Stanford Program on Regions of Innovation and Entrepreneurship © Marguerite Gong Hancock 2011...

Stanford Program on Regions of Innovation and Entrepreneurship

© Marguerite Gong Hancock 2011

Silicon Valley 5.0?

Marguerite Gong Hancock

Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE)

Graduate School of Business, Stanford University

Triple Helix IX International Conference

July 11, 2011



Publications


© Marguerite Hancock 2011

• High concentration of knowledge, skills, talent in multiple disciplines

• Results-oriented meritocracy

• Specialized business service infrastructure: VCs, lawyers, accountants, etc.

• Strong capital and labor markets which support circulation of resources and entrepreneurship

• High quality of life

• Climate that rewards risk-taking and tolerates failure

• Open business environment: collaboration and competition

• Institutions: Universities, research institutes, specialized institutions that interact with industry

• Favorable government policies

• Productive interaction among local assets

• Key node in global network

Source: The Silicon Valley Edge (updated)

Features of the Valley’s Habitat



Habitat Lessons from Nature



Current Research Initiatives• Silicon Valley Transforming: The Next Silicon Valley

• Smart Green Cities

• Entrepreneurship in Japan

• China 2.0



• What are signs that point to the future for Silicon Valley?

• a few key indicators

• company examples

• Silicon Valley - China

• roles of Silicon Valley

Dynamic Silicon Valley



Serious Challenges• Aging infrastructure, lagging investment

• Declining resources for education

• Political dysfunction and uncertainties

• Financial weaknesses, growing income gap

• Shift of equilibrium toward Asia for production, market, opportunities

• High costs (and increasing competition by low-cost innovators)



Share of Largest and Fastest Growing US Firms

FLargeFastestGrowingUSFirmsCompanies in the US

Source: Bay Area Economic Institute 2010



Productivity: Creating Value (e.g. Google 20% time)

Source: 2010 Index of Silicon Valley

+3.8% 2008-2009+26.1% 1990-2009



Source: The Future of Bay Area Jobs, SPRIE et al

Bay Area Competitive Strengths

Sample Occupations Aligned with Regional Capabilities

New Business Creation and

Entrepreneurship

Venture capitalists, lawyers and other occupations in the entrepreneurial infrastructure

Research In Advanced

Technologies and

Cross-disciplinary Research

IT, biotech, nanotech, green tech R&D professionals

Select computer and software engineers for research and advanced development (e.g., architects, systems

level software engineers, software engineers with domain expertise)

Select engineering including electrical, mechanical and electronics

Concept And Market Development

Strategic managers in sales and marketing

Product marketing managers

Global Integrated Management

“Orchestration”Managers of global teams and assets

Increasing Concentration of Innovation Jobs



New Business Models• Internet-based auction (eBay)

• Advertising-based Internet search (Google)

• Media service Platform/applications (Apple iTunes/iPod, iPhone)

• Social Networking (Facebook)

• User-created media content (You Tube, Twitter)



Job Shifts




Foreign-Born Talent




Share of Patents (2010 Index of Silicon Valley)




Global Patent Collaboration




1997 Q1US $2,866M

SV $909M (32%)NE $346M (12%)

1998 Q2US $5,237M

SV $1,485M (28%)NE $496M (9%)

2000 Q1US $27,331M

SV $8,243M (30%)NE $3,110M (11%)

2002 Q3US $4,307M

SV $1,385M (32%)NE $503M (12%)

2006 Q2US $7,011M

SV $2,510M (36%)NE $698M (10%)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Concentration of VC Investment 1997-2010 (Q2)

2010 Q2US $6,517M

SV $2,916M (45%)NE $582M (9%)

2009

2009 Q1US $3,379M

SV $1,291M (38%)NE $411M (12%)

2010



Silicon Valley VC Investment by Industry, 2010 Q2



Intuitive Surgical SurgiSurgicalimages.google.it/imgres?imgurl=http://biomed.brown.edu/Courses/BI108/BI108_2005_Groups/04/images/da_vinci28.jpg&imgrefurl=http://biomed.brown.edu/Courses/BI108/BI108_2005_Groups/04/davinci.html&usg=__4Cszm8JbkWQJxOXvmjxNbBxKd-U=&h=489&w=409&sz=62&hl=it&start=7&um=1&tbnid=iO7Q_BqdMjZxuM:&tbnh=130&tbnw=109&prev=/images%3Fq%3Dintuitive%2Bsurgical%2Bda%2Bvinci%26hl%3Dit%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DN%26um%3D1



Green VCs:



New Firms, Green Firms and Jobs

1995-2008Jobs +53%

Firms +45%



Jobs in Green Economy

Google & Amazon remain the world’s most valuable listed Internet companies. Baidu is #3 followed by Tencent & eBay. Taobao &

Facebook have yet to list.Market Cap Comparison (USD Million)

*Market Cap on April 12th 2011 Exchange rate: 1 USD=7.77 HKD

B2B2C

B2C

Source: BDA research

China Internet players’ increasing global impact

Chinese Internet players will step up overseas expansion through investments and M&A - Selected cases

Sina Weibowww.weibo.com

Source: Penn Olson

Is China just about cloning?Twitter can learn a thing or two from Sina’s Weibo



Silicon Valley Roles

• Innovator (R&D to innovation): new technologies

• Transformer (connect to market): new companies, new business models

• Financier (connect capital, talent)

• Broker (link and leverage global resources and markets): global orchestrator

Marguerite Gong Hancock

[email protected]

The Stanford Program on Regions of Innovation and Entrepreneurship

(SPRIE)

Stanford Universityhttp://sprie.stanford.edu

Stanford Program on Regions of Innovation and Entrepreneurship © Marguerite Gong Hancock 2011...

Documents

Transcript of Stanford Program on Regions of Innovation and Entrepreneurship © Marguerite Gong Hancock 2011...