Study of the factors that have lead to the development of a flourishing information and communication technology (ICT) industry is often based on the Silicon Valley development in the U.S. Given the globaliza- tion of the ICT industry, there is a need to understand the factors which contribute to the development of a successful ICT industry and to determine whether a generic model can be used to gain a better understanding of the forces that shape ICT development in other regions of the world. This study examines the phenomenal growth of the Israeli ICT industry in recent years, growth that is referred to as the “New Silicon Valley.” A generic model for the development of ICT industry is presented. We use the model to compare the develop- ment of the Israeli ICT industry with that of Silicon Valley and with the current state of the Dutch ICT industry. The results indicate that the model holds for both (historical) review of the development of Silicon Valley and for the current state of the Dutch ICT industry. The implications of the findings are discussed
