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Boston Got There First. Then It Lost the Lead to Silicon Valley on Purpose.
Route 128, completed in 1956, was the nation's first real high-tech corridor -- built on the same defense-money mechanism this site already found in Silicon Valley, just five years earlier. MIT Lincoln Laboratory, chartered in 1951 to build the country's first continent-wide air defense system, cost more than the Manhattan Project. Ken Olsen, an MIT Lincoln Lab engineer, took that federally funded computer research straight into Digital Equipment Corporation in 1957. By the 1980s Route 128 should have been Silicon Valley -- it had the head start, the federal money, and the university. A landmark 1994 study found the real reason it lost anyway: Silicon Valley's open, competitive networks out-adapted Route 128's closed, secretive corporations, generating triple the jobs and 25 times the market-value growth in the same years. What Route 128 lost in computing, Cambridge kept in an entirely separate industry: Biogen's 1978 founding, chosen specifically for Cambridge's regulatory readiness on recombinant DNA, became the reason this site's own graph now holds 103 Boston biotech companies against just 6 in semiconductors and hardware -- the exact ratio the 1994 divergence predicted, still measurable today.
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