Tech is very different from most other businesses. Say you manufacture toilet paper. Then you probably do want to locate your business in some state with frien

Tech is very different from most other businesses. Say you manufacture toilet paper. Then you probably do want to locate your business in some state with friendly tax policies, and where you will find a ready supply of workers who will be quite happy to work for $12 an hour. But for economic reasons, good tech people have the ability to be picky. They can move anywhere, and most of them prefer to live in beautiful places with a lot of diversity and culture. Hence places like the Bay Area. True, you can't buy a house here for a sane amount of money, but that doesn't matter either to the very rich, or to the very ambitious (who are happy to cram into some tiny apartment in their twenties). Meanwhile, the successful and ambitious will draw many others who wisely choose to follow the action. California has a dysfunctional government, but it has a lot of things going for it. Silicon Valley isn't going anywhere anytime soon.