THE CENTER FOR ECONOMY AND SOCIETY CORNELL UNIVERSITY, DEPARTMENT OF SOCIOLOGY CSES WORKING PAPER SERIES PAPER # 8 “Brain Circulation and Capitalist Dynamics: The Silicon Valley-Hsinchu-Shanghai Triangle” AnnaLee Saxenian 2 Brain Circulation and Capitalist Dynamics: The Silicon Valley-Hsinchu-Shanghai Triangle Professor AnnaLee Saxenian University of California at Berkeley Department of City and Regional Planning and School of Information Management and Systems
[email protected] August 2003 Paper prepared for forthcoming volume: Richard Swedberg and Victor Nee, eds. The Economic Sociology of Capitalism under review at Cambridge University Press. Please do not cite or circulate without permission. 2 3 Howard Yang was among the first "returnees" to China in 1994. Yang was from Beijing but had spent more than a dozen years in the U.S., first obtaining a doctorate in electrical engineering from Oregon State University and then working for Silicon Valley companies like National Semiconductor, Chips & Technologies, and start-up Pericom Semiconductor. He returned in part to contribute to the growth of the Chinese IC industry. After working worked for two years at Shanghai Beiling, China's leading state- owned semiconductor company, Yang joined two colleagues to start a firm to design ICs for telecommunications. One of the co-founders, Hau Ming, was from Taiwan and the other, Ying Shum, from Hong Kong. Both also had graduate degrees from the U.S. and many years of work experience in Silicon Valley. This common background informed their decision to create a private Silicon Valley style company with venture capital funding and stock options for workers--rather than the following the Chinese model of state ownership or a joint venture.