That’s right – the next Silicon Valley will be right here in the east! Silicon Valley in California USA, serves as the unofficial capital for research and innovation in Science and Technology, as well as Venture Capital resources in the World. The success and popularity of Silicon Valley is closely linked to the success of the IT/ tech industry. It grew in size and strength in the 1980s, when IBM PCs started selling like hot cakes.
Today, the Silicon Valley boasts of hosting some of the most popular and successful companies of the World such as – Adobe, Cisco, Google, Facebook, Apple, Oracle, Netflix, HP and many more. What are the reasons for this small part of the World to host some of the most successful and valuable companies of the World?
- Abundance of natural resources
The primary reason for it being called the Silicon Valley is the easy availability of Silicon due to an abundance of the mineral in the region. Silicon was needed in large quantities to manufacture various components of computers and other electronic devices that were made there. Many other natural resources such as iron, copper, zinc, magnesium, etc. are needed for large scale industrial production of tech products. Due to the easy availability of raw materials for manufacturing, Silicon Valley has managed to attract a lot of industries for setting up large global manufacturing hubs.
Australia, also has an abundance of natural resources. It has many Millionaires and Billionaires who have made their fortunes by supplying raw materials/ minerals to various industries. Being a mineral rich country is an advantage as manufacturers always prefer having their factories located close to the source of raw materials.
- Availability of skilled talent
Silicon Valley is said to be the home of some of the best engineers and innovators of the World. It has been successful in attracting the best minds from all over the World for well over five decades. This has a lot to do with the progressive nature of businesses/ founders, who focus on innovation, creating new products and technology hitherto, unheard of. This noble vision of changing the world with great technology has allowed the San Francisco Bay Area of Northern California, or Silicon Valley to attract fresh talent from across the globe and thus create some of the best products that the world has ever seen.
Australian Universities are considered to be some of the best in the World. They attract students from all over the world as all Australian Universities have a curriculum that is upgraded every year in accordance with the Skill Shortage list. Their curriculum is basically in line with the skills that the economy needs.
Australian Universities are known globally for the, excellent financial courses that they offer. Masters courses such as The University of Western Sydney’s MBA and MAF programs are some of the most sought after financial courses in Asia. It is offered in association with one of India’s premier finance institute – BSE Institute Limited. They are some of those rare courses which are recognized globally and have a record of getting $50,000 jobs for their graduates right after graduation.
It is because of Universities like these, that startups and MNCs are able to recruit highly skilled students who support and grow their businesses. The same talent is available in Australia and is used not just for engineering and innovation, but also in Banks, Private Equities and Hedge Funds who choose to invest in these startups.
- Cheap finance available
When starting a new company, one has to be ready for a few lean months/ years. This is true especially in the case of companies that are coming up with new or alternative products! Innovators need the support of investors. Investors who would be willing to bank roll them through the development and growth phase of their products. Cheap finance allows entrepreneurs and innovators to build great products at the lowest cost possible. It allows them to hire great teams who compliment their strengths and make the products better.
As Australia is an advanced OECD economy, it has well developed financial centers in all its major cities that offer easy and excellent ways for promoters and entrepreneurs to raise capital for their businesses.
- Supportive Government
Governments in the USA have been extremely supportive of entrepreneurs. They are cognizant of the fact that entrepreneurs create jobs and generate a lot of revenue for their country. It is for this reason that they have many funds dedicated for funding and supporting innovators. This eases a lot of pressure that could be caused due to a shortage of funds. A supportive Government that understands the challenges of running a new company is one of the best support that a startup can get.
The Australian Government has budgeted a staggering $10 Billion for promoting innovation and entrepreneurship. This amount is categorized as an Innovation Budget and is used only for encouraging young entrepreneurs innovate. Considering that many organizations get funding worth a few Million Dollars, $10 Billion is a huge amount that could easily fund a 100 companies that employ thousands of people.
- Affinity to international markets
Silicon Valley is based in the USA, which is one of the largest market in the world. Additionally, it has large global markets of China & India to its west, which serve as ready markets for its products and services. This gives it a ready testing ground for its products, which can be tweaked easily in case the markets do not accept them.
Australia is very close to large markets of Africa, India, China and South East Asia; and this makes it ripe for having multiple manufacturing plants that can churn out products at a rapid pace and have them shipped out to these lucrative markets.
These are the reasons why Australia is poised to be the next the Silicon Valley.
The Australian Industry and the Australian Government have cleverly gone about executing a plan that ensures that every factor necessary for building a great innovation hub is in place to help young entrepreneurs build and nurture their companies. These signs seems to make it quite clear, that the next Silicon Valley will be down under.
Studying and working in Australia just became extremely rewarding!