Is the US Declining?
Dan Gillmor's Sunday column hits on the issue well. Can Silicon Valley, U.S. Lead in New Global Economy?
The majority of the posters then wander off in to concerns about offshoring and outsourcing, which IMHO slightly misses the point. I think the issue here is about globalization. Pre-bubble (I prefer telecom to Internet) the Valley was THE center for innovation. Scientists and engineers both conceived new technological solutions and partnered with business teams that built the business models that executed them.
The Valley no longer has an exclusive license on new technological solutions. If you examine the geographical origins of the nano deals that Steve Jurvetson has led at DFJ you will find that very few, if any, originated in California. So much for no investing more than 2 hours away from Sand Hill Road. Nano investing is an example of innovations happening away from the core Valley, there are plenty of other examples. The Valley was a leading exporter of globalization - we all looked, admired, enjoyed the schadenfreude and then tried to emulate. In particular, we focused on being technologically better / different.
However, its not just about the technology, the business plan is fairly important as well. It strikes me that there is a fairly unique DNA that is fostered in the Valley / Bay Area (call it what you like) that encourages people to take risks. Not just risks with your personal life, but with business plans and approaches to business. Name a technology business (not a technology service business) in the last 15 years that was not born in the Valley that is a meaningful part of the NASDAQ composite. I am sure there are plenty, but not more than 20-30% of the index and probably less. That's an extra-ordinary concentration of meaningful business start-ups.
So what has this to do with Russian technology? Or what's the take away? Innovation is increasingly global, but the change is less marked in the business leaders who will make the technology in to a business. Which is why DFJ Nexus is being born.
15 March 2004
Is the US Declining?
Dan Gillmor's Sunday column hits on the issue well. Can Silicon Valley, U.S. Lead in New Global Economy?
The majority of the posters then wander off in to concerns about offshoring and outsourcing, which IMHO slightly misses the point. I think the issue here is about globalization. Pre-bubble (I prefer telecom to Internet) the Valley was THE center for innovation. Scientists and engineers both conceived new technological solutions and partnered with business teams that built the business models that executed them.
The Valley no longer has an exclusive license on new technological solutions. If you examine the geographical origins of the nano deals that Steve Jurvetson has led at DFJ you will find that very few, if any, originated in California. So much for no investing more than 2 hours away from Sand Hill Road. Nano investing is an example of innovations happening away from the core Valley, there are plenty of other examples. The Valley was a leading exporter of globalization - we all looked, admired, enjoyed the schadenfreude and then tried to emulate. In particular, we focused on being technologically better / different.
However, its not just about the technology, the business plan is fairly important as well. It strikes me that there is a fairly unique DNA that is fostered in the Valley / Bay Area (call it what you like) that encourages people to take risks. Not just risks with your personal life, but with business plans and approaches to business. Name a technology business (not a technology service business) in the last 15 years that was not born in the Valley that is a meaningful part of the NASDAQ composite. I am sure there are plenty, but not more than 20-30% of the index and probably less. That's an extra-ordinary concentration of meaningful business start-ups.
So what has this to do with Russian technology? Or what's the take away? Innovation is increasingly global, but the change is less marked in the business leaders who will make the technology in to a business. Which is why DFJ Nexus is being born.
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