The Midwest in general, and Ohio in particular, has some great institutions that attract great talent from around the world, i.e. The Cleveland Clinic. The region/Ohio also educates some of the top talent.
While I'm not convinced they will be a viable competitor to Silicon Valley, it is possible. The region's ability to retain talent is the most critical component. Non-competes can make that more difficult. I don't think non-competes alone preclude the region from competing with SV.
I'm from Ohio, I live in California, and I would put a higher priority on weather than non-competes.