Diffusion and adaptation: why even the Silicon Valley model is adapted as it diffuses to East Asia

Abstract

Diffusion scholarship expects little adaptation of core elements of policy models. However, the empirical reality is different; diffusion of even highly-regarded models, such as the Silicon Valley venture capital (VC) policy model, results in marked adaptation of the source model. This article asks: why does variance, rather than convergence, characterize the diffusion of the Silicon Valley VC model? The answer to this question lies in conceptualizing policymakers as rational in light of their normative context rather than as wholly rational or bounded learners. I demonstrate why and how the Silicon Valley VC model is necessarily adapted by "contextually rational" policymakers in the geographically, ethnically and economically proximate states of Hong Kong, Taiwan and Singapore. I find that policymakers' interventionist orientations, private sector financing preferences and international versus domestic firm promotion biases drive contextually rational -and unique -adaptations of the Silicon Valley VC policy model. Policymakers' norms are central to shaping how the model is translated into local policy action, meaning we can, and should, expect adaptation as a result of diffusion.

Exporting the Silicon Valley to China

“…A consistent group of critical scholars criticized the social impacts (Benner, 2003), labor divisions (Fuchs, 2014) and economic accumulation driven by "the Silicon Valley myth" warning about ongoing attempts to clone the Californian model around the world (Duff, 2016). While technical studies are still questioning whether the Silicon Valley model could be replicated in other areas (Cook & Joseph, 2001;Etzkowitz, 2011;Fung, Aminian & Tung, 2018;Henton & Held, 2013), empirical researches have already demonstrated that it has been already tested in East Asia (Klingler-Vidra, 2016); other scholars have also investigated the possibility to replicate the Silicon Valley model also in Europe (Aydalot & Keeble, 2018).…”

Hacia una teoría ideacional de la difusión institucional. La adopción y adaptación del presidencialismo en América Latina durante el siglo XIX

“…Pero entre uno y otros pueden mediar también factores ideacionales. Este punto ha sido formulado recientemente por Klingler-Vidra (2015). Según ella, la «racionalidad contextual» puede jugar un papel fundamental transformando significativamente el modelo original 5 .…”

“…Desde luego, la teoría de difusión admite que existen procesos locales de adaptación (Weyland, 2007: 58-66). Durante los últimos años, nuevas investigaciones de corte empírico han insistido en que las diferencias entre las sucesivas copias pueden, incluso, ser muy significativas (Klingler-Vidra, 2015).…”

“…La literatura sobre difusión, lejos de ignorar el papel del contexto, acude crecientemente a él para explicar las diferencias entre las réplicas locales y el modelo original (Weyland, 2007;Klingler-Vidra, 2015). Más allá de diferencias entre naciones y de vaivenes temporales, los presidencialismos del sur terminaron pareciéndose entre sí y teniendo una diferencia sustancial con el modelo de Filadelfia.…”

Policies for financing entrepreneurship through venture capital: learning from the successes of Israel and Taiwan

“…During the past four decades, over forty countries have implemented policy attempting to create local VC industries (Brander et al 2014;Klingler-Vidra 2015;Wright et al 2005). Partly stemming from these policy attempts, VC has spread widely, as has the limited partnership as an organisational form (Aizenman and Kendall 2008;Guler and Guillen 2010;Mayer et al 2005;Megginson 2004).…”