Multi-Factor Criteria Comparison of Successful Information Technology Based Regions: The Silicon Valley, Route 128, and Dulles Corridor (Virginia) Examples

Abstract

Multi-Factor Criteria Comparison of Successful Information Technology Based Regions: The Silicon Valley, Route 128, and Dulles Corridor Examples The evolution of Information Technology (IT) has been equated to the industrial revolution in terms of its potential scope and impact on regions. IT has the capacity to affect the way people work, live, learn, communicate, and govern themselves in particular regions. Since 1996, several researchers attempted to benchmark the growing role of IT in American society contributing to the success of IT based regions, namely Silicon Valley. At the present, the research indicated that there is little available systematic data on the impact of IT in regions. The goal of this research was to evaluate the success factors of information technology based regions and to compare two regions, Route 128 and the Dulles Corridor, with Silicon Valley. The review of the literature indicated ten factors responsible for IT based regional success. Data were collected for seven of the factors for each IT based region. The analyses performed included: Regional Classifications using the Strategic Matrix Framework; Regional Description and Characterization using Microsoft Excel 2000; Regional Comparisons and Evaluation using Expert Choice Professional; and Analysis of Factors. The findings of the Regional Comparisons and Evaluation analysis showed three primary factors explained the economic success of Silicon Valley and other successful IT based regions. The primary factors and their relative contribution to IT based regional success included: Human Capital and Education/Training (34%), Investment in Technological Innovation (30%), and Firm Types and Business Infrastructure (17%). These three factors were highly interrelated. Four secondary success factors included: Information Infrastructure (6%), Transportation Infrastructure (5%), Region Economic Conditions (4%), and Quality of Living (4%). In addition, three other factors including Region Identity, Government Policies/Regulation, and Corporate Culture/Management Styles were required to establish IT based regions. Silicon Valley was the most successful IT based region followed by Dulles Corridor and then Route 128. Over the last twenty years, Silicon Valley was 11% more successful as an IT based region than either Dulles Corridor or Route 128. Hence, the factors that made Silicon Valley more successful are either not being effectively replicated/managed or are not as intense in Dulles Corridor or Route 128.