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High-Tech Start-Ups and Industry Dynamics in Silicon Valley

Why this dramatic turnaround in the economy of Silicon Valley? What are the prospects that the region will be booming once again? High-Tech Start-Ups and Industry Dynamics in Silicon Valley by Junfu Zhang is yet another contribution by PPIC to an improved understanding of the California economy. | High-Tech Start-Ups and Industry Dynamics in SilicOn Valley Junfu Zhang 2003 PUBLIC POLICY INSTITUTE OF CALIFORNIA Library of Congress Cataloging-in-Publication Data Zhang Junfu 1970-. High-tech start-ups and industry dynamics in Silicon Valley Junfu Zhang. p. cm. Includes bibliographical references. ISBN 1-58213-074-4 1. High technology industries California Santa Clara Valley Santa Clara County Longitudinal studies. 2. Entrepreneurship California Santa Clara Valley Santa Clara County Longitudinal studies. I. Title. HC107.C23H5394 2003 338.4 76 0979473 dc21 2003012491 Copyright 2003 by Public Policy Institute of California All rights reserved San Francisco CA Short sections of text not to exceed three paragraphs may be quoted without written permission provided that full attribution is given to the source and the above copyright notice is included. PPIC does not take or support positions on any ballot measure or state and federal legislation nor does it endorse or support any political parties or candidates for public office. Research publications reflect the views of the authors and do not necessarily reflect the views of the staff officers or Board of Directors of the Public Policy Institute of California. Foreword The Bay Area economy is experiencing one of its most prolonged recessions Unemployment continues to climb start-ups in Silicon Valley have declined from over 3 500 a year in 1998 to well under 1 000 in recent years and nationwide the high-tech sector appears to be facing a future of excess capacity. These are certainly sufficient reasons for the general mood of gloom that has settled over a region that was recently the focus of international attention for its high-tech successes. Why this dramatic turnaround in the economy of Silicon Valley What are the prospects that the region will be booming once again High-Tech Start-Ups and Industry Dynamics in Silicon Valley by Junfu Zhang is yet another contribution by PPIC to an improved understanding of the .