Why do innovators like to congregate in Silicon Valley? Because other innovators like to congregate there. VCs and other people feeding off the phenomenon end up there because they can find innovators there. In other words, there is no resource whatsoever that attracts anybody there. They are only attracted by each other. The inclination of congregating there costs a lot of money. Housing prices and rents are very high in the area. In other words, these innovators are forking over way too much money to other people for no good reason at all. At the same time, they are not stupid either. My take is that at some point they will start moving elsewhere.