 SAMOS F-1/2/3 ELINT/SIGINT
  • 96.
  • 97.
  • 98.
  • 99.
  • 100.
  • 101.
  • 102.
  • 103. Story 6: 1956 Why It’s Silicon Valley Shockley
  • 104. Meanwhile, on the Other Side of Town… The Head of Radar Bombing training for Air Force starts a Company
  • 105.
  • 106.
  • 107.  
  • 109.
  • 110. Story 7: Why We All Don’t Work for the Government The Rise of Private Capital
  • 111. Venture Capital Silicon Valley’s 2nd Engine of Entrepreneurship Steve Blank 23 Sept 2008 Free flow of People/Information Crisis Profit Motivation Cooperative Culture Entrepreneurial Outward-Facing Tech Universities Risk Capital 24/7 Utilities Predictable Economic System Infrastructure Stable Legal System Technical Labs/Universities Entrepreneurs Venture Finance
  • 112.
  • 113.
  • 114.
  • 115.
  • 116.
  • 117.
  • 118.
  • 119. Defense R&D Budget Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D
  • 120. Defense R&D Budget California Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D California Defense R&D
  • 121. Defense R&D Budget Silicon Valley Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D California Defense R&D Silicon Valley Defense R&D
  • 122. Defense R&D Budget Versus Venture Capital Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D California Defense R&D Silicon Valley Defense R&D Silicon Valley Venture
  • 123. Defense R&D Budget Versus Venture Capital Sources: United States National Science Foundation Science and Engineering Indicators 2006, 2006, http://www.nsf.gov/statistics/seind06/append/c4/at04-03.pdf; United States Governemnt, Budgetfor FY 05, Historical Tables, 2004, Table 9.7, http://www.gpoaccess.gov/-usbudget/fy05/hist.html $ Billions Defense R&D California Defense R&D Silicon Valley Defense R&D Silicon Valley Venture
  • 124.
  • 125.
  • 126. Venture Capital Silicon Valley’s 2nd Engine of Entrepreneurship Steve Blank 23 Sept 2008 Free flow of People/Information Crisis Profit Motivation Cooperative Culture Entrepreneurial Outward-Facing Tech Universities Risk Capital 24/7 Utilities Predictable Economic System Infrastructure Stable Legal System Technical Labs/Universities Entrepreneurs Venture Finance
  • 127.
  • 128. Read the Blog www.steveblank.com Read the Backstory http://bit.ly/SecretStories

Editor's Notes

  1. Silicon Valley has gone through several waves of innovation. Each wave of technology helped shape the next one. All are well understood except for one - Silicon Valley’s role in the defense industry. I’m going to tell you that story as I understand it.
  2. Silicon Valley has gone through several waves of innovation. Each wave of technology helped shape the next one. All are well understood except for one - Silicon Valley’s role in the defense industry. I’m going to tell you that story as I understand it.
  3. Silicon Valley has gone through several waves of innovation. Each wave of technology helped shape the next one. All are well understood except for one - Silicon Valley’s role in the defense industry. I’m going to tell you that story as I understand it.
  4. So five short stories -
  5. The surprise for me is that every war movie you ever saw about WWII was simply wrong. The directors and screenwriters did not know- even today - what I’m about to tell you - WWII was the first electronic war.
  6. Just a bit of history. By 1940 Germany had overrun Europe. Britain stood alone until the U.S. entered the war Dec 7th 1941. Beginning in 1942 the goal of the US and Britain was to destroy the German industrial infrastructure by bombing Germany and occupied Europe from bases in Britain and to destroy: Transportation, petroleum, aircraft manufacturer, and euphemistically to “dehouse” the population.
  7. Just a bit of history. By 1940 Germany had overrun Europe. Britain stood alone until the U.S. entered the war Dec 7th 1941. Beginning in 1942 the goal of the US and Britain was to destroy the German industrial infrastructure by bombing Germany and occupied Europe from bases in Britain and to destroy: Transportation, petroleum, aircraft manufacturer, and euphemistically to “dehouse” the population.
  8. Allied Air War in Western Europe Strategic Bombing Campaign 28,000 Active Allied Combat Planes 40,000 planes lost/destroyed: 18,000 American and 22,000 British 80,000 Americans and 80,000 British killed
  9. It started with 100’s of long-range radars picking up the bombers as they formed up 200 miles away
  10. By 1941 the Germans had built a formidable electronic screen.
  11. 46 000 planes lost by the USSR in this war. German planes lost in war with USA/Britain: 23 895 German planes lost in war with USSR: 52 850 ꀾ
  12. It started with 100’s of long-range radars picking up the bombers as they formed up 200 miles away
  13. As the planes crossed the English channel and got over occupied Europe they encountered the Himmelbelt. An integrated local air defense network. Each box of 20 by 30 miles had radars, flak (or anti aircraft guns, fighters, and in the night-searchlights). This network was to track, target and destroy the incoming bombers. At first the British sent in their planes one at a time in order to force the defenses to be spread as far apart as possible, meaning that any one aircraft would have to deal with little concentrated flak. However this also meant the Himmelbett centers were only dealing with perhaps one or two planes at a time, making their job much easier. Bomber Command reorganized their attacks into streams of bombers, carefully positioned so the stream would fly right down the middle of a cell.
  14. Each Himmelbett zone, had a Freya radar Unlike the early-warning Freya, W ur zburg's were accurate (and complex) tracking radars. One would be locked onto the night fighter as soon as it entered the cell. After the Freya picked up a target the second W ur zburg would lock onto it, thereby allowing controllers in the Himmelbett center to get continual readings on the positions of both planes, controlling them to a visual interception. Later additions added the short-range Lichtenstein radar to the aircraft, allowing them to detect the aircraft once the operators had directed them into the general area.
  15. Each Himmelbett zone, had a Freya radar Unlike the early-warning Freya, W ur zburg's were accurate (and complex) tracking radars. One would be locked onto the night fighter as soon as it entered the cell. After the Freya picked up a target the second W ur zburg would lock onto it, thereby allowing controllers in the Himmelbett center to get continual readings on the positions of both planes, controlling them to a visual interception. Later additions added the short-range Lichtenstein radar to the aircraft, allowing them to detect the aircraft once the operators had directed them into the general area.
  16. Each Himmelbett zone, had a Freya radar Unlike the early-warning Freya, W ur zburg's were accurate (and complex) tracking radars. One would be locked onto the night fighter as soon as it entered the cell. After the Freya picked up a target the second W ur zburg would lock onto it, thereby allowing controllers in the Himmelbett center to get continual readings on the positions of both planes, controlling them to a visual interception. Later additions added the short-range Lichtenstein radar to the aircraft, allowing them to detect the aircraft once the operators had directed them into the general area.
  17. Here’s a Freya on the right and a Freya with a Wurzburg on the left
  18. resembled a movie theater with bleacher seats map of the battle area
  19. About 40% of the bomber losses were from flak.
  20. About 60% of the bomber losses were from fighters.
  21. These antennas are the first airborne radars on fighters. By the end of the war all the German night fighters had them.
  22. I mention this because these radars will figure in one of our later stories.
  23. "XARD" SIGINT receiver 50 MHz to 1 GHz SCR-587 "AN/APR-2" scanning receiver
  24. ‪ The wizards of Langley: inside the CIA's Directorate of Science and Technology ‬ By Jeffrey T. Richelson page 87-89
  25. simulated B-52 gravity bomb strike in the mid 1960s on the naval support facility at Sevastopol. BUFF payload...call it a B-52G with two underwing AGM-28s and a B-53 nine megaton bomb in the weapon bay.
  26. See http://www.ausairpower.net/APA-Rus-SAM-Site-Configs-A.html for SAM details
  27. AGM-28 isn't a decoy or a drone, it was a no-shit standoff cruise missile.  It was designed so that the BUFF didn't have to mess around with overflying someplace like Moscow which had a crapload of SAM defenses.  1.1 megaton W28 warhead, max range of 1,100 kilometers at high altitude.  Could change course and altitude inflight, allowing it to take an optimum path to target.
  28. The BUFF would be hitting the main harbor, where the shipyard is.  Look at Slide 5-see the red dot where it says Severodvinsk?  The blue rectangular blob to the west (very slightly northwest) is the naval yard.  The idea would be to take out anything in the yard and neutralize the repair/refit/construction capability.  SEVMASH, one of the big sub and ship plants, is in Severodvinsk, for one.  Current imagery in Google Earth shows them refitting the Admiral Gorshkov for the Indian Navy.
  29. SAM ranges:SA-2 - 7 to 43 kilometersSA-3 - 3.5 to 25 kilometersSA-5 - 17 to 160 kilometers (took a bit to get going and get everything spun up...later versions had nearly double the range, but they weren't even being tested yet) SAM altitudes:SA-2 - 400 to 30,000 metersSA-3 - 20 to 18,000 meters (a lot lower than the SA-2, which is why the SA-3 was originally conceived-a low-altitude gap-filler counterpart to the SA-2)SA-5 - 300 to 20,000 meters (yes, only around 60,000 feet or so and less than the SA-2-not quite the Blackbird killer just yet, they had problems with trajectory shaping on such a large missile)
  30. ‪ The wizards of Langley: inside the CIA's Directorate of Science and Technology ‬ By Jeffrey T. Richelson page 93, 155 http://www.vectorsite.net/ttradar_4.html
  31. 1961 - Arthur Rock (former investment banker at Hayden, Stone & Co. (arranged financing for Fairchild Semiconductor in 1957), Thomas J. Davis, Jr. (former VP of Kern County Land Company responsible for investing land trust's royalties) formed Davis & Rock in San Francisco, CA as partnership (not SBIC or publicly-held); raised $5 million (capital gains split 80/20 between limited partners/general partners); 1968 - partnership dissolved (generated $90 million in capital gains, 54% compound growth rate; Teledyne, Scientific Data Systems biggest hits); first venture capitalist on the West Coast; July 16, 1968 - launched Intel with Bob Noyce (group vice president of Fairchild Semiconductor), Gordon Moore (head of Fairchild Semiconductor's R&D division).
  32. 1961 - Arthur Rock (former investment banker at Hayden, Stone & Co. (arranged financing for Fairchild Semiconductor in 1957), Thomas J. Davis, Jr. (former VP of Kern County Land Company responsible for investing land trust's royalties) formed Davis & Rock in San Francisco, CA as partnership (not SBIC or publicly-held); raised $5 million (capital gains split 80/20 between limited partners/general partners); 1968 - partnership dissolved (generated $90 million in capital gains, 54% compound growth rate; Teledyne, Scientific Data Systems biggest hits); first venture capitalist on the West Coast; July 16, 1968 - launched Intel with Bob Noyce (group vice president of Fairchild Semiconductor), Gordon Moore (head of Fairchild Semiconductor's R&D division).