I just finished watching a PBS doc about Silicon Valley, Robert Noyce, Intel, etc. Very cool. They all managed to attract talent and capital, so what's the problem today?
Serious problem.. The core cause of our national slide into technological irrevelence.
I know you didn't want the long version -- but it's my top cause in life right now.. Sat on a regional tech council panel about a year ago -- and here's the bullet items...
1) Tech investment lost tons of credibility in the mid to late 90s as the "internet boom" grew a bubble. I watch more Jaguar/Ferrari/Rolls dealers spring up per square mile in Silicon Valley than any place outside of Dubai.. Biggest fraudulent transfer of wealth in my lifetime.
2) As a result of the 90s tech bubble, investors learned that HARDWARE based products are largely more expensive and more risky than SOFTWARE based products.. ((kinda contraindicated by the recent evidence, but nonetheless its true))
3) We completely blew up the domestic supply chain for national technology development by off-shoring. It's like an eco-system.. You muck with a couple species and the whole chain is endangered. We HAD the piece parts to build almost ANYTHING. With adequate engineering support from LOCAL manufacturers. I'm talking about the resistors, capacitors, image sensors, motors, switches, packaging, displays, semiconductor parts, printed circuits, etc.. ALL GONE NOW...
4) We convinced our sons and daughters that the SAFE HAVEN for them during Globalization was to shun the tech and hard sciences and go get an MBA.. The story was that we would "allow" the rest of the world to dirty their hands doing the manufacturing --- but that we needed more logistics, economic modeling, and management to control everything remotely.. NOW -- it's hard to find a Smith or Rogers or Jones enrolled in graduate level science and engineering.
5) The damn MBAs took over the Silicon Valley startups. No more TJ Rogers or Noyce's.. And they "OPTIMIZED" the customer bases for the products. Discovered that 2% of the customers ordered 80% of the product.. So they SLASHED applications engineering and sales and customer support. If you don't IMMEDIATELY WANT 1,000,000 pieces of something --- you're SOL... So much for start-ups with a fabulous idea getting any help from vendors.
6) As regards Silicon Valley in particular -- the power outages of the 90s, higher taxes and onerous regulation took its toll.. Couldn't get local PCB boards made economically any more. Intel got tired of losing $8Mill in product when the lights went out.. Housing prices went out of sight, traffic got unbearable and many of us LEFT for better environments.
The ONLY THING that makes a country relevent in a Global Economy is either INNOVATION and TECH or Natural Resources. We're circling the drain and almost down the tubes. And if WE DON'T get OUR KIDS into the right curriculums, and get capital to flow to the right places --- the lights are gonna go out all over this country..