I’VE spent the last week traveling to two of America’s greatest innovation hubs — Silicon Valley and Seattle — and the trip left me feeling a combination of exhilaration and dread. The excitement comes from not only seeing the stunning amount of innovation emerging from the ground up, but from seeing the new tools coming on stream that are, as Amazon.com’s founder, Jeff Bezos, put it to me, “eliminating all the gatekeepers” — making it easier and cheaper than ever to publish your own book, start your own company and chase your own dream. Never have individuals been more empowered, and we’re still just at the start of this trend.  “I see the elimination of gatekeepers everywhere,” said Bezos. Thanks to cloud computing for the masses, anyone anywhere can for a tiny hourly fee now rent the most powerful computing and storage facilities on Amazon’s “cloud” to test any algorithm or start any company or publish any book. Start-ups can even send all their inventory to Amazon, and it will do all the fulfillment and delivery — and even gift wrap your invention before shipping it to your customers.  This is leading to an explosion of new firms and voices. “Sixteen of the top 100 best sellers on Kindle today were self-published,” said Bezos. That means no agent, no publisher, no paper — just an author, who gets most of the royalties, and Amazon and the reader. It is why, Bezos adds, the job of the company leader now is changing fast: “You have to think of yourself not as a designer but as a gardener” — seeding, nurturing, inspiring, cultivating the ideas coming from below, and then making sure people execute them.  The leading companies driving this trend — Amazon, Facebook, Microsoft, Google, Apple, LinkedIn, Zynga and Twitter — are all headquartered and listed in America. Facebook, which didn’t exist nine years ago, just went public at a valuation of nearly $105 billion — two weeks after buying a company for $1 billion, Instagram, which didn’t exist 18 months ago. So why any dread?  It’s because we’re leaving an era of some 50 years’ duration in which to be a president, a governor, a mayor or a college president was, on balance, to give things away to people; and we’re entering an era — no one knows for how long — in which to be a president, a governor, a mayor or a college president will be, on balance, to take things away from people. And if we don’t make this transition in a really smart way — by saying, “Here are the things that made us great, that spawned all these dynamic companies” — and make sure that we’re preserving as much of that as we can, this trend will not spread as it should. Maybe we could grow as a country without a plan. But we dare not cut without a plan. We can really do damage. I can lose weight quickly if I cut off both arms, but it will surely reduce my job prospects.  What we must preserve is that magic combination of cutting-edge higher education, government-funded research and immigration of high-I.Q. risk-takers. They are, in combination, America’s golden goose, laying all these eggs in Seattle and Silicon Valley. China has it easy right now. It just needs to do the jobs that we have already invented, just more cheaply. America has to invent the new jobs — and that requires preserving the goose.  Microsoft still does more than 80 percent of its research work in America. But that is becoming harder and harder to sustain when deadlock on Capitol Hill prevents it from acquiring sufficient visas for the knowledge workers it needs that America’s universities are not producing enough of. The number of filled jobs at Microsoft went up this year from 40,000 to 40,500 at its campus outside Seattle, yet its list of unfilled jobs went from 4,000 to almost 5,000. Eventually, it will have no choice but to shift more research to other countries.
A visit to the innovation hubs of Seattle and Silicon Valley stirred both excitement and dread. Hereâs why.