Here we take a fresh look at Silicon Valley, exploring it as a hub of management innovation, not just new technology. The chapter focuses on the management of large and growing firms as opposed to startups. We see that new ways of managing have emerged in the Valley due to two main influences: the region’s leadership in information technologies—which both demand and enable rapid change—and the entrepreneurial culture of the region. The chapter also describes the high degrees of networking and collaboration in Silicon Valley, along with the companies’ intense “people focus,” which entails recruiting and managing entrepreneurial employees. A brief history of the Bay Area shows how new management approaches grew from new thinking that emerged over many years, from the California Gold Rush through the birth of Stanford University and the early electronics industry, to the modern growth of Silicon Valley.
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There are varying estimates of the Native American population of California pre- and post-contact with Europeans, but most sources agree with the total range cited here for the years leading up to the Gold Rush. See for example PBS (2006).
For a concise account of the founding of Stanford University, see History of Stanford at https://www.stanford.edu/about/history/. Accessed 26 June 2015. For a detailed biography of Leland Stanford and his activities, see Tutorow (2004).
There are many accounts of the history of William Shockley and his company; see for example Shurkin (2006). Likewise many sources have told the stories of the so-called “traitorous eight” defectors from Shockley, who founded Fairchild Semiconductor, which then had important spinout firms. For a “family tree” chart of companies descended from Fairchild, see Business Week (1997).