There's a huge network effect in startups. Once the financing structure, the management skills, and technical know-how are in a place, companies start (or move

There's a huge network effect in startups. Once the financing structure, the management skills, and technical know-how are in a place, companies start (or move) there, which in turn brings in even more skilled work force and VCs. How many articles have we seen about governments trying to create The Next Silicon Valley and failing after dropping loads of cash? And over the short run the talent picture is a zero sum game - Europeans who moved to SF to start their company are potential founders Europe doesn't have any more. Also, don't underestimate the draw of US universities. We get people from all over the world coming to the US for their graduate degrees and many of them stay.