The primary factor is concentration of capital: it is exponentially easier to raise money in the Bay. The second is concentration of talent and peers -- early customers, beta testers, development partners.
The Internet was supposed to make place less relevant, but as far as I can tell it's had a paradoxically opposite effect. When I was younger, I didn't have such a strong sense that you must be in one of maybe ten urban areas (but preferably SF) to do anything. Today it feels a bit like things happen in one of maybe ten cities, and everywhere else doesn't exist. Americans have always joked about the "flyover country," but I've distinctly noticed a massive increase in this effect since circa 2000.
SF, Seattle, NYC, DC, Boston, etc., are still the major magnets, but "hip" urban living isn't as confined to the coasts as it used to be IMO.
Some industries are very centralized in one city - tech in the bay area, finance in NYC, entertainment in LA, etc.
It's frankly pathetic that the so-called "biggest innovators" and people who "get the internet" feel the need to be constrained in an already crowded city.
Face to face communication is important, but there are tools to help with day to day communication
The Linux world knows much better how to deal with this then your average "Web 2.0" company
http://www.amazon.com/gp/product/B0078XGJXO/ref=as_li_tl?ie=...
I have never thought [citation required] was more necessary than with this comment.
We're technology professionals or enthusiasts primarily here.
Y Combinator also donates to efficient non-profits in the tech space, no strings attached. That's not traditionally capitalistic.
That's exactly what I mean as well. I'm a socialist looking to replace jobs with cheap renewable energy, software, and robotics automation. Definitely not a capitalist. To each their own.
Are people moving to cities because fuel and automobiles are more expensive compared to stagnant incomes? In some cases. It probably also helps that people value their time more (commute time/distance to services and social venues) and that there are more opportunities for work in cities than suburban and rural areas.
I am curious to see what happens with remote work; I see a big push happening right now, at least in the tech sector. Not everything can be done remotely, but if the advantages are truly great enough, companies will compete against each other to hire quality remote workers (who can live anywhere its convenient for them).