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  #1  
Old Posted Sep 13, 2012, 9:41 PM
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San Francisco's urban tech boom

San Francisco's urban tech boom


September 8, 2012

By Richard Florida



Read More: http://www.sfgate.com/opinion/articl...om-3850039.php

Quote:
Pinterest's recent move from Palo Alto to San Francisco has sparked chatter in the high-tech world: Is the Bay Area's innovative center of gravity shifting away from suburban Silicon Valley to urban San Francisco? The answer is a qualified yes. The tech migration is not just a phenomenon of San Francisco - it's happening in New York's downtown Silicon Alley and East London's once rundown and raw Silicon Roundabout. This emerging model of "urban tech" just seems to fit downtown San Francisco especially well.

For one, the city is filled with the dense, gritty districts where young techies increasingly prefer to live and work. San Francisco's inner-city neighborhoods, some blighted and now transitioning, are a huge draw for this new generation of techies, who don't want big, cookie-cutter suburban houses and prefer walkable areas that enable them to live close to their friends and the amenities they need. To capture these workers, Google has long run its famous daily bus between the city and the Googleplex in Mountain View.

The city's urban center also is filled with easily repurposed and relatively inexpensive older warehouses and factory lofts, as well as industrial, commercial and other mixed-use buildings that companies can retrofit into the flexible, creative spaces to which this new breed of techies are drawn. Case in point: The Mid-Market neighborhood. Just last year, The Chronicle noted that "Market Street was once a destination, featuring now-shuttered theaters with lights so bright, the street was dubbed the Great White Way. But the glory faded into disrepair in the 1960s, when the street was torn up for construction of the Bay Area Rapid Transit system. Now, it's best known for homeless people, drug deals and the stench of urine." A year later, it's home to Twitter's headquarters in a formerly vacant 1937 Art Deco landmark.

These neighborhoods and districts also enable companies to draw on the amenities - coffee shops, restaurants, take-out shops, food trucks, dry cleaners and gyms that tech workers require - without having to put them and pay for them on campus. Apple's San Francisco flagship is open seemingly 24/7 to serve just this group with their flexible hours and blending of work and after-work life. San Francisco's neighborhoods have the additional advantage of public transit - BART, Muni Metro, buses and cable cars - that enable workers, customers and residents to get around without owning a car. They also provide the urbanity and lively street culture that bring people together, encouraging serendipitous interactions. When smart people rub together in different groupings and places, they spark new ideas, which ultimately generate even more startups. Surprisingly, as expensive as it is, San Francisco offers would-be entrepreneurs a significant cost advantage over Silicon Valley.

Office space for tech companies runs $3.55 per square foot per month in San Francisco compared with $5.78 in downtown Palo Alto, $4.81 in the Palo Alto-Stanford Park area and $5.21 in Menlo Park, according to figures from real estate firm Cushman & Wakefield reported in June on Gigaom.com. This is partly due to its supply of older industrial and commercial buildings that can be redeveloped into high-tech offices. For all these reasons, San Francisco has emerged as a high-tech power, closing in on and in some cases overtaking its well-established neighbor. The San Francisco metropolitan area ranked third in my ranking of America's high-tech metros, trailing only Seattle and Silicon Valley. And it placed second, behind Boulder, Colo., on my overall creativity index, which assesses regions on the "3Ts" of economic development (see box). And it topped the list of venture-capital investments in 2011, with $8.6 billion compared with $6.9 billion for Silicon Valley, according to data from the National Venture Capital Association.

.....



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  #2  
Old Posted Sep 13, 2012, 10:45 PM
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Where the hell did you get this thread title? That isn't what the article says at all.
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Old Posted Sep 14, 2012, 12:11 AM
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Why don't they just move San Francisco out to Silicon Valley? It's a simple solution.
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Old Posted Sep 14, 2012, 12:56 AM
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not if this guy has anything to say about it:

the ice....is going to break!
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Old Posted Sep 14, 2012, 1:01 AM
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Richard Florida, at it again:

Quote:
Two key characteristics of creative ecosystems are cutting-edge music and art scenes and openness to gays and lesbians as well as immigrants and outsiders in general. San Francisco gave birth to the Jefferson Airplane, Big Brother and the Holding Company and countless other bands that shaped its innovative 1960s sound. And it has long been the epicenter of gay culture and the gay-right's movement.
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Old Posted Sep 14, 2012, 1:09 AM
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Nonsense.

San Francisco has pretty much nothing to do with what makes Silicon Valley so successful. It's just the lucky beneficiary of its proximity to it..
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Last edited by the urban politician; Sep 14, 2012 at 3:43 AM.
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  #7  
Old Posted Sep 14, 2012, 1:53 AM
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So "gay culture" and Jefferson Airplane created Silicon Valley? Wow, now I know!
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  #8  
Old Posted Sep 14, 2012, 2:05 AM
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Quote:
Originally Posted by the urban politician View Post

San Francisco has pretty much nothing to do with what Silicon Valley so successful. It's just the lucky beneficiary of its proximity to it..
It's pretty ridiculous to claim that SF has nothing to do with Silicon Valley. Half of Silicon Valley as it is more commonly defined (Santa Clara County + the southern parts of San Mateo and Alameda counties) is within the SF MSA, and the entire thing is within the SF CSA. Silicon Valley formed largely because of the presence of Stanford, and Stanford is where it is becuase of SF.

And SF is arguably a part of "silicon valley" already, at least according to the San Jose mercury news:

Quote:
O'Brien: Welcome to the new and expanded Silicon Valley

By Chris O'Brien
Mercury News Columnist
Posted: 04/21/2012 03:00:00 PM PDT
Updated: 04/23/2012 12:02:18 PM PDT

What is Silicon Valley?

For some people, it's a place. For others, it's a way of doing business. And for others still, it's a synonym for the technology industry.

But whatever meaning you attach to "Silicon Valley," the precise definition has shifted over time as the local economy and technology have evolved. And so, with the publication of the 27th annual SV150 list today, we are expanding our definition of what we mean when we talk about Silicon Valley.

After years of drawing a sharp circle that included Santa Clara County as well as southern San Mateo and Alameda counties, this newspaper is expanding the geographic boundaries that it considers to be part of Silicon Valley to include the five core Bay Area counties: Santa Clara, San Mateo, San Francisco, Alameda and Contra Costa. This is recognition, perhaps overdue, that the kinds of entrepreneurial companies and industries once tightly clustered in the South Bay can now be found throughout the region.

That's certainly the case with San Francisco, which is now by some measures the startup capital of the world. But it's also true to a lesser extent for the East Bay, which has staked its claim to a share of the innovation economy.

When I floated this expanded definition to several people who have long studied Silicon Valley, I expected it to rankle some purists. It did not. The only disagreements came about how far to widen the circle, particularly when it came to
including the East Bay. But no one in my admittedly limited survey expressed disagreement with the fundamental need to revisit the boundaries of Silicon Valley.

Russell Hancock is president and CEO of Joint Venture: Silicon Valley Network, an organization founded in 1993 by several South Bay local governments and tech businesses with a mandate to focus on a specific geographic area that stretched almost up to the San Francisco border on the Peninsula and Fremont in the East Bay.

The idea was to get a region driven by a common industry to work together to address similar economic and social issues.

Now that the tech industry has expanded its areas of local economic influence, Hancock said his organization will eventually have to reconsider its own definition and its relationship to other parts of the Bay Area.

"It's a head-scratcher for us, but we're going to have to grapple with this," Hancock said. "This is a technology region, but how do you define and measure it? We want to be experts on that question. The day is going to have to come when we incorporate San Francisco into those measurements."

According to legend, the phrase "Silicon Valley" was coined by Ralph Vaerst, a California entrepreneur, and first published by trade journalist Don Hoefler in 1971. The phrase reflected the notion that Santa Clara County had become home to a growing cluster of semiconductor companies.

Much has changed since then. Over time, tech companies crept further up the Peninsula and around to the East Bay. By the early '90s, the SV150 list, initially focused on Santa Clara County companies, expanded to include San Mateo County and the southern parts of Alameda County.

Not only was the geographic boundary shifting, but so was the technology. Silicon Valley over time has grown to include software, networking equipment, the Web, biotechnology and more recently cleantech. Indeed, the chip industry that gave rise to the name has long since ceded its role as the region's leading tech industry, making the "Silicon" part of the name outdated.

"I think it's a fascinating process whereby the firms and the innovation ecology have spread in every direction it could," said AnnaLee Saxenian, dean of the UC Berkeley School of Information and a longtime observer and researcher of the valley's evolution.

Over the past few years, that push has made the tech industry the leading economic engine of San Francisco. Technology made its presence in San Francisco felt back in the early 1990s, when "Multimedia Gulch" emerged as a leading center of interactive technologies like CD-ROMs.

That gave way to the dot-com boom that left the city devastated after the bust in 2000.

But in recent years, the Web 2.0 generation has created a far more powerful and sustainable technology economy in the city. Last year, companies in San Francisco raised $2.87 billion in venture capital, more than any other single city on the globe.

Ron Conway, one of the valley's most influential investors through his fund, SV Angel, told me recently that five years ago, 75 percent of his portfolio companies were located on the Peninsula; now 60 percent of them are in San Francisco.

"There's a movement of technology companies to the city," Conway said. "A lot of media and e-commerce companies feel like they have to be there."

As a result, while historically lacking in tech IPOs, San Francisco has seen some of the most notable public offerings over the past year, including Zynga and Yelp. Indeed, with our new definition, the city has six companies on the SV150, led by Salesforce.com at No. 31.

While the case for San Francisco is solid, what about the East Bay?

READ MORE: http://www.mercurynews.com/chris-obr...ercurynews.com
SF city-proper has plenty of tech related businesses. Take a look at the "Communications Equipment", "Computer Services", and "Software and Programming" sections of this list:

http://en.wikipedia.org/wiki/List_of...ions_Equipment

That's over 50 tech companies in SF city-proper, which kind of makes it clear why it makes sense to include SF in the modern definition of "Silicon Valley", especially when you also take the information from that article above into account. At the very least it should make the case that SF does have "something to do" with Silicon Valley, even if one disagrees that it is a part of it.

Will SF ever become the center of Silicon Valley? I kind of doubt that will happen, but the tech industry has long had a presence in SF itself, and is on the rise currently. SF has for a long time been connected to Silicon Valley, and by a lot more than just proximity.
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Old Posted Sep 14, 2012, 4:17 AM
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I am personally happy about this trend toward urban offices for tech companies. In the past it was more common for them to be out in office parks. Many of the startups in Vancouver are in cheap "Gastown" (marginal Downtown Eastside similar to SF's Tenderloin) offices and many of the actually funded companies still look for offices in the city. I think Microsoft and Amazon are downtown too.

As the article says, the supply of old office and warehouse buildings is definitely a draw. Lots of people would like to be in Palo Alto but it's a small place so it has become very expensive. For Google-sized companies places like Mountain View might continue to be the norm simply because it would be difficult to set up such a large campus in San Francisco.
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Old Posted Sep 14, 2012, 2:36 PM
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Quote:
Originally Posted by fflint View Post
Where the hell did you get this thread title? That isn't what the article says at all.
Fixed.
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Old Posted Sep 14, 2012, 3:15 PM
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It begs the question, didn't young techies prefer living in gritty urban neighborhoods in the 90s? I dare say yes based on my friends in the industry. Why did Google and Facebook, as two examples, make the palo alto area their headquarters?
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Old Posted Sep 14, 2012, 3:30 PM
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I'd say it's about the company leaders' personal preference first. Then it's about the availability of space, including room to expand.

Companies that locate centrally often say that recruitment and retainage are key reasons why.

Companies that locate on campuses often talk about encouraging their staffs to work long hours. Free dry cleaning isn't just a perk, but also a way to keep people on-campus. It's sort of like a casino making it hard to find an exit or a clock.
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Old Posted Sep 14, 2012, 3:32 PM
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Quote:
Originally Posted by tech12 View Post
It's pretty ridiculous to claim that SF has nothing to do with Silicon Valley.
Yeah its hilarious.

Many SV luminaries actually live in SF and even more live in the SF Metro Area. Its a matter of out of towners not really knowing what theyre talking about--happens a bit in the case of the SF and SJ MSAs. lol

Anyway, here's what the San Jose Mercury News says(per your link):
After years of drawing a sharp circle that included Santa Clara County as well as southern San Mateo and Alameda counties, this newspaper is expanding the geographic boundaries that it considers to be part of Silicon Valley to include the five core Bay Area counties: Santa Clara, San Mateo, San Francisco, Alameda and Contra Costa. This is recognition, perhaps overdue, that the kinds of entrepreneurial companies and industries once tightly clustered in the South Bay can now be found throughout the region.

This has been a long time coming as the City itself as well as the East Bay now have a sizable tech presence that is growing-particularly the City itself.

And this is not new, its been like that forever.
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Old Posted Sep 14, 2012, 3:35 PM
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Google has their own shuttle bus network that brings workers to Mountain View from all over the Bay Area including my neighbor in Oakland:
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Old Posted Sep 14, 2012, 7:27 PM
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Quote:
Originally Posted by Chase Unperson View Post
It begs the question, didn't young techies prefer living in gritty urban neighborhoods in the 90s? I dare say yes based on my friends in the industry. Why did Google and Facebook, as two examples, make the palo alto area their headquarters?
Because people are conflating anything on the internet (such as Pinterest) with "tech." Some companies can exist within a little office, some require a huge campus. It depends greatly on the goods provided and services rendered, which are hardly uniform across the board.
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Old Posted Sep 14, 2012, 8:02 PM
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Originally Posted by krudmonk View Post
Because people are conflating anything on the internet (such as Pinterest) with "tech." Some companies can exist within a little office, some require a huge campus. It depends greatly on the goods provided and services rendered, which are hardly uniform across the board.
That's a great point.

And the above claim that SF has nothing to do with silicon valley and just happens to be 30 miles away is absurd.

Tech is to San Francisco as Jazz is to New Orleans.
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