Is Amazon aiming for political influence in their HQ2?
Their newly released Top 20 Cities would indicate so.
It would be fantastic, but surprising if Amazon HQ2 came to Canada, but at least we made it in the running! Right? Albeit in the booming East... What is most obvious to me, and which I've displayed on this handy Google map, is that the majority of the Top 20 Cities selected, slimmed down from 238 submissions, are located in Eastern USA. This does make complete sense to complement their existing headquarters in the western side of the country, Seattle.
Even more interesting to me though, is where the clusters lie - particularly one cluster located around Washington D.C. proper, with three potential locations within neighboring counties - Washington D.C., Montgomery County, Maryland, and Northern Virginia. I read an article in Q4 of 2017 about how Silicon Valley is now the new political power in Washington, and after seeing the correlation with the cities chosen here, I can't help but agree. Where the big banks and pharmaceutical giants used to dominate the US lobbying industry, flexing their economic muscle, the new player in town is the tech industry, and in a big way. "Over the last 10 years, America’s five largest tech firms have flooded Washington with lobbying money to the point where they now outspend Wall Street two to one. Google, Facebook, Microsoft, Apple and Amazon spent $49 Million on Washington lobbying last year, and there is a well-oiled revolving door of Silicon Valley executives to and from senior government positions." (The Guardian). What these companies are searching for, is less competition, less tax, and more data.
The reason for this shift came from the lessons learned by Microsoft in the 1990's, who held the vast market share and wealth in the market, but did not rub shoulders with Washington. Meanwhile, smaller disgruntled competitors, upset by the dominance of Microsoft, complained that the company had a Windows operating system monopoly that pushed its Internet Explorer browser. This turned into years of legal battles, of which the conclusion was Microsoft being forced to make it easier for competitors to integrate and thrive, which was the flame that ignited the growth of companies like Apple and Google! Out of this, Silicon Valley learned that to protect their growth and competitiveness, they had to massage the backs of Washington's political leaders.
All of this is to say that Amazon choosing three cities in close proximity to the political power of the United States speaks volumes to me, and I would not be surprised if one of these three "Washington D.C." options was chosen as the final contender. By having their second head quarters located at the political epicenter, Amazon can be heavily involved and top of mind when it comes to decisions regarding net neutrality and anti-competitive action...
Would love to know where you think the final destination will be, and why?