163640813_business_deskSilicon Valley entrepreneur Vivek Wadhwa discovers that the famed “meritocracy” of Silicon Valley is a myth and that women are systematically discriminated against there, despite the fact that they’re more productive, on average, than their male counterparts. He has a plan to change the Valley.


Paul Solman: Silicon Valley entrepreneur Vivek Wadhwa is a widely heard voice on the value of immigration for the U.S. economy. We first featured him a year ago in “Man v. Machine,” a story on the automation of work and did so again on this page last fall on the threat posed by a programmable robot named Baxter.

An immigrant himself (from India), Wadhwa used to think Silicon Valley was a a paragon of open access: talent like his would inevitably prevail. But he has been writing and speaking lately about the Valley’s “myth of meritocracy.” All, he realized, was not as it seemed, and he followed up his dawning disillusionment with research, which he will publish soon. But his findings seemed so noteworthy, I asked if he would share them with us at the NewsHour. And so he has.

Vivek Wadhwa: Visit any company in the Valley, and you’ll see that it resembles the United Nations. At the Google cafeteria, they always serve Indian, Chinese and Mexican food; hamburgers and hot dogs are nowhere to be found. Indeed, my research team documented that 52 percent of startups in Silicon Valley during the recent tech boom were founded by immigrants — like me. So I used to call Silicon Valley the world’s greatest meritocracy.

This was before I moved to the Valley and my wife pointed out something strange: that practically all of the people at Silicon Valley’s big networking events were male. They were mostly white, Indian, or Chinese. Women, blacks and Hispanics were nowhere to be found. When I analyzed company founder data from the Kauffman Foundation, I was shocked to learn that only 3 percent of the tech firms were founded by women. When I looked at the executive teams of the Valley’s top tech firms, with a couple of notable exceptions, I couldn’t find any women technology heads. Even the management team of Apple didn’t have a single woman in it. And I learned that virtually all of Silicon Valley’s venture-capital firms are male dominated — the few women whom you find there are in either marketing or human resources. Indeed, of the 89 venture capitalists on the 2009 TheFunded list of top venture capitalists, only one was a woman.

So I was wrong; this is no meritocracy.

Since then, I have researched this topic in greater depth. When I analyzed data from my own studies on entrepreneurship, I was surprised to learn that there is virtually no difference in motivation between men and women entrepreneurs. Women start companies for the same reasons as men: because they want to build wealth and capitalize on business ideas, like the startup-company culture and are tired of working for others. Women entrepreneurs are as highly educated as their male counterparts, have the same early interest in starting their own business and learn the same valuable lessons from their work experience and from prior successes and failures.

This raised the question: Are women less competent as entrepreneurs than men? Are they not cut out for the rough-and-tumble world of entrepreneurship? The answer turned out to be none of this. An analysis performed by the Kauffman Foundation showed that women are more capital-efficient than men. Babson College’s Global Entrepreneurship Monitor found that women-led high-tech startups have lower failure rates than those led by men. Other research has shown that venture-backed companies run by women have annual revenues 12 percent higher than those by men and organizations that are the most inclusive of women in top management positions achieve a 35 percent higher return on equity and 34 percent higher total return to shareholders.

Could the education of women be the problem? Not according to data from the National Science Foundation. Girls now match boys in mathematical achievement. In the U.S., 140 women enroll in higher education for every 100 men who do. Women earn more than 50 percent of all bachelor’s and master’s degrees, and nearly 50 percent of all doctorates. Women participation in business and MBA programs has grown more than five-fold since the 1970s, and the increase in the number of engineering degrees granted to women is almost tenfold.

This shows that there isn’t a fundamental problem, and that things are moving in the right direction. I have also interviewed about 300 women in tech over the past three years, and my research team at Stanford University recently completed a survey of more than 500 women founders. We are still analyzing the complex findings (and will likely publish a paper in the summer). At a glance, though, the new research shows a distinct change in attitudes over time. Women are becoming more confident and assertive, and they are helping each other. Men are also beginning to mentor and coach women.

That’s not all. Many technologies are now advancing exponentially. We all know how computing is advancing — our computers get more powerful every year as prices drop. The same is happening in fields such as robotics, artificial intelligence, 3D printing, nanomaterials, medicine, and synthetic biology. This is making it possible for small teams to do what was once possible only for governments and large corporations to do: solve big problems. Starting exponential companies requires relatively small amounts of money, and entrepreneurs with cross-disciplinary knowledge and skills have the advantage. This plays to the strengths of women: they are in the catbird seat for the new era of innovation.

To encourage, inspire and educate women to become engineers, scientists and entrepreneurs — and help solve humanity’s grand challenges, I am myself taking advantage of an exponential technology: crowdsourcing. I plan to harness the genius of the crowd to produce a book about women at the frontier of technology. Along with journalist and author Farai Chediya and my lead researcher Neesha Bapat, we are planning to ask hundreds — possibly thousands — of women to co-author this book with us. We will presell the book on a crowdfunding site such as Indiegogo and donate all of the profits to fund the tuition of women through the Graduate Studies Program at Singularity University and to support women-led startups coming out of this program. This is a 10-week program designed for leaders who want to build innovative solutions to global grand challenges.

So Silicon Valley may not have been the perfect meritocracy, but there is hope that it will soon be, and that our women may save the world.


Vivek Wadhwa is Vice President of Research and Innovation at Singularity University, a fellow at Stanford Law School, and Director of Research at Duke University. He is also the author of an Economist Book of the Year for 2012–Immigrant Exodus. You can follow him on Twitter: @wadhwa.

 

This entry is cross-posted on the Rundown — NewsHour’s blog of news and insight.

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  • http://www.facebook.com/profile.php?id=100005231258440 Alex Chen

    Thank you for posting this article. Yes, the discrimination is horrible in this already cutthroat and overall dirty, exploitation/sweatshop industry. I’m a woman software developer with CS degree, etc, but decided to leave the industry and go get some education for a different profession, where I won’t be discriminated against–and severe SV ageism makes it a double wammy, so to speak, for people like myself. I think it’s good there’s almost no women in engineering in SV…the slave labor for inadequate pay…women make smarter decisions and go for anything from RN to many other occupations which can’t be outsourced. So, let them (SV discriminatory majority) rot in own filth and waste their life “coding” 14 hours a day only to learn they’re heading where Jobs went when it’s too late and precious time of life is wasted on pushing buttons…soon, overseas workers will take the remaining jobs and will cause even more non-paid overtime labor. Good luck with that.

  • Mark

    Silicon Valley is meritocratic in a specific way — engineers have a high amount of influence. But who are these engineers and where do they come from?

    Well, your education analysis is a bit shallow so let’s look at it a bit more closely. Yes, more women go to college than men these days, but not many in STEM degrees and specifically very few in Computer Science. It’s a men’s game from the moment you enter college to study CS, and I think that women who are brave enough to enter this area have pressures of misunderstanding from both other women and from men.

    Other women look at them like they’re crazy (because women aren’t supposed interested in tech) and men also scratch their heads wondering what they’re doing there because they stand out.

    So I think from the moment you’re a young woman entering CS or a similar major, you feel an awful lot of pressure to fit-in, and if you want to be doing a start-up or something entrepreneurial you need to be thinking the opposite way. You need to be challenging your professor. You need to be asking why the textbook says one thing, and why it isn’t another way. Is there perhaps a better way of doing it? You need to be not just looking for the right answer, but figuring out if the right answer really is the right answer. Everything that is stated as “the right way” to do something in Computer Science should be taken with a grain of salt, because in a few years, that may no longer be true.

    So that’s one reason I see. The other reason is that men are the main consumers of the products produced in Silicon Valley. They’re certainly usually the early adopters, who will be needed to get buzz for your start-up. It’s hard to get buzz for a product that is going to appeal to females rather than your average male geek. So I think there is some sentiment in Silicon Valley that male geeks know what other male geeks want.

    Then again, the women’s fashion industry is nearly completely controlled by men…and that’s something that has never made one bit of sense to me. So I guess it’s not always true that the producer has to identify with the buyer to be successful (although that sentiment seems to be a strong belief among Silicon Valley types, which might be why female-run start-ups are overlooked).

    • http://www.facebook.com/profile.php?id=100005231258440 Alex Chen

      That’s right–you can see though the whole thing.
      What you said: “It’s a men’s game from the moment you enter college to study CS, and I think that women who are brave enough to enter this area have pressures of misunderstanding from both other women and from men”
      –yes. It’s a man game from CS101 class in college. It’s all about all-boy teams in school, networking between them, etc. Sexist jokes in CS classes. Silent discrimination during hiring process, where every one keeps the mouth shut but is doing their thing, to exclude you. Yes, being looked at like if you’re in the wrong place, but BOTH men and women.

      “from the moment you’re a young woman entering CS or a similar major, you feel an awful lot of pressure to fit-in”

      –yes, there’s a lot of pressure to fit in, to look and sound certain way. There’s a lot of pressure to fit in in this industry in general, actually, for males as well.

      Notice, my name sounds like male name here–I have to modify even my resume name to hope that the resume won’t be overlooked because there’s obviously female name on it (so far it worked)….

      but I’m SO done with this industry. Looking to get another (lower-paying) profession that is free from slave labor of software development, outsourcing, etc. We live only one life: Can’t throw it away on fighting for non-existing, worthless causes. Technology went too far in destroying good sides of human nature…I’m against tech progress now. (Teddy Kascynski wasn’t wrong after all!! :) Anyway, I can do more pull ups than any male in any software company (can bet anything on it)…I’m sad for fat, unfit, frightened slobs that fill those little cubicles having no life…living life like that ain’t worth it. So, there’s nothing to lament about lack of women in this throwaway industry… smart person won’t go into CS now, as US workers salary requirements won’t ever beat India and India and China offering 7:1 (or so) engineering workforce ratio…these are the losing bets for US CS graduates. Sorry.

      • SensitiveMan

        Baloney. When a good number of women are in a company they are usually from China or India where real sexism occurs. Women do not need affirmative action here – this is yet another entitlement.

  • Yup

    Basically everywhere you go there are less women at the top. Numbers shrink higher up. Silicon Valley is the same way

    • http://www.facebook.com/profile.php?id=100005231258440 Alex Chen

      Not everywhere… it’s very, very bad in CS and Silicone Valley.

  • Yup

    Great article