1. 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

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

3. Stanford Program on Regions of Innovation and Entrepreneurship © 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

4. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Habitat Lessons from Nature

5. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Current Research Initiatives Silicon Valley Transforming: The Next Silicon Valley Smart Green Cities Entrepreneurship in Japan China 2.0

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

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

8. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Share of Largest and Fastest Growing US Firms FLargeFastestGrowingUSFirmsCompanies in the US Source: Bay Area Economic Institute 2010

9. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Productivity: Creating Value (e.g. Google 20% time) Source: 2010 Index of Silicon Valley +3.8% 2008-2009 +26.1% 1990-2009

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

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

12. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Job Shifts Source: 2010 Index of Silicon Valley

13. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Foreign-Born Talent Source: 2010 Index of Silicon Valley

14. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Share of Patents (2010 Index of Silicon Valley) Source: 2010 Index of Silicon Valley

15. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Global Patent Collaboration Source: 2010 Index of Silicon Valley

16. Stanford Program on Regions of Innovation and Entrepreneurship © Marguerite Gong Hancock 2011 1997 Q1 US $2,866M SV $909M (32%) NE $346M (12%) 1998 Q2 US $5,237M SV $1,485M (28%) NE $496M (9%) 2000 Q1 US $27,331M SV $8,243M (30%) NE $3,110M (11%) 2002 Q3 US $4,307M SV $1,385M (32%) NE $503M (12%) 2006 Q2 US $7,011M SV $2,510M (36%) NE $698M (10%) 199719981999200020012002200320042005200620072008 Concentration of VC Investment 1997-2010 (Q2) 2010 Q2 US $6,517M SV $2,916M (45%) NE $582M (9%) 2009 2009 Q1 US $3,379M SV $1,291M (38%) NE $411M (12%) 2010

17. Stanford Program on Regions of Innovation and Entrepreneurship © Marguerite Gong Hancock 2011 Silicon Valley VC Investment by Industry, 2010 Q2

18. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Gong Hancock 2011 Intuitive Surgical SurgiSurgicalimages.google.it/imgres ?imgurl=http://biomed.brown.edu/Cou rses/BI108/BI108_2005_Groups/04/i mages/da_vinci28.jpg&imgrefurl=http: //biomed.brown.edu/Courses/BI108/BI 108_2005_Groups/04/davinci.html&us g=__4Cszm8JbkWQJxOXvmjxNbBxK d- 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%3Dfiref ox-a%26rls%3Dorg.mozilla:en- US:official%26sa%3DN%26um%3D1images.google.it/imgres ?imgurl=http://biomed.brown.edu/Cou rses/BI108/BI108_2005_Groups/04/i mages/da_vinci28.jpg&imgrefurl=http: //biomed.brown.edu/Courses/BI108/BI 108_2005_Groups/04/davinci.html&us g=__4Cszm8JbkWQJxOXvmjxNbBxK d- 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%3Dfiref ox-a%26rls%3Dorg.mozilla:en- US:official%26sa%3DN%26um%3D1

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

20. Stanford Program on Regions of Innovation and Entrepreneurship © Marguerite Gong Hancock 2011 Green VCs:

21. Stanford Program on Regions of Innovation and Entrepreneurship © Marguerite Gong Hancock 2011 New Firms, Green Firms and Jobs 1995-2008 Jobs +53% Firms +45%

22. Stanford Program on Regions of Innovation and Entrepreneurship © Marguerite Gong Hancock 2011 Jobs in Green Economy

23. Stanford Program on Regions of Innovation and Entrepreneurship© Marguerite Hancock 2011 Serious Materials

24. 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

25. B2B2C B2C Source: BDA research China Internet players’ increasing global impact

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

27. Sina Weibo www.weibo.com Source: Penn Olson Is China just about cloning? Twitter can learn a thing or two from Sina’s Weibo

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

29. Marguerite Gong Hancock mhancock@stanford.edu The Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) Stanford University http://sprie.stanford.edu