> The labor friendly laws were created as part of California trying to nurture that success.

Which ones? Because California has banned noncompete agreements since the 1800s, and that is a big reason Silicon Valley ever got off the ground. Fairchild was literally founded by people who left their employer to compete with it directly, and they definitely took their knowledge with them.

Another commenter already responded, but some more details:

California's pro-employee stance starts with section 16600, which states "Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade or business of any kind is to that extent void." That was passed in 1872 and has effectively banned non-competes in CA.

Bah humbug. Westinghouse was in New Jersey, as was Bell Labs, and IBM was in New York. And there was, at the time, a much larger population base in the East Coast. California had to try harder, and in the end, they won.

Don't forget a lot of government investment.

There has been lots of government investment in many areas - the question is why was SV different.