Seattle Tech Scene Makes It an Innovation Leader

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Dec. 20 (Bloomberg) -- University of Washington's Matt McIlwain discuses Seattle's tech scene with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

The city have led to a budding technology community.

Everyone from facebook, google, and salesforce have large offices in the state and a number of startups.

Joining me now to discuss this is mattmcilway.

First of all, the most innovative state is the state you live in according to bloomberg.

I'm assuming you agree.

We do agree but now the secret is out.

We have been finding, for the past couple of decades, that washington state keeps getting more and more innovative.

Amazon, microsoft, the 10 most highest market cap companies in the tech world are here and we believe we are becoming the cloud capital of the world.

How much of this can be attributed to just amazon and just microsoft?

It really isn't just those two.

You have a whole ecosystem at the intersection of innovation that we see in washington state.

You have a mobile ecosystem going back to mccaw and t mobile who are based a peer and you have the research ecosystem which has the university of washington and microsoft research, of course.

Paul allen has the artificial intelligence research center and the cancer research area with fred hutch and others.

What can startups get there that they cannot get here in silicon valley?

They can get access to the people that have built innovation here.

You take a look at a microsoft which begat realnetworks to a company like iselon and we have personally back multiple companies that are the next generation of people from iselon and that gives you access to people an insight and innovation that you cannot find anywhere else in the world.

Silicon valley has a lot of great things going on.

It is a far bigger place to date but where the future is going, a lot of those intersections of innovation are right here in seattle.

Let's talk about amazon.

You guys were an early investor.

What do you think of drones delivering our packages?

Is this a short term reality?

I would not sell them short.

I absolutely think you could see drones maybe three or five years.

The big thing is that microsoft first and now amazon have become these anchor tenets of innovation here in the pacific northwest.

Amazon deserves the ground right now as an innovation factory.

Whether it's a drones or cloud computing or the mayday button on the kindle device, they just keep at a torrid pace delivering innovation into a broad cross- section of what is going on in the technology community.

You think package delivering drones will happen in three years?

It's possible.

I would not underestimate amazon.

They take a long-term view.

They invest in the kind -- in these kinds of ideas.

Not all of them will work out but i would not be surprised.

Let's talk about overestimating.

You mention innovation at microsoft where they say innovation has stalled.

How do you respond to that?

I think those people are forgetting areas like the continued innovation in xbox and maybe, more importantly, what the company has done in building and over $20 billion service over the last decade.

They have done an amazing job of not only building that business but now extending it through azure into the cloud.

Amazon is the clear leader in cloud is here and microsoft we believe is the strong number two in that category and is a distant third from there.

Why is that happening here?

Notwithstanding the bad rep that microsoft gets, they continue to be innovative in important areas.

You mentioned a long-term microsoft executive as as successor to steve ballmer.

It seems like the ceo search has slowed down.

Some people say they don't want the job.

Who do you think should be ceo of microsoft?

If you were to make an external pick, the guy that would be best served to do that externally would be paul moritz who has a great history with the company but i doubt he will take the job.

That might be one of the challenges in this search.

A number of the best external

This text has been automatically generated. It may not be 100% accurate.

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