>You just need some talented people...

Well, yea, hence silicon valley. Like begets like - if there's a place where all the best engineers are hanging out, why wouldn't a budding engineer head out there? This is literally why I moved to San Francisco from Houston :P

And then, the best of the best engineers making oodles of money are probably not going to want to live in like, Michigan, growing tech sector or no. Give up good weather, quick access to great vacation spots (mexico, vegas, anythign over the pacific, all the national/state parks...), legalized weed, etc? Nah man.

edit: My language is assertive but I am very open to being challenged on this.