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So You Think Private Sector is More Innovative Than Public Sector?
It’s the taxpayer money that creates an environment for private enterprises to flourish
Silicon valley spewing out tech billionaires is a common occurrence now. It’s considered the crown jewel of the American economy. The Galt’s Gulch of 21st century.
But what if the laissez-faire economy that the “hub of innovation” champions built its foundations in a not so laissez-faire way?
What if the quaintly glamorous leaders, championing individualism, proponents of free markets and capitalism are only the cover story and not the entire book? What if the silicon valley idea of how the world should work is as hollow as the happiness that people derive from their social media apps?
What if the capitalistic, for-profit ideology suppresses innovation instead of encouraging it? What if public institutions create more breakthrough inventions than private ones?
Can we then stop glamorizing the “move fast and break things” fad and start talking about the “move however you want, but build real things” industry?
Can we then work towards creating a better world where “creating a better world” is no more a cliche?
Laissez-faire for you, not for me
The Silicon Valley of today is a result of years of grants, investments, and nudging by the American government. The funding began right after WWII when the cold war was still hot, and kick-started the engine of innovation.
Margaret O’Mara, the author of The Code: Silicon Valley and the Remaking of America, writes in her book how the race to space during the cold war spurred demand for silicon components. The Federal government provided an unending stream of funds to Stanford and their research projects, while the administration at Stanford focussed on creating courses in cutting-edge technologies.
The government push, along with the ingenuity of the researchers, and the curriculum at Stanford spurred conditions for ideas to thrive and turn into valuable businesses. Now, five of the largest companies in the world are housed in Silicon Valley.
