Growing the Industry of Law: Choose The Silicon Valley Model
January 29th, 2010 by GuestAuthorPart of the reason many of us became lawyers is because we enjoy the challenges of the profession. We were constantly challenged with new information in law school, and now we find ourselves challenged by the new information from changes in statutes, case law, and the unique facts and circumstances each of our clients brings to us.
We stay informed about the issues that affect our clients, and because of this, we bring in more clients for ourselves. By gathering as much knowledge for ourselves as we can, we grow as practitioners and as individuals.
But what about the growth of our industry? We easily acknowledge that acquiring information to grow as individual attorneys is a worthwhile cause, but should we be doing more to grow the industry of law? Can we make the bar better by sharing our expertise?
As Avvo CEO Mark Britton said during last week’s Avvocating conference, in our role as lawyers, we are traditionally protectors of information. It is instinctual for us to protect our clients’ information, our work product, our industry knowledge, and our “rainmaking” techniques. But as the legal industry undergoes a much-talked-about change, we need to open up and share. I’m not talking about violating confidentiality rules, here. I’m talking about being more like Silicon Valley and less like Route 128.
Let me explain.
Silicon Valley is known around the world as a hotbed for technological advances, and with good reason. The area is home to the likes of Yahoo, Google, Apple, and Facebook. The companies that have sprung up in Silicon Valley have been amazingly successful.
Far fewer people have heard of Route 128. Located outside of Boston, it was once expected to be an East Coast version of Silicon Valley. All the ingredients that made Silicon Valley could also be found near Route 128. In both cases there were willing pools of investors, entrepreneurs, and world-class universities with well-known technology programs.
Though companies like EMC, Lotus, and Novell have all called Route 128 home, it hasn’t become the East Coast Silicon Valley that it was supposed to be.
So why has Silicon Valley been so successful when Route 128 has not? And how can we take to heart the lessons Silicon Valley has taught the tech industry to grow the legal industry?
Annalee Saxenian has written about the respective success and failure of Silicon Valley and Route 128. She attributes the success of Silicon Valley to the West Coast business culture—a more laid back, casual atmosphere. She argued that because people on the West Coast tend to have a more relaxed business attitude, it was more likely that employees of tech start-ups would move from one job to the next, taking information with them, and that even if those employees did not move around, there was, in general, a more open sort of communication among like-minded individuals in the industry.
Saxenian then suggests that Route 128 suffered in part because of its more buttoned-up style of business. On the East Coast, the employees of tech companies were more secretive about what their companies were doing, and were more likely to stay at one job longer to try to build a serious career, rather than hop around from job to job like their counterparts in Silicon Valley. The companies they worked for were also more secretive, and were more likely to be vertically integrated than companies in Silicon Valley.
For Ronald Gilson, business culture wasn’t enough to explain the difference in success between Silicon Valley and Route 128. He examined the two areas more closely, and noted that the business culture in these areas was a direct result of the legal rules in each respective area. He notes:
“The natural experiment results from the fact that Silicon Valley and Route 128 have different legal rules governing employment mobility. Post-employment covenants not to compete have the potential to seriously restrict the movement of employees between existing firms and to start-ups and, hence, to seriously restrict employee transmitted knowledgespillovers. California prohibits covenants not to compete; Massachusetts enforces them.”[1]
The business culture and legal rules in California actually encourage people to share information. And sharing information fueled industry growth in Silicon Valley, while lack of information sharing inhibited industry growth on Route 128.
You see where I’m going with this?
Bringing this all back to the industry of law: what if we made a conscious effort to be more like Silicon Valley? If we shook off the shackles of our self-imposed protections on information, and shared our knowledge of the law and the industry with one another, could we build a better bar of attorneys? Information sharing can also be a valuable marketing strategy. Demonstrating your expertise on the internet can help you build a reputation that will get you hired more often. And when others find your shared knowledge and share it with others, a snowball effect occurs.
Last week’s Avvocating conference was a great step towards this goal. I think it’s a necessary step, and the future of the legal industry.
About the Author: Kaitlin Janusz graduated with her BA in Political Science and Economics from the University of Wisconsin in 2006. She went on to earn her law degree from the University of Wisconsin Law School in 2008, and is admitted to practice law in Wisconsin. In 2009, she joined GJEL Accident Attorneys as Director of Client Outreach. Find GJLE at www.gjel.com or the blog at www.gjel.com/blog.
[1] John M. Olin Program in Law and Economics, Working Paper 163, August 1998, available at SSRN





