While Intel’s model for R&D is interesting in its own right, the company’s
innovation system extends beyond its approach to internal and
external R&D. Intel operates in the heart of Silicon Valley, and Intel
managers cannot help but note the vibrant innovation community that
surrounds it. As noted in chapter 1, being in the heart of the Valley is a
mixed blessing, for the erosion factors that caused many Xerox technologies
to diffuse out into start-up companies also put Intel at risk.