Why founders startup their business in other cities? Part 2
We are now looking in the innovative startup ecosystem in Silicon Valley to see if there is any lessons that can be applied to Hue.
An analysis of the innovative startup ecosystem in Silicon Valley
Within Silicon Valley Ecosystem, pillar companies such as Apple, Google, Facebook, Oracle, Cisco help startups in a variety of ways, including being the early adopters, investing capital from seed to divesting, and providing talented employees, engineers and salesmen. Silicon Valley also has Stanford Universities, the University of California, Berkeley and Santa Clara. Coming from these universities, pillar companies, and from all over the world, Silicon Valley has a large number of talented CEOs, founders, managers, engineers, salespeople, marketers, etc. This is the reason why this place can provide the workforce for startups without affecting the daily commute of these employees.
In Silicon Valley, experienced investors and CEOs give their advice for those startup companies and young entrepreneurs. On the corporate level, this advisory includes assistance with strategic vision, fundraising, evaluation and organizational design, corporate culture, people recruitment, product development, customer engagement or partner connections. Besides, Silicon Valley has an abundance of capital that startups need at different stages.
Finally, Silicon Valley has a set of business culture values, such as giving without expecting short-term benefits, taking risks to enter big markets, ... Professor George Foster from Stanford Business School also points out that instead of tolerating failure, Silicon Valley accepts smart failures. These values ​​help to expand the entrepreneur and investor's access to opportunities in the region.
 A system of quality universities in the city
The Startup Common model is a new look at the questions we've asked for centuries about why some regions have more prosperous businesses than others.
Many scholars have appreciated the role of universities, talent and capital entering these areas. Outstanding leaders cannot build their own businesses without new talents and ideas, which frequently come from regional universities. Since 1861, The Massachusetts Institute of Technology’s (MIT) mission has been to create the most groundbreaking ideas. In addition, MIT encourages professors to undertake applied research for industries to complement professors' low salaries, thus leading to a spontaneous shift of talents between MIT and the industry. It is reported that up to 2014, MIT alumni created 30.200 businesses with $1.9 million in revenue, employing 4.6 million people. Stanford did even more when its alumni created 39,900 companies with $2,7 million in revenue and 5,4 million jobs. Universities surely are critical places for entrepreneur incubation.

Massachusetts Institute of Technology (USA)
However, while universities are often the starting point for successful startups in the region, the lure of talented student networks can overcome the economic hurdles posed by high office rents, traffic congestion and travel inconvenience.
Silicon Valley's prestigious universities, Research Triangle Park, and Austin allow graduates to live there and meet each other. It is difficult for other cities to squeeze in because the power of the network has been created, and continues to grow as new people arrive in the area. Venture capitalists want to stay where talents concentrate, surpassing all the factors that should have destroyed Silicon Valley, such as living expenses and high taxes.
That being said, however, Startup Common emphasises the role of other factors such as the pillar companies, mentoring, business culture value, and thereby explains the growth or the recession of a startup hub.
There are many examples of cities having universities, but only a handful of themhave become startup hubs. For example, Cambridge and Palo Alto became prominent start-up locations because of the values ​​that top universities such as MIT and Stanford give their professors while working here, specifically thinking towards the most innovative and useful products for industries. On the other hand, Worcester (Massachusett), which is only 45 kilometres away from Cambridge, has 11 universities and colleges but does not appreciate these values ​​in their research works. Therefore, highly trained business people from Worcester travel to places like Cambridge and Silicon Valley to realize their dreams.

Here are the part 1 and 3 of this article:
Part 1:  http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=310
Part 3:  http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=312
Tác giả: Phan Thị Hồng Vân