<p>Capital is more mobile than labor – areas which already have a concentration of computer professionals, and which have good universities in computer science which can feed more, are likely to be more attractive for companies to locate in.</p>
<p>It has also been claimed that Silicon Valley’s development (with many companies and start-ups) was helped by pre-existing California law that made most types of non-compete agreements for employees unenforceable. In other words, employees felt less “locked in” to their current employer and could go work at an interesting new start-up or whatever.</p>