Does the DC Area Stifle Innovation?
February 10, 2008 · Print This Article
This is a question I have pondered often in the past. As many of us in the DC area look at the startup communities in Silicon Valley, Boston, and Seattle, we are left to wonder what is that one tangible, or intangible, factor that allows it to blossom there. And more importantly how we can grow the culture here.
In the end, I think that one main factor that is working against that special culture here is the government. Don’t get me wrong, I am no anarchist or anything, but I have worked in and around government contracting for over 12 years now. And the one thing I have noticed in working for these large contractors is that the government likes status quo. I am not saying that innovation does not occur in and for the government, it does, but at a much much slower pace than it would in an area like the Valley. One aim of the government is an employed population for the most part and “rocking the boat” a little too much could work against this goal. One might argue that the government could use innovation as a better tool for employment and growth. For instance, employing masses to find better energy alternatives.
The other aim of the government is stability. Big changes rarely occur in and around the government. One thing that I have noticed in working for government contracts is the solution they almost always choose, is the one they know works. There are, of course, very innovative people I have come across, but their voices are usually drowned out by the “middle of the road” crowd.
As we are well aware, much of the business and commerce in the DC area revolves around the government and the support of it. This conservative nature is embedded in the culture here. While it is true that there is a generation that is upcoming in the ranks of organizations that “get” the value of new technology and innovation, and major shift will have to take place. Sadly I see many of these new voices take on the same tone as the old school management as they are brought up through the ranks, making the needed shift in thought even harder to attain.
I think as we look at those startup havens mentioned above, the one common thread is the business surrounding the areas. Silicon Valley of course has all the big tech boys, Apple, Sun, Google, and the list goes on. Seattle has Amazon and Microsoft and Boston has the bio tech community which is all about innovation. While DC may have a presence of these companies, it is usually only as a token office in order to interface with the government officials and support contracts. Google just opened an office here, but only to really function as that interface I mentioned before. I think there is a burgeoning tech culture here and has great vibes ad feel and I know people will prosper and do well, but I am not sure if we have the ingredients necessary to have our city added to the list of cities above.
I hope I am wrong.
I think there’s another thing - and we’ve hit this with WhyGoSolo quite a bit - it’s the mindset of the investors…
In various other places, people got rich and into investment due to taking a bit of risk themselves. It paid off and some point and now they’re looking for more. In DC, it’s a bit different people got rich by having the same job/working in the same field for 20+ years and watching their property values skyrocket. They didn’t take risks and made it just fine… so they’re risk adverse.
Does it stifle innovation? Definitely. It quietly convinces innovators and entrepreneurs that DC is not the place for them. That our time and energy is spent better in other markets.
Let’s not take the point to extremes. AOL and I believe some major phone companies were based in the DC area. Legent, Software AG, VM Software, Intersolv, et al. add up to a tiny group compared with software in Boston or SF, but are competitive with most other metro areas. And Seattle used to be a government/aerospace town.
From a tech industry standpoint, the DC area is a lot like Atlanta, Dallas, Chicago, LA, Houston, or Philadelphia. It just falls short of SF, Boston, and Seattle.
Curt,
I am not trying to get to the extremes. True, we did have AOL, but they are gone. Why ? I really think it is in part due some of the points I made above. I agree, DC is like those other cities, but I was just pondering why it isnt one on my list …
jimmy
I’ve felt this way a long time. In fact, it now seems that government is getting a bit more progressive, but those government contractors are the ones that are slow to change. Then there’s a associations, organizations that often completely fear change.
A lot of the technology companies here often provide a “solution” in the BtoB sector. Not glamourous. Companies like WebMethods. We’re short on the WhyGoSolos of the world.
The government is not big into venture capitalism. It is, as you said, on the conservative side in its nature. Innovation can be costly and risky and the government is cheap and risk-adverse. Since they are the biggest game in town, it is easier, and more lucrative, to play it safe in order to land the work.
Jimmy,
i came over to your blog after reading your comment on Nick O’Neil’s post on DC’s startup culture…..great article, Jimmy, on government stifling technology innovation and I agree with you 100%. I don’t think though that it could be any other way, except if somehow we can keep the government sector and the private sector totally separate from one another. (Maybe that is why Silicon Valley is all the way on the other coast:-))Innovation can be a threat to bureaucracies but we cannot quite do without our bureaucracies.
I do my gov business in DC and some of my other business dealings in California and it is the only way for me to stay sane.