ReadWriteWeb just wrote an intriguing post pointing out that venture capital investment and startup activity grew in the state of Massachusetts during the last half of 2009.
In a video of a speech that Jeff Bussgang of Flybridge Venture Partners gave at Harvard Business School, Bussgang contends that Boston has a superior startup ecosystem compared to New York.
He claims Massachusetts is the number one generator of patents on a per capita basis in the U.S.–more than California or New York. “Imagine a steaming mass of innovation,” says Bussgang.
In almost every talk I have given related to Creative Capital, I am asked why Boston has fallen behind Silicon Valley as America’s center of innovation. This talk by Bussgang provides one of the best counterweights to that argument I have ever heard.
Bussgang says there are four factors that help create a vibrant ecosystem:
1. Intellectual Capital: ideas, industries and universities
2. Venture Capital: the fuel that fires startups
3. Angels, advisors and accelerators who swarm around and help startups lift off
4. Successful Companies to partner with, poach talent from and/or sell