Flush with money and opportunity following the post-dot-com resurgence, he says, some entrepreneurs have cocooned in a "reality bubble," insulated from poverty, disease, global warming and other problems that are gripping the planet. He argues that they should follow the model of some of the world's most successful technology companies, including Google Inc. and Microsoft Corp., which sprang from their founders' efforts to "work on stuff that matters."
Not everyone is convinced that business is the right vehicle to tackle social or environmental ills. But Jim Schorr, who lectures on social entrepreneurship at UC Berkeley's Haas School of Business, says he can't imagine "a higher calling for the next generation of tech entrepreneurs."
"The opportunity to focus technology and tech entrepreneurs on the unaddressed, underserved segments of society is enormous," Schorr said. "Developing and extending technologies with limited profit potential, using market-driven approaches, can deliver both social and financial impact and sustainability."
Though the Web 2.0 generation has a reputation for indulgence and narcissism, O'Reilly can point to a number of ventures using Silicon Valley ingenuity to deliver on Schorr's ideal.
The Omidyar Network, created by EBay Inc. founder Pierre Omidyar and his wife, Pam, makes grants to and investments in worthy causes. Benentech.org, started by former rocket scientist Jim Fruchterman, creates software for human rights activists, environmentalists and people with disabilities.
The Wildlife Conservation Network -- started by software engineer Charles Knowles, conservationist John Lukas and Akiko Yamazaki, wife of Yahoo Chief Executive Jerry Yang -- uses technology and a venture capital model to help save endangered species.
A growing number of businesses are turning to social networking tools to encourage people to get more politically active and drum up donations for charities. Causes, started by Sean Parker and Joe Green, created the popular Causes application on Facebook and MySpace. Its 14.5 million users have created 110,000 campaigns.
O'Reilly also singles out two other Web 2.0 stars for providing social benefit. Twitter, an instant digital communications service, has helped coordinate disaster response. YouTube, the video sharing website now owned by Google, has helped activists fight repressive regimes in other countries.
"Simply providing technology that can be used for positive causes can have an enormous impact," he said.