| Abstract: | The classic American innovative hot spots are Route 128 in Massachusetts and Silicon Valley in California. Both had their starts in the mid-1950s and are now well into maturation as they approach 40 years of age. However, both are now showing signs of decline as structural disincentives inhibit entrepreneurs and make new ventures difficult. Within the United States, there are many new innovative hot spots in the formation stage. Two of the most likely up-and-comers, now in their early 20s, are Silicon Gulch in Austin, Texas, and the Research Triangle in North Carolina.In this paper we examine the factors behind the rise and decline of the classic innovation hot spots, examine the new “maturing” hot spots, where they are and how they are prospering, and provide recommendations on what regions of the country must do in order to have a prospering hot spot or to maintain one once it is developed. |
