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The Impact Of Social Media On The Economy Of Silicon Valley

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Introduction

For decades now Silicon Valley(a nickname for the San Francisco Bay southern region)has been the capital for major US technology firms and has become a thriving ecosystem for innovation. Household names in tech ranging from Apple to WhatsApp continue to drive innovations that improve or replace today’s major industries and business practices. Although many start-up companies fail to gain traction or wide spread success, a handful of companies have risen to world-wide success and multi-billion dollar valuations at a pace never before seen in business history. The well-known social media company Facebook has built a value of over $245 Billion dollars(greater than the value of Wal-mart) and the car service phone application Uber has seized a notable share of the taxi cab market although neither company existed 12 years ago. These rapid innovations and general culture of innovation are overthrowing well-entrenched incumbents and revamping the structure of a diverse array of markets. Destructive innovation, however, is not a new concept. Technological advancement has been the cornerstone of growth for most economies and particularly for the United States for hundreds of years. The railroads seized the market that once belonged to horse drawn carriages and the digital camera brought an end to the dominance of the Polaroid camera. Disruptive innovation and growth lead to the reallocation of value amongst firms within any given sector and between the sectors of the

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