This chapter examines the decline of Silicon Valley from two different perspectives. The first explores the managerial orthodoxies of Silicon Valley, its own self-assessment of the decline, and review of expert commentary on the subject. The second perspective examines and evaluates the specific actions taken by Silicon Valley to encounter its subsiding competitiveness in the global market. Two support membership associations were chartered to promote specific industry segments. The associations represented membership issues and interests through lobbying activities. The associations were: the American Electronics Association (AEA) and the Semiconductor Industry Association (SIA). To respond to foreign competition, some American companies decided to form a technological strategic alliance to regain competitive edge. Virtually all industrial nations, except the United States, have developed and implemented an industrial policy to enhance the competitiveness of their electronic industries. Government and industry in those countries have jointly sponsored research and development projects.