SILICON VALLEY TAKES SHAPE ANEW IN MORE GLOBAL LOCALES
During the last decades of the 20th century, Silicon Valley was the unparalleled epicentre of high-tech innovation. Other regions tried to imitate its success, but none succeeded. France’s Sophia Antipolis, a top-down attempt by the government to create an innovation hub near Cannes, never evolved beyond its origins as a relatively tranquil technology park — notwithstanding its mythological name, California-like weather and the surrounding area’s unbeatable gastronomy.
In the 21st century, however, competition for Silicon Valley has become fiercer — as reflected by the increasing number of locations affixing the chemical element to their names such as Silicon Alley (New York), Silicon Wadi (Tel Aviv) and Silicon Sentier (Paris). In London, for example, the emergence of Silicon Roundabout in the late 2000s caught the British government almost by surprise. Now rebranded Tech City, the innovation hub in the old Shoreditch neighbourhood has evolved into one of London’s key economic engines and talent magnets.
Similar scripts are playing out around the world. In Berlin, a new start-up is said to be founded every 20 minutes. Paris is busy building what will be Europe’s largest incubator at Halle Freyssinet. And in Tel Aviv, the phrase “start-up nation” has gone from a political slogan to economic reality. For the first time, “unicorns” (start-ups that reach a valuation of more than US$1 billion) are no longer the exclusive preserve of the US. A bright generation of youth around the world, from Mumbai and Prague to Kenya and Singapore, is betting on innovation, while US venture capital funds, sustained by access to cheap financing, are sating their investment appetites abroad.
There are several factors behind this phenomenon. In a globalised world, capital flows have accelerated and extended their reach. Innovators around the world are able to muster support from traditional venture capitalists or from crowdfunding platforms such as Kickstarter. Ideas move even faster — propelled, sustained and strengthened by the internet. And the ability to turn them into reality is keeping pace as global supply chains and new technologies such as 3D printing reduce implementation times.
Meanwhile, the great recession that followed the 2008 global financial crisis has disrupted traditional industries while creating a large surplus of creative talent and affordable workspaces. As a highly mobile, well-educated, risk-taking workforce converges on urban hubs, the excitement of city life coupled with the availability of co-working spaces and a variety of supporting mechanisms helps to sustain innovative momentum.
Speaking at Stanford University’s 2013 commencement, former New York City mayor Michael Bloomberg quipped: “I believe that more and more Stanford graduates will find themselves moving to Silicon Alley, not only because we’re the hottest new tech scene in the country but also because there’s more to do on a Friday night than go to the Pizza Hut in Sunnyvale. And you may even be able to find a date with a girl whose name is not Siri” (the digital personal assistant installed on Apple’s handheld devices).
Mr Bloomberg is generally credited as one of the major forces behind Silicon Alley. During his tenure in office, he funded early-stage technology companies, hired the city’s first chief digital officer and launched a new university to develop high-tech talent.
As a recent World Economic Forum report highlights, cities are rapidly becoming not just drivers of innovation but also testing grounds for new technologies such as reprogrammable space, self-driving mobility, urban farming and intelligent street lighting. Meanwhile, vehicle-hailing apps such as Uber and apartment-sharing platforms such as Airbnb demonstrate how cities have become some of the most fertile environments for technological development.
Most likely, this proliferation of innovation is just the beginning. As the internet continues its penetration of all aspects of our lives, we are entering what the computer scientist Mark Weiser has called the era of “ubiquitous computing” — a time when technology is so prevalent that it “recedes into the background of our lives”. Before long, the digital and physical worlds will be indistinguishable.
The era of “Silicon Everywhere” is upon us, and it is taking shape in the world’s cities.