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Illustration
by Ted Crow
In 1890, when
my greatgrandfather returned from San Francisco to take over the
family farm on Shady Side’s Ellsworth Avenue, the value
of Allegheny County real estate ranked sixth in the country. With
its river connections, access to coal and access to Wall Street,
Pittsburgh was becoming America’s most vital manufacturing
center. Entrepreneurs such as Andrew Carnegie were accumulating
great wealth; the Mellons were the venture capitalists of the
day. Western Pennsylvania had its own wealth-producing valleys
100 years before the Silicon Valley of today
At the same time, Gov. Leland Stanford, who
made his money from the railroad on which my great-grandfather
returned to Pittsburgh, founded a university on his horse farm
south of San Francisco
Ten years later, Andrew Carnegie started Carnegie
Technical Schools to educate children of factory workers in technical
studies.
In the 1930s, a Stanford professor of electrical engineering,
Fredrick Terman, began to promote a local technology industry
in tandem with his small, academic department. One of the legendary
mentors of the 20th century, Terman fostered the creation of companies
by Stanford students whose businesses began to unleash the power
of computing in the world economy, Hewlett, Packard, Litton and
Varian.
At the time, industry around Stanford was tiny compared
to places in the East such as Pittsburgh, but it flourished after
World War II. A Stanford professor, William Shockley, who had
invented the silicon transistor, started a semiconductor company
that by 1976 spawned 45 other companies, including the world’s
dominant maker of microprocessors, Intel. Only five of these companies
formed outside Silicon Valley, as the area around Stanford came
to be known around the world.
While the Silicon Valley built
its computer industry after the Second World War, Pittsburgh launched
an urban Renaissance yet remained committed to old industries
already filling its river valleys.
Westinghouse sought to build
a bridge to a high tech future but made an unlucky bet on nuclear
technology. Carnegie Tech, however, focused faculty talent on
computers, channeling many people like me into interesting careers
following the growth of computing worldwide. That is why, like
thousands of other Carnegie Mellon alums, I work in Silicon Valley
but root for the Steelers and Pittsburgh.
Silicon Valley is
informal but very competitive. Imagine New York with palm
trees. Engineers and business people work 60-hour weeks. They
are the lucky ones. Just to afford housing, low-tech workers hold
jobs that fill 80-hour weeks. People there seem friendlier than
Pittsburghers. However, they are friendly in the way flight attendants
are friendly until the plane lands. Try to relax on a leisurely
bicycle ride. You’re passed on the road by packs of whippet-thin
cyclists on $5,000 bikes.
In Pittsburgh, frequent job changes look bad
on your resume. In Silicon Valley, a long list of former employers
adds to an applicant’s appeal. Working at the same company
for five years or more suggests that your co-workers left you
behind when they left to start their new company. In Regional
Advantage, Anne Saxenian suggests that Silicon Valley workers
have little company loyalty. Their loyalty is to the next big
thing. When the next big thing was the personal computer, these
job hoppers quit mini-computer companies like Hewlett-Packard
and went to Apple.
Very few native Californians hold professional
jobs in Silicon Valley. Most of the nerds and business people
come from elsewhere, including many other countries. Chinese and
Indians run many new businesses. I see the irony here. The Spanish
named the Native Americans of 1492 “Indians” and put
them to work. Now, the real Indians arrive to put us native Americans
to work. Full disclosure: I descend from a Madame Montour. I am
0.6% Native American.
Silicon Valley literally grew in a green
field. There was no other industry for the semi-conductor industry
to displace. The industrial culture of the valley rose around
the computer industry alone. Pittsburgh’s much older industrial
culture doesn’t accommodate new industry as well. Now that
Silicon Valley has an entrenched industry, I don’t know
how it will accommodate tomorrow’s hot industry, biotech.
Between
the two regions, diversity and speed of change describe the most
significant, long-term differences.
In Silicon Valley, people
greet each other with, “What’s the next big thing?”
Over 150 years, Pittsburgh has focused on a few basic industries:
glass, steel, and medical care. During that same time, San Francisco
leaped from the Gold Rush to banking to semi-conductors to computers
to Internet services, always looking for the next big thing.
In
Pittsburgh, the canonical greeting is “How about those Steelers?”
Indeed, the names of football franchises say it all. Our team
carries the name of a commodity. Their team recalls the 49ers,
the original pursuers of the first big thing. A team called the
San Francisco Semiconductors wouldn’t capture the spirit
of the place!
I loved the Pittsburgh of the 1950s, but it’s
dead. Let’s get past the denial stage of grieving and build
new industries. It took 100 years for the vibrant, innovative
industrial culture of Pittsburgh to run down. It took 50 years
for Stanford to grow Silicon Valley from some scientific ideas.
Austin, Seattle and Raleigh-Durham took comparable times to grow
their industries.
Nearly 40 percent of Silicon Valley residents
are between 20 and 40 while the equivalent Allegheny County cohort
is 26 percent. On this point, The Economist reports a hopeful
future for Pittsburgh. Its analysis deserves a fuller hearing.
While we may never boom again, more students from our 34 universities
are staying. In the meantime, we may find old codgers clinging
to power too long while the new generation waits to step into
place.
In the past 25 years Pittsburgh has tried many
straight-forward steps: environmental cleanup, business-friendly
university policies, state support for technology transfer, high-tech
support groups, greenhouses and captive venture capital funds.
They are important, but they don’t address the elusive cultural
issues the generation gap presents. Here are some out-of-the-triangle
ideas:

Overcome geography with the Internet. What you’re
in between is as important as what you are. New York traded between
New England and the South. Pittsburgh created commerce between
New York, New Orleans and everywhere in the West. San Francisco
moved goods and labor between Asia and the gold fields. Silicon
Valley and Raleigh-Durham are not actual cities. They are regions
surrounding cities. Pittsburgh may have a geographical disadvantage
now. However, in the new, flat world created with the power of
computing, western Pennsylvania can center itself between any
places it may choose, such as Bangalore, Boston, San Francisco
and Shanghai.
It’s
OK to send some of our older companies to New York where Carnegie
and Frick went a century ago. Existing industrial cultures
tend to suppress the growth of new ones. Many top-tier high technology
cities — Austin, Seattle, Raleigh-Durham and San Diego —
started with modest wealth and small industries.
Embrace
university students who come to Pittsburgh so that they will settle
here. Give them unused tickets to cultural events. Encourage
them to live off-campus and integrate into neighborhoods. Register
them to vote for the future of the Pittsburgh region.
Welcome
immigrants, too. The above chart shows a startling disparity
between the two places; whites are actually a minority in Silicon
Valley. People who travel to Silicon Valley find a job and work
hard when they get here. They also tend to become entrepreneurs
more often than natives do. Many come from fast-growing places
with which our people can connect.
Entertain
young people. In “The Creative Class,” Richard
Florida argues that young, creative people require an appealing
environment for work and play. Moreover, the most appealing things
are not high culture entertainment or spectator sports. Young
people want interesting neighborhoods, nice restaurants, outdoor
recreation and other young people. Pittsburgh has those things
and a 26-yearold mayor besides.
Enough
with the sports stadia already! Nobel Laureate Herbert
Simon, a loyal Pittsburgher, suggested that we had to lose the
Pirates in order to get on with our re-birth. Sports teams are
luxuries, not wealth generators. Austin does fine without a baseball
team.
Do these suggestions make you angry? That’s
the next stage of grieving and the start of real recovery.

James H. Morris
is a professor of computer science and dean of the West Coast
campus of Carnegie Mellon University.
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