Silicon Valley is considered to be the U.S center for innovative technology companies. It houses approximately 2,000 tech businesses, and acts as a beacon to draw world leading companies ranging from the production of lasers to that of medical instruments.
The great depression was a crucial factor that led to the birth of Silicon Valley. The need for more and new job opportunities encouraged people to create high tech companies. However, the success of silicon valley was the contribution of many factors. The most important one is the spirit of cooperation between the companies since many of the founders used to go to school together meaning that they are already familiar with one another. This familiarity encourages them to work together and help each other with new and innovative ideas. In addition, the state of California, where the silicon valley is located, prohibited non-compete clauses and this encouraged people to start their own companies and test out their ideas. The silicon valley is also surrounded with top ranked universities, this means that well educated students with new and fresh ideas live close to the valley. Cultural diversity also contributes to its success, engineers from all over the world are attracted to the silicon valley with different ideas, ready to invest in their triumph.
Like always, everything good must come to an end, and the same applies to the silicon valley. The recent pandemic has led to an exodus in the silicon valley, or as other claim has only accelerated what was already an emerging trend in the area. The cost of living has sky-rocked in San Francisco, home to the bay area, where the average monthly rent costs about 4,000 dollars for a two bedroom house. Not only the property prices are high, but also those of public transportation and alimentation. In addition, the fierce competition that is present in the area discourages young entrepreneurs from starting their companies there, giving into the fear fueled by the low possibility of success. Furthermore, the nervous political climate caused by the 2016 elections left the potential founders worried to start their companies under such unpredictable circumstances. Already these factors encouraged new innovators to turn their heads towards new places other than the silicon valley, and the pandemic only increased this exodus.
Since all work has been shifted to an online format, many companies are now start-ups that require a minimal amount of workers. Another emerging problem is that previously if you wanted to hire an engineer to work in the Bay Area you would have to give them an office there. However, now with remote work being the norm these engineers are recruited by companies from all over the nation, even all over the world. So now the question remains, will the reign of the silicon valley as the epicenter of the global technology ecosystem come to an end?
The time to write off the Bay Area has not come to term yet. Despite all these challenging factors, Silicon Valley still holds its banner of glory. These challenges have just occurred recently, warning the silicon valley of its vulnerability and telling it to change its old ways to keep up with the change that has occurred due to the Covid-19 pandemic. The companies at Silicon Valley need now more than ever to create a strong company culture to keep its employees engaged and loyal despite their easy access to other offers from different companies outside the Bay Area.
References:
Comments