TECHNOLOGY -!WOW!- ECONOMICS

*SILICON VALLEY  IN CALIFORNIA remains the IT hub of the world. Most, [almost all, if you ask me] IT innovations are generated in Silicon Valley.

Most governments across the globe have tried to replicate so far none have achieved nothing like it.* 

REGIONAL differentials in growth rates among developed and developing countries are an important focal point for nations.

Technology, technological progress and human capital are considered the main driving forces behind the economic progress of developed countries.

Technological progress requires innovation. Innovation takes place where appropriate human and physical capital is present. This in turn attracts more of the same. Therefore, innovation and human capital tend to exist together in relatively compact geographical areas.

Hence, knowledge becomes 'sticky', it remains limited to specific places. For example, Japan, is a  technological hub and has remained so for many decades.

London is one of the  financial capitals of the world. The financial know-how has mostly remained within the realms of London. Knowledge spill-over  does take place, but research suggests that it extends only to a distance of around 90-100 kilometres.

Similarly, innovation intact in specific places. For example, Silicon Valley in California remains the  IT hub of the world. Most IT innovations are generated  in Silicon Valley.

Many governments across the world have tried to replicate Silicon Valley, so far none have achieved nearly anything like it.

A vast body of economic research has focused  on  success stories  like  Silicon Valley as find out the mechanism through which  innovation takes place.  There is no single explanation that could help us understand it

However, many reasons could potentially point to the success of such regions, like the accumulation of human capital and proximity to top universities  powering the tech hub, as is the case of the University of California, Los Angeles, and Stanford University in California.

Hence, we find that explaining regional differences  in growth on the basis of innovative activities  depends on the understanding  of  the procedures through which knowledge is created and transformed into growth.

The Honor and Serving of the latest Operational Research on Future, Technology and Economic progress continues. The World Students Society thanks author and researcher Faryal Jehnagir - London School of Economics and Political Science, UK.