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  • Our cover this week is Peak Valley.

  • Silicon Valley is home to three of the five

  • most valuable companies in the world.

  • Apple, Alphabet, which is Google's parent, and Facebook.

  • For decades, Silicon Valley has been where you go

  • if you want to make it big in technology,

  • but these days entrepreneurs are starting to look elsewhere.

  • It's relative important is starting to decline,

  • as other hubs become more attractive.

  • More people are now leaving the area than arriving.

  • Venture-capital investors are spending a larger proportion

  • of their investments on companies outside the Valley

  • than they used to, and some big names are leaving.

  • Moving to other tech hubs, such as Portland,

  • Los Angeles, or Austin, TX.

  • So, why is this happening?

  • Well, a big factor is cost.

  • According to one entrepreneur, it costs about four times

  • as much to run a startup in Silicon Valley

  • than it does in most other American cities.

  • But the Valley's peak may also indicate that

  • innovation is becoming more difficult in general.

  • It's getting harder to compete

  • in the shadow of the tech giants.

  • They hoover up all the talent.

  • They can afford to pay people more than startups can.

  • The median salary at Facebook is now $240,000.

  • Another worry is anti-immigrant sentiment

  • and tighter visa restrictions,

  • which makes it harder for smart people

  • to go where the opportunities are.

  • In America, more than half of the leading tech companies

  • were founded by immigrants, or the children of immigrants.

  • Silicon Valley isn't going anywhere.

  • And if it's relative decline heralded the rise

  • of a thriving web of rival tech hubs,

  • that would be good news.

  • Unfortunately, the Valley's peak looks more like a warning,

  • that innovation everywhere is becoming more difficult.

Our cover this week is Peak Valley.

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Why startups are leaving Silicon Valley | The Economist

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    Priscilla posted on 2018/11/12
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