Sillcon valley north


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Sillcon valley north

  1. 1. Larisa V.Shavinina (ed.)
  2. 2. Reference book: Larisa V.Shavinina (ed.): SILICON VALLEY NORTH. A high tech cluster of Innovation and Entrepreneurship (Ottawa-Gatineau) Canada 2004,341 pagesEditor: Larisa V. Shavinina is a Professor in the Department of Administrative Sciences at the Université du Québec enOutaouais, Gatineau, Québec, and an Adjunct ResearchProfessor at the Eric Sprott School of Business, Carleton University, Ottawa, Canada.Originally focusing on psychology of high abilities (i.e., talent, giftedness, creativity), Dr.Shavinina’s research has expanded to encompass innovation. She is engaged in research aimed at unifying the fieldof innovation, that is, to merge psychological, management, and business perspectives together.Her publications have appeared in the review of general psychology, new Ideas in psychology creativity researchjournal and others. She edited:International handbook on innovation ( Elsevier 2003 )Cyber Education (Libert 2001)Beyond knowledge (Erlbaum 2004).Summary:This book is divided into three parties:The first party it is an introduction contain the principal’s phenomenon, problem that are appeared and happened inSilicon Valley. First of all; the silicon phenomenon will be an important phenomenon in all development sectors suchas: Technology, Science, and Economy in the entire world. The innovation researchers, economist and managers lookin the Silicon Valley phenomenon an interesting phenomenon because they found that people realize that siliconphenomenon is more important today than the past.From these ideas, they look the importance of this place in the world, and its role as we show before in thedevelopment of all sectors.After, they go to the second point that is the role of this place and the cluster of this entire region in the worldwidedevelopment and with the bringing of talented people and managers; they help to grow up with the development andwith the technology level or to catch the high tech plus giving the ability to create new international companies. Andafter, this cluster leads to the high level of life in the entire world.
  3. 3. The high tech cluster is known as Silicon Valley north. So, as depart of this book, the ask question make abasis of its content:What is so exceptional about the American Silicon Valley that stimulates many countries to follow it as aprototypical model?They show that there are many manifestation of their excellence, the most important of them:1- Entrepreneurs in Silicon Valley north highly valued excellence as a worthy goal per se and it give theexample of the semiconductor. Here, it appears the facility to change work to get the first one to makeproductive and able to develop and to do a best work.2-Businessmen in the silicon valley created an exceptionally atmosphere or humanistic culture in companies,rejecting the idea of a social hierarchy and social distinction and as it showed in Saxenian (1994, 56):” if Intelwere divided into workers and bosses, with the implication that each side had to squeeze its money out of thehides of the other, the enterprise would be finished. Motivation would no longer be internal; it would beobjectified in the deadly form of work rules and grievance procedure” from Robert Noyce. That is mean thebusinessmen of the companies should encourage the other workers to innovate or to share their ideas to growup with the level of the company.3- Entrepreneurs in Silicon Valley were also excellent in creating decentralized organization, which wereparticularly suitable for rewarding individual initiative and creating and keeping the focus and responsiveness ofstartup companies that is mean those entrepreneurs have the real abilities of leadership to lead theircompanies to improve them in the right way. From another side, they put specific goals plus they us all theirabilities and their companies assets and in end they will catch their goals i.e. they will succeed.4- Business men in the Silicon Valley were excellent in developing intensive informal communication networkwith supported collaboration and stimulated experimentation those transcending company boundaries. In thissentence, it appears their relation with the competitors.5- Open informal communication led to high-trust business relationship, which in turn resulted into acceleratedspeed of information exchange. As a manager at Apple noted:” we have found you do not always need a formalcontract … if you develop trust with your suppliers, you do not need armies of attorneys” Saxenian (1994:149),to facilitate for taking decision in present and of course to get the fixed goals in the future in short time becauseas we know “Time is Money» for don’t lousing opportunities.6- They were excellent in cooperation, I developing habits of informal cooperation and a wide range of
  4. 4. 7- They were extremely excellent in creating an open business environment, both inside and outsidetheir companies, that accelerated the exchange of know-what and know-how that is mean thetransaction of ideas to know the market desires with answering both question: Know what? & Know how?8- These intensive informal communication networks, democratic atmosphere or humanistic culture andopen business environment provided a strong foundation of excellent flourishing and creativity that ismean the ability of managers or businessmen to sense new market opportunities to get them and to winthem and after to success in the business life.9- Entrepreneurs in Silicon Valley did their best in tolerating failure, that is to say allow or accept theirfailures even if they did not like them. Because they will learn from them as they said :“Unless failure in possible, no learning is possible…in the realm of ideas, unless falsification is possible,learning is not possible. As a matter of fact, in information theory, no information is transmitted unlessnegation is possible, and so the tolerance of failure is absolutely triticale to the success of SiliconValley. If you do not tolerate failure, you cannot permit success. The successful people have a lot morefailures that the failures do”. They success every time because they fail in the first time, and theycorrect it, and also learn from it for don’t repeat the same failure twice.10- In a high competitive business environment characterized by shorter product cycle and acceleratingtechnological change, they were excellent in applying common sense and intention. The entrepreneurshave the rapidity in understanding news in the environment and to decide for new goals in the future,with recruiting new graduate people more than the old ones who have just experience in the domain.Because the new graduates have new ideas in front of the others.11- They were excellent not only in anticipating new market opportunities and promising technologicaladvances, they were equally excellent in developing new product, many of which turned out to be breakthrough innovation. They make all their efforts to get the best product in the market from the side ofdesign, technology, and development plus to improve their part in the market and to get new customersand consumers.12- As it is showed in Saxenian (1994:120) “the key to winning is [not cost or price but] getting close tothe customer that is mean facilitate the relation with the customer to allow them for sharing ideas.13- Taking into account the outstanding role played by Stanford university in developing Silicon Valley, itshould be stressed that its professors did their best with all their efforts to encourage the engineeringstudents to start up new companies and commercialize their ideas embedded in new product to getnew ideas and product and enriching market with them and to open many opportunities for others.14- Silicon Valley venture capitalist (usually form entrepreneur and engineer themselves) wereexcellent in moving very rapidly on promising opportunities, in believing in new entrepreneurs and in
  5. 5. These are the main points that it shows to us the manifestation of the place.And now we are going to show them in detailIn the second chapter, they star with mentioning the formation of Ottawa Innovation Cluster. From another meaning, what are the Ottawaabilities to get all these interest from the world? Or what is the secret in this place or in Ottawa people?It has twin roots of here powerful research strength:The growth after world war IINorthern electric in the late of 1950 decide to choose Ottawa as the site for its small but rapidly growing R&D operation.Plus Ottawa was doing three times R&D in the late 1990 in front of other Canadian cities. If we think about how this growth start, and what arehis roots. We find that in 1940, a lot of British scientist and engineer and European people travel to Canada because they find themselveswithout work in their own home plus the role of NRC (national research council) and the BNR (bell northern research) how can help thesescientist and engineers and the encourage them to create companies and accelerating them for the research and as a result from the depart,the number of private sector high tech workers in the region gradually multiplied from about 200 in 1950 to 1500 in 1965 and it reached 35000in 1995.forthat in 1997, the senior VP of engineering observed that a critical mass of workers meant lower risk for start’s up and for expandingcompanies and also the California based Premisys communication had chosen Ottawa in 1997 as the location for a new R&D operation.Because in 1990, the Ottawa economic development corporation start to try and plug the gap and for that, the Ottawa capital network facilitate25 million $ in investment to the young companies or entrepreneurs and of course encourage them to create cluster between them withsharing ideas as I said before to growing up with the Ottawa high tech cluster. This cluster is created by relationships between all sectors ofsociety from the institutional researchers to the market. Sharing ideas with connecting people across boundaries and accelerating collectivelearning is the most important key to speed up and grow up the innovation because it is an active social process.To facilitate the ideas sharing, they think for according between the computer and the telecommunication as an idea as an idea to eliminatethe long distance between the sides of the valley and as a step to facilitate the studies, works and making relationship with new entrepreneursin the valley and after it will automatically grow up the innovation process. And they start from a simple idea that it needs a computer and aprogramming language, a telephone lines and after to a radar. From this step, they create intranet between them, so from an idea in thepaper, to the application in the plan. The entrepreneurs in Canada climate across 6000km that they found it a big problem to get work and toshare ideas, and they add a new important method for communicating plus the radio, TV and the telegraph. And the facilitate also the abilityor create the ability to work together in a long distance that it now may be called the collaborative space, they start to create the wired citysimulation laboratory from the discussion between Carleton university and Queen university for create and join institute in communication andelectronics.The wired scientific city networks were to operate 3 modes:1) The one to many mode: limited talkback capability, to provide for conventional lectures series.2) The one to one mode: provide for discussion between collaborating individuals, or small groups.3) The many to many mode: provide groups discussion, to bring all participants into common space. To say that they have able people or graduates to get this program, they use it in the educational application. This step supported with thecommunication department and the educational communication program. But first, in the fall of 1974 they don’t know what the ECP means(Educational Communication Project).The first step of ECP is to experiment it with audio-video communication to evaluating, developing, teaching and learning.The second step of ECP is containing the realization of wired scientific city to the extension of the facility between Ottawa community andCharleton University Campus.The third step of ECP insists the extension to an inter-university service especially sharing curriculums between Carleton University andStanford University via satellite.
  6. 6. After, the editor mentions some definition of the Innovation asshe said: «Innovation is a key factor in the economicdevelopment of regions and countries». And also Reich (1991-2003) insists on the competitive process for continuousinnovation.As a depart from Ottawa city, a study realizes that the InnovationSystem could be divided into three strategic challenges:1. The discovery of new knowledge by harnessing basic andapplied science assets.