The fortunes of Silicon Valley and the Tech Industry goes up and down.
And yes, things are always changing.
But this much could be said with good confidence.
The tech scene in my life-time has probably been one of the greatest wealth generators in the history of mankind.
This includes not just California. Also the other innovation hubs including Austin, Boston, New York, Seattle, and so on.
Sadly, my long-time home of Chicago does not make that list. I’ve done business in all those places and believe me, the difference between Illinois and the rest is palatable. Just visit these places and work there for a while. It can’t help but be noticed. VC investments are still below where it should be in Illinois. Even finding an ordinary job is harder than in these more booming areas.
So what made this happen?
Why California, Austin, Boston, New York, Seattle? Why not a place like Chicago? Chicago should be “killer” in startup activity. It has several world-class universities, a dynamic business services environment, inexpensive costs (including real estate), a huge talented labor pool (especially relative to the number of good jobs available – great for employers), great cultural and recreational opportunities, and so on.
Chicago has improved. With private-public efforts such as the 1871 incubator being an example. Groupon is probably the largest startup success from the city. Groupon has generated much more startup and early-stage activity in Chicago than would have likely occurred otherwise.
But Chicago still lags.
There are lots of reasons, including corrupt, ossified government. But here is a big reason best exemplified by two sentences.
When an entrepreneur in California fails, people ask them what they have learned. When an entrepreneur in Chicago fails, people ask him what is wrong with them.
That’s a world of difference in attitude.
Chicago has a stigma around failure. Chicago is still a capital preservation city rather than a capital creation city.
Until that changes, it will lag.
