Silicon Valley down but not out, faces new challenges
According to this San Francisco Chronicle story on how the demise of Silicon Valley is overly exaggerated but that it faces some significant challenges:
But competition is growing stiffer from international locations. "Not just from places with low-cost technical skill like India and China, but also from new centers of innovation like Taiwan, Israel and Finland," Saxenian says.
The gap is narrowing between the rest of the world and Silicon Valley. And this is not merely because U.S. companies, including some of the valley's top dogs, are shifting engineering and scientific jobs to lower-wage countries. Immigrants who have succeeded in Silicon Valley are returning home to form companies and sometimes grab work from American rivals.