Its glass half-full again, the region
retools for another revolution. Will it be boom and bust
redux?
Russell Hancock has a job few people would have coveted over
the past few years. As president and chief executive officer of
Joint Venture: Silicon Valley Network, Hancock has been trying to
figure out how the busted area might reinvent itself - no mean feat
when the entire region seemed lost in a pessimistic cloud, its
leading industries left for dead. You might think he pined for the
boom days. Nope. "That period was a time warp. It meant nothing; it
had nothing to do with reality," he says. "We're resuming life now
as normal."
That's true, but only to a point. A lot has changed in the years
since the boom began. Already, in the jobs being created, one can
see the outlines of a Silicon Valley reinvented on the rebound.
New jobs aren't coming from old standby industries like silicon
chips and software design, but from areas like biotechnology, life
sciences, healthcare, and nanotechnology. The valley has advantages
in these areas - intellectual capital at area companies and
universities, and a burgeoning R&D community, for instance -
which are among the fastest growing in the U.S. economy. "These are
clusters where we have assets," Hancock says. "Particularly when
you're talking about things coming out of the national research
labs and high-end university research labs. We're encouraged."
It's no surprise to old-timers that Silicon Valley's death has been
greatly exaggerated. People have declared the Valley dead before,
only to see it retool and accelerate again. The question is, what
will drive the rebound this time? Who will benefit? Will it lead to
another boom - and eventual bust? From the busy streets of San
Francisco to placid Palo Alto to the land across the Bay, we probed
some of the sharpest minds in technology. Despite continued unease,
not to mention impatience for the next "revolution," we found a
Silicon Valley convinced good times are near.