Geography helps explain the success of Silicon Valley

Silicon Valley is commonly used nickname for the southern part of the San Francisco Bay Area in California. Silicon Valley is a specific geographic area - the northern part of Santa Clara Valley and surrounding communities on the San Francisco Peninsula and in the East Bay. Its name, however, comes from the world of technology. This area has a high concentration of compute-related companies that make and use silicon chips. How did this small area become the center of such an innovative and successful industry? Many people point to geographical reasons to explain Silicon Valley's high-tech success. Pleasant climate and available space are two geographical features that attract people and companies to Silicon Valley. These features hold them there after they arrive also. In a survey of Silicon Valley companies, more than two-thirds rated the location and climate as outstanding.

Other factors have helped Silicon Valley's success as well. Although the area exists in a valley, it is not isolated. There are major universities - a key factor in the spread of new ideas and in training workers. It is also close to San Francisco, a major city and financial center. This means investment money is available.

Some of the biggest markets for Silicon Valley's products are the countries across the Pacific Ocean: Japan, Taiwan, and South Korea. And the bay city of Oakland is one of the few major ports on the West Coast of the United States, making it easier to exchange goods. These geographical advantages have helped Silicon Valley overcome some of the barriers to trade that exist in other regions. They encourage rather than inhibit business relationships.

When you consider geography, access to new technology and technicians, availability of investment money, and ease of transport, there isn't much to prevent Silicon Valley's growth and success. The bottom line is, Silicon Valley is the heart of the high-tech industry in the United States, and that's not going to change anytime soon.