gional and environmental variables that create a "business culture" specific to the region. We believe that the interviews attest to this reality.
Nor would we portray the culture or environment of the Valley as laudatory in all regards. For example, with respect to environment, everyone agrees that a dominant weakness is that the sheer physical ecology of the Valley is beginning to constrain its potential. The double- edged ecological sword poised to limit future growth is housing and transportation.
FEDERMAN (Monolithic Memories): Housing is a stumbling block, especially for people who grew up in the Midwest or the East. There is a quality of neighborhood and house to which they aspired that is not achievable here. It is rewarding to live on two acres surrounded by trees. Stable neighborhoods are attractive rewards. While we in Santa Clara can create exciting equity packages, even that enrichment often fails to deliver some of the basic wants and/or needs.
Increasing population density, an impacted transportation network, increased pollution, and a high cost of living are all taking their toll.
A more radical threat is the maturing of the electronic industry itself and increased international competition. Doomsayers say that "Silicon Valley" focused on electronics will see an aging and maturing cycle not unlike machine tools and automobiles. Optimists argue that while certain types of products may mature and take on attributes of a commodities oligopoly, the electronic revolution is still in its infancy, and "user friendly" adaptations to meet new needs will be virtually endless. They argue the flexible, fluid, market-technology, driven, innovative culture of Silicon Valley will allow for future generations of entrepreneurs to replicate the Silicon Valley success story independent of the fate of selective older companies.
However, regardless of one's prognostication of the future, or personal evaluation of the pros and cons of the culture of the present, there is no doubt that it would be difficult to replicate in other regions the unique business culture which exists in Silicon Valley in 1986.
Finally, is it a model for the future? Many authors argue that loosely coupled fluid organizations are prerequisites for organizations which wish to focus on innovation. Silicon Valley is a laboratory which conveys both some of the advantages and disadvantages of such organizational models. It is clearly not a culture for all businesses or all individuals but deserves careful scrutiny as we look toward the future.