The Secret to Building the Next Silicon Valley
AnonTechie writes:
The Secret to Building the Next Silicon Valley:
POLITICAL LEADERS HAVE been trying to replicate Silicon Valley's high-tech magic since the invention of the microchip. A tech-curious Charles de Gaulle, then president of France, toured Palo Alto in his convertible limousine in 1960. Russian Federation President Dmitri Medvedev dressed business casual to meet and tweet with Valley social media tycoons in 2010. Hundreds of eager delegations, foreign and domestic, visited in between. Silicon Valley," inventor and entrepreneur Robert Metcalfe once remarked, is the only place on earth not trying to figure out how to become Silicon Valley."
In the US, too, leaders have long tried to engineer another Silicon Valley. Yet billions of dollars of tax breaks and Silicon Something" marketing campaigns later, no place has matched the original's track record for firm creation and venture capital investment-and these efforts often ended up benefiting multinational corporations far more than the regions themselves. Wisconsin promised more than $4 billion in tax breaks and subsidies to Taiwanese electronics manufacturer Foxconn in 2017, only to see plans for a $10 billion factory and 13,000 jobs evaporate after hundreds of millions of taxpayer dollars had already been spent to prepare for Foxconn's arrival. Amazon's 2017 search for a second headquarters had 238 American cities falling over each other to woo one of the world's richest corporations with tax-and-subsidy packages, only to see HQ2 go to two places Amazon likely would have chosen anyway because of their preexisting tech talent. One of the winners, Northern Virginia, promised Amazon up to $773 million in state and local tax subsidies-a public price tag for gleaming high-tech towers that seems especially steep as Amazon joins other tech giants in indefinitely pushing back post-pandemic plans to return to the office.
While the American tech industry is vastly larger than it used to be, the list of top tech clusters-the Bay Area, Seattle, Boston, Austin-has remained largely unchanged since the days of 64K desktop computers and floppy disks. Even the disruptions of the Covid-19 pandemic have done little to alter this remarkably static and highly imbalanced tech geography.
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