The New York Times reports that "When It Comes to Innovation, Geography Is Destiny".  The author, G. Pascal Zachary, also teaches journalism at Stanford. He quotes several authorities and studies.

The thesis is that technology companies from Silicon Valley have a better chance of success than those form anywhere else in the world.  Maybe the the examples given are not the best available, and I am not quite ready to write-off European strength in wireless communications.  However, the conclusions ring true and add some additional ideas.

My simple explanation of the strength of Silicon Valley: a "critical mass" of ideas, networks, people and capital.

Mr Zachary's report suggests these reasons:

• the importance of face-to-face communication in generating ideas,
• increasing returns
• first mover advantage,
• a network of seasoned pros, and
• the ready availability of venture capital.

I am not sure exactly how increasing returns plays into the equation. Any ideas? I can see that the sheer financial strength of some tech behemoths can add additional advantage - either directly or through the ecosystems they create.

Bottom Line: What does this mean for those outside Silicon Valley? Start to network into the Valley, build bridges that tap into the ideas. people and networks. However, to get the Silicon Valley capital, you generally need to be within 50 miles of your investor. So come here!