High-Tech Start-Ups and Industry Dynamics in Silicon Valley
Junfu Zhang

July 2003

Silicon Valley's enterprising high-tech industries are driven by innovation, and each new wave of innovation is usually led by creative entrepreneurs starting new firms. However, after great economic success in the 1990s, Silicon Valley is now enduring a deep recession. To better understand the region's past successes and future prospects, the author examines business formation, growth, mortality, and migration in the valley during the 1990s, analyzing how the region's economy evolves and operates through these dynamic processes. He concludes by offering a number of specific recommendations for ensuring the vitality of the region.