3 ms·
The desire to cluster makes sense, but why cluster where the salaries are most expensive? If you want to start a software company, why start it in the Valley an
by CobrastanJorji 6y ago
The desire to cluster makes sense, but why cluster where the salaries are most expensive? If you want to start a software company, why start it in the Valley and not some town that has lots of programming talent but way lower pay? We see so many startups that are paying top dollar for San Francisco office space and a dozen six digit programmers, but the same company in suburban Georgia would cost only a tiny fraction of that, and putting it in the country George would cost only a small fraction of that yet again.
- babesh 6y agoYou already see that happening but not Georgia as much as far as I can tell. Also there is labor movement. If the labor can get better salaries elsewhere why should they move to your smaller, less wealthy location? Salaries there would need to rise. The bigger the cluster the bigger the network effect in the cluster. My opinion is that there are probably less than 10 viable clusters in North America. If it is too small or the culture is against it, then it fails. There have been such attempts, a few succeeded, most failed. It shall be interesting which (new) clusters grow. My bet is on Toronto. AI talent. Large cosmopolitan city. Good universities.