'Old Economy' Inputs for 'New Economy' Outcomes

Cluster Formation in the New Silicon Valleys

Bibliographic Data

ID23316732
AuthorsTimothy F Bresnahan (0000-0003-2854-7035, corresponding author), T Bresnahan
Year2001
Volume10
Issue4
Pages835-860
Publication date2001-12-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueIndustrial and Corporate Change (JOURNAL)
Journal identifiersISSN: 0960-6491 • E-ISSN: 1464-3650
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1093/icc/10.4.835
OpenAlexW2008517592
LanguageEN
Citations received96
References cited5

This paper discusses the results of a two‐year research project on the sources of success in regional clusters of entrepreneurship and innovation like Silicon Valley. Our project has studied a number of locations, most of which have shown spectacular rates of growth of information and communcations technology‐related activities during the 1990s. Our case studies comprise some emerging regions, notably in Ireland, India, Israel and Taiwan, along with more advanced areas like Northern Virginia in the US, Cambridge, UK, the Scandinavian countries and the Silicon Valley 40 years ago by way of the memory of one of its ‘father founders’, Gordon Moore. Through visits, interviews and other materials, we uncovered some regularities about the determinants of success of these entrepreneurial‐led models of economic growth. We find that the economic factors that give rise to the start of a cluster can be very different from those that keep it going. Agglomeration economies, external effects and ‘social increasing returns’ of any sort arise almost naturally after a cluster has taken off. But the most difficult and risky part is to get the new clusters started. At that stage, ‘old economy’ factors like firm‐building capabilities, managerial skills, a substantial supply of skilled labor and connection to markets were crucial for the take off of these ‘new economy’ clusters (including Silicon Valley 40 years ago).

Business · Cluster (spacecraft) · Economic geography · Economic growth · Economics · Economies of agglomeration · Economy · Entrepreneurship · Silicon valley · Economic Growth and Productivity · Finance · Regional Development and Policy · Regional Economics and Spatial Analysis

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