Global Clusters of Innovation: Lessons from Silicon Valley

Abstract

Can innovation and entrepreneurship stimulate economic growth in diverse communities, or is it only effective in a few unique places like Silicon Valley? This article identifies the salient components, behaviors, and linkages that characterize Silicon Valley and explores how these characteristics apply in a diverse selection of economic communities in Europe, Asia, and Latin America. It focuses on the role institutions—such as governments, universities, major corporations, and NGOs—play in shaping such communities. It provides insights for government policy makers on how to enhance their region's innovation potential, and offers strategies for entrepreneurs and venture investors as to how to leverage the benefits of clusters of innovation, wherever one is located.