> In California, anything you do on your own time belongs to you, and the previous employer can't enforce most non-compete agreements.
This X100. Add in the fact that Stanford makes it easy for faculty to weave in and out of industry, and those facts explain a lot.
Stanford didn't always pull in a lot of government research money. See http://alumni.stanford.edu/get/page/magazine/article/?articl...
It took a long time for Sili Vally to become Sili Valley, and a confluence of factors.
CMU has grant money coming in. But CMU seems to pride itself on being Scottishly tight-fisted with how it treats the IP of faculty and students. And tight-fisted about everything else -- About a year ago I attended accepted student's day with my daughter (accepted to both Carnegie's College of Computer Science and Institute of Technology) and I got the distinct impression that CMU is not very flexible and is not very generous about much of anything -- kind of a state school attitude at private school prices. (My daughter chose MIT over CMU.)
So I think to make Pittsburgh work as a start-up hub, it will take CMU being a little more open, some more inventor-friendly IP laws by the state of PA, and patience. And somehow you have to keep the first generation of successful entrepreneurs around to be the VC's for the next generation.