2014년 11월 7일 금요일

Culture of Failure: Silicon Valley

What do you think when you hear Silicon Valley? Innovation, Venture, or Creativity? Silicon Valley was able to succeed due to the creativity? Then, why has the creativity maximized in Silicon Valley? One of our members want to explain it. Look through this article, and let us know what you think!

Culture of Failure: Silicon Valley

Changhwan Hwang
Pusan National University

In the 21st century, many people emphasize the creativity as a virtue of success.  Therefore, we can see the word ‘creative’ or ‘creativity’ everywhere such as advertisements, mottos of big corporations, and even government’s rallying cries.  Although people’s efforts to create innovative ideas, not many people are able to get these ideas what can astound the world.  Then, what makes people and society to be creative?  What limits people’s creativity?  In other words, what makes citizens’ have a tendency to behave differently rather than identically with others?

In my opinion, the tendency that people hesitate to be creative or behave differently with others comes from the fear to fail.  Except few Western European and Scandinavian countries, the majority of countries do not have enough social security system or even anything like that.  Therefore, when people fail on business, people may not survive after their failure.  Moreover, they may be considered permanent losers in society.  Steve Chen, ex-CTO (Chief Technology Officer) of ‘Youtube’, also pointed out this problem and mentioned Korea and Taiwan are representative cases of society where are afraid to challenge.

Then, what can foster the innovative society?  We could find an appropriate answer in Silicon Valley, San Francisco, U.S.A.  According to Steve Chen’s interview, Silicon Valley’s culture of failure is represented by simple phrases: ‘Fast fail, fail often’.  It means whether you have degrees or not, you can start your own business and even though you failed to success 4 times, you can challenge again.  Under this culture of failure, failures are just fine experiences, not the stigma for losers.  Therefore, many people who have some creative ideas start their business to see how valuable idea there is.  It leads creation of many small business in society.  Historically, the majority of innovation has been come from small business, not big corporation.  At this point, this culture of failure boosts the emergence of creative innovation.

The most important thing at this point is people do actual challenges to estimate the value of their new idea rather than just sitting on the desk for planning.  This simple disparity creates extremely different outcomes.  Airbnb, Apple, Youtube, Google and Tesla, these world leading companies born in Silicon Valley.  In addition, Silicon Valley’s number of patents per person and venture investment rate are No. 1 in the world.  Of course, someone might say there are many successful corporations born without emphasis of creativity such as Samsung, Hyundai.  Yes, these companies are huge and have great economic power.  However, they don’t lead the trend of the market.  They are fast-followers, but not trend setters.  The meaning of follower and leader is significantly different.  This is one of the great outcome of the culture of failure.  They create not just the big corporations, but also the companies which leads the global trend.

Embracing the failure means giving freedom to people to try what they want to attempt.  Through thousands of attempts and failure, the creative ideas that will astonish the world can be finally born.  Attempting bravely is a kind of catalyst to boost trials to create creative outcome.  The success of Silicon Valley as an incubator of successful ventures came from other institutional reasons too, such as subsidies from government, and etc.  However, it seems clear that the  Silicon Valley’s innovative perspective to acknowledge people’s failure eventually make creative outcomes and these outcomes are leading the world trends in many field.

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