Introduction

Abstract

For much of the last three decades, the world of business and economic development has been dominated by the Silicon Valley Paradigm. This paradigm stipulates that high-growth technology companies most likely emerge under the particular framework conditions that govern the business environment of Silicon Valley. These include, for example, the abundance of risk capital, a culture of risk taking, the availability of a deep pool of highly skilled talent and the presence of large communities of foreign-born graduates and entrepreneurs, in addition to strong university–industry links and other factors. Considering the rapid emergence in Silicon Valley of numerous high-growth, high-tech start-ups that have gone on to become globally dominant, it is easy to see why this region has come to dominate attention and perceptions about what is most important for start-up success. With a population of less than three million, Silicon Valley generates a GDP of around US$210 billion (or US$70,000 per capita), with 45 % of households claiming an income over US$100,000. On a per capita basis, Silicon Valley counts among the richest areas of the world—in the same league as countries like Norway and Singapore.