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Our cover this week is Peak Valley.
Silicon Valley is home to three of the five
most valuable companies in the world.
Apple, Alphabet, which is Google's parent, and Facebook.
For decades, Silicon Valley has been where you go
if you want to make it big in technology,
but these days entrepreneurs are starting to look elsewhere.
It's relative important is starting to decline,
as other hubs become more attractive.
More people are now leaving the area than arriving.
Venture-capital investors are spending a larger proportion
of their investments on companies outside the Valley
than they used to, and some big names are leaving.
Moving to other tech hubs, such as Portland,
Los Angeles, or Austin, TX.
So, why is this happening?
Well, a big factor is cost.
According to one entrepreneur, it costs about four times
as much to run a startup in Silicon Valley
than it does in most other American cities.
But the Valley's peak may also indicate that
innovation is becoming more difficult in general.
It's getting harder to compete
in the shadow of the tech giants.
They hoover up all the talent.
They can afford to pay people more than startups can.
The median salary at Facebook is now $240,000.
Another worry is anti-immigrant sentiment
and tighter visa restrictions,
which makes it harder for smart people
to go where the opportunities are.
In America, more than half of the leading tech companies
were founded by immigrants, or the children of immigrants.
Silicon Valley isn't going anywhere.
And if it's relative decline heralded the rise
of a thriving web of rival tech hubs,
that would be good news.
Unfortunately, the Valley's peak looks more like a warning,
that innovation everywhere is becoming more difficult.


Why startups are leaving Silicon Valley | The Economist

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Priscilla 2018 年 10 月 26 日 に公開
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