Successful Tech Hubs: Silicon Valley

Successful Tech Hubs:

Silicon Valley

The last shall be first. Meet the world’s pioneer in, well, everything in the Tech Industry. Silicon Valley[1] is home to many world’s largest high-tech corporations and thousands of startup companies. It is a leading hub and startup ecosystem for high-tech innovation and development, accounting for one-third of all of the venture capital investment in the US. Palo Alto, the heart of Silicon Valley is a few miles South of San Francisco, and is the place were Pirates challenge all business rules and the perfect habitat for big ideas for changing the world. The word Silicon is referred to the silicon chip innovators and manufacturers in the region. And Valley refers to the Santa Clara Valley. It was in Silicon Valley that the silicon-based integrated circuit, the microprocessor, and the microcomputer, were developed. The region employees around 250.000 information technology workers. It is the ultimate place to meet CRAZY people, like you.

Founded by a Railroad Tycoon, Standard University early mission focuses on West Coast independence. The goal was to build a self-sufficient West Coast economy. Although computers were around since the 1930s, performance was always an issue. The first silicon device and research manufacturing company was the Shockley semi-conductor. The research conducted here led to the development of the Silicon Valley in 1956. Headed by Robert Noyce[2], the Traitorous 8 engineers embarqued in a new path, one that would disrupt Silicon Valley’s culture and nature, by establishing Fairchild Semiconductor. But they needed an investor and a customer to make their Start-Up succeed. With the creation of NASA, the US created a center to innovate faster that the Centrally Planned Soviet Economy. Fairchild Semiconductor was used in US missiles, the Space Race and consumer electronics industry. As I explained in my Kindle Release “Revolution 4.0 and the Man of Tomorrow”, the Space Race led the US government to great innovations such as GPS, Satellite TV, 3D graphics, which were later put to use by the private sector. The company was created under a concept called “Egalitarian Teamwork”, a typical American concept based on meritocracy. The barriers between managers and workers were broken in order to find the best ideas. This is what is today known as SILICON VALLEY CULTURE. Entrepreneurship is encouraged, engineers value innovation over tradition, and a meritocratic business culture removes barriers in constant SEARCH for SMART SOLUTIONS. This attracts a young culture focused on creating the future through Innovation. The eternal question should be: how do we make things DIFFERENT?

At the Valley, Innovation is everything. Silicon Valley saw the birth of Chips, Homebrew Computer Club, Venture capital firms, Media, Software, the Internet and the dot-com bubble. It has the highest AVERAGE high-tech salary at 150.000 USD. Housing prices though are extremely high, and homelessness is a problem. Some of the notable companies in Silicon Valley include eBay, Facebook, Google, Netflix, Yahoo!, etc. Crystal clear is that money from Venture Capitalists flows like a river. Multiculturalism[3] defines Silicon Valley and is a key reason it is a global economic force, with 50% of the residents speaking a language other than English at home, and 60% of the science and engineering workforce born outside the US. Needless to say that attracting the best workforce from all over the world will of course catapult any Tech Hub, spreading wealth amongst the region. Silicon Valley is an ETERNAL example of what must be done in the Tech field, and has been tried to be emulated everywhere with diverse results. However, despite efforts of copying models, in the end it is the people in that Hub that will make it successful… or not.

Cheers to the CRAZY ONES!!!

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[1] https://en.wikipedia.org/wiki/Silicon_Valley

[2] https://en.wikipedia.org/wiki/Robert_Noyce

[3] http://www.smallbizlabs.com/2010/04/multiculturalism-defines-silicon-valley.html

Successful Tech Hubs: London

Successful Tech Hubs:

London

So far we have seen that low cost and an accessible pool of talented people is present for success in a Tech Hub. But can high salaries coexist with Tech Industry? The answer is yes, through more value added and Innovation. London[1] is the capital and most populous city of England and the United Kingdom, with a population of over 8 million people. It is a leading global city, with strengths in arts, commerce, education, entertainment, fashion, finance, healthcare, media, professional services, research and development, tourism, and transport. It is one of the world’s leading financial centers, a cultural capital, and the world’s most-visited city. It is one of the world’s leading investment destinations, hosting more international retailers and ultra high-net-worth individuals than any other city. It is a multicultural city (this time for real), more than 300 languages being spoken within Greater London.

Tech City UK[2] has the mission to accelerate the growth of London and the UK’s digital economy. The focus is on areas like digital skills, smart capital investment, infrastructure, international development and leadership. With the support of companies like Intel, Cisco and Google, it is now establishing itself as a Global player in the World Economy. Local infrastructure investment includes communication network and superfast broad bands. The Tech Hub[3] is a unique environment where technology startups can start up faster. We nurture an international network of like-minded and focused tech entrepreneurs, providing places where they can work, meet, collaborate, network, learn and have fun. By getting the right people together in a physical space, good things happen. In the beginning, it was just very small businesses, using cheap space as a place to do something. Now it attracts a whole combination of companies, from the big to the small, all there to access TALENT. It is a place to engage people in positive entrepreneurship, to create a better model for the 21th century.

Set up here to access exceptional staff, tax breaks, entrepreneur – friendly visas and investment schemes. Grow faster by tapping into ready venture capital. Access 155.600 digital technology employees in London. Some of the world’s top universities are IT R&D here, while 23.000 students are studying computer science. It is home to 34.000 Digital Tech companies, with a 28% growth per year since 2009. In terms of access to talent, access to market, access to Capital, there is no better place in Europe. It has a strong and solid internal market, and continuously attracts talent from all over the world. It is an engine for Innovation and for culture. It consists of 70 successful co-working spaces across the capital, from Incubators to Accelerators. It is the place where interesting and new exiting things happen, and the ultimate Digital City on the Global Stage. It is a place where creators, innovators and pioneers thrive. It is also a Smart City[4]. I will dwell more on that later. For now, know that, if you are in Europe, London is the place to be.

“I have not met anyone in the world who would not love the opportunity to spend time in London” – Richard Branson.

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[1] https://en.wikipedia.org/wiki/London

[2] http://www.techcityuk.com/

[3] https://london.techhub.com/

[4] https://en.wikipedia.org/wiki/Smart_city

Successful Tech Hubs: Buenos Aires

Successful Tech Hubs:

Buenos Aires

Buenos Aires[1] is the capital of the Southernmost country in the world, Argentina, home to over 5 million inhabitants and defines itself as a multicultural city. Migration though has been from different places of Europe (mainly Southern Europe, but also Northern and Eastern Europe), from Latin-America (mainly Bolivia, Peru and Paraguay), and some from Asia (South Korea a good example). It is referred to as the “Paris of South America”, it’s design and architecture was done by the French in it’s conception. In those days, Argentina was amongst the top 10 richest countries in the world (measured in GDP x capita), and French was the 2^nd language (popular amongst the rich, who would travel to Europe for leisure and to buy the best clothes and perfume). Spanish is the main language, but influenced also by Italian (so much so that the language in Buenos Aires is a Spanish with Italian accent). This is not so for the rest of the country, mainly influenced only by Spain. With a world class health system and strong educational system (especially at public university level), Argentina is the best place to live… in Latin-America. A city known for it’s artistic creativity, it has been house to great writers, musicians, artists and designers. It’s movie industry has blossomed over the last 15 years, the movie “The Secret in Their Eyes”[2] being awarded the Oscar for Best Foreign Language Film in 2009.

Buenos Aires is the leader in the tech field in the Latin-American region, having produced 4 out of 5 top players in the industry. Examples are Mercado Libre, Despegar, Three Melons and Globant. Globant[3] is the country’s flagship and leader in Software, a company founded by 4 argentines that has expanded to 8 countries and has today a workforce of 4300 workers. It’s main focus is Innovation, and it offers a free day to the employees to work on their own innovative project, in the same fashion as Google. Taking advantage of their highly educated and English speaking work force, the number of jobs in the tech field has increased from 20.000 to 80.000 in the last 13 years, with an average growth of 10% a year. Exports are growing at 20% per year, US being the main customer, other markets including Latin-America, UK and Spain. Services include Software Development, IT Services, Financial Services and Commerce. For a country of 43 million people, results are impressive considering competition from a giant like Brazil. As in the case of Spain, lower cost (but not nearly as low as Asia, more like Spain), a highly skilled labor force and more value added make it an attractive destination for international IT business. The talent does not only have good technical competences, but also a resourcefulness that comes from facing cycles of economic booms and busts.

Buenos Aires offers the most solid ecosystem in the region, and most mature Start-Up culture. Following the example of Hong Kong and Singapore, Palermo Valley[4] is a Tech Hub which has effectively helped startup entrepreneurs develop, incubate and launch their product. It seeks to gather and impulse the entrepreneurship and web-developer Network in Argentina, through events, travel, diffusion and other activities. The Technological District Parque Patricios[5] offers tax breaks and office space, very close to the city’s Financial District. And Start Up Buenos Aires[6] offers a place to Network with likeminded people.

Not being a big market, it is a great place to test your product and go for bigger markets in the region (Brasil being the most attractive, house to 200 million inhabitants and destination to 50% of the country’s exports). Some of the challenges involve an unstable economy, corruption, unclear and ever changing “rules of the game”, difficulties in attracting Venture Capitalists and not so well known outside it’s main market countries. If you dare to ride this wave, and survive, you will be ready to CONQUER. That, I promise you!!!   

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[1] https://en.wikipedia.org/wiki/Buenos_Aires

[2] https://en.wikipedia.org/wiki/The_Secret_in_Their_Eyes

[3] https://www.globant.com/

[4] http://www.palermovalley.com/

[5] https://www.globant.com/

[6] http://www.startupbuenosaires.com/en/

Successful Tech Hubs: Barcelona

Successful Tech Hubs:

Barcelona

Barcelona[1] is the 2^nd most populated city in Spain, with 1.6 million inhabitants. It is a very historical and traditional city in Europe, with great arquitecture and culture. It is one of the world’s leading tourist, economic, trade fair and cultural centers, and it’s influence in commerce, education, entertainment, media, fashion, science, and the arts all contribute to it’s status as one of the world’s major global cities. Barcelona is a leading smart city in Europe and a transport hub, with the seaport, an international airport, an extensive motorway network and a high-speed rail line with a link to France and the rest of Europe.

Barcelona Tech City[2] directs it’s activity towards entrepreneurship, startups, small and middle sized companies that develop their activity in the digital business from Barcelona, concentrating in developing the strengths of the ecosystem: promoting business competiveness, connect talent with the business world and connecting big events related to entrepreneurship in the tech sector that are celebrated in Barcelona in the local ecosystem. Barcelona has been selected as Mobile Capital of the World[3], and is working to empower citizens and professionals with new digital skills and to transform education for young people through the use of mobile technology. It is pioneer in digital transformation, with the goal to accelerate the globalization of the entrepreneurial ecosystem, fostering growth and scalability. It is focused in strategic sectors such as tourism, commerce, transport, health and public services.

Collaborative consumption[4] is on the rise, Barcelona being a place where you can share a taxi with a stranger, have dinner at a professional chef’s house or live like a local when you are traveling. Peer to peer platforms have struck an important balance between serving a community in need of support and a reliable source of income, and a local tourism industry in need of innovation. The city is highly influenced by mass tourism, big hotels and cruise liners that dominate the urban landscape. This has given rise to a proliferation of travel start-ups, an example being trip4real, which connects local residents directly with travelers. Low overhead costs caused has helped Start Ups thrive despite economic adversity and the significant lack of support networks for entrepreneurs. The surge in co-working spaces, collaborative spirit and expat energy have contributed towards what has become a tight-knit community not afraid to shake things up.  

The city has rapidly become an entrepreneurial hub, with more than 150 startups sprouting in the last few years, making it one of Europe’s strongest startup ecosystems. Examples of recent success include: ReviewPro, Wallapop, EDreams and Caixabank. Not only Spain’s most successful start-up companies emerged from the Barcelona scene, but also established names have begun to choose the city as a European base to draw in developer talent. Swedish King.com (behind Candy Crush Saga, opened a creative development center in Barcelona, while Spanish Telefonica has built a research and development operation center there. The success in the field comes from it’s ability to attract international talent. With a fantastic climate and location, and easy access to a pool of highly qualified resources, Barcelona appears as an ideal spot to launch a Start-Up and scale it in Europe.

  

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[1] https://en.wikipedia.org/wiki/Barcelona

[2] http://www.barcelonatechcity.com/

[3] https://www.mobileworldcongress.com/

[4] http://www.collaborativeconsumption.com/2015/02/25/barcelona-the-travel-startup-boom-whats-the-connection/

Successful Tech Hubs: Tel Aviv

Successful Tech Hubs:

Tel Aviv

Tel Aviv[1] is the 2^nd largest city in Israel[2] with a population of over 400.000 people. It is a global city and a financial center, and the 2^nd largest economy in the Middle East after Abu Dhabi. It was founded as a State for the Jewish after WWII and is located in the Middle East, but responds to the interests of the West (as a political bloc).  The State was situated inside Palestine, and due to this a life-long conflict persists even today were the Palestines consider that that piece of territory really corresponds to them. Efforts to resolve the Israeli-Palestinian conflict have not resulted in peace, the occupation of Gaza representing the latest armed conflict.  

The country benefits from a highly skilled workforce and is among the most educated countries in the world with a large percentage of citizens holding a tertiary education degree, 90% is connected and has SmartPhones. There are around 5.000 Start-Ups spread across the Nation, of which almost 30% are in Tel Aviv. It currently consists of 1 Start-Up per 400 people. Leading multinational firms such as Google, Facebook, Yahoo! or Samsung have recently established themselves in Greater Tel Aviv. Accelerators, co-working spaces and innovation centers have grown 140% over the last 4 years. Israel has gained presence in the global tech industry, with 75% of it’s production being focused on Tech. It has the highest investment in R&D anywhere in the world, compared to the size of it’s economy (4% of GDP).

Start Up Nation[3]. In the early 1990s the Government set up a special fund called “Yozma”, which means Initiative, whose goal was very simple which was to create a Venture Capitalist Industry in Israel. With an 8 million USD initial investment, they invited entrepreneurs and venture capitalists from all over the world to match the amount granted to them by the government to set up their businesses. The government would help the entrepreneurs get started, but once it got it’s money back would immediately get out of the way. One differential advantage (that cannot be so easily replicable in other countries), is that young Israelis compete to get into the best units into the Army. Once they come out of the Army, they are ready to go into business (and have a Network of Army friends who are doing the same). Ideas start in Israel, but they scale elsewhere. Defense investment has made it easier to innovation in cutting edge technology in fields like healthcare, telecommunication, agriculture and other fields.  

Tel Aviv Start Up City[4] is a thriving, accessible and creative start-up ecosystem, unparalleled in it’s innovation, creativity, synergy, and young brilliant energy. It is a global business center and the ultimate non-stop city. The Start Up Tel Aviv competition is designed to draw hundreds of Start Ups and Venture Capitalists to Network, Sell and Invest in the NeXT big idea. A vibrant international hub of innovation and technology, Tel Aviv is full with investors, entrepreneurs and hi-tech professionals from around the world. The Tel Aviv municipality along with the government, corporate and NGO partners, is dedicated to supporting entrepreneurs and innovators and to helping startups and tech-companies at all levels succeed and excel by lowering their barriers to success. Through city-sponsored and supported local and national policy, municipal tax breaks, co-working spaces, business and partner-led programs, Tel Aviv is fostering an innovative, digital and accessible environment.  

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[1] https://en.wikipedia.org/wiki/Tel_Aviv

[2] https://en.wikipedia.org/wiki/Israel

[3] https://en.wikipedia.org/wiki/Start-up_Nation

[4] http://www.telavivstartupcity.com/

Successful Tech Hubs: Bangalore

Successful Tech Hubs:

Bangalore

Bangalore[1] is the 3^rd most populated city in India with a population of 8.5 million inhabitants. It has been come to be known as the “Silicon Valley of India” since it the nation’s leading information technology (IT) exporter. It is the most ethnically diverse cities in the country, with over 62% of the city’s population comprising migrants from other parts of India. Consider that India was colonized by the British in the 20^th century, but maintains a caste system based on religious beliefs that creates difference in social classes and segregation. Bangalore has undergone dramatic social and cultural change with liberalization and expansion of the information technology and business process outsourcing in India. IT companies employ over 35% of India’s pool of 1 million IT professionals. Consider this is a very small % of India’s population (over 1.2 billion people). 70% of this population lives in rural areas, with 60% of the population over 15 unable to read or write. With over 750 million mobile phones and 41% mobile only with internet access, connecting India is a challenge.

Situation however has though improved for the locals. Whereas before you needed to come from a positioned family and have a college degree to get a job at a call center, today a secondary school degree and knowledge of English is all it takes. Salaries are very low, but enough to live independently in a very low cost country. India, long seen as an outsourcing destination for companies in Europe and the US, is today growing at a pace like China 5 years ago. Due to it’s low cost and highly skilled work force structure, the US and Europe retain the Sales and Marketing and uses India to perform the back-end work. It is mainly an Operations base, which differentiates it from other Hubs like Spain which are more expensive, but also add more value to the final product and services. Engineers must be available 24 x 7 and people work under a lot of stress.  

But now, the country’s IT industry aims to become a global Innovation Hub. It is a Start-Up city, with the existence of a lot of small organized communities which concentrate the city’s talent. It offers easy access to investors and people that can supplement your Start-Up. Most big companies in the world (such as Amazon, Microsoft, IBM, etc.) are established there and actively collaborates in the establishment of a global entrepreneurship program, which helps start-ups to acquire skills for global escalation. Some examples of home-grown IT businesses are Wipro, Infosys and Tata. It is also the base of Biocon, India’s largest biotechnology company.

The International Tech Park[2] Bangalore is the icon of India’s IT success story. It offers a world class business infrastructure home to many Fortune 500 corporations. It’s efficient services and infrastructure include security, fire protection systems, seamless telecommunication networks, optical fibre connectivity and a dedicated power plant. It’s community it composed of 32000 people who make the Park their business address.

The Start-Up scene in Bangalore is one of the fastest growing scene in the world. The young adults are early adopters: young, mobile and hungry for new products. Smartphones have not yet thrived, but are projected to be in the hands of 500 million people in the NeXT 5 years, which give us a fantastic growth potential. Kormangala is a small neighborhood of Bangalore with several startup offices, co-working spaces and founders working out of coffee shops. Startups find it easy to get user feedback, hire talent from other tech companies and find mentors in other successful founders nearby. Some examples of success are the online shopping business Flipkart. Venture Capitalist Funds are now huge checks to finance Start-Ups in the region, confident in it’s growth potential. Some challenges include bureaucracy unfriendly to startups, and a conservative culture that is averse for risk-taking and often fixated on mistakes and failure.

                  

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[1] https://en.wikipedia.org/wiki/Bangalore

[2] http://itpbangalore.com/

Successful Tech Hubs: Hong Kong

Successful Tech Hubs:

Hong Kong

Hong Kong[1] is an autonomous territory on the Southern Coast of China, with a population of over 7 million people. As in the case of Singapore, this was a British colony during the occupation of China in the 19^th century. The territory has developed into a major trade hub and financial center, toping today the 10 richest economies measured in GDP per capita. However, it presents severe income inequality amongst advanced economies. It is a free market economy, with free trade and low taxation. It is one of the Four Asian Tigers[2] (Hong Kong, Singapore, South Korea and Taiwan) for it’s high growth rates and rapid development from the 1960s to the 1990s. Culturally speaking, it is mainly Chinese. However, due to it’s British influence in colonial times it is described as a place were “East meets West”.

In Hong Kong everything advances at a rapid pace: living style, education and a vision to make Hong Kong a vibrant ecosystem for Innovation. Active Hong Kong is a smart city project for a smart future. Hong Kong ranks 8^th in Internet Usage with 96% having access to Internet, and 2^nd in Internet Speed. The idea behind IT Hong Kong is to create a vast information network which combines pre-existing technologies that is constantly available to every citizen in every city. Contactless payments have resulted in easy paying goods and easy travel. The future is about being environmentally friendly, including solar panels for pollution free energy. The Active Hong Kong Hub allows greater connectivity, video-conferencing and the ability to amass vast amount of information, encouraging enterprise and product development. Larger businesses can work together with smaller businesses creating job opportunities.

Hong Kong offers a unique position, on the doorstep of a vast market and manufacturing base in mainland China but benefiting from a British-influenced legal system, clear regulations and low tax. Hong Kong’s economy has historically relied on financial services, retail and tourism. But now they are hopping on the Revolution 4.0 by focusing on two fast-growing global sectors: the IoT (Internet of Things) and financial technology. The number of co-working space has grown from 3 to 40 in the last 5 years. As in the case of Singapore, it is a small market whose purpose is to test the concept to enter the Chinese market and nearby regions. Having a strong banking sector, Hong Kong’s financial technology start-ups are going head-to-head with rivals in other banking centers such as Singapore and London. For IoT, it offers and advantage by being close to Shenzhen[3] (city in China home to Chinese tech groups Tencent and Huawei) and the ease with which you can rapidly develop prototypes. Hong Kong has a fantastic history of consumer electronics and product development. A challenge though is a conservative business culture and lack of Venture Capitalists for funding.

Both Singapore and Hong Kong have a long way to go, but success in Tech is vital to maintain their position as leading world cities.

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[1] https://en.wikipedia.org/wiki/Hong_Kong

[2] https://en.wikipedia.org/wiki/Four_Asian_Tigers

[3] https://en.wikipedia.org/wiki/Shenzhen

Successful Tech Hubs: Singapur

Successful Tech Hubs:

Singapur

Located in South-East Asia, Singapore[1] is one of the world’s last city-states and the only island city-state. A population of 5.5 million people are concentrated in a dense populated area in which lives a multicultural mix of Chinese, Malay, Indian and European atmosphere. So even if Singapore is in Asia, it is very different from China. As many other countries in the Asian region, Singapore was a British colony. The nation’s core principles are meritocracy, multiculturalism and secularism. It is noted for its effective, pragmatic and incorrupt governance and civil service, which together with its rapid development policies, is widely known as the “Singapore model”. Today, Singapore is one of the richest countries in the world measured by GDP per capita. But 50 years ago, Singapore was one of the poorest countries in the world!!!

A great part of it’s success is due to it’s world leading educational system. Capable teachers prepare students to compete with the standard of the world, with the use of technology at the center of the curriculum. Everyone is offered the same quality of instruction, regardless of their background. With 20% of the national budget devoted to education, Singapore has surpassed the US in reading, mathematics and science & technology. Budget is also allocated to teacher development, fully equipped classrooms, and revising their masterplan of the educational system. Focus is also on language through computer innovations, well-equipped teachers, interactive learning, a big budget allocation, and livable learning environment.

The Economic Development Board is an Agency that was designed to encourage business and foreign investment. Electronics, chemicals and biomedical industry have been amongst their top development industries. They have also attracted many foreign companies to set up their regional Asian headquarters in Singapore. The rich of the West are attracted to Singapore due to it’s low taxes, stable government and protective banking laws that keep their accounts secret. High cost of living and real estate prices, however, have thrown many Singaporeans below the poverty line. Singapore is not a huge market in terms of the population. Singapore is a very easy place to step in and formally introduce products in terms of the country’s assistance, and provides the advantage of the connections to the world that can be done from here.

Consider though that Singapore has concentrated in industrial development and the financial district. By attracting foreign investment, they have positioned themselves as the best place for Westerners to conduct business in Asia. However, they have not been very innovative. This new phase for Singapore includes the focus on Start-Ups to produce the NeXT technological monsters in the Asian region. “The Hub” is Singapore’s largest community of entrepreneurs, creatives and techies. It is a co-working space and community located in the heart of Singapore’s museum, arts and design precint. It offers mentorship, incubation, workshops, events, networking and corporate innovation labs. The largest technology convention in tech in Asia’s conference history is being conducted in Singapore. Regardless of lack of innovative history in Singaporean culture (being a very small and remote place in South-East Asia) by attracting the best players in the world that will immediately mean a leap in quality. As the world goes global, attracting foreign investment but also foreign entrepreneurs with a global mindset to scale their business from the local hub towards the region will become more and more important.

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[1] https://en.wikipedia.org/wiki/Singapore