I just got back from Seattle, where I was very surprised to find FOUR Starbucks coffeeshops on one (four sided) block. There was also a non-chain bakery and coffeeshop with a line of people waiting for coffee and muffins. People in Seattle must buy a lot of coffee in coffeeshops, and there are a lot of coffeshops that spring up to satisfy that addiction.

Which came first, the chicken or the egg? For whatever reason, Seattle coffee suppliers and buyers started a cycle of competition and appreciation that turned corner coffeeshops into global marketing giants. I used to wonder how Starbucks and Seattle's Best coffeshops could come from 3000 miles away and drive out the local competition here in Boston. Now I realize that there is a reason.

We see the same effect in Web businesses. Fred Wilson posted a chart here of the top 30 Internet sites by traffic here, and noted "75% of these properties are based in the US ... Contrast that with the fact that only 17% of the Internet audience (213mm) is in the US and you will see that Internet is one of the primary export industries in the US."

As you know, I am a supporter of global development teams. Business models may be local, but production is not. "Seattle's Best" coffee doesn't come from Seattle. It comes from Nicaragua. And, Belgian chocolate wasn't grown in Belgium. America imports most the equipment and a lot of the talent that goes into building those top Internet services.

The lesson that I take away is that we can pull our materials and talent from around the world, but we should look for a small number of up-close and personal customers and competitors that will make our business stronger.