What could it could mean for a "tech" town to be born, especially with what we have today regarding techniques and tools. While the dream has not really bore out yet (especially at a village level), I would argue we could do even better in middle America with this thinking; small college towns. While its a bit of existing gravity well, you could do a focused effort to get a flywheel going (redo mini Bell labs around the USA solving regional problems could be a start).
Yes it takes decades. My only thought on that is, many (dare say most) people don't even have short term plans much less long term plans. It takes visionaries with nerves and will of steel to stay on paths to make things happen.
Love the experiment idea.
To kick-start, given them machines with Plan9, ITS, or an OS based on LISP / Smalltalk / similar? Or just microcontrollers? Or replicate 1970-era university computing infrastructure (where everything was homebrew?)
Build out coursework to bootstrap from there? Perhaps scholarships for kids from the developing world?
Free internet existed before paid internet, true, but mostly because people did things for other motives (like fun). Altavista was a tech demo for DEC. Good information was found on personal web pages, most often on .edu sites.
Banner ads existed, but they were confined to the sketchy corners of the Internet. Thing today's spam selling viagra. Anyone credible didn't want to be associated with them.
What Google figured out was:
1) Design. Discrete ad-words didn't make them look sketchy. This discovery came up by accident, but that's a longer story.
2) Targeting. Search terms let them know what to ads to show.
I can't overstate the impact of #2. Profits went up many-fold over prior ad models. This was Google's great -- and ultra-secret -- discovery. For many years, they were making $$$, while cultivating a public image of (probably) bleeding $$$ or (at best) making $. People were doing math on how much revenue Google was getting based on traditional web advertising models, while Google knew precisely what you were shopping for.
By the time people found out how much money Google's ad model was making, they had market lock-in.