Northern Virginia
On the Cusp of Greatness

Jason Shapiro

July 2019

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For nearly 40 years, Northern Virginia has been on the cusp of being the next big entrepreneurial ecosystem, on par with thriving regions like Silicon Valley and greater Boston. In 1983, the Washington Post published, “Virginia Needs High-Tech Brain Pool,” highlighting the growing needs of the burgeoning entrepreneurial community. Mark Warner, then an accomplished entrepreneur and later a U.S. senator, penned an editorial in 1994 titled “A Chance to Become Silicon Valley East.” In 2000, the Greater Washington Board of Trade hosted a session named “Can Washington Region Really Go from Government Town to Innovative Region?”

Much has changed since the idea of Northern Virginia becoming a technological hotbed first began, but the conversation still sounds remarkably similar. The region has seen the rise and fall of giants such as AOL and MCI. Its economy has endured a steady shift away from the federal government. Today, optimism is at an all-time high with the announcement of Amazon’s decision to build their “HQ2” at National Landing in Arlington. Will this time be different?

The ecosystem has certain strengths that it is learning to leverage. A disproportionately large number of universities within a central radius enables Northern Virginia to have one of the most educated workforces in the nation. Its proximity to the federal government provides not only access to the world’s largest technology customer, but also a resilient foundation for funding and employment opportunities. Further, a history of innovation and entrepreneurship gives the community momentum to continue.

However, questions remain. The nature of government bureaucracy has never lent itself to taking the risks necessary for high-growth innovation. Hard sciences R&D spending at those same universities lags behind peers, challenging the region’s ability to innovate at a high level. The technology bubble’s burst in the early 2000s halted the region in its tracks, slowing entrepreneurship for almost a decade. Today we find ourselves in the middle of one of the longest expansions in US history, fueled in part by a similar rise of technology and innovation. Will the region be more resilient this time around?

This report is split into three main sections. First is a contextual overview of the Northern Virginia region, economy and technology ecosystem. The second is a history of the regional entrepreneurial ecosystem, starting with the post-World War II period and ending with the most recent expansion. The third section provides commentary on the current trends and events in the ecosystem. The bulk of the information and context was collected through first person interviews with a variety of the region’s stakeholders. Our hope is that this briefing provides insight into the ecosystem as it is today and imagine what it might be tomorrow.

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