For decades, SV was centered around Palo Alto because it was primarily a manufacturing and engineering center: they built things: chips, hard disks, storage devices, electronics, satellites, etc.

But the web isn’t manufacturing. It’s not really much engineering either (any competent engineer can build a social website, which is why it’s now done in India, Pakistan, and the Ukraine for less than $4,000). So why put a company in a manufacturing center? Why not be in a charming city with lots of bars, nightclubs, and tens of thousands of young people who will work for very little?

The graph shows where the money has gone, which means the center of SV has shifted.

It’s not all good news for SF. These web startups are low-cost operations with poor (or no) sustainable business models and low wages.

Read the article at The Atlantic Cities