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Summary:

You can’t beat Silicon Valley by trying to be Silicon Valley — so why does Europe spend so much time trying? If the continent’s entrepreneurs want to become true leaders, they need to shake off the past and stop playing a game that’s stacked against them.

Bobbie Johnson speaking at Switch in Portugal, used under Creative Commons license courtesy of Luca Sartoni

Last weekend I made a brief visit to Belfast, Northern Ireland. Most cities are scarred and shaped by their history, but it’s true of Belfast more than most. Wherever you went, shadows of the past were visible.

The docks, once crawling with shipbuilders constructing huge constructing vessels like The Titanic, are now an empty sprawl of wasteland dotted with lonely office buildings. And for anyone who remembers the Troubles, an activity as simple as crossing the road or staying at a hotel can carry chilling reminder of brutality that is not easily forgotten.

It’s no surprise that these difficulties have had an impact on the local startup scene too.

From what I heard, the attempt to build a new entrepreneurial culture is there, but it’s slow going. Northern Ireland’s turbulent existence means that the economy remains massively reliant on the British government (around a third of the population work for the public sector) and it is still working hard to attract investment from outside. Meanwhile, locals are still looking for a real champion, a real victory, beyond bluster and good ole boy networks.

Belfast’s problem is that things don’t get consigned to history: in fact, history stubbornly raises its head at every opportunity, bleeding mercilessly into the present and the future. Northern Ireland’s ambitions are too often scuttled like The Titanic, crushed by the pressure of the past.

But the truth is, Belfast is not alone in this. It may feel like an extreme example, but the whole of Europe suffers the same malaise in some shape or form.

Belfast mural used under Creative Commons license courtesy of Infomatique

Weighed down by the past

From Finland to Faliraki, from Portugal to St Petersburg, Europe is sitting on a vast and varied history that it struggles to move beyond. We’re stuck like flies in amber, our ideas freeze-framed at the moment our societies were at their most successful or most extreme. Britain can’t shake off the arrogance of empire, France clings to its l’exception culturelle,

In a way, this is especially resonant in technology companies — because, after all, they the ones meant to be inventing the future. And because our societies are failing to shake off the worst parts of their legacy and craft a successful vision of where we’re going, we are all left copying Silicon Valley’s idea of what tomorrow will look like.

Look at Nokia — not long ago the world’s biggest force in the world’s fastest growing technology industry, now apparently an also-ran. Although some of its leaders have a bright vision, too many insiders stubbornly cling to a history of greatness that no longer chimes with the rest of us.

Or look at Germany’s attempts to enforce rigid and steadfast privacy rules. These ideas have a totally understandable historical context, but outside of that unique bubble, it would be polite to call them overzealous. Clinging to that history has left German web companies hamstrung while the buccaneering robber barons of the Wild West clean up everywhere else.

The result is that the conversation about our future has become a one-sided dictation from a group of companies who essentially grew out of the same Valley culture. Our tomorrow is their tomorrow.

I was reminded of this failed future when London’s Tech City announced that it had poached top Facebook executive Joanna Shields to run the organization.

Joanna ShieldsBringing in Shields, an American, is definitely a win for the group paid to cheer on London as a startup and technology capital: she’s got more experience at the top of 21st century web companies than almost anyone else, which gives her a stratospheric level of credibility with the investors that Tech City is desperate to court. She’s smart, savvy and sharp: a great hire.

Shields’ record is not as spotless as Downing Street would have everyone believe — for example, masterminding the $650 million sale of Bebo to AOL was a genius move for company insiders but disastrous for everyone else. And then there’s the little fact that she has presided over companies that avoid millions of pounds of taxes from the country she now represents. But there is a rightful sense of pride at being able to prize somebody away from Mark Zuckerberg’s clutches.

However, bringing her in is also an admission that Britain — and Europe — has no other visions of the future to offer. It’s a tacit acceptance that technology, that innovation, can only be built the way they see it in Palo Alto.

Follow your own path

Perhaps you don’t mind. That’s fine. But I think if we want to find some alternatives — or at least explore them — we need to move on from our history, and our obsession with creating “the next Silicon Valley”.

Earlier this year I gave a talk in Portugal aimed at helping people there understand that they cannot win by chasing the Bay Area’s dreams. Every startup hub across the continent talks endlessly about being “the new Silicon Valley”, every PR flack has pitched the and every journalist (including me) has worked on those stories. But that’s just playing somebody else’s game. You can’t be the next Silicon Valley by doing what Silicon Valley does. It will win every time, because the game is stacked in its favor.

The same thing happens elsewhere. I talked about the reporting I did a couple of years ago from Shenzhen, China, where most of the world’s electronics are now built. Those skills, that expertise, are all in one place — and in just 30 years. Now their advantage is so huge, why would you try to beat them?

The problem with “the next Silicon Valley”, I argued, was that we took it too literally. Focus on “the next”: What will the next huge technology-led industry be? What will the next center of innovation that touches everyone be? What will change the world? Find that, get there early, build now around a vision of the future that you really believe in, and reinvention could work. Use the strengths you have locally — things like engineering talent, design culture, customer service, research expertise — but don’t let them dominate you. Don’t let history weigh you down.

Now, I don’t know what that thing is — biotech, next generation manufacturing and data are all contenders that Europe could focus on. But whatever “the next” ends up being, every entrepreneur across the continent, whether they’re in Belfast or Berlin — must stop looking over their shoulder, shrug off the past and stop buying into somebody else’s dream of tomorrow.

Photograph of Bobbie Johnson and Belfast mural used under Creative Commons license courtesy of Flickr users Luca Sartoni and Infomatique respectively.

  1. I think in the next Silicon Valley there must be a: Just do it! Kind of culture. Follow your own path and Ideas. There’s a lot of room left for new Big World Changing Ideas. Sustainable Innovation will be big: just because we have to do it to save the world for next generations. And don’t forget about the customer. Fair trade and design can stand together! Stijn Tebbes Founder Blabook http//:www.blabook.com

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  2. Sometime back I was told, as we looked from the plane flying into SF to work in Palo Alto, don’t stray east of Highway 101 – “a bit like Belfast”. Typically Google ignored such advice and put the plex a few blocks south. When I was in north China no one mentioned silicon valley and now I am in Scotland no one talks about it either and when I did a student complained that it was irrelevant. Lately in the Energy Capital of Europe we have spent money on Hydrogen (a govt initiative), solar (allegedly Aberdeen is an ideal place) and Donald Trump willing wind turbines; I did not vote for any of these.

    What I am trying to say is that my experience is that no entrepreneur in the north west part of Europe feels that doing a Facebook is the way forward.

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  3. Bobbie – completely agree you the thesis that you cant compete by trying to be another SV – but disagree about outcome. Am much more positive about Europe (and Israel etc) finding a really unique and compelling role in the future. Not just by focussing on the way forward but harnessing what’s really powerful in our history as well. Time we had a drink sir :)

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  4. Steve Liddell Monday, October 29, 2012

    Totally agree Bobbie. As a brit who has spent many years in the US, what I see here in the UK is a moribund economy and a bunch of Oxford PPE grads attempting to emulate Palo Alto with a new Silicon-something moniker. The UK, Belfast, Berlin, Israel, Paris all have brilliant engineers – we need to support their efforts and make them wealthy.
    I have not met Joanna, but wish her well. Deal momentum is what will help most of all, not another talking shop with panels and press releases. Get the right investors exposed to the great ideas and perhaps the government to backstop some venture loans. Extend the EIS program to LPs, introduce employment-at-will. Actions (and VC investments) will speak far louder than words.

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  5. r0landharwood Monday, October 29, 2012

    Great post Bobbie. Totally agree there is too much Silicon Valley envy and we ought to plough our own furrow and I’ve had similar frustrations on my own travels. My take for what it’s worth is playing to our strengths ends in a different place, namely as global broker – be it financial, technical, cultural, commercial or creative. The US is of course a great place to do business, because it’s such a large and mostly homogenous market lends itself to mass market propositions. However in Europe, rather we should celebrate our diversity, rather than shy away from it, and the genuine creativity and innovation it stimulates. Also, being right in the middle of the global timezone means we can do business with the whole globe in a single working day. Requires a more service led approach which isn’t always easy to grasp. Anyway thanks for kick off this discussion. Roland

    PS. More musings on this topic here http://www.100open.com/2011/11/towards-global-innovation-ecosystems/

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