Innovation Isn't Real Estate. Why Startup Hubs Waste Money.

Great post from my friend Paul O'Brien at Startup Economist about what cities are doing right and where they're missing the mark when it comes to building startup ecosystems.  

Here's the TL;DR:

"Too many cities are still spending millions on “innovation hubs” that look busy, photograph well, and impress visiting delegations, but don’t actually produce startups that raise capital, generate revenue, or create jobs. I've written about this before and I'll keep beating on it till cities do better. The graveyard of empty incubators is proof enough: real estate ≠ innovation."

I spent 17 years in the Silicon Valley and the last 11 in flyover country, i.e. Arizona. This is so on-point. 

Unfettered cheerleading for every founder that registers a domain and unending pitch competitions to win $25K checks not only don't move the needle, they fail to build the culture and discipline that is essential for startup ecosystems to thrive. In many cases, the underlying business models of these 'innovation hubs' is antithetical to the goal of fostering viable startups.

What this really articulates to me is a roadmap for cities that aren't VC hubs to build the frameworks to replicate (approximate?) the ecosystem value that VCs provide beyond the check. Create active connective tissue at scale and facilitate access to markets and market leaders in the city/region. Create unfair advantages with the unique players and resources in your region. 

To take this a step further - it's also essential to find and engage the 'been there, done that' in your city to create real mentorship, constructive support and to dish out the tough love when necessary. VCs do this at scale, and IMHO it's one of the most under recognized & unappreciated elements of why regions like the Silicon Valley continue to attract great founders and produce great startups. Capital is fungible and portable. This kind of connective tissue is not - you have to build it.