[Annotated] Why startups are leaving Silicon Valley

Its primacy as a technology hub is on the wane^[각주:1]. That is cause for concern^[각주:2]

"Like Florence in the Renaissance." That is a common description of what it is like to live in Silicon Valley. America's technology capital has an outsize influence on^[각주:3] the world's economy, stockmarkets and culture. This small portion of land running from San Jose to San Francisco is home to three of the world's five most valuable companies. Giants such as Apple, Facebook, Google and Netflix all claim Silicon Valley as their birthplace^[각주:4] and home, as do trailblazers such as^[각주:5] Airbnb, Tesla and Uber. The Bay Area has the 19th-largest economy in the world, ranking above Switzerland and Saudi Arabia. 

The Valley is not just a place. It is also an idea. Ever since Bill Hewlett and David Packard set up in a garage nearly 80 years ago, it has been a byword for innovation^[각주:6] and ingenuity^[각주:7]. It has been at the center of several cycles of Schumpeterian destruction and regeneration, in silicon chips, personal computers, software and internet services. Some of its inventions have been ludicrous^[각주:8]: internet-connected teapots, or an app that sold people coins to use at laundromats^[각주:9]. But others are world-beaters^[각주:10]: microprocessor chips, databases and smartphones all trace their lineage to the Valley^[각주:11]. 

Its combination of engineering expertise^[각주:12], thriving^[각주:13] business networks, deep pools of capital^[각주:14], strong universities and a risk-taking culture^[각주:15] have made the Valley impossible to clone^[각주:16], despite many attempts to do so^[각주:17]. There is no credible rival for^[각주:18] its position as the world's pre-eminent innovation hub^[각주:19]. But there are signs that the Valley's influence is peaking^[각주:20]. If that were simply a symptom of much greater innovation elsewhere, it would be cause for cheer^[각주:21]. The truth is unhappier^[각주:22]. 

Silicon Plateau^[각주:23]

First, the evidence that something is changing. Last year more Americans left the country of San Francisco than arrived. According to a recent survey, 46% of respondents say^[각주:24] they plan to leave the Bay Area in the next few years, up from 34% in 2016. So many startups are branching out into new places^[각주:25] that the trend has a name, "Off Silicon Valleying". Peter Thiel, perhaps the Valley's most high-profile venture capitalist^[각주:26], is among those upping sticks^[각주:27]. Those who stay have broader horizons: in 2013 Silicon Valley investors put half their money into startups outside^[각주:28] the Bay Area; now it is closer to two-thirds. 

The reasons for this shift are manifold^[각주:29], but chief among them is the sheer expense of^[각주:30] the Valley. The cost of living is^[각주:31] among the highest in the world. One founder reckons^[각주:32] young startups pay at least four times more to operate in^[각주:33] the Bay Area than in most other American cities. New technologies, from quantum computing to synthetic biology^[각주:34], offer lower margins than^[각주:35] internet services, making it more important for startups in these emerging fields to husband their cash^[각주:36]. All this is before taking into account^[각주:37] the nastier features of^[각주:38] Bay Area life: clogged traffic^[각주:39], discarded^[각주:40] syringes^[각주:41] and shocking inequality. 

Other cities are rising in relative importance as a result. The Kauffman Foundation, a non-profit group that tracks entrepreneurship, now ranks the Miami-Fort Lauderdale area first for startup activity in America, based on the density of^[각주:42] startups and new entrepreneurs. Mr Thiel is moving to Los Angeles, which has a vibrant tech scene^[각주:43]. Phoenix and Pittsburgh have become hubs for autonomous vehicles^[각주:44]; New York for media startups; London for fintech^[각주:45]; Shenzhen for hardware. None of these places can match the Valley^[각주:46] on its own^[각주:47]; between them, they point to a world^[각주:48] in which innovation is more distributed. 

If great ideas can bubble up in more places^[각주:49], that has to be welcome^[각주:50]. There are some reasons to think the playing-field for^[각주:51] innovation is indeed being levelled up^[각주:52]. Capital is becoming more widely available to bright sparks everywhere^[각주:53]: tech investors increasingly trawl the world^[각주:54], not just California, for hot ideas. There is less reason than ever for a single region to be the epicenter of technology^[각주:55]. Thanks to the tools that the Valley's own firms have produced, from smartphones to video calls to messaging apps^[각주:56], teams can work effectively from different offices and places. A more even distribution of wealth may be one result, greater diversity of thought another. The Valley does many things remarkably well, but it comes dangerously close to being a monoculture^[각주:57] white male nerds. Companies founded by women received just 2% of the funding doled out by^[각주:58] venture capitalists last year. 

Shadow of^[각주:59] the colossi^[각주:60] 

The problem is that the wider playing-field for innovation is also being levelled down^[각주:61]. One issue is the dominance of the tech giants. Startups, particularly those in the consumer-internet business, increasingly struggle to attract capital in the shadow of Alphabet^[각주:62], Apple, Facebook et al^[각주:63]. In 2017 the number of first financing rounds in America was down by around 22% from 2012. Alphabet and Facebook pay their employees so generously that startups can struggle to attract talent (the median salary at^[각주:64] Facebook is $240,000). When the chances of startup success are even less certain and the payoffs not so very different from^[각주:65] a steady job at one of the giants, dynamism suffers^[각주:66] - and not just in the Valley. It is a similar story in China, where Alibaba, Baidu and Tencent are responsible for close to half of all domestic venture-capital investment^[각주:67], giving the giants a big say in^[각주:68] the future of potential rivals. 

The second way in which innovation is being levelled is by increasingly^[각주:69] unfriendly^[각주:70] policies in the West. Rising anti-immigrant^[각주:71] sentiment^[각주:72] and tighter visa regimes of^[각주:73] the sort introduced by President Donald Trump have economy-wide^[각주:74] effects^[각주:75]: foreign entrepreneurs create around 25% of new companies in America. Silicon Valley first bloomed^[각주:76], in large part^[각주:77], because of government largesse. But state spending on^[각주:78] public universities throughout America and Europe has fallen since the financial crisis of 2007-08. Funding for basic research is inadequate^[각주:79] - America's federal-government spending on R&D was 0.6% of GDP in 2015, a third of what it was in 1964 - and heading in the wrong direction^[각주:80]. 

If Silicon Valley's relative decline heralded the rise of^[각주:81] a global web of thriving, rival tech hubs, that would be worth celebrating. Unfortunately, the Valley's peak^[각주:82] looks more like a warning that innovation everywhere is becoming harder. 

1. be on the wane[decline] ; 줄어드는[시들해지는] 중인 ;; 쇠미해 가고 있다 ;; be becoming smaller or less strong [본문으로]
2. cause for concern ; 염려할 이유, 걱정할 이유 [본문으로]
3. outsize ; [주로 명사 앞에 씀] 1. (보통 것보다) 대형의 ;; [ADJ] Outsize or outsized things are much larger than usual or much larger than you would expect. [본문으로]
4. birthplace ; 2. (무엇의) 발생지 [본문으로]
5. trailblazer ; [명사] 개척자, 선구자 ;; 참조 blaze a trail [본문으로]
6. byword ; [주로 단수로] 1. a ~ for sth (특정한 자질의) 전형[대명사] [본문으로]
7. ingenuity ; [U] 기발한 재주, 재간, 독창성 ;; 유의어 inventiveness [본문으로]
8. ludicrous ; [형용사] 터무니없는 ;; 유의어 absurd, ridiculous ;; 미국∙영국 [ˈluːdɪkrəs] [본문으로]
9. laundromat ; 2. [l~] 빨래방(launderette; coin laundry) ;; ORIGIN ; laundry + automatic [본문으로]
10. world-beater ; [명사] 세계 제1인자[최고의 것] ;; (美) 크게 성공한 사람; 큰 성공이 기대되는 사람. ;; [NOUN] If you describe a person or thing as a world beater, you mean that they are better than most other people or things of their kind. [본문으로]
11. trace one's lineage to ~ ; 모든 혈통, 근본을 ~에서 찾을수 있다. [본문으로]
12. expertise ; [U] ~ (in sth/in doing sth) 전문 지식[기술] ;; [NOUN] Expertise is special skill or knowledge that is acquired by training, study, or practice. [본문으로]
13. thriving ; [형용사] 1. 번성[번영]하는, 번화한; 성대한 [본문으로]
14. pool ; 4. [C] ~ (of sth) 공동 이용 자금[물자] [본문으로]
15. risk-taking ; [U] (어떤 일을 성취하는 데 따르는) 위험을 각오함[위험 부담] [본문으로]
16. clone ; [타동사] 1. [타동사] 복제하다 [본문으로]
17. despite ; 1. …에도 불구하고 ;; 유의어 in spite of [본문으로]
18. credible ; 1. 믿을[신뢰할] 수 있는 유의어 convincing ;; 2. (성공하리라고 보고) 받아들일 만한, 믿을 만한 ;; 유의어 viable [본문으로]
19. preeminent ; [형용사] (또는 pre-eminent) (…에/…가운데서) 탁월한, 발군의, 걸출한[in /among]; 우위[상위]의; 현저한. ;; 유의어 dominant, distinguished, superior, excellent, conspicuous [본문으로]
20. peak ; [자동사][V] 절정[최고조]에 달하다 [본문으로]
21. cheer ; [명사] 3. [U] (격식 또는 문예체) 쾌활함, 생기 ;; 4. 격려(encouragement). [본문으로]
22. unhappy ; (un·hap·pier, un·happi·est) (more unhappy와 most unhappy도 흔히 쓰인다.)&bsp1; 1. 불행한, 슬픈 ;; 2. ~ (about/at/with sth) 불만족스러워 하는, 기분이 나쁜 ;; 3. (격식) 불운한; 부적절한 [본문으로]
23. plateau ; (pl. plateaux 또는 plateaus[-təʊz; 美 -ˈtoʊz]) 1. 고원 ;; 2. 안정기; 정체기 ;; [자동사][V] ~ (out) 안정[정체] 상태를 유지하다 ;; 미국식 [plæˈtoʊ] 영국식 [ˈplætəʊ] [본문으로]
24. respondent ; 1. (특히 실태 조사에서) 응답자 ;; [NOUN] A respondent is a person who replies to something such as a survey or set of questions. [본문으로]
25. branch out (into something) ; (새로운 사업을) 시작하다[(새로운 분야로) 진출하다] [본문으로]
26. high-profile ; [형용사] (주로 명사 앞에 씀) 세간의 이목을 끄는 ;; 참조 profile ;; 고자세의; 세간의 이목을 끄는, 눈에 띄는. ;; [ADJ] A high-profile person or a high-profile event attracts a lot of attention or publicity. [본문으로]
27. up sticks (and go, etc.) ;; (살던 집에서) 갑자기 이사를 가다 ;; leave your home in order to move to another one [본문으로]
28. put money into sth ; ~에 돈을 투자하다 [본문으로]
29. manifold ; [형용사] (격식) (수가) 많은; 여러 가지의 [본문으로]
30. sheer ; 1. [명사 앞에만 씀] (크기정도양을 강조하여) 순전한 [본문으로]
31. the cost of living ; [명사] 생활비 [본문으로]
32. reckon ; 1. (비격식, 특히 英) (…라고) 생각하다 [본문으로]
33. operate ; 4. [자동사][V] (사업체·기관 등이 특정한 방식으로 또는 특정한 곳에서) 영업[작업]하다 [본문으로]
34. synthetic biology ; (지식경제용어) 합성생물학 ;; [NOUN] the application of computer science techniques to create artificial biological systems [본문으로]
35. margin ; 6. 〈상업〉 차익금, 마진, 판매 수익; 〈경제〉 (생산비를 보상하기에 족한) 한계 수익점. [본문으로]
36. husband ; [타동사][VN] (격식) 절약하다 [본문으로]
37. take (sth) into account ; …을 고려하다, 참작하다, 계산에 넣다 [본문으로]
38. nasty ; (nas·tier, nas·ti·est) 1. (아주 나빠서) 끔찍한, 형편없는 [본문으로]
39. clog ; [타동사] [흔히 수동태로] (-gg-) ~ (up) (with sth) | ~ sth (up) (with sth) 막다; 막히다 [본문으로]
40. discard ; 1. [타동사][VN] ~ sb/sth (as sth) (불필요한 것을) 버리다, 폐기하다 [본문으로]
41. syringe ; 1. 주사기. ;; 2. 세척기(洗滌器), 관장기 ; 물총(squirt). ;; 흐름상 "약물, 마약 오남용" 정도를 의미하는 것으로 보임 [본문으로]
42. density ; (pl. -ties) 1. [U] 밀도, 농도, (안개 등의) 짙음; (인구의) 조밀도 [본문으로]
43. scene ; 5. [sing.] the scene, the… scene (비격식) (활동의) 분야[-계(界)] [본문으로]
44. autonomous vehicle ; 자유주행차량 [본문으로]
45. fintech ; 핀테크(FinTech)는 Finance(금융)와 Technology(기술)의 합성어로, 금융과 IT의 융합을 통한 금융서비스 및 산업의 변화를 통칭한다. 금융서비스의 변화로는 모바일, SNS, 빅데이터 등 새로운 IT기술 등을 활용하여 기존 금융기법과 차별화된 금융서비스를 제공하는 기술기반 금융서비스 혁신이 대표적이며 최근 사례는 모바일뱅킹과 앱카드 등이 있다. 산업의 변화로는 혁신적 비금융기업이 보유 기술을 활용하여 지급결제와 같은 금융서비스를 이용자에게 직접 제공하는 현상이 있는데 애플페이, 알리페이 등을 예로 들 수 있다. * 핀테크라는 용어를 가장 빈번하게 사용하는 영국의 경우, 기술기반 금융서비스 혁신을 전통 핀테크(Traditional Fintech)로, 혁신적 비금융기업의 금융서비스 직접 제공을 신생 핀테크(Emergent Fintech)로 정의한다. [본문으로]
46. match ; 2. 일치하다, 아주 비슷하다 ;; 4. [타동사][VN] 맞먹다, 필적[대등]하다 ;; 유의어 equal [본문으로]
47. on one's own ; 1. 혼자서, 단독으로(alone) ;; 2. 자력으로, 자기 책임 아래; 독립해서 ;; 3. 훌륭한; 현저한 [본문으로]
48. point to ; 1. (이유로) ~을 들먹이다 ;; 2. ~을 시사하다[나타내다] ;; 1.to mention something that you think is important and/or the reason why a particular situation exists ;; 2.if a fact, event or situation points to something, it suggests that this is true or likely to happen [본문으로]
49. bubble up ; (샘물이) 콸콸 솟다; 끓어오르다, 거품이 일다; 번영하다 [본문으로]
50. welcome ; [형용사] 2. (사람들이) 환영받는 [본문으로]
51. playing-field ; 1. [英] (공설) 경기장, 운동장. ;; 2. [美] (경기 종목에 의해 확정되는) 경기 장소. ;; 비유적으로 활용한 것을 확인 [본문으로]
52. level ; [타동사] 2. 수평으로 놓다, 같은 높이로 하다 ((up, down)) ;; 4. <신분·지위·상태·차이 등을> 평등하게 하다; <차별을> 없애다(equalize) ((out, off)) ;; 흐름상 "be levelled up"으로 해서 "수준이 향상되었다" 정도로 이해할 수 있어 보임 [본문으로]
53. available to ; …가 이용 가능한. [본문으로]
54. trawl ; 1. ~ (through sth) (for sth/sb) | ~ sth (for sth/sb) 대대적으로 조사하다, 샅샅이 훑다 ;; 미국∙영국 [trɔːl] [본문으로]
55. epicenter ; 2. (활동 따위의) 중심(점), 중핵(中核), 중추; 핵심. ;; 미국∙영국 [épəsèntər] [본문으로]
56. from A to B to C 형태로 사용한 것을 확인 [본문으로]
57. monoculture ; 2. [C, U] 단일 민족[문화] 사회 [본문으로]
58. dole something out (to somebody) ;; (~에게) ~을 조금씩 나눠 주다 ;; to give money, food, etc. to a group of people ;; 미국식 [doʊl] 영국식 [dəʊl] [본문으로]
59. shadow ; 4. [sing.] ~ of sb/sth (보통 나쁜) 영향, 그늘 [본문으로]
60. colossi ; 1. [sing.] (격식) 대단히 중요한 사람[것]; 거인, 거대한 것 ;; 2. [C] (pl. co·lossi[kəˈlɒsaɪ; 美[-ˈlɑːs-]) 거대한 조각상, 거상(巨像) [본문으로]
61. be levelled down ; 흐름상 "수준이 떨어지다" 정도의 의미로 보임 [본문으로]
62. in the shadow of ; …에 아주 접근하여; …의 영향 아래 ;; 1.very close to ;; 2.when you say that somebody is in/under the shadow of another person, you mean that they do not receive as much attention as that person [본문으로]
63. et al ; [약어] (특히 이름들 뒤에 써서) 외(라틴어 et alii/alia에서) ;; 미국∙영국 [ˌet ˈæl] [본문으로]
64. median ; [명사 앞에만 씀] (전문 용어) 1. 중간값[중앙치]의 ;; 미국∙영국 [ˈmiːdiən] [본문으로]
65. payoff ; 3. (일련의 사건·행위·상황 따위의) 결말, 매듭; 결정적 사실[요소]. ;; 5. 보수, 대가; 보답, 앙갚음; (해고 때 주는) 급료, 퇴직금. [본문으로]
66. dynamism ; 2. 활력, 패기, 박력 ;; 미국∙영국 [ˈdaɪnəmɪzəm] ;; [NOUN] If you say that someone or something has dynamism, you are expressing approval of the fact that they are full of energy or full of new and exciting ideas. [본문으로]
67. venture-capital ; (經) 모험 자본, 위험 부담 자본, 벤처 캐피털(=equity capital, risk capital) [본문으로]
68. say ; [명사] [sing., U] ~ (in sth) 발언권; 결정권 [본문으로]
69. increasingly ; [ADV] You can use increasingly to indicate that a situation or quality is becoming greater in intensity or more common. [본문으로]
70. unfriendly ; ~ (to/towards sb) [ADJ] If you describe a person, organization, or their behaviour as unfriendly, you mean that they behave towards you in an unkind or rather hostile way. [본문으로]
71. anti-immigrant ; (politics) Opposing immigrants or immigration. [본문으로]
72. sentiment ; [C, U] (격식) 정서, 감정 ;; [NOUN] [supp N] A sentiment that people have is an attitude which is based on their thoughts and feelings. [본문으로]
73. regime ; 2. 사회 제도(social system), 제도(institution). ;; 미국∙영국 [reɪˈʒiːm] [본문으로]
74. -wide ; ((연결형)) 「…의 범위에 걸친; …전체의; 전(全) …의」의 뜻 ;; [COMB in ADJ] -wide combines with nouns to form adjectives which indicate that something exists or happens throughout the place or area that the noun refers to. [본문으로]
75. economy-wide ; 범경제, 경제 전반에 걸친 [본문으로]
76. bloom ; [자동사] 2. 번영하다; 한창(때)이다 [본문으로]
77. in large part ; (격식) 아주 크게[많이] ;; 유의어 in large measure [본문으로]
78. spending ; [U] (정부·조직체의) 지출 [본문으로]
79. inadequate ; 1. ~ (for sth) | ~ (to do sth) 불충분한, 부적당한 ;; [ADJ] If something is inadequate, there is not enough of it or it is not good enough. [본문으로]
80. head for the direction 이 아니라 head in the direction 으로 사용한 것을 확인 [본문으로]
81. herald ; [VN] (격식) 1. [타동사] (앞으로 있을 일을[의]) 예고하다[도래를 알리다] ;; 2. [타동사] [흔히 수동태로] ~ sb/sth (as sth) (좋은 일중요한 일을) 알리다[발표하다] ;; [VERB] Something that heralds a future event or situation is a sign that it is going to happen or appear. [본문으로]
82. peak ; 1. [주로 단수로] 절정, 정점, 최고조 ;; 유의어 height ;; 참조 off-peak [본문으로]