Tom Brokaw of NBC Nightly News was in Silicon Valley examining the challenges facing the changing U.S. economy.
According to the report some of the smartest people in the world coming to the U.S. for higher education are forced to return to their home countries after they complete their education. These people are going back to their home countries and building businesses that in turn compete with the U.S.
Aihui Ong, an entrepreneur from Singapore said her country is giving startups four dollars for every dollar they raise. Mike Montano, an entrepreneur from Canada said his country is offering startups subsidies of upto 50% on payroll.
So if all these places are so attractive why fight to come to Silicon Valley? The answer is very simple – Silicon Valley is like Hollywood, all the major players are there, the ecosystem is well established, it is easier to get started with a new idea and on it goes.
However, could what happened to Hollywood happen to Silicon Valley? Hollywood has simply become a marketing vehicle – not all the big decisions are made there nor do the profits stay there. Today, Hollywood’s relies on major financing from Bollywood, the Indian film industry which finances many of the major movies by Steven Spielberg, David Geffen, Brad Pitt, George Clooney and Jim Carrey. It’s all an elaborate act – Hollywood just appears to be in control. The same is happening in manufacturing with China. In the internet space Russia’s DST, has been backing everything from Facebook, Zynga, Twitter and just announced plans to fund 250 more startups in the U.S. – one every week.
As yet another entrepreneur, Sakina Arsiwala points out, living conditions in some other countries are “really really attractive” making it easier for entrepreneurs that create jobs to leave.Channels: fleeing, silicon valley