Strong, competent product management balances user needs, marketplace conditions (competing and complementary products), and technological factors to create optimal products. What we see from the outside are products that are technologically strong, but suffer from lack of useful user perspective and market awareness.
Google will never create new (i.e. post search and AdWords) great products until it undergoes a complete cultural transformation toward a product management-focus.
For this reason, experienced developers from other countries which have universal healthcare coverage and low cost of living, such as many Eastern European Countries, are very attractive to many startups.
Instead of throwing tricky algorithm questions at a candidates, I scour their detailed employment records for the most relevant experience for the first project. In other words, I'm looking for relevant experience rather than top-of-the-head algorithmic brilliance. In the interview, I pose our project problem, and the candidate who gives me the most impressive proposal to get that done gets a chance to solve it.
I hire from an international pool, often on Upwork, so I can start developers on a project basis.
If the developer does a great job, we hire him/her for another project, and so on. At some point, this becomes a full-time relationship, with stock options and other perks.
Using this approach, we value experience over "raw intelligence," per se, and we end up with a team of self-directed developers who are fabulous at delivering great finished products.
It's amazing how well this has worked out for us. I think there's an arbitrage opportunity to avoid coding tests and hire on this basis.
In a nutshell, I contend that this is a social problem of neighborhood culture, and parents should work to make their neighborhoods as fun and inviting as video games and the Internet. Simply cutting off electronics and shoving them out the door won't do it because there's no one out there - neighborhoods are very boring. Somehow, we need to create a culture of play, first with parents, and later without, in our neighborhoods. The book Playborhood is all about that.