Information and Governance in the Silicon Valley Model

  title={Information and Governance in the Silicon Valley Model},
  author={Masahiko Aoki},
  • M. Aoki
  • Published 1 October 1999
  • Economics
October 1999 This paper argues that the truly unique role of venture capitalists is found in their information-mediating and governance functions, which can be understood only in the context of relationships between the "clustering" of entrepreneurial firms and (a club) of venture capitalists. The entrepreneurial firms in Silicon Valley compete in innovation and thus their activities are fundamentally substitutes. Therefore, their information processing activities need to be encapsulated from… 

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