How East Coast Tech Startups Became a Downtown PhenomenonPosted: August 14, 2013
By Richard Florida
Published: August 14, 2013
The East Coast has long lagged behind Silicon Valley and the Bay Area as a center for startups and venture capital investment.
The Route 128 corridor outside Boston remained a distant second to the Bay Area in the 70s and 80s because its stodgy, hierarchical culture was less able to adapt to new technology, University of California at Berkley’s AnnaLee Saxenian has argued. Further south, New York City has been a source of venture capital finance since the industry’s birth, but it mainly exported these resources to startups in the Bay Area and Route 128. And Washington, D.C., the southern end of the productive Boston-Washington corridor, has largely been known as a government town, with its modest tech scene clustered in the Virginia and Maryland suburbs.
But the past several years have seen a substantial shift. New York has risen dramatically as a venture capital center; venture capital and startup activity in greater Boston have shifted from the suburbs to urban neighborhoods in the center city and around MIT. Washington D.C., has transformed into a growing startup hub as well.