A New Silicon Valley ? The State Vs Spontaneous Order. Pierre Desrochers University of Toronto - Geography. Overview. Introduction 1) Geography & Economic Development 2) Silicon Valley & Clusters - SV: Facts & Myths - Replicating SV & Creating Clusters
University of Toronto - Geography
1) Geography & Economic Development
2) Silicon Valley & Clusters
- SV: Facts & Myths
- Replicating SV & Creating Clusters
3) Case against Regional Economic Specialization
First, back to the basics
of regional economic development…
Economic Activity in a Spiky World (Florida et al.)
SCHEDEL, Hartmann , Nuremberg, 1493
Towns = crossroads
« Wherethereis city growth, humanity moves forward…;
Where they flounder, civilization itself is in danger. »
there are an immense number of villages
each of which carries on only one branch of production,
or even only a part of one.”
« There are for instance over 500 villages devoted to various branches of woodwork;
one village makesnothing but spokes for the wheels of vehicles;
anothernothing but the bodies and so on;
and indications of a like state of things are found in
Combination of factors
(specialized suppliers & infrastructure)
or Egg (economic development)?
Earlydecades 20th C:
Mid 20th C:
have tried to create
Charles de Gaulle
croissance,” ÉconomieAppliquée 8: 307-320
Successes few and far between
Main factors of success
Most overhyped factor:
Putting all eggs in one basket?
Can you plan “diversity” and “Jacobs spillovers”?
1) Multidisciplinary teams within a firm;
2) Employees adding to, or switching, product line;
3) Individuals moving between different lines of work;
4) Individuals observing a product/process in another setting and incorporating it into their main activity;
5) Individuals possessing different skills and working for different firms collaborating with each other.
Why do people move?
lack credentials / interest administrative work
Remove obstacles to job mobilityJob mobility between industries in the same diversified local economy
and a tolerable administration of justice:
all the rest being brought about by the natural course of things.
Adam Smith, 1755
Crucial(except for world cities)