I remember reading an article a log time ago, probably in the late '80s or early '90s, in a non-online newspaper or magazine that looked at a dozen or two other places that seemed like they were good candidates for SV-like development but had failed to become such.
My recollection is that the article found that there were several factors that all came out right for SV. The other places fell short on one or more of them.
I don't remember all of the factors they found, but I remember a few.
One was nearby top tier research universities.
Another was ready access to investors willing to invest in new kinds of businesses. This one was a problem in several older places. The investors there just wanted to invest in companies doing old things or in doing things related to the main existing industry of the region.
Tolerance of failure was important. In some places, failure forever taints you. Start a company and it fails? The investment bankers no longer want to talk to you, and you don't get invited anymore to the parties and events where the behind the scenes networking goes on. In SV having a failed startup isn't a big deal.
My recollection is that the article found that there were several factors that all came out right for SV. The other places fell short on one or more of them.
I don't remember all of the factors they found, but I remember a few.
One was nearby top tier research universities.
Another was ready access to investors willing to invest in new kinds of businesses. This one was a problem in several older places. The investors there just wanted to invest in companies doing old things or in doing things related to the main existing industry of the region.
Tolerance of failure was important. In some places, failure forever taints you. Start a company and it fails? The investment bankers no longer want to talk to you, and you don't get invited anymore to the parties and events where the behind the scenes networking goes on. In SV having a failed startup isn't a big deal.