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Silicon
Valley: Replicating a
culture of innovation
BY TASNUVA BINDI
March, 2014
Original: http://www.startupdaily.net/2014/03/australia-vssilicon-valley/
Every region dreams of becoming an innovation hub like Silicon Valley
the foundation for tomorrows startups. But none have been able to
successfully recreate the magic that inhabits the region.
Since the 1950s, experts have been trying to solve the Silicon Valley
enigma. There was something unusual happening in the region
particularly in the field of innovation and entrepreneurship. Upon
further research, they found the answer to what makes Silicon Valley
tick its the people.
But what kind of people?
According to CIO, Silicon Valley is home to social outcasts, radical
libertarians and nerdy geniuses who just want to be left alone. Its not
just physical isolation they desire, they dream of fleeing society
completely and building tech-utopias.
Apparently, this is no exaggeration.
In a less extreme description, we can say that Silicon Valley is where
technology luminaries, visionaries, risk-welcoming investors, and serial
acquirers co-exist. It is a place where opportunities are abundant for
the entrepreneurial-minded.
2.
3.
4.
eventually be solved.
Supporting mechanism: Strong venture capital community;
company policies that dont punish reasonable mistakes; and fluid
employment market.
5.
to compete on the world stage, show off their talent, make the biggest
impact, and access the types of opportunities that they might not have
locally.
There is something disheartening about this statement.
If all our home-grown talent moved abroad, then how would we to
thrive as a nation?
It would certainly be nice if we didnt feel the need to take our skills
overseas given our skills and work ethic are our best assets.
To have our talent flourish on our soil, we need to have the same
appeal that Silicon Valley does.
While we can try to copy Silicon Valley, its very unlikely that we will be
able to successfully replicate the culture because theres at least half
a centurys worth of effort that makes the Valley what it is today.
We would need to have the same series of events occur in the same
chronological order with the same people for us to be anything like the
region. We would need history to repeat itself in an entirely different
location.
Mark Zawacki, Founder of Silicon Valley-based consulting firm 650
Labs, believes the reason why no region can replicate Silicon Valley is
because its ecosystem is more sophisticated than just having a highdensity of startups.
In his article, Why the Next Silicon Valley doesnt really exist,
Zawacki points out that Silicon Valley has a critical mass of serial
acquirers. Indeed, Silicon Valley is home to high-tech luminaries
including Apple, Cisco Systems, eBay, Google, Hewlett-Packard Co.,
Intuit, LinkedIn, Oracle, Sun Microsystems and Yahoo.
There is a sizable cluster of Silicon Valley companies with the balance
sheets and foresight to make very large acquisitions, he writes.
that Silicon Valley offers easier access to investors, but has a slightly
different way of looking at it.
How much investment do you really need to launch your idea? And
how hard do you think it will be to make someone realise its worth
investing in?
Do you honestly have an exciting new idea with a clear path to a
worthwhile market?
Do you need a few developers, a designer and some marketing help for
a year to see if its actually possible?
Then you can do it from Australia.
Founder of Pollenizer and a respected personality in Australias startup
scene, Mick Liubinskas, believes that most companies can be based in
Australia and have global sales with an office in the US.
My view is that some companies should be there based on
partnerships and business development If you can get global sales
without raising capital, then do it and stay in Australia. If you are a
consumer business or need a lot of capital before you get sales, then
you will probably have to go to the Valley, he says.
Liubinskas adds, however, that keeping more companies based in
Australia while having global sales is critical to building the compound
interest for our ecosystem.
We need to put more focus on sales and drop the focus on capitalraising.
So, move or stay?
Some Australian founders cross the border of optimism and fall into
idealism thinking that as soon as they set foot in Silicon Valley, they
will be greeted with a cheque.