Book Review: Deborah Perry Piscione,Secrets of Silicon Valley: What Everyone Else Can Learn from the Innovation Capital of the World

The world’s economy, after decades of steady progress, is currently on shaky ground. Companies and investors are less willing to take risks, and education system is not focused on innovative thinking; but one small part of the USA, namely, Silicon Valley is still doing wonders in the current century.

The author presents a bird’s eye view of one of the most exceptional economic ecosystems of the world and reveals the secrets behind the unique community’s startling success. She traces back the humble beginnings of Silicon Valley and points out that, presently, meritocracy, collaboration and information-sharing, and exploitation of ideas for the benefit of billions of people are its primary concerns. She explores Silicon Valley’s exceptional risk-bearing culture and special contribution of its immigrants in its continuous progress. Based on first-hand information through interviews with investors, venture capitalists, entrepreneurs, academicians and thought leaders in service and design, the author shows that Silicon Valley’s innovative culture can inspire change in all industries and in all parts of the world for betterment of society. The book is divided into two parts. In the first part which comprises first two chapters, the author narrates her journey from east coast to west. She always felt that her current destination offered the optimum balance of culture, elegance and nature. In the first chapter, the author answers the question, why we should care about Silicon Valley. First, it is responsible for creating almost every technological innovation that has and will continue to change the global world in the way we live, work and socialize. Second, it is constantly evolving with creativity bringing forth new ideas, technologies, business models and commercialization. In the second chapter, the author enumerates the top seven reasons for the existence of the Valley today: Stanford University, invention of vacuum tubes, Moffett field, Prof. Frederick Terman, growth of electronics industry, Hewlett Packard, Shockley semiconductor, spin-off culture and the growth of venture capital.

The second part relates to Silicon Valley’s ecosystem and culture, and the author highlights its unique characteristics with an eye to suggesting how other communities can achieve a similar alchemy. This second part consists of next 10 chapters: 3 to 12. The third chapter is on Stanford University where Frederick Tarman, the Dean of School of Engineering (1925) began directing faculty and students to start their own companies and two years later, the first university-owned industrial park was unveiled. The real key to entrepreneurial success at Stanford was because of a focus on education and research mission, openness in research, faculty consulting, clear and flexible conflict of interest policies, consistent tech transfer practices and an entrepreneurial curriculum.

The fourth chapter discusses about the highly motivated people of the Valley who have come from all over the world but are working together towards a common goal. The main focus of the chapter is on the Indian community, because it has proven a strong case study of how well outsiders can do in the Valley in a short period of time. The author further mentions that the mindset of the Indian population is not only conducive with the Silicon Valley economy but also helps to spread the cultural values of hard work and morality in the workplace and within the community, and places high expectations on their children’s education.

The fifth chapter is about the continuous cycles of innovation in the Silicon Valley. The author points out that every five to ten years, someone in the valley creates something that inspires everyone else to follow. The rate of innovation is monitored through three lenses: venture capital investment in the near- and longer-term direction of development, the generation of new ideas and the value added across the economy overall.

In the sixth chapter, the unique profile of the Silicon Valley entrepreneurs is discussed. The author concludes that many of them are passionate, authentic, driven by ideas, fearless in risk-taking, trustworthy and resilient. Entrepreneurship in the Valley is its religion, sport they play and the air that they breathe.

In the seventh chapter, the author highlights the distinctive aspects of business models including generous employee benefits of Silicon Valley. The companies in the Valley think foremost about creating value not necessarily about immediately making money—the thought of wealth never gets in the way of creating value: ‘if the companies focus on creating the best company they can, the money will eventually follow’.

The eighth chapter highlights the relatively easy availability of venture capital in the Valley. It is because of the uniqueness of venture capitalist in terms of what he or she looks in entrepreneurs. Generally, the venture capitalist wants to know if the entrepreneur is capable, has realistic expectations, and most importantly, with market forces changing so rapidly that they can quickly pivot if need be.

The ninth chapter deals with the role of support services, such as the law and accounting firms, banks, design, consultants, incubators, etc. play into the ecosystem of the Valley.

The tenth chapter enumerates and highlights the importance of the local hang outs and meeting places that foster a culture of openness and nourishment in the Valley.

The eleventh chapter is about the lifestyle in the Valley. It is unique, and once new comers experience it, most cannot imagine going back to their former way of life. There are five factors that define the quality of life in Silicon Valley: weather, health and wellness, outdoor activity, farmers’ markets and sustainability through water conservation, with solar panels, electric car charging stations, and recycling of garbage etc.

In the last twelfth chapter, the author highlights the competitive advantages of being raised in Silicon Valley. Favourable environment at home, relevant innovative curriculum in schools and universities and willingness of companies to support any hardworking and a real contributor whether he/she is high scholar or PhD, give a competitive advantage to the new generation of the Valley.

In the epilogue, the author discusses the question of replication of Silicon Valley. The answers to whether Silicon Valley can be replicated are diverse, highly contextual and dependent on shifting policies and regional balances.

Silicon Valley’s framework innovation rests on three pillars: advancement of technology, tolerance of risk and failure, and the brain power of its people. Stanford University started as a borderless partner with industry and the community at large; then grew into one of the world’s leading research universities. Bright people came who were attracted to the lifestyle, but also disclaimed the traditional East coast hierarchies. Venture capital followed, swelled and flourished, and the resulting new business models fostered creative destruction and democratized the playing field for anyone with a good idea and the stomach for the process. This evolving culture then attracted other brilliant minds in entrepreneurship, engineering and management, creating an entrepreneurial ecosystem that trades in meritocracy, openness and collaboration and which accepts failure as part of the journey.

Of course, it is impossible to purely replicate Silicon Valley, which was the right place at the right moment of history, and has fully embraced that good fortune to create a market niche it will dominate for the foreseeable future. But other communities can certainly learn from Silicon Valley, commitment to continuous innovation and a culture of creativity—those quintessential twenty-first-century values so key to remaining competitive not just in technology, but in finance, education and every other human endeavour. It is this culture that will produce the next round of life-changing products, services and improvements in everything from healthcare to transportation to alleviating poverty. It is a deep well of potential we are only beginning to tap into, and the more it spreads outside Silicon Valley and around the world, the better off we’ll all be.

On the whole, the author lifts the veil to explain how the Valley became the open, free-wheeling, collaborative, risk-taking innovation capital of the world. It is a well-written and engaging book that is sure to leave with new understanding and inspiration. It should be required reading for civic and community leaders, corporate CEOs and managers at every level, heads of universities and non-profit organizations, regional planners and anyone seeking to understand and recreate the magic of Silicon Valley.