Question

After reading Inside Out: Regional Networks and Industrial Adaptation In Silicon Valley and Route 128 by AnnaLee Saxenian answer the following:

1. Please provide a brief summary of the article

2. What are two major insights you get from the article

Answer 1

1. In this paper, “Inside-Out: Regional Networks and Industrial Adaptation in Silicon Valley and Route 128”, the author ‘AnnaLee Saxenian’ try to build a comparison between the two leading technological industries, the California’s Silicon Valley and Massachusetts’ Route 128. The paper analyses the divergent behaviour of these two companies based on the points such as the Total High Technology Employment (from period 1959 to 1990) and Fastest Growing Electronics Firms(from period 1985 to 1990)in light of the external economies and the regional economies by building an alternative network approach for understanding.

This comparison of Silicon Valley and Route 128 industries highlights:

1. the comparative returns are gained by regional industries because of networks & relationships rather than as collections of individual atomistic firms i.e. not clustering only . Therefore, the collaboration based networks within the companies and with the local institutions are important.
2. Beyond the theoretical differences between what is inside (internal economies) and outside (external economies) the companies, Network approach offers important information about the structure and dynamics of the regional economy. Therefore, networks are important and to be paid attention to analyse the social relations within and between companies and between companies and local institutions.

2. Silicon Valley's experience also shows that forms of organizational networks develop in regional agglomeration. This convergence of clustering based on networks, facilitates repeated close interactions that promote the combination of compatibility and collaboration needed in today's fast-moving technological industries.
   However, the case of Route 128 shows that geographical clustering alone does not guarantee the emergence of regional networks. But the there is need of advantage comes clustering based on the networks as well as the sharing of skill & knowledge, technology and the way they are organized and presented in a regional environment.