Private Incentive and the Role of Government in Technology Advancement: Silicon Valley, Stanford University and the Federal Government

Most of the literature concerning Silicon Valley consider the entrepreneurship and the presence of Stanford as driving force in technology advancement. However, few emphasis the function of education in Stanford and on the role of government in this process. Thus this paper focuses on the Department of Electrical Engineering at Stanford (DEE) and shows that: • There exists a network of relationships between the DEE and Silicon Valley; • The DEE provides to Silicon Valley highly qualified engineers, and by doing so assures technological improvement; • The Federal Government, through its research support, acts as catalyst of this relationship.