Is Texas really a serious rival to California as a destination for high-tech? The growing exodus of banner companies -– Oracle Corp., Hewlett-Packard Enterprise Co., Tesla Inc.’s Space-X and others -– suggests that there’s something to the idea. Still, skeptics rightly point out that plenty of other places have made a bid to become the new Silicon Valley and never come close.
Texas, though, may be different, and not because of the recent high-profile relocations. Unlike other would-be innovation hubs, the state has been quietly nurturing high-tech industry for decades. If Texas eventually rivals California, the consequences could be momentous, not just for industry, but for U.S. politics.
A bit of background: At various times in the nation’s history, different locales have emerged as clusters where industrial innovation has flourished, spawning powerful new corporations and staggering amounts of wealth. These “places of invention” attract a critical mass of companies and talent. They often depend on institutions that train the next generation of workers and entrepreneurs.
Silicon Valley fits the model. As Margaret O’Mara has observed in her entertaining history of the region, a critical convergence of engineering talent, venture capital, educational institutions and government money unleashed waves of innovation, each building on the previous one to generate ever-larger economic booms.
But nothing is forever. Consider the fate of Hartford, Connecticut. That city was once a high-tech powerhouse in the late 19th century, dominating precision engineering and instrumentation. Its glory days are long gone. Other centers of innovation and invention have suffered similar fates: Philadelphia, which largely pioneered machine-tool production; Detroit, crucible of the automobile industry; and others.
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{Matzav.com}
