The Next Silicon Valley Will Be in the US Heartland: Steve Case
wired.com
wired.com
Frankly, now I'm not so sure I was right. No other place in the US (maybe in the world) has the amount and magnitude of technical talent and know-how, access to capital, or strength of network to compete with SV right now. Spend some time in SF, or Palo Alto, or Mountain View, and it's immediately obvious. Go to a cafe and people will be talking about tech. Your neighbor is probably in tech. Drive along the highway and you'll see billboards for tech products, and tech office buildings along the highway. Tech is deeply ingrained in the culture, top to bottom.
There is no other place in the US that is like this and the gap for SV is still only accelerating.
The only other place where I've seen something similar is in Washington, DC, where you'll get advertisements on the Metro for things like fighter jet engines, apparently aimed at congressional staffers and Defense Department executives.
When you look at places like Ohio, for instance, that have been stagnating for decades, a huge reason for it is that the population of Ohio was once representative of the country and has increasingly become older and whiter than the general U.S. population. This is because very few people are moving to Ohio — immigrants and others from other parts of the country. Ohio has one of the highest rates of residents born in the state, which is a recipe for stagnation.
Say what you will about Silicon Valley, but it has long been a place where dreamers and immigrants could mix. Heartland cities and states that embrace immigration and net inflows of residents could very well become the next something. But that has to come first.
I believe that if America loses its way and ceases to be the most innovative, entrepreneurial nation in the world, the most likely cause will be not having an immigration policy that is as welcoming to people as it has been for the past couple of centuries.
The talent is largely already here.
It isn't black and white.
Your cause and effect seems reversed; that is, Ohio is older and whiter because people have been moving out, and not that people are avoiding Ohio because it is older and whiter.
Diversity Index (61.1%, up from 54.9%).
Race and ethnicity (White alone 61.6%; Black alone 12.4%; Hispanic 18.7%; Asian alone 6%; American Indian and Alaska Native alone 1.1%; Native Hawaiian and Other Pacific Islander alone 0.2%; Some Other Race alone 8.4%; Two or More Races 10.2%).
I think this whole west coast trope of the midwest being a bunch of insular unwelcoming old white people is overblown.
I don't think Ohio is unwelcoming from a people perspective, although around where I grew up is MAGA central, so I am not sure that it is super welcoming to immigrants or people who aren't white and straight. The people are generally friendly when they know you.
The politicians, however, are fairly insane, and since I left the state, they have allowed guns in preschools, outlawed abortion, blocked intracity rail to connect to their major cities (and don't invest in infrastructure beyond sprawl), have continued to hollow out their cities for almost exclusively sprawl building, etc. There is very little emphasis from Ohio policymakers on creating policy and infrastructure to attract people.
One big area that Ohio has cut in recent decades is higher education funding. What is a great way to attract immigrants and startups? Higher education spending. Research universities, in particular, foster and help create startups. This is one of California's secrets. An elite state research university in or near Cleveland would probably be a much better way to invest in the state than what policymakers have been doing.
In short, the people of Ohio are generally friendly if they know you, but the state isn't doing anything to attract immigrants or people from other parts of the country.
1) weather (no tornados, no super humid days, no snow)
2) proximity of great places (Lake Tahoe, Monterey, Napa valley, …)
3) good universities (Berkeley, standford, UCSF, …)
4) immigrants (especially south asian) are more welcome
5) big companies like Salesforce, Google, Facebook, etc.
6) support network: it is ok to be poor entrepreneur and hassle even you are bad at that.
I do not know …
The diversity of Silicon Valley is very enticing not only for companies who just repeat the word as a marketing buzzword while not necessarily comprehending what it gives them (a lot), but also for young engineers, male and female, in their social lives, and having a huge diverse pool of potential partners to meet and mix with is something that appeals to our strongest drives as humans, and no dreary place is going to compete.
It also creates a comfort zone for creative people of all types and backgrounds, not only for their work, but also for their life outside of work and the lives of their family members, some of whom may actually have opinions about where they want to live.
Socioeconomically - it's a wildly monolithic culture. Extremely capitalistic as well to where many people cannot fathom anything that doesn't fall outside the purview of capitalism because they've been taken so strongly by it and it's all they've ever known. You run into plenty of leftists/communists/socialists and what not too but they have no power or positions of authority... Usually just ICs or random people around Berkeley.
I'd agree that the diversity of economic backgrounds seems limited. Although I'd caution that people tend to attempt to hide parts of their background they feel will make others and themselves uncomfortable, so your perception may be skewed by that.
I like the Bay Area. I'm even going there on a trip in a couple of days. But, at the end of the day, most people aren't basing where they live on the climate and recreational options (though those may make a difference at the margin).
I'm looking back on any discrimination against South Asians...I don't know. Well for one thing, one interesting loophole in discrimination, is that there is white guilt about discrimination, as a group they know it to be wrong and they don't like carrying it out in abstract. When there is a stereotype-breaker, they go for it completely. So Asia lies north of the equator, meaning South Asians lie closest to the equator, more light but also more heat meaning less clothing more exposure to light, so what do you get? Darker skin, particularly in Sri Lanka. Born under an equatorial sun, as Harriet Beecher Stowe put it in Uncle Tom's Cabin. So the deal is they are dermatologically dark, like Fitsch type 5 (a scale from 1 to 6 measuring skin darkness and tanning in response to sunlight, not truly synonymous but close enough to be useful), but they're Indoeuropean, always known to be the same language group as eg the English and Norse. Known kinship, and the intent was to accept them, and they invented 0 come on, super smart great at chess invented that too.
So by now the desire in principle to accept them in combination with them working like crazy--the most basic way to hack discrimination--and in addition, outpacing other minorities in certain fields--like there was a blogger on Wall Street who talked about being East Asian on Wall Street, and compared it to being South Asian saying it was rough because there were I think no managing directors (MD's as they're called) on Wall Street that were breakaway successes. Whereas there were South Asians there were. (I think Indians, the article said BSD Big Swinging Desi, meaning Indian, vulgar yes Wall Street can be vulgar, dude it's all about alpha), and it maps out to what I saw when I was picking which tournament I would enter (another option was chess, I chose algorithms instead). It's a way for whites to not judge based on the color of people's skins. And further in Freakonomics an Indian sociologist did some polls in housing projects, ended up not getting killed because while not African he was dark too, not black, like in a gray area. OK they considered him gray. So that's how he was privy to the economics of the street drug market, and the tournament aspect of it.
For all the soul-searching about why Silicon Valley became Silicon Valley, the overwhelming reason is because once you have a successful base for an up and coming industry, you will win by default moving forward. Once Silicon Valley became the initial bed for tech, tech talent moved there for the jobs, and new tech companies move their to follow the tech talent. Its a virtuous (or vicious for everyone else) cycle. That's it. Virtually every other reason is looking for patterns where non-exists.
The weather certainly helps, but I feel like that is more of a post-fact justification than an actual cause. People want to tell themselves that paying out the nose for a closet with 4 roommates in San Francisco is worth it because the rest of the US is a hellscape with weather unfit for human life. It's not, and with climate change, the California weather is becoming less and less attractive.
There may never be an "next" Silicon Valley other that Silicon Valley. But it won't be for any reason other than being a Mecca for an industry is reason enough to sustain itself.
Im just trying expland my views and maybe visit them.
Regarding Chicago and Michigan: I have to say “nope”. California is way way nicer to visit. There nothing even remotely similar to Palm Springs. Or Monterey bay. Or Joshua Tree. And I did have a couple of ackward situations with people saying “go back to your country” as way to start some disagreement.
1. Decent weather - no snow, wind, storms. This is changing recently with wildfires, so may not last for long.
2. Density of tech talent - no matter what niche tech you are interested in, you will always find techies interested in that niche in SF - San Jose - Oakland triangle.
3. Job opportunities - there are actually 4 subfactors here. One is cultural - if your current gig fails for whatever reason, no one will look down upon you. Second - a new job can be found very soon, since you can compete with remote-first jobs with the added advantage of having exclusive access to companies insisting on RTO. Third - you have a variety of opportunities available, from pre-seed stage startups to behemoths. Fourth - if you are married to a non-techie like me, your partner can also find a new job relatively easily if they have to, compared to a lot of cheaper places where there were no non-tech lucrative jobs available. This was actually a surprising bottleneck for us when evaluating different places.
4. Immigration friendly - as a non-white immigrant, SFBA is a very welcoming place. That is not an exclusive advantage since any big city can compete on that front these days, but it also rules out a lot of cheaper places for us where it will be hard to integrate socially.
5. Non-competes - seriously, this is one of the biggest advantage of California for employees. I do not want additional constraints on my job mobility.
Conversely if there's a place that people visit for vacations, people will live there in the future.
Yep
> Conversely if there's a place that people visit for vacations, people will live there in the future.
What.
The population of tropical islands, ski-resort towns, and Paris beg to differ.
https://www.theguardian.com/world/2022/aug/10/venetians-veni...
meanwhile, in the real world:
https://www.bloomberg.com/news/features/2019-06-30/venice-is...
Not just a cluster of tech companies and VCs, which is already a high bar
An area needs a concentration of people made wealthy there, who have to be interested in becoming VCs right there. the state needs the same unenforceability of noncompete laws as california at a bare minimum. dumb things have to be heavily funded all the time, repeatedly, with little scrutiny. high profile failures have to occur.
A culture where children are socialized into believing that things must only be done in a certain way because that's how it's always been done and doing it differently not just makes you immoral but makes you a bad person will invariably reduce the number of kids who will grow up trying to "think differently" when solving problems.
But pining for, or attempting to establish, a new SV is ridiculous, and doesn't consider the history of things at all. Artificially creating a centralized hub of industry (which already has several centralized hubs) will do nothing but drive up living costs and make it harder for anyone not in STEM to live there. More realistically, this idea will fail altogether and these "investors" will have to settle for small, corn-fed cities with a few tech companies that they can own minority shares in.
These people already got their gold rush, why isn't that enough for them?
The fact of stagnating sectors in planned and/or centralized economies always seems to boil down to self-defeating incentives, possibly merely as one symptom of general bureaucratic malaise. To wit, no one had to dangle the incentive of wealth in front of the exceptionally capable men and women who were active in research and development in US in the heydays of the cold war. The nongeek (mostly military) people who shepherded cagey super smart people like Feynman apparently went through a trial and error phase before they figured out how to manage them. And lucky for the creative types, the bureaucracy involved was very much aligned with them in finding super cool new things. That's why we have DARPA. If China has its own version of DARPA, they clearly have the brains, and Chinese are if nothing else exceptionally creative people, with a proven historic track record of hacking. What ailed them historically was a bureaucracy that failed to see in, or obtain strategic benefit from, the inventions.
-Bureaucracies have been a problem to date- for humanity. (Even clerics can be conceptually viewed as 'ministry of god' bureaucrats, which is precisely what most of them are.) We haven't cracked this nut yet and imho it is an important one that is impeding human progress: we need them to get things done at large scale and in continuity, but they inevitably end up being the tail that wags the dog of society and state. The problem is of course the human in the equation (knowledge base, specialized language, meta-interactions) makes them impervious to correctives and purges. Possibly AI will finally help us get over this structural hump.
I'd attribute the difficulty of creating the next SV partially to capital/talent concentration being a coordination game (https://en.wikipedia.org/wiki/Coordination_game) - for any individual small developer, entrepreneur or investor, it makes sense to go where they have the best chances to thrive.
if i were to bet, it'll be on a different continental plate
You want the next Silicon Valley, pump money into the CS programs of area colleges.
Why would anyone not consider climate when deciding on a place they'll be living?
I also disliked having to deal with freezing temperatures and what the freeze/melt cycles do to basically every material, as well as road/sidewalk treatments like salt and other chlorides.
- Atlanta
- Austin
- Boston
- Chicago
- Cincinnati
- Charlotte
- Dallas
- DC
- Denver
- Houston
- Miami
- Nashville
- NYC
- Philadelphia
- Phoenix
- Pittsburg
- Salt Lake City
Jurisdictions that favor renters almost universally have higher rents and a poorer experience for normal renters who don't cause damage and pay rent on time. If you compare the average rents in Indiana[0], which is well known to favor the rights of property owners, against some states with roughly comparable population densities that are well known to favor the rights of renters, like Vermont[1] or Delaware[2], you can see that Indiana is only about 80% of the other two.
The near-total ban on abortion in Indiana is misguided and I believe local voters will move in a more moderate direction sooner or later, but you'll find that social matters generally do not hold as much sway as economic matters.
[0]: https://www.rentdata.org/states/indiana/2021
And, honestly, while this can be a big deal in other states--especially if you want to start a competing business--there seems to sometimes be a belief that people don't change jobs in other states. I've worked pretty much my whole career in Massachusetts and non-competes have never been an issue. The one time I had to sign one after an acquisition, it was reasonably scoped.
Mass has very recently, over long-time resistance from some local large employers, put somewhat weak garden leave requirements in place, however. While not ideal, it does mean an employer has skin in the game if they really don't want someone to go to a competitor.
But there is no density in Texas. Dallas, Austin, and Houston are 4 hours apart. There is virtually no synergy between them for a corporation other than existing under the same state laws. If these three were all half the distance from each other, and the weather was mild year round, and they were on the coast, it would be a different story.
As a counterexample, MIT is not in NYC or SF, and it gets respect.
For the universities you mention, maybe the (perceived?) sense of lower respect comes from picking up on outsider's suspicions that a Texas university may draw from the state, and thus may have a higher percentage of, you know, people who put tribe and faith ahead of logic and reason (which is not a swipe at all Texans, just more my personal opinion of the red voter types nationwide). Of course those suspicions may be unfounded.
> people who put tribe and faith ahead of logic and reason
For many things, one man's logic and reason is another's tribe and faith. A red voter type might see blue voter types engage in all sorts of illogical policy behavior that, to the red voter, appears solely grounded in blue tribalism and orthodoxies that might as well be church doctrine.
Not northeastern != midwest. Pittsburgh has far more in-common with Baltimore than it does Indy.
[0] https://en.wikipedia.org/wiki/Great_Lakes_megalopolis#/media...
A good read, or you can come ask the locals what they think - be prepared for a big argument :).
From your link "Map of the emerging American-Canadian megaregions as defined by America 2050."
Emerging - not historical.
Pittsburgh is not 100% midwest. We are not like Nebraska, at all. The further you go from Pittsburgh the divide grows starker. There is some in common with some great lakes rust belt cities. That's it. In any case, it's not 100%.
So I'd expect a competitor would want to be near universities with a focus and strong record in engineering and technology.
I don't think there will be a "next" SV. Just like there isn't a next Motown or various other things borne out of special sets of happenstance. Was there ever a "next" Hollywood?
Outside of LA and the NY metro area, diversity drops drastically. So while there maybe a growth in research parks/tax advantaged zones to attract satellite offices and software startups, HQ’s are still going to be based where the diverse talent lives.
The second point is Americans simply are not pursuing the highest levels of education. Masters and PhD programs are filled with immigrants, and new departments are frequently established by hiring such highly educated people. And it turns out, it’s safer and more enjoyable for immigrants to live where they’re accepted and already have communities.
One can hope that America becoming more diverse in the future will cause other more diverse areas to be established, but that depends on the politics of the area. Educated people tend to not associate with right wing/republican policies, and these areas will have to embrace that and not just devolve to gerrymandering. And that means your neighbors and communities also have to embrace diversity.
I don’t think it’s at all the case that CS PhD programs are causally responsible for Silicon Valley’s progress, except to the extent that brilliant people were also incentivized by immigration authorities or their families to be in PhD programs at some point.
The "Silicon Valley of Bar" never works as anything but campaigning to gullible and giving benefits to existing businesses for no real public gain.
Arguing for entitlement to runaway success based off of some misguided notion of equity is even worse (and by definition incoherent). Success being seen as a birthright is a fast way to stagnation and failure, demonstrated time and time again by fallen US industries like steel and automobiles. Success isn't guaranteed even with hard work and connections!
Sadly, the next generation of these immigrants become Americans and will be raised in American public school system. It shows. Sad, but true. That’s why we keep importing immigrants to keep running faster to stay in the same place. Hint: make schools centers of academic learning again for little humans.
The only way to emulate Silicon Valley is to aggressively pursue merit and academic excellence of relevant subject matter. At the end of the day, the stock in trade of tech is IQ. The rest is just entertainment.
Ruthlessly discourage and weed out all the distractors and hobby degree pursuers(like phD in history of social justice wars or post grad degree in open air drug den architecture etc). A hard core tech valley should focus on STEM, value high achievers and reward them while simultaneously protecting them from the turkeys who want to bring the elephant down.
We better get the formula right in SV too because that culture is disappearing. There is shame in the valley for being too successful thanks to the hoard of foxes that jumped and jumped…couldn’t reach the sweet sweet inviting grapes..and hence found them too sour.
There is an almost borderline selfishness amongst the tech elite..like that of a child who wants all the candy for themselves. As a society, if we don’t give dignity to all and value everyone..that society will slide and crumble.
It is not that tech bros are paid obscene amounts. It’s just that artists and service providers and even politicians(channeling Singapore model which we should all probably emulate) aren’t paid enough. There is no need for scarcity and hoarding(that comes from a scarcity mentality) here.
Maybe SV could also learn something with some in the tech sector learning to stay in their lane and allow others to shine in their strengths and abilities. Everyone wants their little pool of limelight. It’s light. There is enough for everyone.