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Regions, Globalization, and the Knowledge-Based Economy$
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John H. Dunning

Print publication date: 2002

Print ISBN-13: 9780199250011

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199250014.001.0001

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Silicon Valley and the Resurgence of Route 128: Systems Integration and Regional Innovation

Silicon Valley and the Resurgence of Route 128: Systems Integration and Regional Innovation

Chapter:
(p.459) 18 Silicon Valley and the Resurgence of Route 128: Systems Integration and Regional Innovation
Source:
Regions, Globalization, and the Knowledge-Based Economy
Author(s):

Michael H. Best (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0199250014.003.0019

Seeks to address an explanation for the decline and subsequent resurgence of Route 28, the first high‐technology manufacturing region of the USA, in Massachusetts. The decline was combined with the emergence of Silicon Valley (California), which was based on a completely different business model. It is suggested that both the decline and resurgence of Route 28 can be explained in terms of the emergence of a new competitive advantage. This advantage is based on the principle of systems integration in which the old vertical integration model has been transcended by an open system of specialist firms. This thesis is discussed.

Keywords:   California, competitive advantage, economic decline, economic resurgence, Massachusetts, open systems, Route 28, Silicon Valley, USA, vertical integration

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