Why I'm Bullish on a Startup Renaissance in Massachusetts

I’m convinced we are poised for a major startup renaissance with its epicenter in Massachusetts & New England.
Some people think I’m crazy. I disagree. Here’s why.
We find ourselves in the latter half of a major economic recession in which multiple industries are experiencing major crises: media, healthcare delivery, real estate, automobile manufacturing, energy generation, desktop software …  the list goes on.
Why so many crises, and how does this relates to renaissance?  
There’s no single cause, but many of these crises are catalyzed by rapid technology advances, which are challenging the business models on which these industries are based. Why pay for newspaper delivery to get day old news on my doorstep when I can get news instantly on my laptop or cell phone? Why pay for desktop software when universal connectivity enables me to store my data and preferences in the cloud for seamless access on multiple devices wherever I want? This process is not new. Innovative technology always challenges business models predicated on old technology – but the scale and scope of theses challenges are greater than we have seen in decades.
So where’s the renaissance?  
So far, we have mostly seen the new wave of technology weakening and destroying old business models, but over the next several years we will witness an acceleration of startups whose business models are explicitly based on the availability of new technology. The horse and buggy industry has shown weakness – here comes the Ford assembly line.
We are already seeing the emergence of game-changing technology. Like online media distribution, renewable clean tech, hybrid non-profit business models serving key social needs. This next wave will produce dozens of high-growth, game changing startups across multiple industries. That’s the renaissance. And it is upon us.
So why Massachusetts?
These game-changing innovations will occur in a broad set of industries and will require lots of talented, hard-working young people. Massachusetts has one of the most diverse startup environments on the planet. We are strong in virtually all sectors of every major industry: not just healthcare generally, but also specifically in telemedicine and biotechnology; not just energy generally, but also specifically in thin film solar technology and hyper-efficient battery technology; not just hardware, but robotics and other cutting-edge technology areas … you get the idea. We’re really good at technology.
We also have the most and best universities of pretty much any region on the planet. Yes, historically we have lost many of these young people to California and elsewhere upon graduation, but right now Massachusetts is better positioned economically to capture this wave of growth and I am convinced we can attract and retain the brilliant minds that will usher in this renaissance.
There has been a lot of reassuring activity organized for and by young innovators in Massachusetts lately. WebInno, MassInno, DartBoston, Greenhorn Connect, Techstars, the proliferation of co-working centers, the ever-expanding Cambridge Innovation Center, Boston World Partnerships, the Microsoft NERD Center … plus dozens of great entrepreneurial university programs.
So that’s how I see it. Crisis is giving way to opportunity. That opportunity will require smart, well-educated, passionate young people. We have a lot of them right here, and they appear to be readying themselves rapidly. I have never been more bullish on Massachusetts. We are on the verge of a period of great innovation and growth, the likes of which we haven’t seen perhaps since the industrial revolution.
What do you think? Do you agree or am I just crazy?
 
By: John Harthorne
John Harthorne is the CEO and Founder of MassChallenge. Click here for John's bio.