The Social Network and the real villains of the old/new economy

The other week I finally got around to watching The Social Network. It’s great fun and I recommend going out and watching it whether you’re a self-professed social media expert or don’t even have a Facebook account.

Here are some of my thoughts about the movie (don’t worry, no spoilers here).

1. Remember this is a Hollywood movie: Before (or after) you watch it, read Lawrence Lessig’s fantastic critique of the movie. This review is so soundly brilliant and devastating I’m basically willing to say, if you only have 5 minutes to read, leave my blog right now and go check it out. If you are a government employee working on innovation, copyright or the digital economy, I doubly urge you to read it. Treble that if you happen to be (or work for) the CIO of a major corporation or organization who (still) believes that social media is a passing phase and can’t see its disruptive implications.

2. It isn’t just the legal system that is broken: What struck me about the movie wasn’t just the problems with the legal system, it was how badly the venture capitalists come off even worse. Here is supposed to be a group of people who are supposed to help support and enable entrepreneurs and yet they’re directing lawyers to draft up contracts that screw some of the original founders. If the story is even remotely true it’s a damning and cautionary tale for anyone starting (or looking to expand) a company. Indeed, in the movie the whole success of Facebook and the ability of (some) of the owners to retain control over it rests on the fact that graduates of the first internet bubble who were screwed over by VCs are able to swoop in and protect this second generation of internet entrepreneurs. Of course they – played by Sean Parker (inventor of Napster) – are parodied as irresponsible and paranoid.

One thought I walked away with was: if, say as a result of the rise of cloud computing, the costs of setting up an online business continue to drop, at a certain point the benefits of VC capital will significantly erode or their value proposition will need to significantly change. More importantly, if you are looking to build a robust innovation cluster, having it built on the model that all the companies generated in it have the ultimate goal of being acquired by a large (American) multinational doesn’t seem like a route to economic development.

Interesting questions for policy makers, especially those outside Silicon Valley, who obsess about how to get venture capital money into their economies.

3. Beyond lawyers and VCs, the final thing that struck me about the movie was the lack of women doing anything interesting. I tweeted this right away and, of course, a quick Google search reveals I’m not the only one who noticed it. Indeed, Aaron Sorkin (the film’s screenwriter) wrote a response to questions regarding this issue on Emmy winner Ken Levine’s blog. What I noticed in The Social Network is there isn’t a single innovating or particularly positive female character. Indeed, in both the new and old economy worlds shown in the film, women are largely objects to be enjoyed, whether it is in the elite house parties of Harvard or the makeshift start-up home offices in Palo Alto. Yes, I’m sure the situation is more complicated, but essentially women aren’t thinkers – or drivers – in the movie. It’s a type of sexism that is real, and in case you think it isn’t just consider a TechCrunch article from the summer titled “Too Few Women In Tech? Stop Blaming The Men” in which the author, Michael Arrington, makes the gobsmacking statement:

The problem isn’t that Silicon Valley is keeping women down, or not doing enough to encourage female entrepreneurs. The opposite is true. No, the problem is that not enough women want to become entrepreneurs.

Really? This is a country (the United States) where women start businesses at twice the rate of men and where 42% of all businesses are women owned? To say that women don’t want to be entrepreneurs is so profoundly stupid and incorrect it perfectly reflects the roles women are shoveled into in The Social Network. And that is something the new economy needs to grapple with.

One thought on “The Social Network and the real villains of the old/new economy

  1. Mark Mclaughlin

    “where women start businesses at twice the rate of men and where 42% of all businesses are women owned”

    That stat probably doesn’t tell the whole story, although technically true. It probably includes all the Avon salespeople and ‘party’ coordinators or wahtever you want to call them. Peddling Tupperware, jewellery and housewares to your friends and family is hardly what most would call a lucrative small business.

    Reply

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