Building Stronger Tech Ecosystems is the topic of the McKinsey & Company’s 2023 article Building Innovation Ecosystems: Accelerating Tech Hub Growth that identifies six essentials for communities that want to accelerate the growth of their tech hubs:
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Set a bold vision and identity
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Focus on strengths and anchor partners
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Build a backbone of capital and startups
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Develop talent through inclusive workforce strategies
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Design great places and infrastructure for livability
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Cultivate a diverse, inclusive community and sense of place
Over the last thirty years, Austin has experienced extraordinary growth as a tech hub, and looking back, it is clear that our community touched all six of these essentials. The combination of vision, collaboration, capital, talent, infrastructure, and inclusion helped make Austin what it is today.
From the perspective of the Austin Technology Council, we also see three additional lessons that are important for communities everywhere:
Build a culture of collaboration. A strong ecosystem is never the work of one organization. It requires leaders, companies, and institutions to come together around a shared vision. Be sure that no individuals or groups try to “own” the ecosystem or you will short-sheet opportunities. Collaboration can’t be “what’s in it for me?”, but rather a civic-minded approach.
Celebrate and connect the people. All opportunities come from people. Recognizing and connecting the individuals who drive innovation keeps trust and momentum alive. Do not tolerate “bad actors” and celebrate those who make things happen. (Note, The Austin Technology Council introduced the “Austin Tech Hall of Fame” in 2024 to celebrate the past, be present in the now, and look to the future).
Tell a bigger story. Growth happens when people believe they are part of something larger. A compelling story attracts talent, capital, and opportunity. Be sure that the different stake holders are telling similar stories and that people are not shy about showing off your region’s success.
It is worth noting that staying welcoming becomes more difficult as a city grows. When ecosystems are small, newcomers are easily embraced. As they expand, silos can form and opportunities can feel reserved for insiders. Communities must intentionally keep their doors open to sustain the energy that first sparked their growth. When you are building something, everyone wants to be part of it. If you community thinks you are “done”, they wont show up. Building stronger tech ecosystems does not happen by accident.
At ATC we believe the best way forward is through collaboration, celebration, and storytelling combined with the proven essentials outlined by McKinsey. Austin has shown what is possible, and every community has the chance to build its own version of a thriving and inclusive tech hub.
The best days of Austin are still ahead.