The rise of Silicon Valley and the San Francisco Bay Area in general as the central tech hub of the planet goes all the way back to the 1930s. Then, Stanford University served as the nascent springboard for what would eventually become the center of technological innovation in the country and throughout the world.
The development around the Stanford campus accelerated throughout World War II, aided by massive infusions of research and development money through private-public agencies like DARPA. The internet, personal computers and jet airliners all came out of military spending throughout the state of California throughout the 1950s, ‘60s and ‘70s. And much of this activity was squarely based out of the area around the San Francisco Bay that is today known as Silicon Valley.
This created a sort of positive feedback loop of already existing infrastructure giving rise to newer infrastructure because there simply wasn’t anyplace else on Earth that was suitable for the kind of work needed to innovate at the highest levels of the tech space. At the same time, the enormous supplies of talent that flocked to Silicon Valley went there, in part, because that was the place where all of the existing talent already was. This cycle continued right up into the 2010s. But now, some people say a fundamental shift is afoot.
Shervin Pishevar is one of the voices from within Silicon Valley that have been consistently stating that the area is quickly losing its charm for entrepreneurs the world over. Shervin Pishevar points out that the main factors that kept Silicon Valley as one of the most sought-after destinations in the world for talented innovators no longer have the same kind of sway that they once did. And other factors, says Shervin Pishevar, have begun to work decisively against the area.
One of those, Shervin Pishevar argues, is the outrageous cost of living throughout San Francisco and the rest of California. Shervin Pishevar says that, ultimately, the problem will be self-correcting when so many people flee the area that home prices once again begin to fall towards normal levels.