The Origins and Dynamics of Production Networks in Silicon Valley

AnnaLee Saxenian Saxenian

University of California, Berkeley - School of Information


University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship

Silicon Valley firms are coping with rising production costs and the constant demand for new products by relying on networks of suppliers from within the region and beyond.These long-term, trust-based partnerships blur the boundaries between the region's autonomous but interdependent firms. The results of longitudinal case studies with three Silicon Valley enterprises are presented. These include a contract manufacturer, a silicon foundry, and a joint product development.Based on fifty in-depth interviews with firm executives and managers conducted between 1988 and 1990, the case studies reveal the degree to which Silicon Valley owes its technological dynamism to the formalization of inter-firm networks.The United States economy would benefit from the institutionalization of inter-firm collaboration. (SAA)

Keywords: Computer systems firms, Product development, Technological change, Innovation process, Adaptability, Interfirm alliances, Manufacturing industries, Silicon Valley, Social networks, Trust relationships

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Date posted: November 24, 2009  

Suggested Citation

Saxenian, AnnaLee Saxenian, The Origins and Dynamics of Production Networks in Silicon Valley (2000). Entrepreneurship: The Social Science View., Vol. , p. 308-331 2000. Available at SSRN: http://ssrn.com/abstract=1512273

Contact Information

AnnaLee Saxenian Saxenian (Contact Author)
University of California, Berkeley - School of Information ( email )
102 South Hall
Berkeley, CA 94720-4600
United States
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