Why silicon valley is there

WHY SILICON VALLEY IS THERE

These represent the blossoms of prune trees. Situated within a geological depression, the Santa Clara Valley in California was once referred to as the "Valley of Heart's Delight" because of its extensive farmland teeming with a vibrant array of flowers and fruit, which prominently included prunes.

How did a region celebrated for its abundance of fruit and flowers transform into an intellectual hub?

In World War II, American engineer Vannevar Bush played a pivotal role in spearheading wartime research and development efforts. In 1945, he authored an essay titled "Science: The Endless Frontier." In this essay, Bush conveyed to President Roosevelt that the pioneering spirit was still vibrant in the nation. While addressing challenges like the war against disease, the report also established an outlook that underscored the importance of science and the ongoing funding of scientific endeavors as essential for the welfare of the public.

Just a few years later, the National Science Foundation was established as a result of Harry Truman's initiative, which he communicated to Henry Ford, with the goal of promoting industrial development for national defense. This funding had a profound impact, supporting facilities like NASA's Ames Research Center (formerly known as NACA) and Navy stations in the vicinity of San Francisco. These facilities served as a continual source of engineering talent for the San Francisco Bay Area. This was complemented by the proximity of Stanford University, a college that possessed more land resources than monetary wealth. Stanford University was established from the land grant provided by Leland Stanford, making it land-rich.

In the early proposal, one can observe that a small campus was surrounded by farmland. However, Stanford University did not possess a substantial amount of financial resources. The region held immense untapped potential, and one of Vannevar Bush's former students, Frederick Terman, aimed to unlock it. Terman, a prominent figure in the field of radio science and a professor of electrical engineering at Stanford, had an impressive track record, having worked on projects such as disrupting Nazi radar during World War II and authoring a highly successful radio engineering textbook.

Even before Terman assumed the role of university provost in 1955, he actively sought ways to develop the "Valley of Heart's Delight." A land-use study from the 1950s reveals that Stanford intended to allocate some of its land primarily for campus and residential development. To address its financial constraints, Stanford ventured into real estate development, leading to the creation of the Stanford Shopping Mall, which remains under university lease to this day. Stanford also initiated the Stanford Industrial Park, now known as the Stanford Research Park, with Terman at the helm.

The park, established in 1953, offered affordable 99-year leases to tenants while maintaining a strict development plan aimed at preserving the unique character of Palo Alto. Stanford insisted on low-rise buildings and the preservation of grasslands, which the Valley of Heart's Delight was renowned for. However, Terman envisioned more than just a real estate development on the university's land. He envisioned a symbiotic relationship—a continuous cycle between Stanford and companies, which he emphasized in numerous interviews and speeches.

Terman encouraged this cycle by allowing professors to engage in corporate roles and earn corporate salaries. He also facilitated the enrollment of corporate employees as Stanford students. He took pride in highlighting articles about faculty members transitioning into millionaires due to their corporate affiliations. Terman underscored that Stanford was not only a source of highly trained manpower for these companies but also played a significant role in their development.

Importantly, this cycle was not limited to silicon or semiconductor companies. Stanford Industrial Park welcomed any tenant seeking proximity to Stanford. Houghton Mifflin, a book publisher, staked its claim in the Stanford Industrial Park. Other high-tech but non-computer-focused companies also found their place there, as evidenced in a 1960 photograph.

Under Terman's guidance, Stanford's landholdings rapidly expanded, growing from 120 acres in 1955 to 350 acres by 1960. Terman explicitly stated that this cycle would have an impact not only on the Bay Area but also on the national labor market. It proved effective, as the focus on electronics grew, driven by Terman's personal interest in engineering. By 1960, West Coast electronic firms accounted for 22% of the U.S. electronic market, and this growth continued.

Terman saw this as a competition among regions, cautioning that the Midwest needed to keep pace in electronics or risk falling behind in the nation's electronics industry. He argued that growth industries depended on intellectual capital, and the nation's major universities were the best sources of such talent. Proximity to markets was no longer the sole determining factor.

As a teacher, Terman played a pivotal role in attracting companies like Hewlett-Packard to the West Coast. He personally engaged with them and helped facilitate their move to the region. HP, for example, was founded in a Palo Alto garage, and later, it secured a 40-acre site in the Stanford Industrial Park, solidifying its presence in the area.

Stanford Industrial Park evolved into a versatile platform that could accommodate any emerging industry. William Shockley's Shockley Semiconductor Laboratory is often credited with kickstarting the Silicon semiconductor boom, and it was Fred Terman who actively encouraged Shockley to establish his business in the Valley, which he did in the nearby city of Mountain View. Shockley Semiconductors became a prime example of the final cycle that Terman had set in motion: engineers within this ecosystem would go on to found new companies in the same region. Employees who left Shockley went on to establish Fairchild Semiconductors in Mountain View, and subsequently, these Fairchild employees formed Intel locally, setting off a chain reaction of innovation.

This was complemented by the development of more recognizable companies that had their origins in the industrial park, which was later renamed the Research Park in 1970. Xerox's Palo Alto Research Center, known as PARC, was located there and played a pivotal role in pioneering groundbreaking technologies.

As venture capital gained prominence in the 1960s, nearby Sand Hill Road became an ideal location due to its proximity to the epicenter of Stanford. In 1971, journalist Don Hoefler, a former publicist for Fairchild Semiconductor, coined the term "Silicon Valley" in a series of articles, alluding to the silicon chips that had come to define the region. As Hoefler noted, the rapid pace of development made it hard to believe that the Bay Area's transformation had occurred in just 15 years.

Silicon Valley soon became home to influential companies like Oracle, NeXT, Adobe, Sun Microsystems, and played a pivotal role in the first dot-com boom, with companies like Netscape leading the way. Even in the era of remote work, major players like Meta, Apple, and Google maintained Silicon Valley as a significant hub. Terman's vision was instrumental in making this cycle of innovation and growth possible.

Today, Silicon Valley may have fewer prune trees, but it retains its essence as a modern-day "Valley of Heart's Delight" in all its complexity. This history showcases how Terman's foresight and the collaborative ecosystem he fostered led to the birth and evolution of Silicon Valley.

Thank you for watching this history of how Silicon Valley came into being. Now, let's delve further into the expansion of Stanford Research Park using a historical survey:

By 1965, the park had grown to encompass 500 acres, represented by the yellow area on the map. As the region continued to attract innovation and industry, it expanded further.

In 1970, the light green area on the map illustrates that Stanford Research Park had ballooned to 575 acres, indicating the growing interest from companies looking to be part of the vibrant ecosystem.

By 1975, the dark green area on the map shows that the park had expanded even more, covering 600 acres. This significant growth underscored the area's continued importance as a center for technological innovation.

The blue area on the map, representing the years up to 1980, demonstrates that Stanford Research Park continued its expansion, reaching 700 acres. This expansion mirrored the ongoing success and influence of Silicon Valley, as it continued to attract companies, entrepreneurs, and innovators from around the world.

In summary, the historical survey of Stanford Research Park's growth reflects the enduring appeal and influence of Silicon Valley as a hub for innovation, technology, and entrepreneurship. The vision set in motion by individuals like Fred Terman and the collaborative ecosystem they cultivated continue to shape the region's dynamic landscape to this day.