I haven't lived/worked in the Bay Area for two years so hard to gauge mojo levels though I'll take the writer's word for it. However, I'm not convinced on Europe at least from my perspective as a self-funding entrepreneur living in Spain. There are a lot of incubators but funding still remains tight while funding in Silicon Valley is flowing. So what? The writer is talking about innovation. True, though without funding I believe most innovative companies that are taking big risk in Europe will die from funding starvation while in Silicon Valley, superstar innovative companies will find funding even if it is among a hundred copycats.
I don´t know how is Silicon Valley because I never have the opportunity but I really think that in Spain or England is doing a great job and there is a really talented but lack the most important: investors (at least in Spain).
Great Article!