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If that's the case, then why are so many founders flocking to the Valley? Why does the state of California have the 8th largest GDP in the world? Why does the

If that's the case, then why are so many founders flocking to the Valley? Why does the state of California have the 8th largest GDP in the world? Why does the Market Cap of all the companies within a 1 mile radius of highway 101 between SF and SJ top $500B? Methinks that study is missing something. I suspect the regulations make starting a certain type of businesses (manufacturing, mining, logging) pretty miserable here. But those regulations also force executives to focus on starting a certain type of high risk/high reward type of business like software, bio tech, entertainment business's essential in the state.

andrewvc 15y ago
Well, I'm in Los Angeles, and tech / startups are booming down here. I'd say there's something more than inertia at work.
dantheman 15y ago
There are many, many, many reasons I'd like to live in CA, specifically san diego, la, or sf. None of them have anything to do with the government, in fact the government & its costs are a significant downside. Why do industries concentrate in any area? It's called preferential selection and has strong historical/inertial ties. This can be seen in all sorts of other areas, for instance in NYC when building a new bridge back in the day it replaced the ferry dock, because that was where the roads already led to and it could handle the traffic. California is one of the most resource rich, and beautiful places to live in the entire country. It's easier to kill off industries than people think, and the advantages of being in a hub are getting less and less as technology improves.
he778 15y ago
I can assure you that SV executives flock to SV because of talent, in spite of California's tax system and business policies. We'd flock to Wyoming if Wyoming had more talent.
nostrademons 15y ago
I suspect the survey's polling a large variety of industries, many of which wouldn't do well in California at all. If you limit it to the music, movies, microcode, and high-speed pizza delivery that America does best, California's a much more appealing place.
protomyth 15y ago
The value proposition for network and resources in the Valley outweigh the government problems. It is a fine line though. Check the recent SF / Twitter tax situation. If California makes the wrong decisions on how to deal with debt and unpaid obligations (public pension), then expect the scale to tip.

andrewvc 15y ago

Well, I'm in Los Angeles, and tech / startups are booming down here. I'd say there's something more than inertia at work.

dantheman 15y ago

There are many, many, many reasons I'd like to live in CA, specifically san diego, la, or sf. None of them have anything to do with the government, in fact the government & its costs are a significant downside. Why do industries concentrate in any area? It's called preferential selection and has strong historical/inertial ties. This can be seen in all sorts of other areas, for instance in NYC when building a new bridge back in the day it replaced the ferry dock, because that was where the roads already led to and it could handle the traffic. California is one of the most resource rich, and beautiful places to live in the entire country. It's easier to kill off industries than people think, and the advantages of being in a hub are getting less and less as technology improves.

he778 15y ago

I can assure you that SV executives flock to SV because of talent, in spite of California's tax system and business policies. We'd flock to Wyoming if Wyoming had more talent.

nostrademons 15y ago

I suspect the survey's polling a large variety of industries, many of which wouldn't do well in California at all. If you limit it to the music, movies, microcode, and high-speed pizza delivery that America does best, California's a much more appealing place.

protomyth 15y ago

The value proposition for network and resources in the Valley outweigh the government problems. It is a fine line though. Check the recent SF / Twitter tax situation. If California makes the wrong decisions on how to deal with debt and unpaid obligations (public pension), then expect the scale to tip.