Move Silicon Valley: America needs a tech hub in a place where it’s welcome
slate.com
slate.com
Businesses are free to locate themselves as they choose.
The fact that one doesn't like the result of market forces doesn't mean that the market is somehow wrong.
Cleveland is one of the most heavily regulated and wasteful cities, as is Detroit. I would say that big companies aren't wanted there any more than they are in SF.
this is exactly what new york is. it was a military base in a protected harbor, that turned into a planned city after several changes of ownership (some would say over-planned). that perfect grid system didn't spring forth organically.
i would recommend 'new york', the ric burns documentary.
Or is failing in the present: see the grand, empty cities that the PRC has been building.
American cities did used to be planned. Philadelphia and New York didn't just assemble as grids. It's only in the postwar era suburbia build out that urban planning became haphazard and driven by developers.
The idea of a polity building a well planned city from scratch has loads of successful historical precedent.
Ok, it might work if the central planners could accurately predict the future. But they can't, so centrally planned economies and societies tend to fall behind.
But somehow pundits like the author think that their second-guessing of markets somehow would.
Moreover, any place that is planned, instead of evolving organically, tends to be boring as shit to live in--for evidence, consider suburbs. Very planned, very boring.
Public transit might have it's pitfalls in SF, but there are no snow days. There's no ice on the roads. There's no hurricanes, or tornadoes, or summers that require A/C at all hours. You don't really have to pay to heat your home or office all winter. You can drive to the snow if you want to ski, or you can hang out on the beach in January.
The Bay Area is a paradise, meteorologically speaking. It's the reason that people who live on the street congregate here, and it's the same reason people are willing to pay exorbitant rent. There are very few other places in the country that even come close to competing, and it's not something that even the likes of Google can take with them to Cleveland.
Businesses are profit maximizers. They locate themselves where they can profit the most.
Especially when they are already paying so little tax to begin with on those profits...
Most of the millionaires who cashed out of those companies have already left, and many others would be unwilling to relocate. I don't think moving the ecosystem of angel investors etc. which powers the valley is so easy.
And anyway, tech hubs are created based on a very specific set of circumstances that are basically impossible to simulate. What company is going to be the Fairchild Semiconductor of Cleveland?
For illustration, as another poster mentioned Fairchild - with enforceable non-competes you'll never have the "Fairchild Semiconductor of Cleveland"
If a company in Ohio or Texas is trying to convince people to move there from California, and these people refuse to agree to non-compete contracts, the companies will have to stop that nonsense since it will prevent them from hiring the people they need.
Nor are VCs going to move just to "spread the wealth" geographically. They're rich enough that this rent shit isn't their problem and they're settled. Whatever is to reverse this condensation of tech in the Bay Area is going to be post-VC; someone will have to figure out how to target and structure the mid-risk/mid-growth (15-40%/year growth) businesses that VCs hate. I have ideas on structure: http://michaelochurch.wordpress.com/2013/03/26/gervais-macle...
It is a nice idea, and if technology comes through with a post-VC wave (a return to maker culture) we will see that geographical shift. It won't be "a new hub". It'll probably be 20 or so microhubs, of which San Francisco and New York will be included.
I could see a strong forecast for: Austin, Boulder, Durham, Baltimore, Portland. Boston is well-poised to make a comeback, and Chicago could show some strength.