Covering an area of 1，500 square meters， Silicon Valley， alternatively known as the Santa Clara Valley， is located in the southern San Francisco Bay Area of Northern California of the United States. The roughly 25-mile-long valley is known for the researches they carried our earlier and the silicon chip innovators and manufacturers in the region.
Figure 1: Map of Silicon Valley
High-tech science parks in the U.S. and other countries are constantly developing， though， Silicon Valley， a kingdom of electronic and computer industries， remains as the pioneer and center of hi-tech innovation and development. Benefiting from the innovative resources and cultural environment of Stanford University， UC Berkeley and other leading American universities， Silicon Valley also owes its success to the following factors:
Figure 2: Bird’s eye view of Silicon Valley
1. Superior Geographical Location. Close to the Pacific， Silicon Valley enjoys a typical Mediterranean climate featuring warm and humid with an annual average temperature from 60℉ to 80℉， earning its the reputation of natural air conditioner. As one of the world’s most beautiful cities， San Francisco boasts of completed infrastructure， evergreen scenery， beautiful environment， wonderful beaches and numerous national parks， which provides a livable and business-friendly environment for hi-tech talent.
Figure 3: Scenery in Silicon Valley
2. Talent-friendly competitive environment: As a world-renowned hi-tech science park， Silicon Valley is a magnet for world’s top talent and advanced technologies， and the birthplace of over one fourth of global unicorn companies， including Google， Facebook， Hp， Intel， Apple， Cisco， Oracle， Tesla， and Yahoo. One of the main reasons that draw talent to Silicon Valley is its talent-friendly environment which encourages talent mobility. Talent in California is not subject to any non-competition agreement， which means that if an employee job-hops to another company， his former employer has no right to file a charge against him nor is he subject to any legal punishment. High talent mobility promotes enterprises to compete for experience talent by offering bonus， stock options， and interesting projects， leading to the optimization of human resource management system.
Figure 4: Enterprises distribution in Silicon Valley
Figure 5: Development stages of Silicon Valley
3. Sensitivity to economic cycles: from 1950 to 2015， each development stage of Silicon Valley was correspondent with a economic wave from national defense industry， integrated circuit， personal computer， the Internet， social media to the IoT...and for each of the waves， you can find its most representative enterprises in Silicon Valley. From semiconductor to social media， Silicon Valley used its sensitivity to economic cycles to seize every opportunity presented by each economic wave and has thus gradually grown into the promoter and leader of new waves of global economy.
Figure 6: Development cycles of Silicon Valley
4. Magnet for venture capitals: According to the NVCA, Silicon Valley has attracted one third of venture capitals across the U.S., and is home to the world’s largest venture capital organization, KPCB.
Figure 7: Growth of Silicon Valley’s venture capitals
Silicon Valley is boasts of world-leading incubators. The number of A round financing completed by companies with the support of 3 American major incubators in Silicon Valley accounts for 10% of that completed by all American companies.
Figure 8: The proportion of the number of A round financing completed by 3 American incubators in that completed by all American companies