The success of Silicon cannot be understated. The amount of innovation coming from Silicon Valley is unlike anything in human history. Before we can talk about how Texas can hope to replicate Silicon Valley’s magic, we must first discuss what made Silicon Valley special in the first place. This article will briefly discuss Silicon Valley’s history. We will also go over similarities between Silicon Valley and cities across the state of Texas.
From the very beginning, Silicon Valley had that spark that would make it famous across the world. Founded by Frederick Terman, the renowned dean of Stanford Engineering School, Silicon Valley hoped to bring together Stanford’s young innovative minds to create a breeding ground of change. In the 1950s, these students would work closely with NASA to help develop essential electronic parts for the Lunar Mission. It wasn’t until the 1970s that Silicon Valley would take the shape we would all recognize today.
The Homebrew Computer Club gave birth to some of the world’s biggest technology companies during the 1970s. Companies like Apple and Microsoft all got their start by sharing ideas with The Homebrew Computer Club. Now, Silicon Valley is a bustling town full of Fortune 500 technology companies and venture capital organizations. Many now believe Silicon Valley has lost that magic found at The Homebrew Computer club over 50 years ago.
So what made Silicon Valley so special? Was it lighting in a bottle or just a dedicated group of educators and innovators determined to create a community designed to push society forward? States like Texas show the country that the magic that allowed Silicon Valley to thrive can be replicated.
The truth is Texas has always been a leader in the technology space. Texas Instruments, a Dallas-based company founded in 1951, is one of the top 10 providers of semiconductors and other electronic devices in the world. In the late 1970s, Austin was home to over 10,000 employees from leading technology firms IBM and AMD. However, Texas was never able to develop the renown so easily found in Silicon Valley. The past decade has brought a lot of change to the state of Texas. With the state government’s help and eager startups looking to grow, Texas technology ventures are slowly on the rise. In the last ten years alone, Google and Apple have moved significant operations to Austin. This last year, Tesla and SpaceX announced it would move its world headquarters from California to Texas. One reason why so many technology companies are making a move is Texas’s renewed effort to create a friendly business environment.
Currently, Texas has some of the lowest tax rates in the country, especially when you compare them to California. Also, Texas businesses are taking a more relaxed tone for non-compete agreements with their employees. Non-compete agreements are great for companies who want to hold on to their intellectual property. However, non-compete agreements stifle innovation by making it harder for employees to move from one business to another or start their own venture. When innovative thinkers are free to move as they wish, it only helps spread good ideas throughout the industry.
As you can see, the innovation provided by Silicon Valley is not unique to California. If states like Texas are willing to put in the effort, they could create their own Silicon Valley.
Tomorrow, we will talk with Texas experts about all the positive changes that come from developing a technology hub. We will also discuss the positive social and political aspects of so many people migrating from California to Texas.
