Entreprise

How the pandemic broke the hanged tech in Silicon Valley

Silicon Valley gives way to Silicon USA

Millions of Americans are moving in a feedback loop that can change the economic geography of the United States, followed by companies, especially tech companies. Second, the move and investment of this company will bring many workers to places in the past. Talent wars are usually lost. This is a decade-long reversal of trends in the opposite direction. This can have a significant impact on which parts of the United States thrive, income inequality, and even politics, innovation, and overall US competitiveness. ..

For decades, the success of America’s so-called “superstar city” has been driven by the tendency of America’s most productive workers and businesses to gather in a small number of places, such as Silicon Valley. Eyes that have begun to change-a two-year pandemic span.

Until very recently, evidence of this change was mostly anecdotal and preliminary, but a treasure trove of new research is this change in how people with jobs that can be done remotely work and live. Brought eyebrow-raising stats to document the size and speed of:

According to a survey released last week by Upwork, about 5 million Americans have moved after 2020, and an additional 18.9 million are planning to move for remote work.,

A platform that connects employers and freelance workers.

In the United States, Stanford University, the University of Chicago, and Instituto Tecnológico Autónomode México announced in December.

As of December 2021, the percentage of job listings in 20 countries that mentioned the potential for remote work was three earlier, according to papers from researchers at Oxford University, the OECD Ministry of Economics, and certainly job listing sites. It is more than doubled. The same researchers track how such posts changed when the pandemic restrictions declined and flowed, and these numbers are unlikely to fit into the budget after the pandemic restrictions are over. I found the evidence.

Yet another paper, published last week by economists at Stanford, MIT Sloan, Princeton University, and other institutions, underestimates the percentage of Americans working in remote areas by the U.S. government by 33 percentage points and is currently the total workforce in the United States. Claims to underestimate about half of those who run jobs remotely for at least some time.

Finally, last week’s study from the Brookings Institute provides fresh evidence that jobs will increase from anywhere as both technical and cultural phenomena drive large-scale migration of capital, businesses and workers. It offers. According to Brookings, these new “nova” cities include Atlanta, Dallas, Denver, Kansas City, and St. Louis. ..

Tech Job Markets: Rising Stars vs. Superstars

Job ads on many “superstar” tech hubs have declined since before the pandemic, but have increased in most “nova” cities.

Posts of technical positions from 2019 to 2021 by some metropolitan areas

Posting a technical job at Star of hope With metropolitan areas Super star Metropolitan area, 2021 will change from the same month of 2019

Posting a technical job at Star of hope With metropolitan areas Super star Metropolitan area, 2021 will change from the same month of 2019

Posting a technical job at Star of hope With metropolitan areas Super star Metropolitan area, 2021 will change from the same month of 2019

Posting a technical job at Star of hope With metropolitan areas Super star Metropolitan area, 2021 will change from the same month of 2019

Posting a technical job at Star of hope With metropolitan areas Super star Metropolitan area, 2021 will change from the same month of 2019

What we see is the ratchet effect when it comes to companies’ willingness to hire workers remotely. Pandemics increase the employment of people in remote and hybrid roles and can lock up such work as a new norm. Tara Sinclair, a professor at George Washington University and a senior fellow at Indeed, who conducted a survey of 20 countries, said this will never go away.

“We knew that remote work was feasible and we knew that job seekers wanted it, but it was the pandemic that made it a real everyday experience, and that’s it. When it happened, it got stuck, “she adds.

According to Brookings data, the pandemic-induced surge in remote work happened to coincide with another phenomenon that has been going on for years. talent.

As a result of these two strengthening trends converging, in 2021, six of the nine Nova cities had more posts of technical jobs to replace future employment in these cities. During the same period, the number of posts increased. In Boston, the Bay Area, New York, and Los Angeles decreased, according to Brookings data.

Commentators and local boosters have been suggesting for decades that this kind of thing could possibly happen. From “Silicon Prairie” to “Piricon Valley”, it’s slowly building to its current inflection, and technology hubs in some regions grow faster than others.

Margaret O’Mara, a professor of history at the University of Washington and author of The Code, the history of Silicon Valley, says that the movement of capital, talent, and businesses is usually a relatively slow process that can take decades. It states that it has sex. The development of the existing Superstar Tech Hub in the United States is the clearest example. After all, the term “Silicon Valley” was coined half a century ago.

“One of the secrets of Silicon Valley is time. Mayors and county executives are reluctant to hear the answer, so I don’t have a multi-million dollar economic development consulting career.”

The rise of these new tech hubs is not an apocalypse for American superstar cities and the tech companies and tech workers in them, said Mark Muro, a Brookings researcher. He adds that data from 2022 onwards should show an even greater shift in employment from cities that were previously the dominant cities in technology. Tesla moves workers as a result of moving its headquarters from the Bay Area.

After the rise of remote work and the growth of more technology hubs, a third fundamental trend may also be driving this geographic change: Silicon Valley and other hubs, especially the microchip and the Internet itself. ..

Fetch CEO Adam Steinberg (left) is based in a truck rental startup in Atlanta, taking advantage of low costs and other benefits.


Photo:

Ariel Guan

Silicon Valley’s “silicon”, after all, shows what a microchip is made of. The first commercial integrated circuit was manufactured in 1961 by Fairchild Semiconductor in Santa Clara, California. Due to the PC Revolution and the subsequent Internet, today’s tech giants, mainly around the Bay Area and Seattle.

However, the rise of electronics manufacturing outsourcing and cloud services has made it much easier to build tech startups everywhere. The decentralization of knowledge needed to build a company and the sharp drop in costs for launching a startup in the technology industry are both hallmarks of what historians call a “mature” set of technologies. This does not mean that these technologies are evolving, but breakthroughs are slow enough and companies are now developing far from where they were originally invented.

Some historians and economists have declared our present era the “Fourth Industrial Revolution.” If so, Dr. Omara says it may be following the path of the Industrial Revolution in the past. From the Industrial Revolution of the 18th century in Britain — soon after the necessary expertise and skills were ported across the Atlantic, it became the United States. Until the rise of Detroit, history began in one place, making the people there very wealthy and eventually becoming a global phenomenon, becoming a specialized hub of knowledge and production around the world.

It’s impossible to accurately copy the formula that worked in the Bay Area to build the “next Silicon Valley,” but regional tech hubs can thrive by finding their own niche, she said. I will add.

“”“One of the secrets of Silicon Valley is time. Mayors and county executives are reluctant to hear the answer, so I don’t have a multi-million dollar economic development consulting career.”“”


— Margaret Omara

Atlanta is a good example of these trends. Almost excluded from the early decades of the rise of PCs and the Internet, the presence of headquarters and the Georgia Institute of Technology meant that there was demand for both corporate products. Tech startups and the talent to build them.

America’s ninth largest metropolitan area has quietly become a high-tech unicorn assembly line. In 2021 alone, five startups surpassed the $ 1 billion valuation. This includes Calendly, which streamlines the meeting scheduling process, and Stord, which helps businesses with fulfillment and logistics. As a result of a wave of startup exits, continued guidance and reinvestment from startup founders, and potential customers approaching the headquarters of Fortune 500 companies such as The Home Depot and United Parcel Service, the city has all the elements. Means that you have built it, which is necessary to dismiss a tech startup.

Share your thoughts

How did working from home affect your place of residence and work? Join the conversation below.

Atlanta has attracted workers in a way that provides a ready-to-use talent pool for new startups, coupled with relatively low living costs and housing availability (both in contrast to superstar cities). Says Atlanta’s serial entrepreneur, CEO of Fetch, a startup in the Atlanta region that allows individuals and small businesses to rent trucks and utility vans on an hourly basis.

Steinberg experienced the well-known startup accelerator program Y Combinator. It was advised that moving the company to the Bay Area would provide easier access to funding and talent. However, there are other variables, such as the existing expert network in Atlanta. He stayed in the city because of the fact that he could keep his company longer with the same amount of investment because he became friends with his family and friends and the cost of Atlanta was low.

He adds that the pandemic made it easier to find talent. With the rise of remote-first work culture throughout the tech industry, he can hire workers anywhere in the world.

He also felt that it was important for truck rental companies to start with most typical layout and demographic cities in the United States. “I thought that if I could achieve that in Atlanta, I could achieve it everywhere.”

Sign up for our weekly newsletter for more information on WSJ technology analysis, reviews, advice and headlines.

Write to Christopher Mims (christopher.mims@wsj.com)

Copyright © 2022 DowJones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

..

About the author

Funviralpark

Leave a Comment