Chapter

Silicon Valley and the Resurgence of Route 128: Systems Integration and Regional Innovation

Michael H. Best

in Regions, Globalization, and the Knowledge-Based Economy

Published in print March 2002 | ISBN: 9780199250011
Published online November 2003 | e-ISBN: 9780191596216 | DOI: http://dx.doi.org/10.1093/0199250014.003.0019
 Silicon Valley and the Resurgence of Route 128: Systems Integration and Regional Innovation

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Seeks to address an explanation for the decline and subsequent resurgence of Route 28, the first high‐technology manufacturing region of the USA, in Massachusetts. The decline was combined with the emergence of Silicon Valley (California), which was based on a completely different business model. It is suggested that both the decline and resurgence of Route 28 can be explained in terms of the emergence of a new competitive advantage. This advantage is based on the principle of systems integration in which the old vertical integration model has been transcended by an open system of specialist firms. This thesis is discussed.

Keywords: California; competitive advantage; economic decline; economic resurgence; Massachusetts; open systems; Route 28; Silicon Valley; USA; vertical integration

Chapter.  11417 words.  Illustrated.

Subjects: International Economics

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