

Could Silicon Valley Become the Next Detroit? - jfarmer
http://www.newsweek.com/id/181392

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pg
No sign of it so far. Last cycle YC had a record number of applications for
funding. Now several times more investors want to come to AngelConf than we
have room for. So both cylinders of the engine are still firing fine as of
now.

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jfarmer
Both good signs, at least vis-a-vis the current recession, and I don't really
by his argument myself, but it sounds like he's talking about a multi-decade
change.

Will the current macro-level forces turn Silicon Valley into the next Detroit?

The current issue of The Atlantic has a more interesting article on this
called "How The Crash Will Reshape America." You can read it here:
<http://www.theatlantic.com/doc/200903/meltdown-geography>

That author argues the exact opposite. The most interesting idea he talks
about (IMO) is this: Every phase or epoch of capitalism has its own distinct
geography, or what economic geographers call the “spatial fix” for the era.
The physical character of the economy—the way land is used, the location of
homes and businesses, the physical infrastructure that ties everything
together—shapes consumption, production, and innovation. As the economy grows
and evolves, so too must the landscape.

He points to a less suburban future, where mega-regions dominate the geo-
financial landscape. Silicon Valley is right at the heart of one of those
mega-regions.

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jfarmer
The argument is that Silicon Valley isn't doing enough pure research and will
therefore be eclipsed by outfits in other countries where pure research has
better funding.

The data is pretty anecdotal -- an Indian PhD who says India now offers a
better chance at success for his children than the US and a $5MM grant to a
research program in China to fund nanotechnology research -- but it's
interesting food for though.

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davidw
Been there, done that:

<http://news.ycombinator.com/item?id=450172>

