4 ms·
> What will it take Google, GE, or Microsoft to move a big chunk of their respective operations away from San Francisco, Boston, and Seattle? It's a chicken an
by twblalock 10y ago
> What will it take Google, GE, or Microsoft to move a big chunk of their respective operations away from San Francisco, Boston, and Seattle?
It's a chicken and egg problem: companies don't want to invest in cities where there aren't a lot of qualified workers, and workers don't want to move to cities where there aren't a lot of jobs. Furthermore, the most competitive workers tend to move to the cities you mentioned, so companies located in those cities can stay where they are and enjoy having the best workers come to them.
Consider the Sacramento area: it's about 2 hours from Silicon Valley by car, with significantly cheaper housing, and plenty of well-connected people because Sacramento is the state capital. Why doesn't that area have a booming tech economy? Because the most competitive tech workers from Sacramento have already moved to the Bay Area. Bay Area companies don't need to open offices in Sacramento to attract those workers.
- BWStearns 10y agoI don't think it's illegal to collude to improve a second tier city's economic prospects. Large tech cos have proven their inclination and ability to cooperate to influence markets before, why not put that collaborative spirit to work for good and profit?
- twblalock 10y agoIf tech companies would benefit from doing that, why haven't they done it already? The simple answer is that they would not benefit by doing that. They can just sit tight in Silicon Valley, Seattle, and New York while the best talent comes to them.