The United States has long held a virtual monopoly over global tech. Funding by the Pentagon throughout the ‘50s and ‘60s spurred on what would become the country’s most important and dynamic economic engine. By the 1970s, the United States had the unquestioned hegemonic hold over the global tech industry.
But one of Silicon Valley’s most accomplished venture capitalists and tech entrepreneurs, Shervin Pishevar, believes that the era of U.S. tech dominance is rapidly coming to a close. Shervin Pishevar cites the rapid increase of successful startups all around the world as evidence that the United States is losing its grip over the creation of new tech companies and products. He says that Silicon Valley has now become more of an idea than a physical place. The silver lining, says Shervin Pishevar, is that the United States has given the world a great toolset for innovation and economic expansion. The bad news, however, is that places like Silicon Valley are slated for eventual collapse as innovators across the world begin to realize that they have no use for physical location within the San Francisco Bay Area.
Shervin Pishevar says that there are two factors that are likely to make the rapid globalization of the tech startup industry even more harsh on the Bay Area. The first is that the cost of living, largely driven by a huge bubble in home prices, all around the Silicon Valley area is so high that the area is now beginning to hemorrhage even upper-middle-class residents. At the same time, location independence of modern entrepreneurs is increasing by the year. Pishevar says that innovations like Skype and other virtual meeting technologies as well as improving coding and website development protocols are making physical colocation a relic of the past.
Pishevar says that modern, cutting-edge tech startups increasingly may have different team members located in dozens of cities across the globe. And when tech entrepreneurs can choose to live in a 5,000-square-foot home in the Philippines for one tenth of what a 500 square foot apartment would cost in San Francisco, the rational choice becomes glaringly obvious.