St. Bob — Robert Noyce

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  • This Work Is Distributed As a Discussion Paper by The

    This Work Is Distributed As a Discussion Paper by The

    This work is distributed as a Discussion Paper by the STANFORD INSTITUTE FOR ECONOMIC POLICY RESEARCH SIEPR Discussion Paper No. 00-45 Learning the Silicon Valley Way Gordon Moore Kevin Davis* July 15, 2001 Stanford Institute for Economic Policy Research Stanford University Stanford, CA 94305 (650) 725-1874 The Stanford Institute for Economic Policy Research at Stanford University supports research bearing on economic and public policy issues. The SIEPR Discussion Paper Series reports on research and policy analysis conducted by researchers affiliated with the Institute. Working papers in this series reflect the views of the authors and not necessarily those of the Stanford Institute for Economic Policy Research or Stanford University. ____________ * Stanford University Learning the Silicon Valley Way By Gordon Moore and Kevin Davis Comments Welcome August 2, 2001 ABSTRACT: “Learning the Silicon Valley Way” is the incremental process of firm-building and market-building that underlay the formation of the world's preeminent high-technology, high growth economy. Revisiting Moore’s experiences as an early employee of Shockley Semiconductor and as a cofounder of Fairchild Semiconductor and Intel, we emphasize the necessary conditions for the take-off of Silicon Valley. These conditions include broad-based learning of the many facets of managing commercial scientific endeavors - from managing internal incentives to limiting the dimensions of external competition - and the central importance of a large technological opportunity. At the same time, we reevaluate and downplay the role that military spending, university proximity, and central planning played in the evolution of this economy. The end result is an almost iconoclastic, and we believe, more accurate picture of the crucial elements in a nascent high-tech regional economy.