Do Silicon Valley and Route 128 function as diamond-based clusters? Why or why not? What are their similarities and what are their differences? Case 3.1 The rise, fall and resurgence of industrial hot spots: the experience of Silicon Valley and Boston’s Route 12815 The success of high-technology industries in Silicon Valley and the Boston Route 128 region has attracted many followers, both domestically and internationally.

In 1999, there were as many as 88 ‘Silicon Wannabes’: one ‘Silicorn Valley’ (Fairfield, Iowa), one ‘Silicon Sandbar’ (Cape Cod, Massachusetts), ten

‘Silicon Prairies’ (e.g., Lincoln, Nebraska; Payne County, Oklahoma) and five

‘Silicon Islands’ (e.g., Long Island, New York).

Both Silicon Valley and Route 128 prospered after WW II and faced downturns in the early 1980s, though Silicon Valley regained its vitality in the early 1990s, with Route 128 resurging only in the late 1990s. The similarities and differences between the two regions help to explain the functioning of industrial clusters, especially the roles played by venture capital, local universities, local culture, industry structure and technology.