Network effects are powerful. Silicon Valley largely runs (today) on monetizing network effects, and network effects are also why Silicon Valley is all concentrated in the Bay Area.
The primary factor is concentration of capital: it is exponentially easier to raise money in the Bay. The second is concentration of talent and peers -- early customers, beta testers, development partners.
The Internet was supposed to make place less relevant, but as far as I can tell it's had a paradoxically opposite effect. When I was younger, I didn't have such a strong sense that you must be in one of maybe ten urban areas (but preferably SF) to do anything. Today it feels a bit like things happen in one of maybe ten cities, and everywhere else doesn't exist. Americans have always joked about the "flyover country," but I've distinctly noticed a massive increase in this effect since circa 2000.
Really? I've seen the opposite. The downtowns of places like Indianpolis, Cleveland, Columbus, Pittsburgh, Charlotte, Atlanta, Nashville, etc. were underinvested wastelands not too long ago. Now a lot of young people want to live in these places. Not to mention the hipster paradises of Portland, Austin, etc.
SF, Seattle, NYC, DC, Boston, etc., are still the major magnets, but "hip" urban living isn't as confined to the coasts as it used to be IMO.
I've noticed the same thing, but interpreted it as an effect of political alienation during the Bush years. The post-9/11 freakout and series of military misadventures left me feeling like there is really no such thing as America; the America I live in consists of its high-density coastal cities and nothing more, all the rest being driven by a foreign culture I don't like or belong to.
The primary factor is concentration of capital: it is exponentially easier to raise money in the Bay. The second is concentration of talent and peers -- early customers, beta testers, development partners.
The Internet was supposed to make place less relevant, but as far as I can tell it's had a paradoxically opposite effect. When I was younger, I didn't have such a strong sense that you must be in one of maybe ten urban areas (but preferably SF) to do anything. Today it feels a bit like things happen in one of maybe ten cities, and everywhere else doesn't exist. Americans have always joked about the "flyover country," but I've distinctly noticed a massive increase in this effect since circa 2000.