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One of the more interesting articles I have read recently is entitled “Where the Brains Are” by Richard Florida and run in several major newspapers. In this essay, Florida notes that the most highly skilled, highly educated, and highly paid members of our society are increasingly clustered around a relatively small number of Metropolitan areas, among them our own Silicon Valley.
Not surprisingly, these same areas tend to be those where housing prices and appreciation are highest. In his opinion, these areas will continue to outpace the national averages with regard to both price and appreciation rates over the long term because housing supply is limited and demand remains high. He hypothesizes that talented and ambitions people will be willing to pay a premium to live in these areas because of the opportunities for development and success that abound in these regions. From a very personal perspective, that is exactly why I elected to remain in this area some 30+ years ago, despite the high cost of living even then. Silicon Valley is a vibrant and unique area where people are open to new ideas, where universities and industry collaborate, many times with huge success, and one that reinvents itself whenever necessary.
A typical reinvention is taking place right now in Silicon Valley. The nickname, of course, derives from the manufacture of silicon wafers for computer chips. This is the industry that transformed the area from one of orchards and farming to a high tech mecca for the early computer industry. As housing prices skyrocketed and manufacturing centers moved to areas with lower land values, the valley reinvented itself with the internet. By 2000, Palo Alto was the epicenter of the dot.com era. When that bubble burst, thousands of techies found themselves out of work, but many of those formed their own businesses and continued to flourish. In the meantime, biotech industries, drawn by the proximity of major medical centers such as Stanford and UCSF have taken root. And, in keeping with California’s ever progressive stance on the environment, many companies are now delving into development of a new silicon technology, that of solar energy. A new silicon era has begun, and the talent is already here to make it easier to push forward into this new frontier. Innovation and challenge, that is what most of us here live for. And there is plenty to go around!!
September 2006
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• Sep. 22, 2006 - re: Where the Brains Are …