Why policymakers always fail to build ‘the next Silicon Valley’ - David Richards

If we’ve learned anything from history, it’s that successful innovation ecosystems aren’t built by infrastructure alone. They’re driven by individuals who’ve walked the walk - entrepreneurs who have built successful businesses, scaled them and navigated the complexities of taking a company public. These are the people who can inspire and guide the next wave of innovation, but they’re often absent from the policymaking process.

For a lesson in getting it right, we need look no further than Sheffield’s rise to global steel dominance in the 19th century. At the heart of this transformation was the revolutionary Bessemer process, a game-changing invention that slashed the cost of steel and exponentially increased production speed.

Henry Bessemer, the inventor, wasn’t a local lad - he was from Hitchin in Hertfordshire and living in London when he introduced his technology to Sheffield. His expertise and innovation were imported to the city, which became the global hub of steel production. Without Bessemer, it’s unlikely Sheffield would have achieved its remarkable industrial success, or that Britain would have led the charge in the Industrial Revolution.

Fast forward to today, and the same principles still apply - but policymakers seem to have forgotten them. Instead of seeking out experienced tech entrepreneurs with a proven track record, they often default to relying on unqualified locals to devise strategies for fostering innovation. While well-meaning, these individuals often lack the firsthand expertise needed to drive meaningful progress, overlooking the importance of accessing the best talent and knowledge, regardless of geography.

It’s like hiring the manager of the local pub football team to take charge of Manchester United because ‘the club’s great, we just need to shout about it more’. That kind of thinking would be laughable in football, yet it’s precisely the approach often taken in economic development.

One first-time entrepreneur told me how they’d been given advice by ‘business gurus’ whose insights, they said, were no better than what you’d hear on a generic podcast. That’s not good enough. If you want to build the next Silicon Valley, you need people who’ve been in the trenches, faced failure, and scaled successes - not armchair strategists.

If we’re serious about building the next Silicon Valley, we need to focus on bringing in the right people to guide the process. That means seeking out those who’ve built companies in Silicon Valley or similar ecosystems - not relying on cheerleaders shouting, ‘It’s all great!;

Infrastructure and slogans may look impressive on a prospectus, but they won’t create the conditions for success. The real magic happens when experienced innovators - our modern-day Bessemers - share their expertise to inspire and guide the next generation.

If policymakers don’t learn this lesson from history, we’ll keep making the same mistakes, and the dream of creating ‘the next Silicon Valley’ will remain just that - a dream.

Let’s get it right this time.

David Richards is a technology entrepreneur.