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Palo Alto and Stanford An erstwhile sleepy university town, Palo Alto has most recently experienced a boom as the hub of Silicon Valley, and driving force of the New Economy. adriatic resort Although a lot of the gilding has lately fallen adriatic resort off the lily, this town has been left with a considerably dressed-up appearance, as well as many fancy restaurants, hotels, and shops. The town is home to prestigious Stanford University, with its beautiful, well-tended campus (see p79). d Hwys 101 & 82