Social Media Revolution


Socialnomics put together a great video that demonstrates the growing marketing power for companies that use and learn to master social media tools, social networks and content optimized for mobile devices.

The video has a ton of very powerful stats on targeting and communicating effectively and honestly with consumers and show consumer trends that have only continued to accelerate in the direction indicated by the video.

“Over 96% of Generation Y-ers have joined a social network.”

“Social media has overtaken porn as the #1 activity on the web.”

“1 out of 8 couples married in the U.S. last year met via social media.”

“Facebook added over 100 million users in less than 9 months”

“iPod application downloads hit 1 billion in 9 months”

“If Facebook were a country, it would be the 4th largest.”

“80% of companies use LinkedIn as their primary tool to find employees.”

“The fastest growing segment on Facebook is 55-65 year-old females.”

“>80% of Twitter usage is on mobile devices — people update anytime, anywhere.”

“YouTube is the second largest search engine in the world.”

“Wikipedia has over 13 million articles – studies show it’s more accurate than Encyclopedia Britannica.”

“There are over 200,000,000 blogs. 54% of bloggers post content or Tweet daily.”

“25% of search results for the world’s top 20 largest brands are links to user-generated content.”

“34% of bloggers post opinions of products & brands.”

“People care more about how their social graph ranks products and services than how Google ranks them.”

“78% of consumers trust peer recommendations. Only 14% trust advertisements.”

“Only 18% of traditional TV campaigns generate a positive ROI.”

“25% of Americans in the past month said they watched a short video … on their phone.”

“35% of book sales on Amazon are for the Kindle.”

“24 of the 25 largest newspapers are experiencing record declines in circulation.”

“More than 1.5 million pieces of content are shared on Facebook daily.”

Still think social media is a fad?

Product Management for Mobile Gaming


As an aspiring tech CEO, I have been told numerous times that being an “A+” Product Manager will provide the experience, understanding and discipline to become a great CEO and to lead an accomplished company.

I often provide strategy and product development guidance to some of our portfolio companies; however, I wanted a more immersive experience and to be part of the excitement of startup life. So over the last several months, I increased my assistance to a particular portfolio company in the Toronto area, which I believe is well positioned in the marketplace. Strategy discussions with management of this company led to a conversation to bring me on-board as Product Manager of a new mobile social game at the idea stage. Eager to help the company succeed and to gain additional experience, I undertook a more formal responsibility on evenings and weekends as Product Manager. It was a perfect fit for both the company (lacked product management capabilities) and my career ambitions.

As part of the team, I faced my first challenge: Figure out the best way to manage the development team and the product. I evaluated several methods of product development and eventually settled on SCRUM since it is ideal for agile development with rapid iterations and incremental updates — perfect for an iPhone game.

ScrumLargeLabelled

For product managers that are new to SCRUM, be sure to check out the SCRUM Reference Card (great overview) and beginners SCRUM Guide (fairly basic). These were helpful resources in my quest to better understand this product development process.

It was my next goal to conceive of a process to coordinate everyone’s collective efforts on the team to come up with ideas and potential features for the game and to convert that list into the Initial Release Plan and Product Backlog for the game. I created a spreadsheet in Google Docs and shared it with the team. I wanted to be a very transparent Product Manager and show the team everything that I saw — idea list, resource planning, timeline estimates, business value associations to product features, etc… I did this because I believe that transparency will help the team better understand my points of view and decision-making rationale.

Since I am continuing to learn, I invite you to have a look at the Initial Release and Version planning spreadsheets that I created to manage the product development process. Naturally, I stripped out any game-specific information, removed the names of people involved and altered values so that it would no longer represent our plan in any fashion. Other small changes to this public version include:

  • For the idea list tab, each item should be a minimum of 4 hours to a maximum of 16 hours only; tasks less than 4 hours should be placed on each developers Scratch Pad and aggregated into an item on the list; tasks greater than 16 hours should be broken down into components (if possible) to fit within the 4 – 16 hours window for ideal planning purposes.
  • Each developer would have his or her own “Scratch Pad” (the demo version only shows 2).
  • The only tab that was completely removed was the method by which we determine business value for each product feature.
  • The “Product Backlog” tab is dynamically driven from the “Idea List” tab and broken-down into version and sprint for each assessment; a tip for collecting the unique “Groups” is to export the long list of Groups from the “Idea List” into Excel and create a Pivot Table, then select the grouping and extract the unique elements to import back into Google Docs.
  • In the “Product Backlog” tab, you should determine your own complexity factor for the project  (a guide to determining this factor can be found in the SCRUM Guide linked above).

I would love to hear your questions, comments and (hopefully) suggestions to further improve what I have already created in hopes of making this effort more successful. If you would like a copy of my example spreadsheet, please let me know and leave me your email address in the comments section below; I’ll make sure to get you a copy either on Google Docs or as an export to MS Excel.

My next post will discuss putting this plan into action.

The Future of Contextual Mobile Commerce


In the early days of the gold rush to create location aware and contextually relevant mobile applications for smartphones, I was constantly bombarded with business plans that showed revenue models driven from advertising. Although advertising is a plausible way of earning revenue, there is a high level of inherent risk since those businesses are largely at the mercy of market rate CPMs/eCPMs and available ad inventory (unless you have a rockstar in-house ad sales team). Ad inventories are beginning to improve as advertisers are becoming more and more aware of the high interaction and engagement rates of mobile ads. However, for startups looking to differentiate in their niche, monetizing solely through ads is a risky road to travel. That being said, I believe that ads are still relevant  for *lite* versions of apps that supplement a paid model of some form and for monetizing certain consumers that would not otherwise become a paying customer.

Tim O’Reilly wrote a short article last week on the convergence of Advertising and E-commerce and I thought he hit the nail right on the head. He says that “E-commerce is the killer app of the phone world. Anyone whose business is now based on advertising had better be prepared to link payment and fulfillment directly to search, making buying anything in the world into a one-click purchase. Real time payment from the phone is in your future.” I completely agree. Square is a great example of real-time point-of-sale (POS) coming to iPhone.

In the article, O’Reilly arrives at this conclusion by making a few theories about what can be expected from the marketplace based on some recent announcements and common sense:

  • Google, Apple, and Microsoft will announce e-commerce programs akin to AdSense, in which retailers will register with “app stores” to allow physical goods and services to be bought as easily as apps
  • We can expect announcements of partnerships between phone providers and Amazon or Wal-Mart to fulfill mobile e-commerce requests

There are a number of mobile apps that are positioned well to capitalize on some of these trends such as foursquare and other mashups of local and geocoded information. IMHO, there is a more exciting category that is only starting to gain excitement. Companies like Layar, Tonchidot (Sekai Camera), Mobilizy (Wikitude) and TAT (Recognizr) are creating augmented reality browsers and applications that use location data and combine it with image recognition technology to recognize specific people or places in the physical world and allow the application user to interact with them in some capacity. I strongly believe that these are some of the fundamental technologies that will make this category of future applications possible. By linking interaction of location-aware data through to payment and fulfillment functions, one can point a phone at a local pizza restaurant and order a pizza to their home en route. Another example may be pointing a phone at a friend and performing a money transfer with only a few clicks.

What killer apps can you think of that combine hyperlocal, e-commerce and fulfillment?

2010 Mobile Trends via Forrester


I finally had the chance to review the 2010 mobile trends predictions from Thomas Husson, a Senior Analyst at Forrester. The report hit on a fundamental concept: mobile performed exceptionally well during the 2009 economic recession. To reflect on this, the industry has really been bullish from an M&A perspective. As the year came to an end, the M&A market began to pick up with a number of acquisitions including the now-over-hyped Google purchase of AdMob as well as the Apple acquisition of Lala (music streaming service). Thus far, 2010 has seen continued M&A activity, with emphasis on mobile advertising companies including Quattro Wireless being acquired by Apple and Ad Marvel being acquired by Opera. Larger industry players are plucking companies to secure their seat at the table to reap the profits that the mobile industry is beginning to offer maturing companies. There is also a flurry of investment activity surrounding mobile games companies (which I will leave for another post).

The 2010 Mobile Trends report offers these high level statements:

  • More brands will start taking the mobile web into account in their strategies.
  • Innovation in mobile payments will accelerate.
  • Google will shake up the mobile navigation business.
  • Location will start enabling richer mobile experiences.
  • Social Computing and mobile phones will expand their love affair.
  • Live mobile TV will be hyped again.
  • The OS arms race will heat up.
  • Application stores will continue to flourish, but none will replicate Apple’s success in 2010.
  • Some operators will want to reduce their increasing dependency on Apple.

Read the Forrester blog for a deeper dive into these trends.

My $0.02 on the “Live mobile TV” Trend
If you’re a die-hard TV fan, getting live TV to your mobile phone has been around for a while from Slingbox, which allows you to stream shows from your PVR/DVR at home to a BlackBerry or iPhone. In 2010, I believe much more than live mobile TV is going to heat up in the mobile video segment. Since mobile carriers are now extending the capabilities of their networks beyond 3G, such as the multiple WiMax network deployments by Clearwire/Sprint, higher-quality mobile video finally has rails that can support its intense-bandwidth needs. This means more services that will bring consumers music videos, concerts, plays, festivals, live sporting events, tv shows (live and archived), movies (full length and in bite-sized snacks) — and my personal favourite — video-calling. I’m quietly keeping my fingers crossed that the iPhone 4G supports video calls! One last thing, mobile advertising networks will likely be the default solution to monetizing “lite” apps; as mobile video continues to build traction, watch out for hype surrounding mobile video advertising to heat up.

Creating a Better BlackBerry Experience


Over the last 18 months, I have had the unique opportunity to become entrenched in the mobile ecosystem from the viewpoint of business startups, independent developers and as a consumer. I walk around with a BlackBerry Bold and an iPhone and test smartphone apps in all shapes and sizes.

At the BlackBerry Partners Fund, we’ll invest in mobile businesses agnostic to the device that the application is based on; however, we expect that as a business owner you’ve chosen to target the right devices for the right reasons in the right market verticals. With that in mind, I get the opportunity to see the merits of developing applications for one platform versus another in a variety of contexts and business situations. From my experience, I have learned that generally, developers want to reach as many target users (or screens) as possible with the minimum amount of work, cost and time invested – and this makes a ton of sense!

BlackBerry Partners Fund is often perceived as the corporate venture arm of Research In Motion (“RIM”) – but it is not. RIM is an investor in the Fund and it is co-managed by RBC Venture Partners and JLA Ventures. As an employee of RBC, I don’t have access to internal information at RIM and I operate at an arm’s length from the company. However, as a fellow Canadian, I would love nothing more than to see RIM continue its dominance in the global smartphone market.

For RIM to remain one of the leaders in the marketplace, I strongly believe that a few fundamental changes need to happen at the developer level through to the end-user experience.

mobile-value-chain

Figure 1. Mobile application value chain from developer to end-user.

Developer Tools
As I mentioned previously, developers want to find the fastest, cheapest and quickest way (while retaining quality) to develop their applications. Many developers who develop for BlackBerry run into two huge fragmentation issues – the first at the device level and the second at the carrier level. My advice to RIM is to either acquire a company that has figured out how to port between BlackBerry models or develop an in-house multi-device porting tool that can be released as part of the BlackBerry SDK for developers. A tool with these capabilities would be helpful to RIM and to developers; there’s a simple equation: “BlackBerry-wide porting tool = more developers + more applications (net, on more handsets) = more revenues for RIM and developers + happier developers” (Note: No scientific studies exist to prove or disprove this equation). Just to be clear, RIM isn’t the only company with this problem. Device software fragmentation has been a problem for Windows Mobile for years and is now beginning to become an issue for Google Android. Microsoft is now trying to combat this with the Windows Mobile 7 platform by taking a standardized approach with no backward compatibility.

Application Stores
Application stores have become an essential distribution platform for mobile applications since the launch of the Apple App Store and are expected to reach $7 billion in revenue in 2010. One of the core elements to ongoing vitality in the app store ecosystem is the ability to create a seamless customer experience, which includes availability of quality apps and the ability to purchase apps easily and quickly, while on-the-go. RIM has a great start with BlackBerry App World (available via mobile and online), but for RIM to improve upon their current application store, I strongly believe that a number of things need to happen:

(1)    A credit card needs to be added to each user’s profile to allow payment beyond PayPal.

(2)    BlackBerry App World needs to come pre-loaded on all handsets; in situations where carriers keep “walled-gardens”, there should be rev share deals in place to push down App World and split revenues on pre-agreed terms with RIM rather than fragmenting distribution for developers who have a hard enough time distributing across all handset models.

(3)    BlackBerry App World needs to run faster and without as many bugs; it crashes far too often IMHO.

I’d like to further note that easing the end-user’s ability to purchase mobile applications would result in more revenues going back to developers who will in turn create more compelling applications for users (as seen in Figure 1, above). It’s a very nice cycle that would benefit RIM, developers and consumers.

Alternative or Cloud Device Management
I think that Apple maintained such a strong, early and rapid acceleration of mobile application adoption because of their centralized billing platform and iTunes. iTunes was a very smart way of leveraging a desktop application (used frequently) to create a simple management console for the iPhone. I believe that RIM should take on a similar strategy. My recommendation to the company would be to have each BlackBerry user create a profile online, hosted in the “cloud”, and accessible through a variety of interfaces. As a primary interface, I would suggest that RIM creates a plug-in that hooks into Microsoft Outlook (the most commonly used application by business users) that would allow full device management capabilities (updates, application purchase, install, sync, etc…); this would take place of the current BlackBerry Desktop Manager. I would also make alternative means of syncing the ‘Berry available such as a plug-in for Firefox or a completely online, hosted solution. However it is done, the core premise remains: make it simple for the user to update, backup, sync and install new applications. IMHO, the simplest way is to embed or plug-in to an existing application that is already running on the user’s machine for the majority of the day. Just like the proverb “out of sight, out of mind,” I believe the opposite is true here.

Readers, I’d love to know your thoughts. Do you agree with any/all of this post? Did I miss anything fundamentally important to RIM’s success going forward? Would you like your device profile and information stored in the cloud?

Note: These are my personal beliefs and do not reflect the thoughts and opinions of the BlackBerry Partners Fund.

Gartner: Top 10 Consumer Mobile Apps for 2012


Gartner, one of the leading market research firms, has recently identified the top 10 consumer mobile applications for 2012. The research firm listed mobile apps based on their “impact” on consumers and industry players, considering revenue, loyalty, business model, consumer value and estimated market penetration.

“Consumer mobile applications and services are no longer the prerogative of mobile carriers,” said Sandy Shen, research director at Gartner. “The increasing consumer interest in smartphones, the participation of Internet players in the mobile space, and the emergence of application stores and cross-industry services are reducing the dominance of mobile carriers. Each player will influence how the application is delivered and experienced by consumers, who ultimately vote with their attention and spending power.”

Gartner reports that the top 10 consumer mobile applications in 2012 will include:

No. 1: Money Transfer
This service allows people to send money to others using Short Message Service (SMS). Its lower costs, faster speed and convenience compared with traditional transfer services have strong appeal to users in developing markets, and most services signed up several million users within their first year. However, challenges do exist in both regulatory and operational risks. Because of the fast growth of mobile money transfer, regulators in many markets are piling in to investigate the impact on consumer costs, security, fraud and money laundering. On the operational side, market conditions vary, as do the local resources of service providers, so providers need different market strategies when entering a new territory.

Other than SMS, another technologies such as USSD, NFC, or web applications may also play a role in increased mobile money transfer.

No. 2: Location-Based Services
Location-based services (LBS) form part of context-aware services, a service that Gartner expects will be one of the most disruptive in the next few years. Gartner predicts that the LBS user base will grow globally from 96 million in 2009 to more than 526 million in 2012. LBS is ranked No. 2 in Gartner’s top 10 because of its perceived high user value and its influence on user loyalty. Its high user value is the result of its ability to meet a range of needs, ranging from productivity and goal fulfillment to social networking and entertainment.

Some interesting services that already exist include: Foursquare, buzzd, and about 500+ iPhone applications.

No. 3: Mobile Search
The ultimate purpose of mobile search is to drive sales and marketing opportunities on the mobile phone. To achieve this, the industry first needs to improve the user experience of mobile search so that people will come back again. Mobile search is ranked No. 3 because of its high impact on technology innovation and industry revenue. Consumers will stay loyal to some search services, but instead of sticking to one or two search providers on the Internet, Gartner expects loyalty on the mobile phone to be shared between a few search providers that have unique technologies for mobile search.

No. 4: Mobile Browsing
Mobile browsing is a widely available technology present on more than 60 percent of handsets shipped in 2009, a percentage Gartner expects to rise to approximately 80 percent in 2013. Gartner has ranked mobile browsing No. 4 because of its broad appeal to all businesses. Mobile Web systems have the potential to offer a good return on investment. They involve much lower development costs than native code, reuse many existing skills and tools, and can be agile — both delivered and updated quickly. Therefore, the mobile Web will be a key part of most corporate business-to-consumer (B2C) mobile strategies.

No. 5: Mobile Health Monitoring
Mobile health monitoring is the use of IT and mobile telecommunications to monitor patients remotely, and could help governments, care delivery organizations (CDOs) and healthcare payers reduce costs related to chronic diseases and improve the quality of life of their patients. In developing markets, the mobility aspect is key as mobile network coverage is superior to fixed network in the majority of developing countries. Currently, mobile health monitoring is at an early stage of market maturity and implementation, and project rollouts have so far been limited to pilot projects. In the future, the industry will be able to monetize the service by offering mobile healthcare monitoring products, services and solutions to CDOs.

No. 6: Mobile Payment
Mobile payment usually serves three purposes. First, it is a way of making payment when few alternatives are available. Second, it is an extension of online payment for easy access and convenience. Third, it is an additional factor of authentication for enhanced security. Mobile payment made Gartner’s top 10 list because of the number of parties it affects — including mobile carriers, banks, merchants, device vendors, regulators and consumers — and the rising interest from both developing and developed markets. Because of the many choices of technologies and business models, as well as regulatory requirements and local conditions, mobile payment will be a highly fragmented market. There will not be standard practices of deployment, so parties will need to find a working solution on a case-by-case basis.

No. 7: Near Field Communication Services
Near field communication (NFC) allows contactless data transfer between compatible devices by placing them close to each other, within ten centimeters. The technology can be used, for example, for retail purchases, transportation, personal identification and loyalty cards. NFC is ranked No. 7 in Gartner’s top ten because it can increase user loyalty for all service providers, and it will have a big impact on carriers’ business models. However, its biggest challenge is reaching business agreement between mobile carriers and service providers, such as banks and transportation companies. Gartner expects to see large-scale deployments starting from late 2010, when NFC phones are likely to ship in volume, with Asia leading deployments followed by Europe and North America.

No. 8: Mobile Advertising
Mobile advertising in all regions is continuing to grow through the economic downturn, driven by interest from advertisers in this new opportunity and by the increased use of smartphones and the wireless Internet. Total spending on mobile advertising in 2008 was $530.2 million, which Gartner expects to will grow to $7.5 billion in 2012. Mobile advertising makes the top 10 list because it will be an important way to monetize content on the mobile Internet, offering free applications and services to end users. The mobile channel will be used as part of larger advertising campaigns in various media, including TV, radio, print and outdoors.

No. 9: Mobile Instant Messaging
Price and usability problems have historically held back adoption of mobile instant messaging (IM), while commercial barriers and uncertain business models have precluded widespread carrier deployment and promotion. Mobile IM is on Gartner’s top 10 list because of latent user demand and market conditions that are conducive to its future adoption. It has a particular appeal to users in developing markets that may rely on mobile phones as their only connectivity device. Mobile IM presents an opportunity for mobile advertising and social networking, which have been built into some of the more advanced mobile IM clients.

No. 10: Mobile Music
Mobile music so far has been disappointing — except for ring tones and ring-back tones, which have turned into a multibillion-dollar service. On the other hand, it is unfair to dismiss the value of mobile music, as consumers want music on their phones and to carry it around. We see efforts by various players in coming up with innovative models, such as device or service bundles, to address pricing and usability issues. iTunes makes people pay for music, which shows that a superior user experience does make a difference.

Additional information is available in the Gartner report Dataquest Insight: The Top Ten Consumer Mobile Applications for 2012.

iPod Touch Users Love Their Apps


In AdMob’s July 2009 monthly metrics report, a special section on iPhone, iPod Touch and Android app usage showed the results of a 1,000-person survey to find our more about their interaction and download behavior with apps.

A couple highlights:

  • Android and iPhone users download approximately 10 new apps a month, while iPod touch owners download an average of 18 per month
  • More than 90 percent of Android and iPhone OS users browse and search for apps directly on their mobile device instead of their computer
  • Upgrading from the lite version was the top reason given when users were asked what drives them to purchase a paid app
  • iPhone and iPod touch users are twice as likely to purchase paid apps than Android users.
  • Users who regularly download paid apps spend approximately $9 on an average of five paid downloads per month

There is a supplemental presentation that includes all of the data from the surveys for those who are interested to dig into the details.

Lessons Learned from Asia


In researching the online and mobile worlds of virtual goods and avatars, I came across this interesting presentation by a consulting firm called +8* (Plus Eight Star) on Slideshare. It’s amazing how many things have been pioneered by those countries (largely Korea and Japan) that took so long to make it to the US.

I particularly like the reference to South Park.

Review: DemoCamp Toronto #21


Tonight I attended DemoCamp Toronto #21. It was my personal second time out at DemoCamp and I was loving the vibe in the room of the sold-out venue (approx. 250 people). Before I get to the meat of the post, I must throw out a big thank you to Leila Boujnane, who was awesome and gave me her seat at the packed event.

Below, I have done my best to provide some information on some of the demos from tonight’s event:

Zoocasa is an ad-supported, vertical search engine for real estate listings that allows visitors to search by neighborhoods and school district among other things. I’m not a huge fan of the ad-supported model as a sole business model and I believe that the business should quickly look for some innovative business models that they can layer onto their service offering to increase the monetization potential of their website.

ArtAnywhere was presented by an enthusiastic Christine Renaud. Her business is centered around a website that helps artists (painters, contemporary artists) meet and transact for their artwork with those looking to buy (or in this case — RENT). ArtAnywhere has a very interesting business model that charges people or corporate entities $XX/mo/piece of art (artist chooses the price) and the site takes a 15-20% tranaction fee. The company is launching in Montreal, Toronto and New York in September 2009. I am very curious to see if people will buy into her business model and find security in mitigating the risk of purchasing art by renting it on a monthly recurring model.

HomeStars is a website that allows home contractors to have a social media page with ratings and reviews. It doesn’t seem to be anything revolutionary, and certainly not a business that will scale to deliver venture-like returns, but it can certainly drive value to all of its users and potentially make a nice return for a business owner. Brian, who gave the demo, seemed like a nice guy and I wish him well in his venture.

Cascada Mobile is an interesting company that solves the problems of some mobile application developers who are looking to write-once and deploy an application across multiple devices. Their primary product is called “Breeze.” Using this product, a user can write code in HTML/ JavaScript/CSS and have it ported to a large number of devices (including the iPhone as of this week, albeit with limited functionality). They also host and manage distribution. Currently they have a free ad-supported version as well as licensing fees and revenue share deals for users who don’t want ads embedded within their applications. Very cool. I’d love to try out the full version and try to create my own mobile app!

MashupArts is a site looking to capitalize on social networks, collaboration, events and virtual goods. The company lets you customize one of a series of templates and integrate a number of mediums (pictures, slideshows, video, audio, text), and a commenting layer on top of this. The example given is a group-based collaborative birthday card to a friend or family member where all of the members of the network can contribute to card mashup. The website is currently in a beta, but if you really like the sound of this, let me know and I’ll see what I can do to get you a passcode into the realm of the private beta.

Guestlist is a sexy new event site by Ben Vinegar. Very slick and great use of AJAX elements here. It’s so good that DemoCamp mentioned that they are going to switch from EventBrite to Guestlist; so there, now you go try it! It’s in beta and just launched last week.

Guigoog is supposed to be an alternative to using Google’s “hard-to-navigate” boolean, advanced search. So for all the non-computer junkies, I guess there’s a market for this?! You tell me. In any case, Jason Roks got stuck demoing on a computer with IE6.0, and needless to say, it could not handle the advanced scripting necessary to pull of some of the snazzy UI elements he incorporated. Don’t worry Jason, I tried it on Google Chrome and it looks great. He describes the technology as: “If you’re looking for 2 things in a pile in front of you, you can filter out everything you don’t want, and you will be left with things that resemble what you are looking for.” Therefore, you can find things that you don’t necessary know exist, but think may exist given a number of parameters — great for searches where you know general characteristics but no specific names — I can think of many scenarios where this could be handy! Can you?

Great job everyone. It was a blast as always (i.e. last time). Looking forward to the next event.

Guns, Germs, and Silicon Valley?


Yesterday I finished reading Guns, Germs, and Steel by Jared Diamond, and in the final hour of reading something sparked my attention:

Throughout history and despite relatively uniform intelligence across all of humankind, Diamond argues that widespread innovation had been limited to only certain countries in particular geographical contexts. He goes on to mention that innovation (as seen in those countries) was driven by the presence of higher population densities, close proximity to a number of neighbouring countries, and higher degrees of competitiveness between countries.

Naturally, I wondered, could this concept explain why so much technology innovation has led to an abundance of successful tech companies in the Bay Area, and to a lesser but still significant extent, the Greater Boston Area? On the flip-side, could this concept also explain why so many technology companies created in other regions have higher failure rates?

According to Diamond, innovation is driven by population densities of sorts. The Bay Area has one of the richest selections of successful and pioneering IT/internet/mobile technology entrepreneurs on the planet. As far as competitiveness, the US is the epidemy of a Capitalist nation, and competition is as fierce domestically as it is internationally (if not more fierce).

Note: As far as the Bay Area goes, I believe it remains at the apex of innovation due to its abundance of human capital, sharing of know-how, entrepreneurial culture, access to world-class research facilities/universities and venture capital financing. However, I do buy into the fact that proximate competition can help to turn good ideas into great ideas when the developers of the ideas have the ability to see and innovate on top of other very good ideas very quickly.

Although I don’t have the time and/or resources to explore this in further detail, I find this to be an interesting theoretical discussion about how a local geography can evolve in such a way that promotes rapid innovation in a particular niche. If you have an opinion on the matter, I invite you to please share it below.