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Entrepreneurs in successful clusters build can grow more by supporting networks outside of existing companies.

11 months ago | From Think Growth | Author: steve blank

When the first spinouts began to leave Fairchild, they discovered that fabricating semiconductors reliably was a black art. At times you’d have the recipe and turn out chips, and the next week something would go wrong, and your fab couldn’t make anything that would work. Engineers in the very small world of silicon and semiconductors would meet at the Wagon Wheel and swap technical problems and solutions with co-workers and competitors.
We’re all in this together — A computer in every home
In 1975 a local set of hobbyists with the then crazy idea of a computer in every home formed the Homebrew Computer Club and met in Menlo Park at the Peninsula School then later at the Stanford AI Lab. The goal of the club was: “Give to help others.”
Each meeting would begin with people sharing information, getting advice and discussing the latest innovation (one of which was the first computer from Apple). The club became the center of the emerging personal computer industry.
We’re all in this together — Helping our own
Until the 1980’s, Chinese and Indian engineers ran into a glass ceiling in large technology companies, held back by the belief that “they make great engineers but can’t be the CEO.”
Looking for a chance to run their own show, many of them left and founded startups. They also set up ethnic-centric networks like TIE (The Indus Entrepreneur) and the Chinese Software Professionals Association where they shared information about how the valley worked as well as job and investment opportunities. Over the next two decades, other groups — Russian, Israeli, etc. — followed with their own networks. (Anna Lee Saxenian has written extensively about this.)
We’re all in this together — Mentoring the next generation
While the idea of groups (chips, computers, ethnicity) helping each other grew, something else happened. The first generation of executives who grew up getting help from others began to offer their advice to younger entrepreneurs.
These experienced valley CEOs would take time out of their hectic schedule to have coffee or dinner with young entrepreneurs and asking for nothing in return.They were the beginning of the Pay-It-Forward culture, the unspoken Valley culture that believes “I was helped when I started out and now it’s my turn to help others.”

       

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