Originally Posted by SC Tiger
It's the same reason that most gun makers are located in and around New England - that is where the talent base is and where the supplier base is.
Some tech companies have relocated to - get this - North Dakota! They call the area "Silicone Prarie" and it has attracted quite a few companies. I don't think any of the big ones have moved yet though.
Google, Intel and other companies may not leave California, and may have high net worths, but how many jobs can they support? Unless California goes full socialist these companies cannot support the entire state.
CA's population growth is slowing now. I think it is because the "good" jobs are not growing as much as they used to. The lower paying jobs are pretty much topping off too. How many ag and service workers do you need to add as the state slows down in growth?
As far as the big boys go they aren't going to leave anytime soon. There are 10,000 Applied Materials employees in Santa Clara alone. Forget Milpitas, Sunnyvale, San Mateo, etc.
Like .264 mag said it is the small to mid size companies that have the most incentive to leave. They are most likely to leave with expansion, then HQ leaving.
The big boys are less likely to leave because they can afford it and they want that "Silicon Valley" address on their products or services. The cities around here fight over who truly is "The Capital of the Silicon Valley." It really is the region, mostly in Santa Clara county with San Mateo and Alameda counties getting a little piece of the action.
the Silicon Valley is also closest to Asia. With three international airports all within an hours drive of each other and right on the West Coast there is no way TX can compete with that. Sure the big guys can add on a few extra hours of the flight but all of the drones doing the work are going to add on connecting flights which costs time and money.
The real problem is east vs. west in CA. West is very urban and either tech or entertainment driven. East is ag based. Very different folks and very different ways of life.