Steve Jobs from Apple, in this video, discusses the Bee Hive Effect.
http://www.youtube.com/watch?v=BstTBw6BLrE --> Minute:Second 20:07
He states, if you start a company in Montana, the person moves his family to work there, and the company fails, the person has to pick up and move again.
With Silicon Valley, you basically have to convince somebody to turn left instead of right in the morning to work at Apple so it's easy to find good talent.
Basically, Silicon Valley has the intellect, the University to feed talent, the Investment Capital and most important, the Risk Factor.
In the video, the financial backers in the early days, stated they had a passion, a purpose, evangelical, there was a lack of structure but there were processes hidden which everybody knew and followed. To give back to the community.
You have to admit, this guy was ahead of his time, a true visionary and technologically contributed to society. "You can change the world!"
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