An overview of Silicon Valley, it's history and what makes it the innovation capitol of the world.

1. Silicon Valley History and Innovation
Javed Mohammed
Innovation and Marketing Consultant
k2film@live.com
alchemyofinnovation.wordpress.com
A K2Vista Production

2. There are many hi-tech hubs in world
• Boston “Route 128”
• Bangalore, India
• Silicon Wadi, Israel
• Silicon Glen, Scotland
• But there is only one original, Silicon Valley

3. Silicon Valley

4. It all started with the birth of the
transistor in 1947

5. Schokley and team at Bell Labs in New Jersey

6. Stanford creates first industrial business
park in 1951
Fred Terman

7. Schockley moves to West coast, 1955
William Shockley

8. Arthur Rock moves to bay area in
1961, becoming the first venture
capitalist

9. Silicon Valley is born

10. HP and Varian first to move to Stanford
Business Park
Bill Hewlett
David Packard

11. Lead team from Schockley split and
start Fairchild in 1957

12. Fairchild's Noyce
and TI’s Kilby
independently
integrate many
transistors on a
single device and
invent the
integrated circuit
(IC)

13. Founders of Fairchild split and start
other Silicon Valley icons

14. Silicon Valley thrives on innovation

15. Innovation relies on a good Ecosystem
Ideas
&
Commerci-
alization
Basic
Capital
Research
Laws/ Human
Regulation Resources

16. Need ongoing waves of Innovation
4th wave Internet
(Netscape, Yahoo, eBay, Google)
3rd wave PC
(Apple, Silicon Graphics)
2nd wave IC
(Fairchild, Intel)
1st wave Defense
(HP, Vairan)

17. Technology Innovation leads to
Product Innovation
Social
Networking
Internet
Microprocessors
Disk Storage
Integrated Circuits
Microwave Radar

18. The two Steve’s create the first
Personal Computer, the Apple 1, 1976

19. First commercial Netscape browser
in 1995 brought the Internet to the
masses
Marc Andreessen

20. Silicon Valley Fast Facts
• Silicon Valley Residents: 2.5 Million
• 15 cities in Santa Clara county
• But Silicon Valley keeps growing
• Valley now made up of 5 Counties
– Santa Clara County
– San Mateo County
– Alameda County
– Contra Costa County
– Marin County
• The Valley continues to grow in all directions
http://next10.org/sites/next10.org/files/silicon%20valley%20econ%20
snapshot.pdf

21. Silicon Valley Top 10
1. Hewlett-Packard
2. Apple
3. Intel
4. Cisco
5. Oracle
6. Google
7. Applied Materials
8. Synnex
9. eBay
10.Gilead Science
As of Jan 2013
http://www.mercurynews.com/sv150

22. What makes Silicon Valley tick?

23. Risk taking: It’s ok to fail

24. Dream Big

25. Learn from your mistakes

26. Encouragement to be an entrepreneur

27. Results oriented meritocracy

28. Highly educated workforce and access
to university and government research

29. Abundance of capital (VCs, Angels)

30. Favorable labor laws: Easy to hire and
fire

31. City and State government encourages
startups with little red tape

32. Ecosystem of lawyers, accountants,
bankers, recruiters

33. Good Quality of life with easy access to
the beach in summer and mountains
for skiing

34. Easy to network with peers and culture
that thrives on innovation

35. Informal & Lack of Hierarchy

36. Free flow of information

37. However, Silicon Valley is not paradise
• Since 2003, the region lost more than 300,000
jobs. Nearly 120,000 jobs were lost in 2010
• Offshoring & Outsourcing major trend
• Started with moving low end functions like Mass
Production, Quality Assurance, Call centers and
other job functions
• Now moving higher end to research, R&D, design,
back office, marketing, legal, healthcare
• There are no sacred cows.
http://techtalk.dice.com/t5/Silicon-Valley/White-Caucasian-men-the-
new-minority-in-Silicon-Valley-IT/td-p/289082

38. Mckinsey expects global market
for offshore business and technology services to grow
to about $500B by 2020, from the current $80B/yr
http://www.mckinsey.de/downloads/publikation/mck_on_bt/2009/mck_on
_bt_16_india.pdf
http://www.ibsgr.com/our-business/key-facts-and-figures/our-markets.aspx

39. Big Demographic shift, causing
underlying tension and ethnic enclaves.
• White Caucasians the new minority in Silicon
Valley IT (Non-white 63%)
• Latinos and Black poorly represented in high
wage, hi-tech paying jobs
• White 37%, Asian 30%, Latino 27%, Black 2%,
Other 4%
http://techtalk.dice.com/t5/Silicon-Valley/White-Caucasian-men-the-
new-minority-in-Silicon-Valley-IT/td-p/289082

40. 52% of startups founded by
Immigrants
Venture Beats graph
http://venturebeat.com/2012/10/15/how-indians-defied-gravity-and-
achieved-success-in-silicon-valley/

41. High cost of living makes valley
unaffordable to those not making a
living wage
Family of four needs to make a min of $80,000 to survive
http://www.thedigeratilife.com/blog/index.php/2007/10/30/the-
minimum-budget-the-cost-of-living-for-a-family-of-four/

42. What’s next
• Silicon Valley is more than just Hi-tech
• It is also a big hub for Bio-tech, Medical
devices, Clean-tech, Nano-tech,…
• Convergence of Hi-tech + Bio-tech + Nano-
tech,…
• Clean-tech and alternative energies
• Things we can’t predict, that’s why it is the
innovation capital of the world

43. References
• All images are from public domain and
copyright of respective owners
• William Y. Jiang: Silicon Valley Competitive
Advantage and Knowledge Transfer
• Cathy Anterasian & Jeff Hauswirth: Lessons
From Silicon Valley
• Joint Venture: Silicon Valley Network

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All images are from public domain and copyright of respective owners
A K2 Vista Project
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Copyright 2012