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Bringing Silicon Valley inside.

G Hamel

    Harvard Business Review
    |January 6, 2000
    PubMed
    Summary
    This summary is machine-generated.

    Silicon Valley

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    Area of Science:

    • Business Models
    • Innovation Economics

    Background:

    • Silicon Valley's 1998 IPOs generated $27 billion, equating to $54,000 wealth per worker.
    • This wealth creation stems from a unique business model, not just genius.

    Purpose of the Study:

    • To analyze the Silicon Valley business model for wealth and innovation.
    • To contrast this model with traditional corporate resource allocation.

    Main Methods:

    • Analysis of Silicon Valley's free circulation of ideas, capital, and talent.
    • Comparison of resource attraction (Silicon Valley) versus resource allocation (traditional companies).

    Main Results:

    • Silicon Valley's model prioritizes resource attraction, fostering innovation.
    • Venture capitalists actively seek and fund new ideas, while talent moves freely to rewarding opportunities.

    Conclusions:

    • Traditional companies can replicate Silicon Valley's success by creating internal markets for capital, ideas, and talent.
    • Adopting a resource attraction model can unlock significant wealth creation potential.