Regional Advantage: Culture and Competition in Silicon Valley and Route 128 by AnnaLee Saxenian

Regional Advantage: Culture and Competition in Silicon Valley and Route 128 by AnnaLee Saxenian examines the history, economy, and culture of two of the United States' most innovative technology centers—Silicon Valley and Route 128 in Massachusetts—in order to better understand how regional economies can be shaped to foster innovation and success.

In her book, Saxenian investigates why Silicon Valley has been far more successful than Route 128 in fostering innovation in the computer industry, arguing that the economic environment of Silicon Valley—promoted closer collaboration, risk-taking, and a culture of learning—gave it a distinct advantage over its Massachusetts rival. The book looks at the complex network of venture capitalists, technological entrepreneurs, and experienced engineers in the region, and examines how the culture of Silicon Valley fostered dynamism and creativity.

Saxenian identifies several factors that contributed to the success of Silicon Valley, including its close links to Stanford University—a major center for research, entrepreneurship, and technology startups—and venture capitalists in the San Francisco Bay area. she also highlights the risk-tolerance of the venture capitalists in Silicon Valley, who embraced funding new and untested technologies and their willingness to fail, an attitude she argues Route 128 lacked.

Saxenian also looks at how the unique culture of Silicon Valley supported this risk-taking. She discusses the “culture of learning” in California, noting that since the 1970s engineers had been exposed to a variety of technologies and ideas, and had established close links with venture capitalists and technology communities. This allowed for greater collaboration, experimentation, and exchange of ideas, which Saxenian argues gave Silicon Valley the competitive edge over Route 128.

By the 1980s, Silicon Valley had emerged as a major center of technological innovation, with various high-profile tech companies setting up offices in the region. Saxenian compares California's “open model” of competition, where companies cooperate and collaborate to maximize success, to the more secretive model of business in Massachusetts, which resulted in a slower pace of innovation. She argues that Silicon Valley was able to capitalize on its collaborative environment to rapidly outpace Massachusetts in the tech industry.

The success of Silicon Valley has been repeated in many other regions around the world, often called the “Silicon Valley Effect.” Saxenian argues that the lesson of Silicon Valley and Route 128 is that even in a highly competitive market regionally distinct cultures, with supportive environments and collaborative networks, can foster success and dynamism.

Regional Advantage: Culture and Competition in Silicon Valley and Route 128 is an engaging and accessible look at the Silicon Valley phenomenon. Saxenian's comprehensive analysis of the factors and environment that gave Silicon Valley its competitive edge provides an invaluable insight for those looking to create their own successful innovation hubs. With its thoughtful discussion on the culture and competition of the two regions, Regional Advantage is an interesting and important book for entrepreneurs, technologists, and anyone interested in understanding and supporting regional economies.