Route 128 High Tech History

Route 128 High Tech History
Route 128 High Tech History Image link: https://en.wikipedia.org/wiki/French_war_planning_1920%E2%80%931940
C O N T E N T S:

KEY TOPICS

  • Members of the Council knew that they could provide the jobs no matter what the state did” because their products were selling and Boston wage rates were competitive with other regions (convergence with the South had occurred, it was alleged because Southern wages had risen and North’s were stagnant, so Route 128’s labor costs were “inherently lower” in the non unionized high tech sector” Route 128: Lesson’s from Boston’s High Tech Community, p15).(More…)
  • Every place you looked you would find guys doing something with some company?” (AnnaLee Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128, pp. 14-15).(More…)

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  • In the 128 area, by contrast, a few large vertically integrated firms “locked up” technical capacities and skill; start- ups lacked access to fabrication or design services, for example.(More…)
  • Her 1994 book Regional Advantage: Culture and Competition in Silicon Valley compared the evolution of Silicon Valley with that of Route 128–the ring around Boston–to explain why no region has been able to replicate the California success story.(More…)

RANKED SELECTED SOURCES

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KEY TOPICS

Members of the Council knew that they could provide the jobs no matter what the state did” because their products were selling and Boston wage rates were competitive with other regions (convergence with the South had occurred, it was alleged because Southern wages had risen and North’s were stagnant, so Route 128’s labor costs were “inherently lower” in the non unionized high tech sector” Route 128: Lesson’s from Boston’s High Tech Community, p15). [1] The service sector between 1975 and 1983 grew at 46%, 3x faster than all other sectors combined (business services, computer services, data processing services and software grew at a faster rate (95%) and accounted for 30% of all new service sector jobs.( Route 128: Lesson’s from Boston’s High Tech Community, p.13). [1] The 65 colleges and universities in Boston area “provided a critical source of professional labor, including physicians, managers, and lawyers as well as engineers and scientists ( Route 128: Lesson’s from Boston’s High Tech Community, p.5). [1] By shedding its ‘anti-business’ image, the state was able to foster a supportive atmosphere of stability and cooperation that has helped silence its critics” ( Route 128: Lesson’s from Boston’s High Tech Community, p 16). [1]

Boston is not resting on its laurels: under the stewardship of Mayor Thomas Menino (the longest-serving mayor in the history of the city, who took office in 1993), it created in 2010 an Innovation District on the waterfront, so that companies no longer have to move to the suburbs to benefit from the innovation ecosystem pioneered by Route 128. [2] Silicon Valley firms, relying upon components and services available in the market, were able to develop new models and even new product lines far, far faster than the Route 128 firms which insisted upon developing everything in-house and effectively had to re-invent the wheel. [3] The most well-known is Annalee Saxenian’s, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, Harvard University Press, 1994). [1] A good book comparing the Silicon Valley and Boston’s Route 128 up to the early 1990s is Regional Advantage by AnnaLee Saxenian, the Dean of the School of Information at UC Berkeley. [2] Compared to this, Route 128 had “more than two centuries of industrialization (which) laid the foundation for the postwar surge of activity in electronics. (Saxenian, Regional Advantage, p. 11). [1]

The pivotal differences, she finds, lie in Silicon Valley’s open networks of communication and exchange across firms compared to the more autarkic and vertically integrated structure of Route 128 companies. [4] The major competition for the Route 128 firms was the Silicon Valley, but the real enemy of the Route 128 area firms was their organizational structure that was inappropriate for the dynamic field of computer technology. [3] The Route 128 firms sought to produce their semiconductor devices within the company so the area lost the economies of scale advantages that accrued to the Silicon Valley economy of having such devices produced by specialized firms. [3] She argues that Silicon Valley firms developed certain “cultural” traits and practices, values and styles which sustained their innovation and creativity and propelled them ahead of Route 128 in the 1980’s. [1] The problem Saxenian sets herself is to account for the continued vitality and growth of the electronics and computer industry in Silicon Valley compared to the relative stagnation and decline of the industry along the Route 128 corridor in Massachusetts in the 1970s and 1980s. [4] Gilson suggests that Silicon Valley proved more robust than Route 128 because “California law prohibits post-employment covenants not to compete, whereas Massachusetts enforces them” (Booth, p.3). [1] In 1990 HP and DEC, respectively the outstanding companies of the Silicon Valley and Route 128, both had revenues of $13 billion. [3] The culture of informal and formal networks in the Silicon Valley were in many ways just the opposite of Route 128. [1] The reputation and performance attributed to the Silicon Valley, especially when compared with Route 128, results chiefly from the Silicon Valley’s second wind (i.e. a second burst of performance) during the 1980’s and following. [1]

The fairly widespread perception, supported by subsequent literature and employment data, business commentary and simple public perception is that Route 128 has not sustained its advantages of the eighties and nineties. [1] Businesses quickly realized the advantages of locating close to Route 128. [3] Route 128 was more specialized in its core expertise; SV was all over the place with many potential platform technologies spread across a number of sectors and industriesnever really tied absolutely to the Defense Department only. [1] To remedy this situation the traffic planners decided to build a peripheral roadway, called Route 128, that would allow travelers to skirt the dense, difficult traffic conditions of Boston. [3] The separation of the university physically from the spin off labs would ultimately prove to be a defining characteristic of Route 128 experienceand not necessarily a positive characteristic. [1] MIT, secure in its reputation as the top engineering university in the world, gave very little help to the Route 128 bunsinesses. [3]

“Encourage horizontal communication among firm divisions and with outside suppliers and cu This book analyze the difference between Silicon Valley, CA and Route 128, MA. The author tries to answer why did Silicon Valley survived the recession and competition from Japanese competitors during 1980s, but Route 128 did not. [5] The network perspective helps explain the divergent performance of apparently comparable regional clusters, such as Silicon Valley and Route 128, and provides important insights into the local sources of competitive advantage. [6] Although similar to Silicon Valley with respect to its industrial emphasis (electronics), the Route 128 region around Boston presents a study in contrast in terms of its historical development, geography, community life, and degree of interconnectivity between firms. [7] This apparent difference between Silicon Valley and Route 128, and the areas’ divergent development paths in the 1980s and 1990s, have been explained as the outgrowth of cultural differences that emanate from Route 128 executives’ traditional approach to business, which contrasts with the more open minded, “pioneer” attitudes in California. [8] Saxenian, A. (1994) Regional advantage: Culture and competition in Silicon Valley and Route 128. [6] That study is detailed in her 1994 book, Regional Advantage: Culture and Competition in Silicon Valley and Route 128. [9]

A network approach can be used to argue that, despite similar origins and technologies, Silicon Valley and Route 128 evolved distinct industrial systems in the postwar period. [6]

In this essay I compare California’s Silicon Valley and Route 128 in Massachusetts to suggest the limits of the concept of external economies and propose an alternative, network approach to analyzing regional economies. [6] This comparison of Silicon Valley and Route 128 highlights the analytical leverage gained by treating regions as networks of relationships rather than as collections of atomistic firms. [6] Between 1975 and 1990, Silicon Valley firms generated some 150,000 new technology jobs–triple the number created along Route 128, even though they enjoyed roughly the same employment levels in 1975. [6] By the 1980s, Silicon Valley and Route 128 looked alike: a mix of large and small tech firms, world-class universities, venture capitalists, and military funding. [10] Although it is very difficult to develop accurate and useful measures of vertical integration, one indication of the greater reliance of Route 128 firms on internal production is the lower sales per employee figures shown in Table 1 for the leading Route 128 firms and their Silicon Valley counterparts. [6] The successes of the 1980s’ generation start ups were the most visible sign that Silicon Valley was adapting faster than Route 128, but changes within the regions’ largest firms were equally important. [6] Saxenian contrasts Silicon Valley with the Route 128 corridor near Boston, which she describes as dominated by more traditional, vertically integrated companies. [8] By 1992, 113 technology enterprises located in Silicon Valley reported revenues exceeding $100 million, compared to 74 companies in Route 128. [6] Land and office space were significantly more costly in most of Silicon Valley than in the Route 128 region during the 1980s; the wages and salaries of production workers, engineers, and managers were higher (Sherwood-Call, 1992), and there were no significant differences in tax rates between California and Massachusetts (Tannewald, 1987). [6] STANFORD –A long-standing flow of people and information between Stanford and surrounding industries has contributed to the Silicon Valley’s regional advantage over that other famous high-tech region Route 128 in the Boston area, AnnaLee Saxenian, a professor of city and regional planning at the University of California-Berkeley, told a campus audience Sept. 11. [9] In the 1970s, however, Silicon Valley’s semiconductor industry surged ahead of the then dominant Route 128, and Saxenian shows why. [5]

As a group, the Route 128 companies would have been better off allowing the sort of mobility and knowledge spillovers that allowed the Valley to maintain a multi-generational agglomeration economy. [11] Why did Silicon Valley beat Route 128 so drastically? While she offers a few different arguments for the superiority of Silicon Valley, it’s hard to disentangle what, preci As I sit in one of the largest concentration of biotech in the country – and probably the largest per capita – I wonder, how did this happen? Certainly there were competing centers that could have become these same hubs. [5] This book is very useful to understanding the structural causes of Silicon Valley?s success, showing that it was increased interpersonal and intercorporate sharing that made Silicon Valley continue to succeed after the shocks of the ?80s hammered both Silicon Valley and Boston?s Route 128. [5] In contrast with the upsurge of entrepreneurial activity in Silicon Valley, the pace of start ups along Route 128 slowed during the 1980s. [6] You can get all those things in Route 128 sooner or later, but the decisions are much faster if you’re in Silicon Valley. [6] By 1990, both Southern California and Texas had surpassed Route 128 as locations of fast-growing electronics firms. [6] Unlike the Massachusetts Institute of Technology near Route 128, she said, Stanford “from its earliest days opened its doors to local business.” [9] The case of Route 128 demonstrates that geographic clustering alone does not ensure the emergence of regional networks. [6] DEC’s matrix organization–which represented only a partial break from traditional functional corporate hierarchies–stifled the development of managerial skill and initiative in the Route 128 region. [6] The Route 128 region, in contrast, is dominated by autarkic (self-sufficient) corporations that internalize a wide range of productive activities. [6] “If anything, Route 128 had an advantage in the early years. [9] Along Route 128, by contrast, start ups failed to compensate for continuing layoffs at the Digital Equipment Corporation and other minicomputer companies. [6] DEC’s dominant and isolated position in Route 128, by contrast, hindered its efforts to shift to new technologies or a new corporate form. [6] On Route 128, by contrast, the normal career path is to find a job in a large company and work one’s way up the corporate ladder. [9] This commitment to formality, hierarchy, and long-term stability–which typified most large Route 128 companies–could not have offered a greater contrast with the “controlled chaos” that characterized Sun (Weiss & Delbecq, 1987). [6] Adaptation in the Route 128 economy, by contrast, was constrained by the autarkic organization and practices of its leading producers. [6]

Add tags for “Regional advantage : culture and competition in Silicon Valley and Route 128”. [12] E-mail Message: I thought you might be interested in this item at http://www.worldcat.org/oclc/29311752 Title: Regional advantage : culture and competition in Silicon Valley and Route 128 Author: AnnaLee Saxenian Publisher: Cambridge, Mass. : Harvard University Press, 1994. [12] Her recent publications include Silicon Valley’s New Immigrant Entrepreneurs and Regional Advantage: Culture and Competition in Silicon Valley and Route 128. [13] Corporate Culture as a Source of Regional Advantage: Lessons from Silicon Valley and Route 128. [13]

Compare Silicon Valley to Boston?s Route 128 tech district. [14] Route 128 has been compared unfavorably to Silicon Valley lately. [15] In any event, after about 1985 the two outwardly similar high-tech clusters, Boston’s Route 128 and California’s Silicon Valley, moved in opposite directions. [16] Its origins as a semiconductor center would ultimately give the Valley a decisive advantage over Route 128. [16] As to whether Route 128 is an “economic cluster” and whether firms are interdependent, I’m not sure I can provide a good answer. [15] Edwin Land’s Polaroid, Ken Olsen’s Digital, and Edson DeCastro’s Data General and a cast of small innovative companies staked their own claims to Route 128 and the I-495 beltway in the years that followed. [15] Something comparable was also happening along Boston’s Route 128, where the big four minicomputer companies (Digital, Wang, Data General, and Prime) had entered the 1980s as giant-killers, Davids to IBM’s Goliath. [16]

Every place you looked you would find guys doing something with some company?” (AnnaLee Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128, pp. 14-15). [17] In “ Regional Advantage,” her classic 1994 explanation of why Silicon Valley became the center of the tech universe and Route 128 outside Boston did not, AnnaLee Saxenian of the University of California at Berkeley argued that a key difference was that in Silicon Valley people jumped from company to company, while along Route 128 they stayed put. [18]

Resilience in the face of those disruptive forces gave Silicon Valley the edge over its nearest high-tech rival, Boston’s Route 128 technology corridor. [19] Hot technology start-ups may be flocking to Kendall Square and the Seaport District, but one of the area’s largest software companies is planting its flag in Waltham – a sign that for big tech companies, Boston’s Route 128 suburban corridor is still the place to be. [20] Strengths: New Hampshire has just about everything going for it, from favorable taxes for individuals (none) and businesses, to cheap real estate near Route 128, to an educated work force. [21]

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In the 128 area, by contrast, a few large vertically integrated firms “locked up” technical capacities and skill; start- ups lacked access to fabrication or design services, for example. [4] If the reader wants a taste of the diversity of high-tech and the complexity of how economic developers relate to technology, the approach used by Ann Markusen, Peter Hall, and Amy Glasmeier in their, High Tech America: The what, how, where, and why of the sunrise industries (Boston, Allen & Unwin, 1986) would be very helpful. [1]

Her 1994 book Regional Advantage: Culture and Competition in Silicon Valley compared the evolution of Silicon Valley with that of Route 128–the ring around Boston–to explain why no region has been able to replicate the California success story. [10] In the rest of this chapter I use a set of paired comparisons to illustrate the differences in the organization and adaptive capacities of Silicon Valley’s regional network and Route 128’s independent firm-based industrial systems. [6]

Regional advantage : culture and competition in Silicon Valley and Route 128/AnnaLee Saxenian; Cambridge, Mass. : Harvard University Press, 1994. [12]

RANKED SELECTED SOURCES(21 source documents arranged by frequency of occurrence in the above report)

1. (21) AnnaLee Saxenian > Papers > The Limits of Autarky

2. (14) Silicon Valley and Route 128: The Camelots of Economic Development | Journal of Applied Research in Economic Development

3. (7) The Regional Advantage of the Silicon Valley and Its History

4. (5) Networking lessons from the Silicon Valley (9/96)

5. (4) Regional Advantage: Culture and Competition in Silicon Valley and Route 128 by AnnaLee Saxenian

6. (3) Regional advantage : culture and competition in Silicon Valley and Route 128 (Book, 1994) [WorldCat.org]

7. (3) NEWSLINK, V7N2 Interview with Alan Earls, the author of Route 128 and the Bitth of the Age of High Tech

8. (3) Norton-Section B

9. (3) Review of Saxenian, Regional Advantage

10. (2) Silicon Valley Can?t Be Copied – MIT Technology Review

11. (2) Biographies & Speeches

12. (2) Innovation: Boston’s Route 128 and San Francisco’s Silicon Valley – Engineered

13. (2) Federal Reserve Bank of San Francisco | On the Move: California Employment Law and High-Tech Development

14. (1) 5 Va. J.L. & Tech. 15 – A Comparison of the Enforceability of Covenants Not to Compete and Recent Economic Histories of Four High Technology Regions

15. (1) California Got It Right: Ban The Non-Compete Agreements

16. (1) The knowledge factor in Silicon Valley | National Museum of American History

17. (1) The Tyranny of the Noncompete Clause – Bloomberg

18. (1) The age of mass innovation

19. (1) Dassault Systèmes opens Waltham campus – The Boston Globe

20. (1) New England’s once-faltering economy is in the chips – CSMonitor.com

21. (1) NetValley