Spatial Distribution and Regional Agglomeration of High-Tech Regions and Venture Capital

Abstract

In this paper, I will closely examine the Mark Granovetter’s theories related to economic sociology and embeddedness. I will then apply those theories to the study of venture capital and high technology regions. My main research question encompasses the role of networks and social relations and their impact on the formation and development of high-technology clusters. Regions such as Silicon Valley (Greater Bay Area) and Route 128 (Greater Boston Area) are known as knowledge economies and contribute to great economic growth and innovation. While AnnaLee Saxenian spent her time researching the sociology of the emergence of Silicon Valley as a high-tech cluster, I will add to this research by applying the framework she used to study the role of networks within venture capital in Silicon Valley. Venture capital is particularly fascinating to study since this funding is the main driver stimulating local entrepreneurship and the regional economy.