Silicon Valley vs. Route 128

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Author: John Chisholm
Date: Oct. 1994
From: UNIX Review(Vol. 12, Issue 11)
Publisher: UBM LLC
Document Type: Column
Length: 2,118 words

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California's Silicon Valley is much larger and more successful than Boston's Route 128-based computer industry, despite the fact the Massachusetts area got a much earlier start. Silicon Valley attracts four times as much venture capital than Route 128. It produced 47 companies during the 1980s whose sales reached $100 million by 1992, compared with just 13 for Route 128. Fifty of the fastest-growing US electronics companies are in Silicon Valley, while only five are in the Route 128 area. The differences in the successes of the two areas are believed to be related to local geography, culture, institutions, industry structures and internal company structures. Route 128 companies tend to be independent, traditional, hierarchical companies while Silicon Valley contains networks of interdependent companies with less formal management styles. Route 128 is dominated by a few large companies, where Silicon Valley contains mostly smaller companies.

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Gale Document Number: GALE|A16255872