Please pardon the following rant, but am I the only one tired of the “East Coast vs. West Coast” innovation-envy conversation? It’s so mid-2000s.
Not clear on what I’m talking about? For those of you who don’t get out much, the script goes like this: You’re at a cocktail reception in the Boston area, most likely Cambridge or Waltham. Someone asks why Boston doesn’t have a consumer home run like a “Google” or a “Facebook” or, more recently, a “Twitter” to capture the hearts and minds of the global innovation economy. The answer, someone replies, is that Boston investors are risk-averse and only West Coast investors are willing to invest in consumer dot-coms. They then cite a laundry list of successful dot-coms that Boston should have had, which is exactly what a West Coast-based Greylock investor (Henry McCance) did during a long-winded interview earlier this week: “There is no compelling reason (like proximity to semiconductor companies) for the consumer e-commerce companies to all be in Silicon Valley, other than thought leadership. But that was enough to have Google, Yahoo, CNET, Facebook, MySpace, YouTube, LinkedIn, Amazon, etc. all locate on the left coast.”
Now, I don’t deny that having a “name-brand” tech company with a large market cap would make it easier for Boston to win the cocktail-conversation game, but I would like to offer up a couple of counterpoints:
One, stop including Amazon.com in the list of Silicon Valley companies you cite when you list your winners. And stop comparing California to Massachusetts. Both arguments are specious. Last I checked, Amazon was based in Seattle — 800 miles from the Valley. And California, by sheer land mass as well as by population, dwarfs not just Massachusetts, but all of New England. By the logic used in this argument, the Boston tech community should start including all of the tech startups from Reston, Va., to the Canadian border. And that includes New York (which by the way has a pretty active digital media startup community. Proof: on any given morning, the Boston-to-LaGuardia shuttle has a couple of local VCs on it.) And if we’re including New York, then I hereby claim Foursquare as a “local (i.e., East Coast) startup.” I won’t claim to know whether it will ever make money, but that never stopped Twitter (whose early investors, by the way, were both on the East Coast).
Two, stop claiming we don’t have retail-oriented online companies. Do we have a Google that started here? No. But where is Google’s second-largest engineering brain trust? Kendall Square. We’ve got a bunch of up-and-comers. Think: Harmonix, Zipcar, iRobot, Carbonite, even LogMeIn. And let’s not forget some other tech innovators that are still alive and kicking, from Monster Worldwide and Bose Corp. to a little one we’ve been writing about for years: Staples.com, which is second only to Amazon as the nation’s largest, Internet retailer. Granted, none of these is Facebook. I get it. But tech jobs are tech jobs and revenue is revenue, and every region in the U.S. (except one) wishes it had what Greater Boston has — including Seattle.
Does New England still have work to do? Of course we do. Our tech salaries aren’t where they need to be, we could be doing more to help build a stronger critical mass of brand-name tech companies, and we could also improve on newly emerging tech opportunities including cloud computing, mobile tech or health IT. But that just means we’ve got a nice healthy list of things to do. And we can’t get real work done if we keep treading over the same tired conversational ground we should have left behind years ago.
Lastly, please stop claiming Harvard as a benefit. When Jeff Bussgang, a VC with Flybridge Capital Partners, was quoted by Fast Company about the strengths of Boston’s startup scene, he cited the IP and innovation being spun out of the local institutions that include MIT, Harvard and our research hospitals. While that is both true and helpful, most folks who actually live and do business here would also agree that Harvard’s innovative graduates tend to leave the area and take their ideas with them (Yes, Mr. Mark Zuckerberg of Facebook, I’m talking to you, but you’re not the only one). MIT, on the other hand, has built a critical mass of local tech entrepreneurs with roots here. But other, less-heralded entrepreneurship engines, from Babson to Dartmouth to UMass, spin out innovations and entrepreneurs who tend to stay.
A lot of the problem is perception, and perceptions do beget reality. I’m afraid that’s where we’ve arrived today. Even McCance agrees there’s “no compelling reason” why Silicon Valley should get all the credit for consumer e-commerce companies. So if it’s a matter of perception, then what should we be doing to change that perception?
Is there something MHT can do? Give me your top three perception-changing ideas in the comments field at this link, and if we get enough good ones, we will follow up on this conversation with a list of the best ideas.