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Why Startup Hubs Work

paulgraham.com

91–98 of 98 posts

Re: Why Startup Hubs Work

#91
post #20
post #6

This is a good piece, but, this is well-trodden ground. This is "economies of agglomeration", and it's basic urban economics. http://en.wikipedia.org/wiki/Economies_of_agglomeration

I didn't mean to suggest that no one realized it was helpful to be surrounded by a lot of people working on the same things. I've written about it a couple times myself. The surprises for me were in the details. E.g. that with startups, people are more willing to help out their peers than in more zero sum fields, and that you need that extra margin of help because startups fail by default.

"that with startups, people are more willing to help out their peers"

I'm going to guess that this happens in the entertainment industry as well. The similarity being that the person you are rooming with or working with who has a bit part on some show with you might be the next big star. So I would imagine people tend to be nice and helpful to people in any field where there is a big prize and it's not easy to tell (like with sports) who the next star or Spielberg might be. Because in addition to skill (which many have, as has been said with acting for example) there is luck and landing that key opportunity that launches your career. And if you happen to have known or have been friends with that successful person it could only help your career.

Re: Why Startup Hubs Work

#92
I hazard that one of the reasons founders are so helpful to each other is simple karma. Just like contributors to open source and developers who blog to share what they've learned.

Re: Why Startup Hubs Work

#94
post #44

A question for PG (or anybody willing to answer it): Is there much difference between living in San Francisco and Palo Alto in terms of how much living/working there helps your startup? And in these terms, is there any difference between Mountain View and Palo Alto?

SF and the peninsula are roughly equal. SF might be better if you want web designers, and the peninsula if you want database people.

Mountain View is cheaper than Palo Alto. Otherwise they're similar.

Re: Why Startup Hubs Work

#95
post #94
post #44

A question for PG (or anybody willing to answer it): Is there much difference between living in San Francisco and Palo Alto in terms of how much living/working there helps your startup? And in these terms, is there any difference between Mountain View and Palo Alto?

SF and the peninsula are roughly equal. SF might be better if you want web designers, and the peninsula if you want database people. Mountain View is cheaper than Palo Alto. Otherwise they're similar.

Thank you, Paul.

Re: Why Startup Hubs Work

#96
post #69

Earlier quoted context omitted.

One of the best descriptions: http://steveblank.com/2010/01/25/whats-a-startup-first-princ... "...a startup is an organization formed to search for a repeatable and scalable business model."

So was the first McDonald's a startup?

It was when Ray Kroc took it over and wanted to build a nationwide chain, instead of run a single restaurant.

Re: Why Startup Hubs Work

#97
One could jump start one's thinking on this subject by reading Edward Glaeser's "Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier and Happier" (Reading Jane Jacobs seminal works can only help, too.)

"Cities, the dense agglomerations that dot the globe, have been the engines of innovation since Plato and Socrates bickered in an Athenian marketplace."

He also has section in the book assessing the "Rise of Silicon Valley", and makes the point the "innovation clusters in places like Silicon Valley because ideas cross corridors and streets more easily than continent and seas." And he points out an amazing correlation of the geographic proximity of patent citations. "...even in our information age, ideas are often geographically localized."

As the NYT book reviewer of Glaeser's work put it... "Greater density is the goal: more people means more possibility."

Ergo, a greater density of people working in similar modalities means a greater possibility of achieving within those modalities. It also means that those working in other modalities can encounter difficulty getting support, especially when directly competing for resources with the dominant modality. (I.e., startups v financial services industry for programmers.)

What's different about NYC is that there are so many people in great density, that it's still possible to have vibrant secondary modalities that may never supplant the (multiple) dominant ones. It also means that there may be cross fertilization between modalities not possible in other innovation clusters.

What's different about Silicon Valley is that it's a "city" with a single dominant modality - tech (currently Internet) innovation & startups. You can walk entire blocks in NYC without running into someone involved in a tech startup, or go days without talking tech at a social engagement. That is almost unpossible in SV. So SV's advantage over NYC's shear density of people is a density of people operating in the same modality.

Lastly, there are many geographically distributed innovation clusters/startup hubs that each operate in a different modalities. PG is understandably writing about the types that occur in Silicon Valley, because that's what he's most familiar with. And, they produce undeniable, and very public, results!

Re: Why Startup Hubs Work

#98
What I'd like to explore, is if you can help catalyze the effect PG is talking about by concentrating whatever startup activity exists in a city to one central location. In other words can you fake a hub, and thereby encourage its growth, by 'artificially' concentrating this critical mass of people?
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