2016 ANNIV 2A. PROS & EX CONS ANNIVERSARY Issue 2016 - Economy Geography JPG

 

 

 

Economy Geography

 

 

 

While this is a somewhat imposing title the conclusions are simple and the facts interesting.

 

Across the world many attempts have been made, with the investment of billions of dollars, to duplicate Silicon Valley in California.  An article in “MIT Technology Review” shows that investment in venture capital in Silicon Valley exceeds that of the net total of the next four largest, and is 85% as large as the total of the next 10 largest tech centers in the world.

 

Studies have failed to clearly define why this is true and specifically why it cannot be duplicated.  However, I believe it is a social economic question not an economic or local environmental situation.

 

I have entered into many joint ventures with companies across America and around the world (no not every country).  Many of us know of the desire to negotiate on the part of some foreigners and I, myself, wasted three years negotiating a joint venture with a Korean company from which they eventually walked away.

 

What I perceive in America is a different business philosophy on the part of west coast companies, from those on the east coast.  Simply put, the concept of a pie represents the east coast economic model of a new undertaking.  There is an established pie to be shared and the negotiation is over who gets what share – so in effect what one gets the other must give up.

 

On the west coast people join together often to create something new, the size of which depends upon how well they work together in its creation.

 

How does this affect the success of a Silicone Valley?  Studies have shown that  collaboration, networking and sharing of ideas is essential to success in creating new products.  This is the culture of Silicone Valley that derives from the movement into a new territory by scientists from around the world.

 

Does this psychology look familiar? 

 

 

 

 

 

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