Why is there so much silicon in the valley?
I was interested in understanding a bit about why Paul Krugman won the Nobel prize for his work in trade, and although some of the stuff, as he says, seems obvious now, it was not so obvious in the past. Consider, for example, why companies in certain industries tend to cluster around each other, and why those places are where they are:
3 years ago • Notes“The same sort of logic explains why particular industries concentrate in certain locations, except that in such cases the logic involves things like a deep labor market for specialized skills and a good market for suppliers of specialized inputs. What determines which industry locates where? Often, accident: Silicon Valley owes its existence in large part to a couple of guys named Hewlett and Packard, who started some stuff in their garage, New York is New York because of a canal that only pleasure boaters use today.”
