HIGH TECH INDUSTRY - Silicon Valley

Question 1

Why is Silicon Valley located in California?

Answer 1

• Universities:
  
  • Supplied skilled workers.
  • Stanford University - responsible for much of its early development
  • Stanford Research Institute separated from the university in 1970
• Flat land
  
  • Space to develop
• Good communications
  
  • I-280
  • San Jose
  • Redwood City
• Spurred by government contracts:
  
  • Post WW2 era links stayed strong
  • In 1975, military contracts dropped after Vietnam War. Unemployment in the tech industry then rose to 20% - reliant on contracts at first.

Question 2

What is Silicon Valley?

Answer 2

• Covers 50km of California.
• Contains many tech companies: Adobe systems, Yahoo!, Apple Inc. etc.

Question 3

What are the benefits of Silicon Valley?

Answer 3

• Accounts for 1/3 of all the venture capital investments in the US.
• In 2013 employed 1/4 million IT workers.
• High wages - average at $144,800.
• Has the most billionaires and most millionaires in the USA per capita in the San Jose - Sunnyvale - Santa Clara area.