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Student’s report
On Economics
by Constantine Nikitin

Contents
Silicon Valley - what is that?3
Stanford University3
Hewlett Packard - the garage myth5
HP: Foundation and first years5
The rise of HP up to the present6
The HP Way - an example of corporate culture for a whole industry7 HP today.7
The rise of Silicon Valley10
Invention of the transistor10
Shockley Semiconductor11
Importance of military funding12
Intel Corp.13
Foundation in 196813
First products - Moore's Law13
"Ted" Hoff's first microprocessor14
Cooperation with IBM in the 1980s15
Intel today16
The emergence of the PC industry17
Altair - the first PC18
The first computer shops19
Homebrew Computer Club19
The Apple Story19
"Woz" and Jobs - the two "Steves"19
The first Apple20
Building up the company21
Apple II - starting the personal computer boom22
Turbulences in the early 1980s23
The Lisa project23
The Macintosh revolution24
John Sculley and Steve Jobs25
Apple today.27

Silicon Valley - what is that?
This question may have occurred to many people's minds when they came across the term Silicon Valley. What hides behind it is mostly unknown to them, although the revolutionary inventions and developments, which have been made in this «Valley», affect everyone's daily life, and it is hard to imagine our modern civilization without them. Silicon Valley is the heartland of the microelectronics industry that is based on semiconductors. Geographically, it is the northern part of the Santa Clara County, an area stretching from the south end of the San Francisco Bay Area to San Jose, limited by the Santa Cruz Mountains in the west and the northern part of the Diablo Range in the east. It covers a thirty- by ten-mile strip extending from Menlo Park and Palo Alto, through Los Altos, Mountain View, Sunnyvale, Cupertino and Santa Clara, down to San Jose.) The name Silicon Valley was coined in 1971 by Don C. Hoefler, editor of the Microelectronics News, when he used this term in his magazine as the title for a series of articles about the semiconductor industry in Santa Clara County. "Silicon" was chosen because it is the material from which semiconductor chips are made, which is "the fundamental product of the local high-technology industries.") Silicon Valley saw the "development of the integrated circuit, the microprocessor, the personal computer and the video game") and has spawned a lot of high-tech products such as pocket calculators, cordless telephones, lasers or digital watches. Looking at our high-tech society in which the PC has become indispensable - both in business and at home, replacing the good old typewriter by word processing - the crucial role of Silicon Valley as the birthplace of the microelectronics and then the PC revolution becomes even more evident. Silicon Valley is also seen as a place where many entrepreneurs backed by venture capital have made the American Dream come true as "Overnight Millionaires." This makes Silicon Valley a philosophy saying that everything which seems impossible is feasible and that improvements in our society can take place daily, as Thomas McEnery, the mayor of San Jose, the capital of the Santa Clara County, puts it.) Thomas Mahon calls it the "economic and cultural frontier where successful entrepreneurship and venture capitalism, innovative work rules and open management styles provide the background" for the perhaps "most profound [...] inquiry ever into the nature o f...
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