San Diego’s Innovation Establishment Faces Its Own Innovators’ Dilemma

Can San Diego re-invent itself as a capital of innovation?

San Diego established itself as an innovation hub decades ago—understanding early on the importance of technology clusters in creating a critical mass of self-sustaining innovation. Today it is still renowned as a hotbed for hundreds of life sciences startups (We Are the Wildcatters) and as the home of Qualcomm (NASDAQ: [[ticker:QCOM]]) the world’s largest wireless chipmaker.

But whatever happened to San Diego’s prowess in software startups as the revolution in Internet software, app development, and software as a service went viral in Silicon Valley and places like New York and Boulder, CO?

The way Brant Cooper tells it, the venerable organizations that are most directly responsible for promoting innovation and entrepreneurship in San Diego are themselves suffering from The Innovator’s Dilemma.

In a provocative blog post, Cooper writes that San Diego’s innovation establishment—the legacy groups like Connect, CommNexus, Tech Coast Angels, San Diego Venture Group, and Software San Diego—are so tied to outdated values and organizational norms that they are failing a key sector of the tech entrepreneurs and innovators they were created to serve. Citing Brad Feld, a prominent tech investor and author of Startup Communities: Building an Entrepreneurial Ecosystem in Your City, Cooper argues that San Diego’s innovation establishment is led by the “old white guys” who just don’t get it. As he puts it:

San Diego is dominated by the old school; by people who were instrumental in diversifying San Diego’s economy 20 years ago, by former C-level executives of large, successful companies, and yes, even by some people who actually started and grew new businesses once upon a time. Great people, I’m sure. Many wish to ‘give back,’ want to see San Diego grow economically, and would like to contribute their expertise.

Unfortunately, the legacy institutions that serve as the vehicles for their contributions are anachronistic, decidedly old-school, and arguably more harmful to San Diego than beneficial.

Cooper quips that his dark secret is that he’s also an old guy. He is 49, “a happy papa,” and co-author (with Patrick Vlaskovits) of The Lean Entrepreneur, a book about the lean startup methodology and how visionary entrepreneurs can use new ventures to innovate, create new products, and disrupt markets. He returned to San Diego (where he grew up) in 2007, after spending 18 years in the Bay Area, where he attended U.C. Davis and worked at a series of tech startups.

After settling in suburban Encinitas, Cooper set out to

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.