All posts tagged: silicon valley

The Geography Of Innovation Is Shifting

When a prominent venture capitalist of California invested one billion dollars in high risk green technology, Silicon Valley recalled the world that in innovation, geography is karma. What Vinod Khosla’s story tells us is that location is crucial when dealing with innovation and technology. Thirty years earlier Vinod left India to study management at Stanford University in California. In 1981, fresh out, he founded Sun Microsystems, a computer manufacturer . Innovations do not occur anywhere but often in geographic clusters where investors, large research universities, existing technology companies, engineers, designers, artists and scientists are always willing to think outside the box. Those people are part of what Richard Florida calls the Creative Class. His paradigm asserts that innovation is the outcome of creativity, this latter being the outcome of human creation for a concrete realization which then might lead to innovation. As far as geography and clusters are concerned, the Silicon Valley has been for several decades considered as the only creative and innovative hub worldwide. This is clearly changing. The geography of innovation is shifting. For proof, start with Google, …

Innovation > Debunking Public vs. Private Sector Myths

Common sense in Economics claims that the role of the State is to overcome market failures and protect competition. According to this, public intervention is not justified unless private agents are unable to produce a satisfactory outcome for all. The drive for initiative and dynamism would belong to the private sector, whereas the State unduly protects special interests, produces absurd and penalizing regulations for entrepreneurship by wasting resources that could be better used by private firms. These arguments emerge regularly in discussions on innovation and disruption. The “Knowledge Economy” has produced a Schumpeterian Hero. The Entrepreneur has become the central pivot of economic development by taking risks to create new products and jobs that require Venture Capital and a light regulatory framework. This entrepreneurial culture has fostered the development and the myth of the Silicon Valley. In a recent study (1), Mariana Mazzucato, Professor of Economics of Innovation at the University of Sussex, shows how this myth of the Silicon Valley propagates a distorted view of the respective roles of the public sector and private …