The problem with this article is the focus on the most visible companies that generate the most revenue or grow the most quickly. There are significant innovati

The problem with this article is the focus on the most visible companies that generate the most revenue or grow the most quickly. There are significant innovations pioneered by silicon valley companies that demonstrate remarkable long term value. I'm also going to use Silicon Valley broadly to mean internet startups because the valley is now more of a culture and group of people than a region. Additionally, I'm choosing technically challenging problems instead of difficult execution challenges or marketing challenges (SMB SaaS companies, local advertising aggregators). 1. Media delivery shift: Netflix, OnLive, Pandora are now distributing previously physical media in ways that will disrupt their respective industries. Blockbuster is now bankrupt. 2. Communication: Skype is now the largest long distance carrier in the world. It's Scandinavian, yes, but give me some leeway! 3. Information processing: Palantir manipulates huge data sets for financial institutions and the government. 4. Financial markets: SecondMarket and TheReceivables Exchange are creating markets in previously illiquid markets. 5. Medical innovation: there are tens of companies working on EMR systems and building business intelligence applications for hospitals to increase quality of care while reducing costs 6. Big Data: Hadoop and other NOSQL databases have been built in the past 10 years to enable massive computation on commodity hardware. Not to mention the three storage companies that just sold for $1B+ each in the past 2 months. 7. Energy: Solar panels, fuel generating algae, carbon sequestration: Innovation is happening here in the valley using the techniques and science developed for semi-conductor fabrication and novel ways of processing. The most recognizable startups may not be innovative in the sense the author is describing, but it's clear to me from an investment point of view that there is more innovation across more industries occurring today than ever before. And this innovation has just as much potential to dramatically impact lives as did the semiconductor. @ttunguz