Silicon Valley Contrasts

==Blogger's rant elsewhere ==
====Source: Hooman posted on 12/06/2005====
Mike, I definitely believe that the rapid turnover rate in Silicon Valley contributes to the economic development of the region insofar as it contributes to the diversity index associated with their social network structure. Unlike other regional economies, Silicon Valley has an extremely dense social network characterized by agents with relatively high numbers of cross-sector, weak ties. 
This type of network structure is conducive to economic progress because it bolsters one of the key drivers of development, Recombinative Innovation. 
Recombinative Innovation is a term I use to describe the reorganization of capital into value-generating structures that attract further capital and contribute to positive feedback mechanisms and agglomeration effects. Put simply, the more ties there are between economic agents (lawyers, engineers, financiers, etc) with diverse resources (capital, ideas, etc), the higher the rates of innovation in a region. 
This type of network structure, coupled with the decentralized nature of market-driven economic development, has resulted in a flow of capital to the region. 
Accordingly, I believe that policies and actions promoting this type of network structure will be integral to the future success of Southwestern PA.