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Silicon Valley In China -- Not Any Time Soon, Well Maybe

Posted by Dan on June 5, 2006 at 07:46 PM

The China Herald Blog poses the question of whether China could have its own Silicon Valley and answers it with a no. 

China Herald poses this question based on a list of ten criteria Paul Graham asserts are necessary to duplicate Silicon Valley elsewhere and then does a nice job analyzing those ten criteria with respect to China. 

I do not disagree with The China Herald's analysis of China pursuant to these ten criteria, but I do wonder whether each of these ten things is really required to have another Silicon Valley or whether many of these things apply only to duplicating Silicon Valley in the United States, and even on that I am less than sure all of these things are really necessary.  And what is really meant by "Silicon Valley", anyway? 

Lawyer's prerogative lets me answer the same question with a resounding maybe.  I actually think the short term answer has to be no, but since China changes so quickly, I want to reserve the right to come back to this question in a few years. 

Comments

What I touch is that China is lacking one important thing if it wants to replicate Silicon Valley -- enough workers with high skill of English language. This is where, India has a distinct edge over China.

Mr. Ahmed --

I somewhat disagree. Two reasons. First, the Chinese are learning English at a rapid pace and that is even more true of the techies here. Second, I am not sure it is a requirement that all of the people involved in such industries must speak English. China has 1.3+ billion people; Surely there is room for silicon valley like products that do not require perfect English.

What "Silicon Valley" are they referring to?

The one I began to work in back in 1978-1990 in which manufacturing skills drove the industry? This has already been accomplished.

Or the one that based it's success on innovations in both hardware and software that required collective blendings of industries within the same general geographic locations?
That will be tough.

The other problem is China needs another decade or two of sustained generation of wealth before they can become serious design leaders as well as leading edge thinkers in the field of electronics...like Silicon Valley has been. Let's face it....China is all about "new money" and people with sudden wealth rarely think about anything else except what to spend it on. They still have several years of mass consumerism to get through first. Maybe the next generation of Chinese will be in a better position to tackle such an issue.

Mr. Reed --

Thanks for checking in. You raise a good point regarding to what I was referring to by "Silicon Valley." I guess my answer is that I used Silcon Valley as a metaphor for a center of innovation and new products (be they software, hardware, or otherwise).

Are you saying the Chinese are too focused on spending to innovate? If so, I disagree. There are many reasons why innovation is not yet happening on a large scale in China, but I do not think the desire to spend is one of them as, if anything, the Chinese are big savers, not spenders.

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Silicon Valley In China -- Not Any Time Soon, Well Maybe:

» Silicon Valley In China -- Not Any Time Soon, Well Maybe -- Part II China Law Blog
Just a few days ago I did a short post on whether China is ripe for duplicating Silicon Valley. I gave the lawyer's favorite answer: maybe. Today, the hugely popular and highly regarded Silicon Beat blog, has a post, entitled, []