21 hours ago
- Startups may represent a new economic phase similar to the Industrial Revolution, significantly boosting productivity.
- Startups, like the movie business, flourish only in specialized centers such as Silicon Valley, not spreading widely.
- The spread of startups is slower than the Industrial Revolution, partly because they are a social phenomenon tied to communities of expertise.
- Unlike railroads or power grids, there is no market need driving startups to spread to every region.
- Existing startup hubs like Silicon Valley attract startups, making it harder to establish new hubs deliberately.
- Government policies are unlikely to successfully create a startup hub; random factors and existing hubs' pull dominate.
- A potential shortcut for creating a startup hub is paying startups to relocate, but governments lack the will or skill.