Silicon Valley: The Sustainability of an Innovative Region

An entrepreneurially oriented educational institution that transfers existing knowledge and/or creates new knowledge has the capacity to generate significant economic growth. This is the case of Stanford University, which had a key role in the development of Silicon Valley, reinforced by government support that made it possible for the region to become a world innovation hub, attracting and circulating talent and technology, internationally. Human capital development and attraction is the most important factor for Silicon Valley’s success. However, the increasing dependence of Silicon Valley on external sources of human capital and technological innovation is a potential Achilles’ Heel, if competitive regions achieve “stickiness” and retain these assets.