Chapter 7
Although SF has had a long, rich economic history, the most fascinating economic “boom” is the Silicon Valley.
Stanford University, located some 35 miles south of San Francisco City, was the birthplace of technology. As early as the 1950’s, Stanford had some of the top minds of technology researching and developing. Innovation was happening at Stanford. From here, IBM, Apple was born. Research funding money was thrown at many companies to create and develop. This place, which became to be known as Silicon Valley (first used in 1971), became a very distinctive and new cultural place of our time. Although Silicon Valley is not the only place in the world to be a city where its culture is rooted in creation of technology, it was the first of its kind.
According to our book, Manuel Castells, a sociologist who researches information and communications, has described this kind of characteristic city which has popped up world wide as “milieus of innovation.” This describes an urban areas who’s main goal and function is to generate new knowledge and products. Certain conditions such as centers of research and development must exist; access to a large pool of innovators or scientist; and the availability of capital.
So how does the city of San Francisco have anything to do with Silicon Valley? San Francisco is not the place where parts for these technologies are manufactured; parts are relatively light, therefore production can happen mostly anywhere, economically, and transported at a low cost. Silicon Valley is not a bustling metropolis. It is safe to say that most people are attracted to cities that have a lot of amenities to offer such as entertainment and cultural scene, therefore, the closest city that fits these desires is San Francisco, only 35 miles to the north.
With the influence of Silicon Valley, San Francisco kind of had its own milieus of innovation: the dot-com company (1995-2000). These were companies that presented themselves on line and offered unique services to the web-surfer. Anything from gaming on line, toy stores, bookstores, and independent internet companies, just to name a few. But they all had one motto in common: get big fast!
Dot-com companies and new Silicon Valley residents is how San Francisco was affected.
The adverse effects of this was a loss of many jobs when the dot-com’s became dot-bombs (around the year 2000) due to over spending and getting big too fast; and the displacement of long time residents by wealthier people from Silicon Valley and the dot-com’s moving in, which caused property to increase. This moving in of the more wealthy which caused real estate to soar, displaced lower income residents, such as cooks, janitors, waiters, teachers, those who help the daily function of the City work. The latter were now commuting into the City they served, living elsewhere, while the wealthy were driving out of the City to their jobs in Silicon Valley.
Long time residents of the City who survived the dot.com/Silicon Valley craze are now seeking to restore San Francisco to a place of character and diversity, not just a place for the rich.
Stanford University, located some 35 miles south of San Francisco City, was the birthplace of technology. As early as the 1950’s, Stanford had some of the top minds of technology researching and developing. Innovation was happening at Stanford. From here, IBM, Apple was born. Research funding money was thrown at many companies to create and develop. This place, which became to be known as Silicon Valley (first used in 1971), became a very distinctive and new cultural place of our time. Although Silicon Valley is not the only place in the world to be a city where its culture is rooted in creation of technology, it was the first of its kind.
According to our book, Manuel Castells, a sociologist who researches information and communications, has described this kind of characteristic city which has popped up world wide as “milieus of innovation.” This describes an urban areas who’s main goal and function is to generate new knowledge and products. Certain conditions such as centers of research and development must exist; access to a large pool of innovators or scientist; and the availability of capital.
So how does the city of San Francisco have anything to do with Silicon Valley? San Francisco is not the place where parts for these technologies are manufactured; parts are relatively light, therefore production can happen mostly anywhere, economically, and transported at a low cost. Silicon Valley is not a bustling metropolis. It is safe to say that most people are attracted to cities that have a lot of amenities to offer such as entertainment and cultural scene, therefore, the closest city that fits these desires is San Francisco, only 35 miles to the north.
With the influence of Silicon Valley, San Francisco kind of had its own milieus of innovation: the dot-com company (1995-2000). These were companies that presented themselves on line and offered unique services to the web-surfer. Anything from gaming on line, toy stores, bookstores, and independent internet companies, just to name a few. But they all had one motto in common: get big fast!
Dot-com companies and new Silicon Valley residents is how San Francisco was affected.
The adverse effects of this was a loss of many jobs when the dot-com’s became dot-bombs (around the year 2000) due to over spending and getting big too fast; and the displacement of long time residents by wealthier people from Silicon Valley and the dot-com’s moving in, which caused property to increase. This moving in of the more wealthy which caused real estate to soar, displaced lower income residents, such as cooks, janitors, waiters, teachers, those who help the daily function of the City work. The latter were now commuting into the City they served, living elsewhere, while the wealthy were driving out of the City to their jobs in Silicon Valley.
Long time residents of the City who survived the dot.com/Silicon Valley craze are now seeking to restore San Francisco to a place of character and diversity, not just a place for the rich.
