The role of venture capital firms in Silicon Valley's complex innovation network
Summary. Venture capital firms play five critical roles in Silicon Valley's innovation network: financing startups, selecting promising companies, facilitating collective learning, embedding firms within the ecosystem, and signaling quality to other investors. These functions create a robust system of interconnected economic agents—universities, large companies, laboratories, and startups—that explains Silicon Valley's sustained innovative success over seventy years and why other regions have failed to replicate it.
Cite this article
Ferrary, M., & Granovetter, M.. (2009). The role of venture capital firms in Silicon Valley's complex innovation network. Economy and Society. https://doi.org/10.1080/03085140902786827
Ferrary, Michel, and Mark Granovetter. “The role of venture capital firms in Silicon Valley's complex innovation network.” Economy and Society, 2009. https://doi.org/10.1080/03085140902786827.
Ferrary, Michel, and Mark Granovetter. 2009. “The role of venture capital firms in Silicon Valley's complex innovation network.” Economy and Society. https://doi.org/10.1080/03085140902786827.
@article{ferrary-2009-role-venture-capital-firms-silicon,
title = {The role of venture capital firms in Silicon Valley's complex innovation network},
author = {Michel Ferrary and Mark Granovetter},
journal = {Economy and Society},
year = {2009},
doi = {10.1080/03085140902786827},
url = {https://doi.org/10.1080/03085140902786827}
}
TY - JOUR TI - The role of venture capital firms in Silicon Valley's complex innovation network AU - Michel Ferrary AU - Mark Granovetter JO - Economy and Society PY - 2009 DO - 10.1080/03085140902786827 UR - https://doi.org/10.1080/03085140902786827 ER -
Details
- DOI
- 10.1080/03085140902786827
- Countries
- United States
- Regions
- North America
- Categories
- entrepreneurship, innovation-networks, funding, general-innovation
- Added
- 2026-04-28