Silicon Valley packing up for New York City and other locations

Google’s plans to open a big office in New York City may presage larger geographic shifts:

Google is said to be close to signing a $2.4bn deal to establish an East Coast base in New York City, the latest in a series of moves by tech firms who believe Silicon Valley‘s best days may be “over”…

If it goes ahead, Google would be among a number of tech companies that are looking to expand their New York footprint. Concerns about the soaring cost of living in San Francisco, and worried that innovation may be accelerating faster in other parts of the country, a number of firms are looking to New York and other cities…

The AP said New York had been pitching itself as an alternative to Silicon Valley for years. While tech may never rival financial services and Wall Street as the most important private-sector employer and economic driver, it has already established a legitimate footprint that goes beyond a handful of giant companies…

The news comes as a number of other tech giants are looking to find alternative locations for investment opportunities and expansion. The New York Times said Robin Li, an investor with the San Francisco venture capital firm GGV Capital, recently led a three-day bus tour through the Midwest, stopping in Youngstown and Akron in Ohio, Detroit and Flint in Michigan and South Bend in Indiana.

On one hand, it is not a surprise that New York City is alluring: it is one of – if not the most – important city in the world with its finance industry, influence, and standing as the leading America city. Many major companies throughout the world would consider a location in New York City. If any industry wants to conquer the world – and tech is on that path – New York City is a place to be.

On the other hand, New York City is a very different place compared to Silicon Valley and San Francisco. The notable laid-back vibe that helped give rise to tech start-ups over the decades does not really exist in New York City. The tech industry may be king in Silicon Valley but New York City has plenty of other options (finance, media, fashion, etc.). New York City is several times zones east, making some communication around the world more difficult (but making it easier to connect with Europe). The city and suburbs are on a different scale compared to the Bay Area.

Put this news from Google with Amazon’s search for a second headquarters and there could be a large geographic shift. While it would take some significant changes to move away from the massive Silicon Valley headquarters (including recent efforts from Apple and Facebook), the tech industry may be associated with new locations within a few decades.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s