Although a graduate can ship out west, the lower costs in Pittsburgh make the path to ownership shorter. I'll be interested to see if the economic downturn will give graduates pause when thinking about shipping themselves three timezones away into an expensive location, when the cheaper prices in Pittsburgh could offer a lifestyle with less debt.
I left Philadelphia for CA shortly after college 6 yrs ago. I still rent here and I know that if I stayed in PA I would probably own multiple properties at this point. Honestly I would rather rent in California than own a mansion in Pennsylvania. My life is just infinitely better here.
Luis (the reCAPTCHA founder) wrote a blog post about this recently. Basically to summarize, staying in Pittsburgh helped picking up CMU talent, and Pittsburgh doesn't suffer from a lot of distractions that come with the Valley.
http://vonahn.blogspot.com/2010/06/startups-and-cmu.html
Very importantly to note though, Luis has a professorship, a fiance, and a life built out in Pittsburgh. Similarly, I've heard that a lot of the Google Pittsburgh engineers are family men/women who don't want to leave the area.
http://www.seegrid.com/seegridoffices.html
http://kotaku.com/5577771/intel-inside-your-mind-serving-you... - Intel Lab in Pittsburgh
"I agree with you, the resources in the Valley can't be beat. Fortunately there is a way to leverage both - we are trying to pave the way for development in Pittsburgh and business in SV. There are many upsides to this approach - incredible team, dedication, outside the bubble, lower costs, better office space, local recruiting, etc. We are testing this all out at the moment - so far so good!"
Your opinions are about 30 years behind reality. Why do you think Obama picked them to host the G20?
I know nothing about Pittsburgh, so I'm not suggesting anything negative about the city. There are just plenty of other possible reasons behind the evidence you gave.
the Obama Administration announced a change of venue to Pittsburgh in order to highlight the city's economic recovery following the collapse of its manufacturing sector in the latter half of the 20th century.
Its not just the capital - there's a sense of entrepreneurial manifest destiny mixed in there that can't be stopped. For a tech company that doesn't have hard assets there's nothing stopping wide-eyed entrepreneurs from picking up & moving west. And lets get honest here - Pittsburgh is great but if you're finally making it to the big time, why would you want to stay in a declining rustbelt city?