Kill the Competition with Collaboration
There has been a lot of discussion of late in the media, at conferences, and at my own speaking engagements about the merits of West Coast vs. East Coast and large vs. small. To paint with a broad brush, the West houses our technology giants – Google, Microsoft, Intel, Facebook – and the East hosts an ever growing list of small, innovative start-ups, most probably hoping to be acquired by the aforementioned power houses. But if you were to take out your smart phone while waiting to be seen by your doctor, almost every small piece of technology – from microchips to the software your doctor uses to track your diagnosis – was most likely made right here in Boston. We have the know-how, it’s time we start utilizing it.
I’d like to encourage a shift in how we think about competition, big vs. small, and a start-up’s end goal. It’s time we move away from the standard behemoth corporation business model, and look more towards building ecosystems of like-minded small business to support innovation, discovery, job growth and economic stability.
Tech incubators and collaborative workspaces are becoming increasingly popular in Boston and similar markets like Austin and Raleigh, NC. This new way of building a business is the ground work for further collaboration and idea sharing amongst companies with similar ideas and even products – co-opetition if you will.
Since my last article here at BostInno, I had the great privilege to sit down with Joi Ito, the new director of MIT’s Media Lab during a Fireside Chat put on by MITX. The lab applies an unorthodox research approach to envision the impact of emerging technologies on everyday life, and with Joi at its helm; I’m sure it’s bound for some shocking innovations in the next few years. To date, the Media Lab is responsible for the founding technology behind iRobot, One Laptop Per Child and Blue Fin Labs just to name a few.
It was during this chat (video can be found at Digital Influence Group) that I realized ecosystems of collaborative companies will soon displace the monopoly business structure we’re currently used to. It’s the cooperatives and ecosystems that are formed around an idea, where everyone involved can benefit, that drive true growth. Small, more nimble businesses often drive breakthrough technologies but are then quickly bought up by larger corporations that don’t have the ability to move quickly, or are hindered by a lack of collaboration.
On the opposite side of the spectrum is a company that these ecosystems should be modeled after – ARM. To put it simply, ARM creates IP (Internet Protocol) for mobile devices and then licenses that knowledge out to partners who become the designers and manufacturers. These partners include Canonical, Marvell, and GLOBALFOUNDRIES. This collaborative ecosystem allows for a great deal of creativity, diversity, discoveries and, at the end of the day, a higher profit business.
I’m very bullish on this approach working well in Massachusetts. We are on the cusp of next big wave of technology growth like we saw in 1995-1996. We have a real opportunity to solidify ourselves as an epicenter for the next generation of life-altering technology brands that will fuel the region for years to come. If you don’t believe we are on the next big threshold in Boston take a look at the stats below:
Recent unemployment rates for metropolitan areas (as of November 2011):
Boston-Cambridge-Quincy, MA 5.7%
San Jose-Sunnyvale-Santa Clara, CA 9.2%
United States 8.2%
Our region has one of the lowest unemployment rates in the country. Much of this is fueled by our deep entrenchment in healthcare and life sciences, as well as a new wave of emerging businesses that are simply thriving in their respective industries. Again, we are on the cusp.
When you get down to the bottom of it, Boston does house some of the world’s largest and most successful companies, including Staples, Raytheon, ACI Worldwide, iRobot and many more that can go head to head with Silicon Valley’s biggest and baddest. But we’re also in the unique position to change how business is done and begin to collaborate within these ecosystems that inspire much of today’s ground breaking technology, bio-tech and life sciences advancements. And most importantly, the exciting new companies hatching from this market have the potential to drive our region to a level of superiority we have not seen since the late 1990’s. It’s going to fun to watch it unfold and contribute to its success.
Editor’s note: Larry Weber, founder and chairman of W2 Group, writes a monthly column for Bostinno, Larry’s Digital Hub.
from BostInno http://bostinno.com/2012/01/30/kill-the-competition-with-collaboration/