Is Silicon Valley the Best Global Entrepreneurial Region: Fact or Myth?

The US is inspiring and pioneered Venture Capital. Often, non-Americans (and even some Americans) believe that Silicon Valley is the role model to follow for new venture creation and a location that provides the best entrepreneurial experience. However, nowadays everyone can easily glean lessons from all around the world about entrepreneurship and business financing, etc. This has accelerated in the last ten years due to the growth of the Internet, social networks, blogs and the proliferation of business schools worldwide. Also, Governments have invested heavily into regional development of innovation clusters all across the world and provision of basic business skills and information to early-stage businesses.

My philosophy is that, no matter what you do, companies end up performing in a regional environment with set culture and behaviours - so the Silicon Valley model does not fully translate to e.g. Paris, Tokyo or Cambridge (UK or US)! Entrepreneurs will do what they do by mainly using their "national" knowledge to build a company and get things done in their local business and legal environment. International development will come later but the management team will probably still maintain a national or regional-centric view of the world. 

To underline the point, the financial returns of the investment funds of Venture Capitalists in the rest of America and Europe have been stated by some to be identical to those in Silicon Valley! A logical conclusion which may back up this view is that American VCs do invest in Europe and vice versa – an activity they would only do if their firms got the same or improved financial returns – not worse? The national or regional Venture Capitalists invest in the best entrepreneurs within their locality who have knowledge of national business infrastructure and an international understanding of their industry to enable them to generate rapid sales from large industry players. With the law of averages, entrepreneurial talent should emerge fairly evenly across the world so investors will always be able to find excellent opportunities and management.

There are many paths to success: Silicon Valley's is no longer the sole route. Let's all of us have more faith in our native entrepreneurial population and their ability to do things in whatever style is prevalent in whatever region or country they live. Diversity is natural and not conformity in most of the world. Entrepreneurs by their nature tend to be innovators who break the mould with new products, services and business models – so “copycats” will likely not be the most successful, in any case.

In today’s world, business productivity is perhaps not by emulation - but by adaptation of global information to your national location to enhance your innovation? From that synergy, comes success. Go glocal (global and local)!

 

This article was written by Dr Frank F Craig MBA. Frank is a successful entrepreneur who has (co-)Founded several biotechnology companies which grew to have a market capitalisation of almost £2 billion. He has worked internationally and performed business development in Europe, Asia and North America. He is a Principal at ATPBio and also manages his own consultancy business, Life Sciences Consultancy Limited.

Comments

[Ketan Shah]

Theoretically true, however, innovators and entrepreneurs sitting in economies and environments where only certain industries and industry sectors have backing and support may not entirely agree.

The valley, to most in these regions is the only option as a “one stop shop”; more so evident in technologies and industries local markets seek mature market validation.