As the economy continues to boom we’ve seen several geographical areas around the country over the last 5-6 years show signs of impressive growth and future promise. Areas like Boston, the DC, Virginia, Maryland area known as ‘Tech-Corridor’ and Southern California are quickly giving the traditional tech depots like Silicon Valley and Seattle a run for their money. With home prices in the Bay Area and Seattle eclipsing obnoxiously high levels businesses are flocking to other areas and their doing so by the droves! According to Inc Magazines Marc Emmer (a Bay Area local) upwards of 46% of Bay Area residents plan to leave “in the next few years”.
So where are they going?
Before we can answer that question we need to understand the three major fundamentals for what makes a good tech and business ecosystem: universities, money and talent.
Universities drive education which in turn drives innovation, money (VCs, corporations, private interests, etc.) provide the catalyst for development, while having an enriched talent pool ensures the jobs of today will remain input for tomorrow.
These three things combine are the building blocks for a strong and lasting ecosystem. When each of these fundamentals coexists these geographical areas turn into a ‘build it and they will come’ field of dreams scenario.
So, where are businesses moving to? Southern California!
SoCal may have been slow to catch on however the area including Los Angeles, Orange County and San Diego is quickly showing why it shouldn’t be ignored as it turns into a tech and business force to be reckoned with. Annlee Ellingson of LA Biz wrote an article based on a Boston Consulting Group tech report which outlines some of the reasons why SoCal is the next area on the block to look out for:
Key Take Away: the three major fundamentals for what makes a good tech and business ecosystem: universities, money and talent.
Action Item: One of the best things you can do to determine where the best place to be located is to review the labor pools in that area to determine if your place of business will be housed in an area that will provide you with good access to talent.
About the Author
Travis Smith is the founder and managing director of Square-1 Engineering, a life sciences consulting firm, providing end to end technical project services to companies which design, develop and or manufacture products in Southern California. He successfully served the life sciences marketplace in SoCal for over 15 years specializing in engineering services, consulting, project outsourcing and leadership development. In 2019 he was recognized as a ‘40 Under 40’ honoree by the Greater Irvine Chamber of Commerce as a top leader in Orange County, CA.