Selling Silicon Valley: Frederick Terman's model for regional advantage

Business History Review

Volumn 70, Issue 4, 1996, Pages 435-472

  Leslie, Stuart W ^a   Kargon, Robert H ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0030343480     PISSN: 00076805     EISSN: None     Source Type: Journal    
DOI: 10.2307/3117312     Document Type: Article

References (99)

1. John M. Findlay, Magic Lands: Western Cityscapes and American Culture After 1940 (Berkeley, Calif., 1992), 117. Findlay provides a perceptive overview of Silicon Valley's history, set against a background of western city building and myth making.
2. Frederick Terman, "The Newly Emerging Community of Technical Scholars," in Colorado and the New Technological Resolution: Proceedings of the University-Industry Liaison Conference, ed. William Miernyk (Boulder, Colo., 1963).
3. David Packard, The HP Way: How Bill Hewlett and I Built Our Company (New York, 1995), 195-99.
4. See W. Bernard Carlson, "Academic Entrepreneurship and Engineering Education: Dugald Jackson and the MIT-GE Cooperative Engineering Course, 1907-1932," Technology and Culture 29 (July 1988): 536-67; John Servos, "The Industrial Relations of Science: Chemical Engineering at MIT, 1900-1939," Isis 71 (1980): 531-49; and David Noble, America By Design (New York, 1977).
5. See W. Bernard Carlson, "Academic Entrepreneurship and Engineering Education: Dugald Jackson and the MIT-GE Cooperative Engineering Course, 1907-1932," Technology and Culture 29 (July 1988): 536-67; John Servos, "The Industrial Relations of Science: Chemical Engineering at MIT, 1900-1939," Isis 71 (1980): 531-49; and David Noble, America By Design (New York, 1977).
6. See W. Bernard Carlson, "Academic Entrepreneurship and Engineering Education: Dugald Jackson and the MIT-GE Cooperative Engineering Course, 1907-1932," Technology and Culture 29 (July 1988): 536-67; John Servos, "The Industrial Relations of Science: Chemical Engineering at MIT, 1900-1939," Isis 71 (1980): 531-49; and David Noble, America By Design (New York, 1977).
7. For the prewar electronics industry in northern California, see Arthur Norberg, "The Origins of the Electronics Industry on the Pacific Coast," Proceedings of the IEEE 64 (Sept. 1976): 1314-22.
8. See Stuart W. Leslie, "How the West was Won: The Military in the Making of Silicon Valley," in Technological Competitiveness: Contemporary and Historical Perspectives on the Electrical, Electronics, and Computer Industries, ed. William Aspray (New York, 1993), 75-89.
9. Cited in Stuart W. Leslie, The Cold War and American Science: The Military-Industrial-Academic Complex (New York, 1993), 55.
10. For the genesis and the subsequent growth of Varian Associates, see Edward Ginzton, "The $100 Idea," IEEE Spectrum 10 (Feb. 1975): 30-39; Dorothy Varian, The Pilot and the Inventor (Palo Alto, Calif., 1983); and Varian: 25 Years, 1948-1973 (Palo Alto, Calif., 1973).
11. For the genesis and the subsequent growth of Varian Associates, see Edward Ginzton, "The $100 Idea," IEEE Spectrum 10 (Feb. 1975): 30-39; Dorothy Varian, The Pilot and the Inventor (Palo Alto, Calif., 1983); and Varian: 25 Years, 1948-1973 (Palo Alto, Calif., 1973).
12. For the genesis and the subsequent growth of Varian Associates, see Edward Ginzton, "The $100 Idea," IEEE Spectrum 10 (Feb. 1975): 30-39; Dorothy Varian, The Pilot and the Inventor (Palo Alto, Calif., 1983); and Varian: 25 Years, 1948-1973 (Palo Alto, Calif., 1973).
13. Packard, The HP Way, 62-65.
14. Michael Luger and Harvey Goldstein, Technology in the Garden: Research Parks and Regional Economic Development (Chapel Hill, N.C., 1991), 121ff, offer the best overview of the Stanford Research Park.
15. Leslie, "How the West was Won," 77-82.
16. Packard, The HP Way, 61-62 and Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, Mass., 1994), 47-48.
17. Saxenian, Regional Advantage, 50-57.
18. John R. Pierce and Arthur Tressler, The Research State: A History of Science in New Jersey (Princeton, N.J., 1964).
19. "Falling Behind," Newark Evening News (27 Sept. 1966), clipping in William O. Baker Papers, Bell Laboratories, Murray Hill, New Jersey. We would like to thank Dr. Baker for giving us access to his personal papers on IST.
20. Richard KixMiller, "Institute for Science and Technology - An Opportunity and a Challenge," Remarks to a joint meeting of the North New Jersey Section of the American Chemical Society, 26 Sept. 1966 (Frederick Terman Papers, Series XIII, Department of Special Collections, Stanford University).
21. Kenyon Kilbon, "Pioneering in Electronics: A Short History of the Origins and Growth of RCA Laboratories, Radio Corporation of America, 1919-1964," (unpublished ms., 1964), kindly made available to us by Margaret B. W. Graham.
22. Jay M. Liebowitz, "Flexible Corporate Structures: The Management of Systems Engineering in Bell Laboratories," (master's thesis, The Johns Hopkins University, 1984), 74ff.
23. Sidney Millman, "Institute for Science and Technology, 1966," Baker Papers.
24. Frederick Terman, "Institute for Science and Technology in New Jersey: The Dimensions of the University," 15 June 1966, Terman Papers, Series XIII.
25. "The Case for Industrial Sponsorship," Institute for Science and Technology," Baker Papers.
26. "Presidential Possibilities," Industry Committee meeting, 14 Aug. 1966, Terman Papers.
27. Benjamin Lax to Sidney Millman, 14 March 1967, Baker Papers.
28. "Minutes of the Meeting of the Industry Council of the Institute for Science and Technology," 2 Nov. 1966, Baker Papers.
29. Richard Florida and Martin Kenney, The Breakthrough Illusion: Corporate America's Failure to Move From Innovation to Mass Production (New York, 1990), pp. 178-181, point out how the structure and membership costs of research consortia like SEMATECH "price out" start-up companies.
30. "IST Affiliation Possibilities," Baker Papers.
31. Henry Lowood, "From Steeples of Excellence to Silicon Valley," Stanford Campus Report (9 March 1988): 11-13.
32. "A Proposal to set up an Interdisciplinary Institute at Princeton University," 9 Sept. 1969, and "Princeton University Institute of Science and Technology," 18 Sept. 1969, Baker Papers.
33. "A Proposal to set up an Interdisciplinary Institute at Princeton University," 9 Sept. 1969, and "Princeton University Institute of Science and Technology," 18 Sept. 1969, Baker Papers.
34. Author interview with William O. Baker, 20 March 1990.
35. James Fisk, "The New Role of Graduate Education in Industrial Innovation," 3 Nov. 1965, Baker Papers.
36. "New Jersey - The Invention State," Scientific American 264 (April 1991): NJ3-4.
37. For the founding and early years of Texas Instruments, see 100 Years of Science and Technology in Texas, ed. Leo Klosterman, Loyd Swenson, and Sylvia Rose (Houston, Tx., 1986), 216-17.
38. Texas Instruments, Twenty-fifth Anniversary Observance, Transistor Radio and Silicon Transistor (Dallas, Tx., 1980), 1-3, and "Chips and Money," Texas Monthly (July 1982), 104.
39. Texas Instruments, Twenty-fifth Anniversary Observance, Transistor Radio and Silicon Transistor (Dallas, Tx., 1980), 1-3, and "Chips and Money," Texas Monthly (July 1982), 104.
40. On Teal and his earlier work at Bell Labs, see Ernest Braun and Stuart McDonald, Revolution in Miniature: The History and Impact of Semiconductor Electronics (New York, 1978), 63-64, and A History of Engineering and Science in the Bell System: Physical Sciences, 1925-1975 (New York, 1975), 422-25.
41. On Teal and his earlier work at Bell Labs, see Ernest Braun and Stuart McDonald, Revolution in Miniature: The History and Impact of Semiconductor Electronics (New York, 1978), 63-64, and A History of Engineering and Science in the Bell System: Physical Sciences, 1925-1975 (New York, 1975), 422-25.
42. Jack Kilby, "Invention of the Integrated Circuit," IEEE Transactions on Electron Devices (July 1976), 648-50 and Michael Wolff, "The Genesis of the Integrated Circuit," IEEE Spectrum (Aug. 1976), 45-53.
43. Jack Kilby, "Invention of the Integrated Circuit," IEEE Transactions on Electron Devices (July 1976), 648-50 and Michael Wolff, "The Genesis of the Integrated Circuit," IEEE Spectrum (Aug. 1976), 45-53.
44. Braun and McDonald, Revolution in Miniature, 112-14 and Nico Hazewindus, with John Tooker, The U.S. Microelectronics Industry: Technical Change, Industry Growth, and Social Impact (New York, 1982), 83ff.
45. Braun and McDonald, Revolution in Miniature, 112-14 and Nico Hazewindus, with John Tooker, The U.S. Microelectronics Industry: Technical Change, Industry Growth, and Social Impact (New York, 1982), 83ff.
46. Lloyd Berkner, "Renaissance in the Southwest," Saturday Review (3 June 1961), 43.
47. Lloyd Berkner, "Graduate Education in the Southwest," Journal of the Graduate Research Center (May 1961), 95.
48. Berkner, "Renaissance in the Southwest."
49. President John F. Kennedy, "Remarks Prepared for Delivery at the Trade Mart in Dallas, November 22, 1963," Public Papers of the Presidents, 476-77. We would like to thank Allan Needell for calling this document to our attention.
50. "F. E. Terman as President of the SMU Foundation for Science and Engineering," 20 May 1980, Terman Papers, Series XIII 1/6.
51. "Remarks by F. E. Terman at Industry-Faculty luncheon, 6 Oct. [1966]," Terman Papers, Series VIII 3/7.
52. "Frederick Terman as President of the SMU Foundation," 9.
53. John Farley and Norman Glickman, "R&D as an Economic Development Strategy: The Microelectronics and Computer Technology Corporation Comes to Austin," Journal of the American Planning Association (Autumn 1986), 407-18 and "High-Tech Companies Team up in the R&D Race," Business Week (15 Aug. 1983), 94-95.
54. John Farley and Norman Glickman, "R&D as an Economic Development Strategy: The Microelectronics and Computer Technology Corporation Comes to Austin," Journal of the American Planning Association (Autumn 1986), 407-18 and "High-Tech Companies Team up in the R&D Race," Business Week (15 Aug. 1983), 94-95.
55. Irwin Goodwin, "Sematech Group Selects Austin, Texas in Effort to Regain Chip Dominance," Physics Today (Feb. 1988), 51-52 and Bob Johnstone, "Reinventing Research," Far Eastern Economic Review (24 May 1990), 68-70.
56. Irwin Goodwin, "Sematech Group Selects Austin, Texas in Effort to Regain Chip Dominance," Physics Today (Feb. 1988), 51-52 and Bob Johnstone, "Reinventing Research," Far Eastern Economic Review (24 May 1990), 68-70.
57. Gerald J. Hane, "The Real Lessons of Japanese Research Consortia," Issues in Science and Technology (Winter 1993-94), 52-62.
58. Florida and Kenney, The Breakthough Illusion, 179-180.
59. William J. Spencer and Peter Grindly, "SEMATECH After Five Years: High-Technology Consortia and U.S. Competitiveness," California Management Review (Summer 1993), 15-16.
60. Jon Huer, Marching Orders: The Role of the Military in South Korea's 'Economic Miracle,' (New York, 1989), 67ff.
61. Huer, Marching Orders, 147 and Mason, The Economic and Social Modernization of the Republic of Korea, 476-77.
62. Huer, Marching Orders, 147 and Mason, The Economic and Social Modernization of the Republic of Korea, 476-77.
63. Korea: Managing the Industrial Transition, Vol. 2, The Conduct of Industrial Policy (Washington, D.C., 1982), 189-97.
64. Philip Boffey, "Korean Science Institute: A Model for Developing Nations?" Science 167 (6 March 1970).
65. For the history of KIST see Jinjoo Lee, "Contract Research and Its Utilization in a Developing Country: An Analysis of Factors Influencing the Transfer of Industrial Technology from Korea Institute of Science and Technology (KIST) to its Clients," (Ph.D. diss., Northwestern University, 1975) and "Final Report on Battelle's Assistance to the Korea Institute of Science and Technology," (Columbus, Ohio, 1971).
66. For the history of KIST see Jinjoo Lee, "Contract Research and Its Utilization in a Developing Country: An Analysis of Factors Influencing the Transfer of Industrial Technology from Korea Institute of Science and Technology (KIST) to its Clients," (Ph.D. diss., Northwestern University, 1975) and "Final Report on Battelle's Assistance to the Korea Institute of Science and Technology," (Columbus, Ohio, 1971).
67. John Servos, "Changing Partners: The Mellon Institute, Private Industry, and the Federal Patron," Technology and Culture 35 (April 1994), 221-257 offers a perceptive look at the changing fortunes of the original contract research institute.
68. "Policy and Strategy for Science and Technology," Ministry of Science and Education, (Seoul, 1975), 40.
69. Frederick Terman et. al., "Survey Report on the Establishment of Korea Advanced Institute of Science," Dec. 1970, Terman Papers, Series X 3/3.
70. KunMo Chung and Frederick Terman, "Comments on Organization and Planning for Korea Advanced Institute of Science," Jan. 1971, Terman Papers, Series X 3/4.
71. "Survey Report on the Establishment of the Korea Advanced Institute of Science," vi.
72. Ibid., 9.
73. KunMo Chung, "Comments on Organization and Planning for Korea Advanced Institute of Science," January 1971, Terman Papers, Series X 3/4.
74. Frederick Terman, "Mission to Korea," 1 April 1980, Terman Papers, Series VI 20/7.
75. Ibid., 54.
76. World Bank Support for Industrialization in Korea, India, and Indonesia (Washington, D.C., 1992), 62-63.
77. Deon-Seong Oh, "High Technology Center and Its Role for Regional Innovation in Korea," Paper presented at International Science City in Global Context, Osaka, Japan, 17-18 Oct. 1994 provides the best overview of Taedok and of recent efforts at regional development in South Korea.
78. AnnaLee Saxenian, Regional Advantage provides a persuasive argument about the respective performance of these regions in recent years, based on differences in corporate structure and culture.
79. For a history of one would-be Silicon Valley, see Gordon B. Dodds and Craig E. Wollner, The Silicon Forest: High Tech in the Portland Area, 1945-1986 (Portland, Or., 1990).
80. Michael Luger and Harvey Goldstein, Technology in the Garden: Research Parks and Regional Economic Development (Chapel Hill, N.C., 1991) capably survey the promises and perils of this strategy.
81. See David Osborne, Laboratories of Democracy (Cambridge, Mass., 1988) for an overview of state experiments in technology policy, and Irwin Feller, "American State Governments as Models for National Science Policy," Journal of Policy Analysis and Management 11, (1992): 288-309, for a critical assessment of the results.
82. See David Osborne, Laboratories of Democracy (Cambridge, Mass., 1988) for an overview of state experiments in technology policy, and Irwin Feller, "American State Governments as Models for National Science Policy," Journal of Policy Analysis and Management 11, (1992): 288-309, for a critical assessment of the results.
83. Dobbs and Wollner, The Silicon Forest provide a history of one would-be Silicon Valley which, though initially modeled on the original, ended up moving in quite a different direction.
84. Roger Miller and Marcel Cote, "Growing the Next Silicon Valley," Harvard Business Review (July-Aug. 1985): 114-123 attests to the continuing attraction of the Silicon Valley model, while pointing out some of its pitfalls.
85. Robert X. Cringley, Accidental Empires: How the Boys of Silicon Valley Make Their Millions, Battle Foreign Competition, and Still Can't Get a Date (New York, 1992).
86. Everett Rogers and Judith Larsen, Silicon Valley Fever: Growth and High Technology Culture (New York, 1982), Dirk Hansen, The New Alchemists: Silicon Valley and the Microelectronics Revolution (Boston, Mass., 1982), Michael Malone, The Big Score: The Billion Dollar Story of Silicon Valley (New York, 1985) all argue a heroic entrepreneurship, while Saxenian, Regional Advantage makes the strongest case for Silicon Valley as an industrial district.
87. Everett Rogers and Judith Larsen, Silicon Valley Fever: Growth and High Technology Culture (New York, 1982), Dirk Hansen, The New Alchemists: Silicon Valley and the Microelectronics Revolution (Boston, Mass., 1982), Michael Malone, The Big Score: The Billion Dollar Story of Silicon Valley (New York, 1985) all argue a heroic entrepreneurship, while Saxenian, Regional Advantage makes the strongest case for Silicon Valley as an industrial district.
88. Everett Rogers and Judith Larsen, Silicon Valley Fever: Growth and High Technology Culture (New York, 1982), Dirk Hansen, The New Alchemists: Silicon Valley and the Microelectronics Revolution (Boston, Mass., 1982), Michael Malone, The Big Score: The Billion Dollar Story of Silicon Valley (New York, 1985) all argue a heroic entrepreneurship, while Saxenian, Regional Advantage makes the strongest case for Silicon Valley as an industrial district.
89. Richard Florida and Martin Kenney, The Breakthrough Illusion: Corporate America's Failure to Move from Innovation to Mass Production (New York, 1990) and Bennett Harrison, Lean and Mean: The Changing Landscape of Corporate Power in the Age of Flexibility (New York, 1994) challenge the notion of Silicon Valley as a self-sustaining industrial district.
90. Richard Florida and Martin Kenney, The Breakthrough Illusion: Corporate America's Failure to Move from Innovation to Mass Production (New York, 1990) and Bennett Harrison, Lean and Mean: The Changing Landscape of Corporate Power in the Age of Flexibility (New York, 1994) challenge the notion of Silicon Valley as a self-sustaining industrial district.
91. George Gilder, "The Law of the Microcosm," Harvard Business Review (March-April 1988), and George Gilder, Microcosm: The Quantum Revolution in Economics and Technology (New York, 1989).
92. George Gilder, "The Law of the Microcosm," Harvard Business Review (March-April 1988), and George Gilder, Microcosm: The Quantum Revolution in Economics and Technology (New York, 1989).
93. Richard Florida and Martin Kenney, The Breakthrough Illusion, 98-118.
94. Saxenian, Regional Advantage.
95. Bennett Harrison, Lean and Mean, 106-122.
96. Miller and Cote, "Growing the Next Silicon Valley," caution against 'looking in ivory towers' as a strategy for regional development.
97. Findlay, Magic Lands, 118.
98. Ann Markusen, Peter Hall, Scott Campbell, and Sabina Deitrick, The Rise of the Gunbelt: The Military Remapping of Industrial America (New York, 1991) convincingly argue for the central importance of defense contracting for high technology regions in postwar America, including Silicon Valley.
99. Saxenian, Regional Advantage, provides the best history of recent technical specialization in Silicon Valley.