Re:Tech elites leaving San Francisco threaten Silicon Valley...
by theptip on Monday December 07, 2020 @01:11PM
(#25335015)
> There was no inherent "supremacy", just one created by a bunch of companies being together.
I think this somewhat understates the strength of acquired advantages in agglomeration economies. Particularly in an economy of ideas it seems to me that acquired advantages account for most of the benefit; beyond "cheap rent" there's not much "inherent" advantage to be had.
Even in traditional industry many of the advantages are acquired (i.e. not geographic, which is what I think you're getting at with "inherent supremacy"), the textbook example being Lancashire's dominance in textiles in the 19th century (https://voxeu.org/article/agglomeration-explains-lancashire-...).
I think it's a reasonable point to suggest that the exodus from SV could accelerate the development of other startup/tech hubs, and weaken the comparative advantage of SV, but I think you may be understating the current strengths of SV by focusing on "original advantages" like rent and other environmental/geographic attributes.
I think this somewhat understates the strength of acquired advantages in agglomeration economies. Particularly in an economy of ideas it seems to me that acquired advantages account for most of the benefit; beyond "cheap rent" there's not much "inherent" advantage to be had.
Even in traditional industry many of the advantages are acquired (i.e. not geographic, which is what I think you're getting at with "inherent supremacy"), the textbook example being Lancashire's dominance in textiles in the 19th century (https://voxeu.org/article/agglomeration-explains-lancashire-...).
I think it's a reasonable point to suggest that the exodus from SV could accelerate the development of other startup/tech hubs, and weaken the comparative advantage of SV, but I think you may be understating the current strengths of SV by focusing on "original advantages" like rent and other environmental/geographic attributes.