“but he couldn’t have surveilled his employees, much less his customers, like Google or Meta”

Joel Catkin:

But the Valley has slowly left the industrial battlefield — it has lost over 160,000 manufacturing positions over the past two decades. It bought into the idea that the unique genius of its financial and corporate culture would be enough for it to thrive and profit as production headed first to Japan, then China and, more recently, to other parts of North America.

This is a familiar story. Consider, for example, how British industry lost its edge: the Industrial Revolution created a new class of tycoons; then the tycoons’ sons sought a return to the aristocratic past, eschewing dirty factories for elegant postings in the City or a relaxed life in their country estates. More recently, Detroit’s world-beating automotive industry squandered its technological and manufacturing advantages in a rush, pushed by Wall Street and its own financial managers, to earn easy profits from inferior products.

To be clear, the Valley is not done as a major tech center. It still boasts a venture capital community, a remarkable concentration of engineering and other management talent, powerful universities and the headquarters of some of the biggest companies in the world. And it remains home to many of the tech giants that now exploit their monopolistic advantages. But that is not the same thing as being the place where the world looks for a vision of the future, as it once was. Even if the Valley still matters, it may no longer dominate the future as its denizens once assumed it would. Instead, it will face fierce competition for tech supremacy — from other countries, and other parts of this one.

This reflects two different phenomena: rising competition from other regions — and an internal rot that has infected the Valley. In its first few remarkable decades, the Valley was defined by its openness, its culture of competition and connection to the general economy. The people who built it, such as David Packard and Bill Hewlett, Fairchild Semiconductor co-founder Robert Noyce, and Apple’s Steve Jobs were, foremost, industrialists. They had a vision of how to use new technology to enhance productivity and make money.